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Marsh Brothers Aviation
Marsh Brothers Aviation
The monthly news publication for aviation professionals.
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Owners need to brush up on the art of aircraft registration
The process of registering an aircraft may be more of an art than a science but sound business reasons should underpin the choice of jurisdiction. The checklist should include ease of practical operations, geographical convenience, running costs and ease of administration. Other overlapping considerations include the availability of cost-effective and professional services, the status and international acceptability of the jurisdiction and the ability to register a charge or mortgage.

The process of registering an aircraft may be more of an art than a science but sound business reasons should underpin the choice of jurisdiction.

The checklist should include ease of practical operations, geographical convenience, running costs and ease of administration. Other overlapping considerations include the availability of cost-effective and professional services, the status and international acceptability of the jurisdiction and the ability to register a charge or mortgage.

A careful weighing of these factors will often indicate which is the optimum register for any given aircraft.

Newcomers to personal aircraft ownership need to be aware of the impact that differing rules

and regulations in different jurisdictions can have.

Experienced owners and pilots will be aware that the requirements of the U.S.'s FAA and various European Civil Aviation Authorities differ in ways that can complicate arrangements, especially if there are unforeseen changes to operating requirements. Such differences can lead to what many perceive as anomalies.

A pilot who is qualified to U.S. standards can fly U.S. registered aircraft in Europe. But if the owner then decides that a European registration is more suitable or necessary, then depending upon which European country, the pilot may need to re-qualify and the aircraft may require modification which is both inconvenient and expensive. If business or personal reasons later dictate that a U.S. registration once again becomes the most suitable then the aircraft may need to be modified again back to U.S. specifications incurring further expense and inconvenience as well as further loss of utility of the aircraft while it is back in the workshop.

There can also be other complications, for example the U.S. insists that U.S. registered aircraft are U.S. owned, which is inconvenient if you are not a U.S. citizen. Fortunately there are a range of organisations that will own aircraft registered in the U.S. in trust for foreign owners.

Once an aircraft is registered in a particular jurisdiction then few owners will want to go to the expense and inconvenience of changing to another register unless they have to and therefore it is better to get the right register from the beginning.

This is only a sample of the factors that have to be considered when choosing between different registrations such as the U.S.'s

N register, the G register of the U.K. and a host of other national and offshore choices including the VP-B of Bermuda and the coming Isle of Man alternative the M register.

Offshore registrations can have advantages, not least where security is a consideration. A U.S. owner that flies regularly into the Middle East may prefer a registration that does not identify them as being American. In addition, offshore centres tend to recognise professional qualifications from North America, Europe and elsewhere, which can be useful if pilots or operational requirements change.

Obviously the offshore jurisdiction needs to be one of standing. Very few corporate owners would want to be associated with a "registration of convenience" if it was equated with the maritime "flag of convenience."

But there are many offshore jurisdictions that have good reputations.

Many yacht owners also have aircraft or helicopters and it makes sense to register them through the same jurisdiction. The Isle of Man's thriving yacht registration sector is a major factor in the Isle of Man's decision to offer a private aircraft registry primarily aimed at business aircraft. The register should be operational by spring 2007.

The Isle of Man has many benefits for the aircraft owner including an extensive professional infrastructure, well regulated and competent service providers, a very business friendly government and tax efficient holding companies - the corporation tax rate is 0 per cent. The island is also investing heavily in new facilities at its airport.

Owners of private aircraft need to take into account all such advantages and choose the most appropriate registration jurisdiction only after due consideration of short, medium and long term needs.

Mark Byrne is a director of ICM Aviation Limited of the Isle of Man and of its subsidiary Martyn Fiddler Associates Limited, based at London's Stansted Airport.