EGYPT Law and Practice Contributed by: Sherif El Hosseny, Malak El Amiry and Farida Degheidy, Matouk Bassiouny & Hennawy
Duties Payable for Physical Execution of a Lease and 2.3.6 Taxes/Duties Payable for Registering a Lease must be followed. 2.8.2 Lessee’s/Operator’s Consent An aircraft owner, mortgagee or lessor may apply for the deregistration of the aircraft without the lessee’s consent. In practice, the ECAA informs the lessee with the deregistration request and requests comments from the lessee or operator prior to taking any deregistra - tion actions. Customarily, the ECAA contacts Egyptian state-owned companies and authorities in the aviation industry to verify if the lessee has any outstanding dues. If the lessee is a solvent and solid one with no outstanding debts and has various aircraft in its fleet, the process is simple and deregistration may follow promptly. If not, then the ECAA may require the pay - ment of all outstanding dues to state-owned compa - nies and the process may be extended without which An original copy of the filed DPOA or IDERA is pre - sented to the ECAA along with a copy of the notice of default and the grounding notice as evidence for lease termination. Any additional documentation evidencing the lessee or operator default should be submitted as well. In addition, the ECAA will require from the aircraft owner, mortgagee or lessor evidence of representa - tion by lessor representative in the form of a power of attorney to be presented. 2.8.4 Duration of Deregistration Process If the lessee does not challenge the deregistration or if the reasons for deregistration are clear and free from doubts, deregistration may be effected within three weeks. Recently, the deregistration process became lengthier. Otherwise, the ECAA may request submis - sion of a final judgment, settlement or evidence of default (such as default notices or grounding notices) to deregister the aircraft. It should be noted that, as a practical matter, deregistration usually exceeds the three-week period and submission of settlements/ judgments/evidence of default may be required. deregistration may not be granted. 2.8.3 Required Documentation
2.8.5 Aviation Authority’s Assurances It is highly unlikely that the ECAA would provide advance assurances to an aircraft owner, mortgagee or lessor as to the prompt deregistration of the air - craft. However, such assurances have been granted on rare occasions as per the Minister of Civil Aviation’s approval to certain governmentally owned operators to conclude export credit agency-backed financing. 2.8.6 Costs, Fees and Taxes Relating to Deregistration The government costs associated with deregistration are minimal. 2.8.7 Deregistration Power of Attorney A DPOA must be filed with the ECAA to protect the rights of the beneficiary thereof. The formalities are the same as reflected for leases, assignments and novations as reflected in 2.1.5 Tax- es/Duties Payable for Physical Execution of a Lease and 2.3.6 Taxes/Duties Payable for Registering a Lease . A DPOA does not need to be translated. 2.8.8 Documents Required to Enforce Deregistration Power of Attorney Please see 2.8.3 Required Documentation . 2.8.9 Choice of Laws Governing Deregistration Power of Attorney A DPOA does not have to be governed by Egyptian laws. 2.8.10 Revocation of a Deregistration Power of Attorney If the DPOA was irrevocable, it would be enforceable against the lessee. In principle, the irrevocable power of attorney is not subject to revocation solely by the lessee. However, in the case of a dispute, the lessee may seek a court judgment revoking the same but
such a ruling is difficult to obtain. 2.8.11 Owner’s/Lessor’s Consent
An aircraft owner, mortgagee or lessor may export the aircraft without the lessee’s consent through a DPOA
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