1. CTC takes effect in Lithuania from 1 Dec — what does that change?

This finally creates a connecting factor for Lithuanian-based airlines, aviation SPVs and owners of aircraft/engines established in Lithuania. This means that: security interests and ownership rights can now be registered with the International Registry (IR), international priority rules will apply between contracting states, Lithuanian aviation entities will become fully visible within the CTC framework.

2. What changes were implemented in the aircraft registration process?

No revolutionary novelties. The Lithuanian aircraft register will check liens and interests on the International Registry and request consent from the relevant discharge holder before aircraft deregistration. In practice, this means slightly more compliance - but considerably more certainty.

3. Is IDERA implemented in Lithuania?

No. Lithuania did not ratify Article XIII of the Protocol related to IDERA. Therefore, the well-known deregistration Power of Attorney (PoA) will remain the practical contractual tool used in aircraft leasing and financing transactions.

4. Does AVERUS have a Professional User Entity (PUE) account with the IR and can assist with registrations?

Yes, AVERUS maintains a PUE account and can issue authorisation requests for transacting entities and assist with the actual IR registrations and related transactional documentation.

5. What else is relevant to the industry?

Under Lithuanian law, a Lithuanian-registered aircraft remains immovable property. This means transfer of title requires notarization for legal effectiveness. Moreover, Lithuanian notaries will check the IR and request creditor consent where applicable.

6. Will Lithuania benefit from the Convention?

Not fully - because Lithuania made no specific declarations under the Aircraft Protocol. The true value of Cape Town comes from optional declarations - especially those relating to:

(a) speedy repossession remedies,

(b) insolvency waiting periods (60-day rule),

(c) recognition of IDERA, and

(d) creditor-friendly enforcement mechanisms.

Many contracting states that opted into these provisions enjoy measurable benefits, such as:

(!) lower aircraft financing costs,

(!) improved lessor's confidence,

(!) accelerated repossession in default scenarios, and

(!) eligibility for discounted export credit guarantees under the OECD Aircraft Sector Understanding.

Lithuania currently lacks these advantages due to the absence of such declarations - but declarations can be added later, and other states have often done so after initial ratification.

Final note

This is an important milestone, and while the CTC’s full benefit requires further legislative precision from Lithuania, the step we are taking on 1 December 2025 is structurally significant. The Lithuanian aviation market becomes integrated into the global registry of interests - and that in itself is a change the industry will feel.