Guernsey
Registry: Guernsey Aircraft Register | Organisation: 2-REG Aircraft Registry | Prefix: 2-
Author: Julian Polderman | Email: [email protected] | Phone: +44 330 828 0875
Guernsey
Registry: Guernsey Aircraft Register
Organisation: 2-REG Aircraft Registry
Prefix: 2- | Author: Julian Polderman
Email: [email protected]
Phone: +44 330 828 0875
Words by Julian Polderman
About 1,000
Aircraft registered
About 30
Helicopters registered
Tell us a bit about the jurisdiction
The Bailiwick of Guernsey is a Crown Dependency of the United Kingdom and internally self-governing dependent territories of the Crown. The jurisdiction consists of parishes on the island of Guernsey and other inhabited islands with their own taxation. The most populated parish is St Peter Port. The entire jurisdiction lies within the Common Travel Area of the British Islands and the Republic of Ireland. Financial services, such as banking, fund management and insurance account for many GDP contributions. Guernsey has been a known tourist destination for its unspoilt beaches and crystal-clear waters.
Tell us a bit about the registry
The Guernsey Aircraft Registry was established in December 2013 with the coming into effect of the Aviation Registry (Guernsey) Law (the ‘Aircraft Registry Law’). Since the time of its establishment the Aircraft Registry has registered over 1,000 aircraft.
The Aircraft Registry maintains three separate registers, one for aircraft (the ‘Aircraft Register’), aircraft engines (the ‘Engines Register’) and a register of charges (‘Register of Charges’). The Aircraft Registry does not form part of EASA but rather follows its own regulatory setup known as GARs. From a tax perspective, Guernsey falls outside the EU VAT setup, however the owners can facilitate temporary admission procedure to fly into the EU without a VAT levy.
How can I use my aircraft?
Private use: Yes.
Corporate use: Yes.
Commercial Air Transport/aircraft charter: Yes
Aerial work: Yes.
Unmanned aerial vehicles: No.
What sort of aircraft do you consider?
Persons resident in Guernsey can register any aircraft or helicopter so long as it is type certificated and non-vintage. Any person meeting the eligibility criteria may have an aircraft registered when the Maximum Take-Off Mass is 5,700 kg or above, the aircraft is type certificated and non-vintage or a helicopter when it is twin engine and turbine-powered.
Which aircraft type certificates are accepted?
Federal Aviation Administration (FAA) of the United States, Transport Canada, the European Aviation Safety Agency (EASA) or, for aircraft types designed and manufactured in Brazil, by Agência Nacional de Aviação Civil of Brazil.
Are there age restrictions?
Aircraft will be considered vintage if, at the time of application, its State of Design type certificate or any variations relevant to the type registered is established as being more than 50 years old, or its production stopped at least 25 years ago.
Structuring requirements
Are aircraft registered in the name of the aircraft operator or the aircraft owner?
Aircraft are registered in the name of the aircraft owner. However, there is a possibility to register the aircraft in the name of the charterer by demise, if such an agreement is in place.
Are there nationality requirements and if so what are they?
Any legal person with their principle place of business registered in the British Islands, the Commonwealth, EEA State, EFTA State, United Arab Emirates or United States of America can register an aircraft in Guernsey.
Where the primary activity of that legal person is as an aircraft leasing business then, in addition to the above mentioned states, legal persons with their principle place of business in Brazil, Japan, Peoples Republic of China or South Africa may also register an aircraft in Guernsey.
Any Commonwealth citizen or national of a European Economic Area (EEA) State or EFTA State can register an aircraft in Guernsey.
What are the typical structures used?
Companies limited by shares, limited liability companies or trust companies are commonly used. Foreign special-purpose companies can also be used.
Is there a requirement to have local directors of shareholders?
There is currently no requirement to have local directors or shareholders.
Do you need to have a local office or physical presence to register an aircraft?
There is currently no requirement to have a local office or physical presence to register an aircraft in Guernsey.
What continuing requirements are there to keep an aircraft registered?
If during the continuance of the registration of a registered matter there is a change in any registered particular, or the details of the relevant person, notice of the change shall, within a period of 21 days from the date of the change, be filed with the Registrar, and the change shall not be effective until the Registrar has issued a new certificate of registration or cancelled the registration, as the case may be, upon which the existing certificate shall cease to be valid.
Inspections and CoAs
What are the requirements for a Certificate of Airworthiness?
