Global Aircraft Trading System (GATS)™
The trading and financing of aircraft equipment subject to leases is an increasingly important part of the aviation industry. In recent years, as the number of trades has significantly increased, inefficiencies have developed. That has resulted in wasted time and resources for airlines, lessors and financiers alike. AWG is addressing these inefficiencies through its development of the Global Aircraft Trading System (GATS), a system designed to modernize aircraft equipment trading and financing.

The main purposes of GATS are to facilitate the trading and financing of aircraft equipment by reducing the burdens on lessees, lessors and financiers and to promote aircraft equipment trading and financing in an efficient, secure and predictable manner which, above all, protects the rights of all parties involved, including and especially the lessee's rights under the lease. GATS will increase the transparency of and confidence in aircraft trading, and further protect rights, by introducing a secure, live and searchable electronic ledger displaying details of ownership and security interests in GATS.

The rights of lessees will be protected in particular by prohibiting transfers unless agreed conditions in favor of the lessee have been satisfied or waived. GATS will further reinforce 'no increased obligations' lease provisions in favor of lessees.

GATS will be a fully electronic system, with e-signatures, e-delivery of documents and use of a secure e-ledger to record transactions. It will be a voluntary system open to all industry players. For more information on GATS, please also refer to the Frequently Asked Questions (FAQs) document.

GATS TIMING AND GATS PLATFORM

The GATS platform for electronic trading will launch by the end of the first quarter of 2020. AWG has released exposure drafts of the GATS instruments for industry review by the end of June 2019. In July 2019, the transition period will commence with the publication of finalized transition period standard form GATS instruments. Parties intending to use the GATS platform from and after launch may wish to use the transition period standard form GATS instruments to allow for efficient migration into GATS on or after the GATS platform launch. However, it is not a prerequisite to the use of GATS that the transition period instruments are used prior to the GATS platform launch.

On 29 March 2019, AWG and Fexco announced their agreement to collaborate on the GATS platform, developed by AWG. Information on the GATS platform will also be shared with, and advice will be taken from, Aviareto, the registrar of the Cape Town Convention international registry, with a view to advancing best practices on electronic systems and practices for the aviation leasing and financing sector. See Press Release for further details.

GATS GUIDANCE, E-TERMS AND INSTRUMENTS

GATS is a global system with the GATS platform to be accessible worldwide. Initially, each GATS trust will be formed in one of Ireland, Singapore or the United States (with the laws of such applicable jurisdiction governing the instruments used to create, transfer and create security interests in such GATS trusts). AWG may expand the list of available jurisdictions over time.

Guidance materials for GATS along with the GATS instruments for each jurisdiction are provided below. Parties wishing to provide comments to the exposure drafts can email Jeffrey Wool (AWG Secretary General) at Jeffrey.Wool@awg.aero

GATS Guidance, e-Terms, and Instruments:

  1. GATS Frequently Asked Questions (FAQs)
  2. GATS e-Terms [exposure draft]
  3. GATS Guidance Materials [exposure draft]
  4. GATS Transition Period Instructions [exposure draft]


NOTE: The Transition Period Instructions [exposure draft] are being provided as reference materials ahead of the transition period. The finalized transition period standard form GATS instruments will be published at the start of the transition period. The transition period instruments are substantially similar to the standard form of the equivalent GATS instrument, save that the transition period instruments may be executed manually.


United States GATS Instruments

United States GATS Trust Instruments (US-UT)

  1. GATS Trust Instrument Master Terms (US) [exposure draft]
  2. GATS Trust Instrument (US-UT) [exposure draft]
  3. GATS Trust Transfer Instrument (US-UT) [exposure draft]
  4. GATS Trust Transfer Instrument (Partial Transfers) (US-UT) [exposure draft]
  5. GATS Trust Amendment Instrument (US-UT) [exposure draft]
  6. GATS Trust Successor Trustee Transaction (US-UT) [exposure draft]
  7. GATS Trust Termination Instrument (US-UT) [exposure draft]


United States GATS Trust Instruments (US-DE)

  1. GATS Trust Instrument Master Terms (US) [exposure draft]
  2. GATS Trust Instrument (US-DE) [exposure draft]
  3. GATS Trust Transfer Instrument (US-DE) [exposure draft]
  4. GATS Trust Transfer Instrument (Partial Transfers) (US-DE) [exposure draft]
  5. GATS Trust Amendment Instrument (US-DE) [exposure draft]
  6. GATS Trust Successor Trustee Transaction (US-DE) [exposure draft]
  7. GATS Trust Termination Instrument (US-DE) [exposure draft]


NOTE: AWG is publishing draft GATS trust instruments for Utah and Delaware common law trusts. GATS trust instruments for Delaware statutory trusts and Utah business trusts will be published at a later date.

