Eric Lewin was delighted to be a member of the panel that discussed, “Has Cape Town Made a Difference?,” at the Corporate Jet Investor conference in London in January. At the end of the time allotted, Mr. Lewin, along with his fellow panelists, characterized his view of the Cape Town Convention in one of three words chosen by the moderator.
One way to characterize Mr. Lewin’s view is that the Cape Town Convention was a solution looking for a problem that did not exist. After all, if bankruptcy risk is so great, why is there not less, and/or more expensive, capital? Since becoming effective, any value the Cape Town Convention has is marginal; it has been much more effective in creating a Gordian Knot. Perhaps market participants should consider and advocate for radical solutions.