How safety as a priority creates value for aircraft owners
The Civil Aviation Authority of the Cayman Islands aims to ensure aircraft on its register are among the safest in the world, which creates longer term value for aircraft owners and financiers.
How safety as a priority creates value for aircraft owners
The Civil Aviation Authority of the Cayman Islands aims to ensure aircraft on its register are among the safest in the world, which creates longer term value for aircraft owners and financiers.
THE CAYMAN ISLANDS is one of the largest, and most stable financial centres in the world. Cayman’s political stability is underpinned by its close connection to the United Kingdom as a British Overseas Territory. With one of the lowest debts to gross domestic product (GDP) ratios in the world (5.2% December 31st 2020) the Cayman Islands Government (CIG) provides a tax neutral hub that efficiently supports global growth and recovery.
The Civil Aviation Authority of the Cayman Islands (CAACI) is the custodian of the Cayman Islands Aircraft Register (CIAR). The CAACI has evolved since its establishment in 1987 following a strategy of stable growth, differentiating through strong regulatory experience and exceptional client service. As a Statutory Authority of the CIG, the CAACI employs highly qualified and experienced full-time safety regulatory inspectors, supported by highly competent staff to ensure aircraft are registered, maintained, and operated at the highest standards that benefits all stakeholders.
Cayman registered aircraft are recognised globally as a high-value asset. The stability, and risk reduction associated with the Cayman registration creates value for financiers and their customers by lowering the cost of capital and increased residual asset values. Financiers can choose to hold onto that value or pass it on to customers. All aircraft registered in the Cayman Islands are required to have a functioning and effective Safety Management System (SMS), which increases value by adding another layer of asset protection.
The SMS is a series of processes that manage compliance, risk and give expectations that organizations continuously improve. An effective SMS lowers risk by identifying hazards/threats before they become an issue. This moves organisations into a pro-active and generative culture label, where lowering risk becomes part of the overall business planning. The CIAR does not accept aircraft onto the registry unless the organisation demonstrates an effective SMS is in place.
Thinking about purchasing an aircraft registered on the Cayman Islands Aircraft Register?
Retaining the aircraft on the CIAR to operate after purchase is more advantageous than deregistering the aircraft to another jurisdiction. Along with the added value created with the CAACI’s regulation of the CIAR aircraft to the highest safety standards with a mandatory SMS, the client service aspect including the high level of detail to the client’s needs also creates value to the operational and service experience on the CIAR.
The CIAR has a long-standing history of attention to detail for aviation safety protocol and personalised service. The CIAR is managed through a bespoke interactive aircraft document management portal called VP-C Online. This online data management system provides a secure way to manage the registration, licensing and certification processes of each aircraft “24-7-365”. Our clients find the system a very efficient and convenient way to submit requests for documents and approvals and manage the operation of the aircraft. The first phase of document submission through this online process is the registration application, where the ownership documents are submitted for due diligence review and approval. The proposed new owner has to undergo the due diligence process as a first phase of the transfer to ensure eligibility. To access the new owner requirements and due diligence checklist, please visit our website https://www.caacayman.com/aircraft-registry/registering-an-aircraft/.
A very important note
The CAACI requires the current owner to notify the authority that ownership of the aircraft will be changing as soon as possible during the purchase negotiation. Legal ownership should NOT occur prior to the CAACI being notified at [email protected]. Once a sale has occurred, the new owner has 28 days to rectify the registration through notification in the form of a cancelled
Certificate of Registration signed by the previous owner and a registration application submitted by the new owner with the full suite of required due diligence documents must be uploaded with the application. Failure to do so will result in the registration deemed invalid and the aircraft may be removed from the CIAR.
The electronic registration application process through VP-C Online is very user friendly and the upload feature for all the required due diligence documents also simplifies the process. For ease of reference, the change of ownership process is summarised as follows:
- Current owner to advise the CAACI that a transfer of ownership will be taking place.
- New Owner Due Diligence and New Registration application to be submitted and approved by the CAACI.
- Aircraft account under the current owner to be paid in full.
- Current mortgages or leases to be discharged or terminated. Mortgages registered over the aircraft will have to be discharged by the mortgagee or the mortgagee must give certified instructions as to how the mortgage is to be treated by the CAACI.
- The Lessor of a Charter by Demise registered aircraft must also give instructions to the CAACI on the termination of the current lease and give authorisation that a transfer of ownership can occur either under a new lease or the termination of any lease arrangement over the aircraft.
- Return of the current Certificate of Registration (C of R) of the aircraft to the CAACI duly signed for cancellation. The current owner completes the reverse of the original C of R in section 1 indicates the entity to whom the aircraft is being transferred to, signs and sends to the CAACI.
- The duly executed C of R should be accompanied by a Bill of Sale or Lease Agreement indicating that the proposed registered owner is the new legal owner or operator of the aircraft.
- A new Certificate of Registration can then be issued when all of the above criteria have been met.
For any questions on aircraft registration, please contact the CAACI at [email protected] https://www.caacayman.com/.
OGAR Connect
Name: Richard Smith, MBE, FRAeS
Organisation: Civil Aviation Authority of the Cayman Islands
Role: Director-General
Email: [email protected]
Phone number: +1 345 949 7811