United States GATS Security Instruments (US-NY)

  1. GATS Security Instrument Master Terms (US-NY) [exposure draft]
  2. GATS Security Instrument (US-NY) [exposure draft]
  3. GATS Security Transfer Instrument (US-NY) [exposure draft]
  4. GATS Security Amendment Instrument (US-NY) [exposure draft]
  5. GATS Security Release and Discharge (US-NY) [exposure draft]



Ireland GATS Instruments

  1. GATS Trust Instrument Master Terms (Ireland) [exposure draft]
  2. GATS Trust Instrument (Ireland) [exposure draft]
  3. GATS Trust Transfer Instrument (Ireland) [exposure draft]
  4. GATS Trust Transfer Instrument (Partial Transfers) (Ireland) [exposure draft]
  5. GATS Trust Amendment Instrument (Ireland) [exposure draft]
  6. GATS Trust Successor Trustee Transaction (Ireland) [exposure draft]
  7. GATS Trust Termination Instrument (Ireland) [exposure draft]
  8. GATS Security Instrument Master Terms (Ireland) [exposure draft]
  9. GATS Security Instrument (Ireland) [exposure draft]
  10. GATS Security Transfer Instrument (Ireland) [exposure draft]
  11. GATS Security Amendment Instrument (Ireland) [exposure draft]
  12. GATS Security Release and Discharge (Ireland) [exposure draft]


Singapore GATS Instruments

  1. GATS Trust Instrument Master Terms (Singapore) [exposure draft]
  2. GATS Trust Instrument (Singapore) [exposure draft]
  3. GATS Trust Transfer Instrument (Singapore) [exposure draft]
  4. GATS Trust Transfer Instrument (Partial Transfers) (Singapore) [exposure draft]
  5. GATS Trust Amendment Instrument (Singapore) [exposure draft]
  6. GATS Trust Successor Trustee Transaction (Singapore) [exposure draft]
  7. GATS Trust Termination Instrument (Singapore) [exposure draft]
  8. GATS Security Instrument Master Terms (Singapore) [exposure draft]
  9. GATS Security Instrument (Singapore) [exposure draft]
  10. GATS Security Transfer Instrument (Singapore) [exposure draft]
  11. GATS Security Amendment Instrument (Singapore) [exposure draft]
  12. GATS Security Release and Discharge (Singapore) [exposure draft]

TRANSITIONING FROM A WELLS FARGO TRUST TO A GATS TRUST

Following the announcement by Wells Fargo Trust Company, N.A. that it intends to resign from many of its aircraft owning trusts, AWG is making available the Global Aircraft Trading System (GATS) transitional form draft documents for Utah common law trusts.

The GATS transitional forms will enable affected leasing companies seeking to take advantage of GATS to use the appointment of a new trustee as an opportunity to make their owner trusts 'GATS ready', as the GATS transitional forms are substantively the same as the standard electronic form GATS instruments, and explicitly contemplate migration of the applicable trust into GATS for efficient transition on to the GATS electronic platform, once launched.

These draft documents may be used at any time, including prior to the formal start of the transition period (expected to be on 15 July 2019). The GATS transitional forms for other jurisdictions and types of trusts will be published by AWG at the start of the transition period.

AWG has prepared instructions and information on transitioning from a Wells Fargo trust to a GATS trust, which also includes information on applying for a Unique Identification Number (UIN) for each affected trust.

The provision of these documents is not meant to limit the feedback requested on the exposure drafts.

GATS Transitional Forms Drafts:
  1. GATS Trust Instrument (US-UT) [Transition]
  2. GATS Trust Instrument Master Terms (US) [Transition] (Appendix to Trust Instrument)
  3. GATS Trust Transfer Instrument (US-UT) [Transition]
  4. GATS Security Instrument (US-NY) [Transition]
  5. GATS Security Instrument Master Terms (US-NY) [Transition] (Appendix to Security Instrument)
DOWNLOAD ALL ABOVE GATS TRANSITIONAL FORMS DRAFTS

Additional Documents:
  1. Wells Fargo Trust Company Resignations: An Opportunity to Transition to a GATS Trust
  2. Transition Period Instructions
  3. GATS Guidance Materials [exposure draft]
  4. Pre-Allocation of UINs Application Form
  5. GATS Frequently Asked Questions (FAQs)

GATS TRANSITIONAL FORMS (IRELAND)