The aircraft must first be registered with the Guernsey Aircraft Register. The Registry will perform a physical and records inspection of the aircraft. An applicant is entitled to a Certificate of Airworthiness for an aircraft when the director is satisfied that the applicant has demonstrated that the aircraft complies with the relevant Type Acceptance Certificate, and the applicant meets the applicable requirements of the GARs in a manner acceptable to the Director, the granting of the certificate is not contrary to the interests of aviation safety, and any airworthiness review required by paragraph 21.175(b) has been accomplished and the results are satisfactory to the director.
What is the inspection interval for a Certificate of Airworthiness/how often does the registry inspect aircraft?
A Certificate of Airworthiness will remain in force for a maximum period of 12 months from the date of issue or re-issue. An inspection will be performed for every re-issuance of the Certificate of Airworthiness.
What operational requirements are there?
Every private operator of a Guernsey registered aircraft must comply with the requirements of GAR 91 (General Operating Instructions). In the case of complex aircraft, compliance with GAR 125 (Complex General Aviation) is also required and will result in a Section 77 Approval / Private Operator Certificate (POC). Operators that perform commercial air transport are required to hold an Air Operator Certificate (AOC). In order to obtain these approvals, they have to comply with the legal, operational and economic conditions that are specified in the Guernsey regulations.
Where are the inspectors based?
The Guernsey Aircraft Registry has worldwide inspector coverage with surveyors based in Europe, Asia and the Americas.
Registration costs and service
What is the initial cost to register an aircraft?
The initial cost to register an aircraft on the Guernsey Aircraft Register is approximately £300 and depends on the location of the registered owner. A specific registration mark can be selected for £525 if the MTOM is below or equal to 5,700 kg or £1,250 if the MTOM is above 5,700 kg. The fee for the issuance of a Certificate of Airworthiness is dependent on the MTOM of the aircraft (£90 per 500 kg if MTOM is above 10,000 kg) and will include an hourly inspection fee.
What are the annual costs for aircraft registration?
There is no annual fee for aircraft registration. The annual renewal fee of the Certificate of Airworthiness is dependent on the MTOM of the aircraft (£65 per 500 kg if MTOM is above 10,000 kg) and will include an hourly inspection fee.
What is the average time needed to register an aircraft?
The process to have an aircraft registered on the Guernsey Aircraft Register takes approximately one business day.
How much does it cost to register a mortgage?
The fee for a registration of a charge or mortgage is £290 per asset.
Is there a cost to register a priority notice?
The fee for a registration of a priority notice is £140 per asset.
Financing and deregistration
Is there a requirement for a governing law of mortgage?
There is no requirement for a governing law, however, the mortgage must be in the English language and must be certified as a true copy.
What is most common choice of law for financings?
Guernsey law, English law and New York law.
Can financiers file a priority notice of their interests?
An application to enter a priority notice upon the Register shall be made by or on behalf of the prospective chargee to the Registrar.
Can financiers file a Deregistration Power of Attorney/Irrevocable Deregistration Power of Attorney (IDERA)?
An IDERA can be filed with the Guernsey Aircraft Registry. Guernsey has ratified the Cape Town Convention and its associated Aircraft Protocol. As such, there are provisions for the removal of aircraft and engines from the relevant registers by way of irrevocable de-registration and export request authorisations.
Is there a public mortgage registry?
The Aircraft and Charge Register are public.
Is it easy for financiers to perfect a mortgage?
It is simple to apply for the registration and perfection of the mortgage. A copy of the instrument creating the charge, which the applicant shall certify to be a true copy, must be filed together with the application forms.
How long is the period during which a moratorium be imposed in the event of a lessee or borrower insolvency?
This is in accordance with Guernsey’s ratification of the Cape Town Convention.
In the case of bankruptcy or insolvency are aircraft typically deemed to be part of the lessee’s property?
No, the aircraft on lease are not deemed to be lessee’s property.
What are the requirements for deregistration of an aircraft?
The owner must complete a deregistration request (indicating the country in which the aircraft is anticipated to be re-registered). The aircraft will not be deregistered if there are any outstanding payments or without the prior written consent of a mortgagee (if any).
What are the requirements for deregistration of mortgage?
The mortgagee must complete a deregistration request and provide written consent or proof of discharge.
Cape Town
Has the jurisdiction ratified the Cape Town Convention?
Guernsey has ratified the Cape Town Convention.
If yes, what date did it come into affect?
On July 27th 2015, Guernsey ratified the Convention on International Interests in Mobile Equipment as modified by the Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment (the ‘Cape Town Convention’). Thereafter, on November 2nd 2015, The Aviation Registry (Interests in Aircraft) (Guernsey) (Ordinance), 2015 (as amended) (the ‘Aviation Registry Ordinance’) came into force which gives effect to the Convention in Guernsey.
If yes, which Cape Town declarations have been made?
Declarations made under the Convention are in Articles 39(1), 39(4), 53 and 54(2). Declarations made under the Protocol are in Articles XXX(1), XXX(2), XXX(3).
If yes, which insolvency regime has been chosen?
Pursuant to Article XXX(3) of the Protocol, the Government of the United Kingdom of Great Britain and Northern Ireland has declared that Alternative A under Article XI of the Protocol applies to Guernsey in its entirety to all types of all insolvency proceedings.
Importing and exporting aircraft
Are there significant taxes or fees involved in importing an aircraft?
None that we are aware of.
Is an Export Certificate of Airworthiness, license of permit required to export an aircraft?
The requirement of the Export Certificate of Airworthiness is with the country that will re-register the aircraft. An aircraft can be deregistered from the Guernsey Aircraft Register without an Export Certificate of Airworthiness.
How much does it cost to get an Export CoA and how long does it take to get one?
The cost for the Export Certificate of Airworthiness itself is calculated based on the same basis as for a Certificate of Airworthiness (see above). It can be issued quickly, usually within 24-48 hours, if the request is made together with the Certificate of Airworthiness.
Are there significant taxes or fees involved in exporting aircraft?
No additional costs are associated from the Aircraft Registry other than the fees mentioned above.
Aircraft Operating Certificates
Are AOCs encouraged, how long does process take, etc?
The obtention of an AOC is a time-consuming process. It is hard to give an approximate duration for the process. As a rule, the Guernsey Aircraft Registry assesses that the certification process can take up to six to nine months. A more detailed estimate regarding the timing is generally provided by us after the filing of the AOC application.
What is the process for obtaining an AOC?
In order to obtain an AOC (as well as for any subsequent modifications of the) AOC, the process follows the International Civil Aviation Organization five-step model which is the following: (i) pre-application, (ii) formal application, (iii) document evaluation, (iv) inspection and demonstration and, finally, (v) the certification itself.
What are the nationality requirements for an AOC?
The applicant must have its principle place of business in Guernsey, as per The Air Navigation (Bailiwick of Guernsey) (Air Operators’ Certificates) Regulations, 2016.
How have sanctions against Russia affected aircraft registrations?
Guernsey has taken the decision as a UK sub-registry to follow the UK policy regarding sanctions.
Judgements and arbitration
Will a court in this country recognise and enforce a judgement rendered by a New York State court or a US federal judge?
The Guernsey courts would recognise any final and conclusive judgment under which a sum of money is payable (not being a sum payable in respect of taxes or other charges of a like nature or in respect of a fine or other penalty) obtained in a New York court if that court is deemed to have jurisdiction in accordance with the principles of private international law as applied by Guernsey law (which are broadly similar to the principles accepted under English law) and such judgment would be sufficient to form the basis of proceedings in the Guernsey court for a claim for liquidated damages in the amount of such judgment. In such proceedings, the Guernsey courts would not re-hear the case on its merits save in accordance with such principles of private international law.
Will a court in your jurisdiction recognise and enforce a judgement rendered by an English court?
Subject to the provisions and requirements of Guernsey’s reciprocal enforcement legislation, the courts will recognise as a valid judgment and, without review of its substance, enforce any final and conclusive judgment obtained in the Supreme Court or the Senior Courts (excluding the Crown Court) of England and Wales provided that the judgment is:
· final and conclusive as between the parties;
· in respect of a sum of money (not being a sum payable in respect of taxes or other charges of a like nature or in respect of a fine or other penalty);
· not obtained by fraud;
· not contrary to public policy in Guernsey.
Can the government of the country requisition or confiscate an aircraft without needing to pay compensation?
No.
Are there any recent cases where the aviation authority/aircraft registry has refused to honour a request by an owner or lessor to deregister an aircraft?
Not to our knowledge.
Are any legislation or regulatory changes planned?
Not to our knowledge.
