Registration of aircraft in Guernsey
22 June 2020
Why register an aircraft in Guernsey?
The Guernsey Aircraft Registry (also known as 2-REG) (the "Guernsey Registry") is a popular choice for the registration of aircraft. It offers a range of flexible services to support aircraft owners, operators, lessors and financiers of private and commercial aircraft. Over 600 aircraft have been registered since its inception in 2013.
In addition to the registration of aircraft assets and charges over aircraft assets, the Guernsey Registry also provides international services not available from other aircraft registries including air operator's certificates ("AOC"), airworthiness certificates and flight crew licence validations for Guernsey registered aircraft.
Some of the benefits of registering an aircraft in Guernsey include:
- a tax neutral environment - no tax payable on the transfer of title to an aircraft;
- a stable legal, political and economic environment;
- a breadth and depth of experience in financial services;
- the availability of personalised registration marks (existing marks include 2-EPIC, 2-MOVE and 2-PLAY);
- an efficient registration process with 24 hour support for urgent matters;
- cost-effective registration fees; and
- domestic legislation protecting lenders' interests.
Who can register an aircraft?
The following individuals or entities are eligible to make an application to the Guernsey Registry:
- a national of an EEA State;
- a resident in the British Islands or in a British Overseas Territory;
- a financial services business supervised by the Guernsey Financial Services Commission (or certain other regulated entities); or
- an entity or person represented by a Guernsey resident agent (licensed as a fiduciary or authorised person).
The Guernsey Registry undertakes due diligence on all applicants to ensure compliance of the requirements provided for in the Aviation Registry (Guernsey) Law, 2013 and the Air Navigation (Bailiwick of Guernsey) Law, 2012.
The Guernsey Registry keeps a charges register in respect of security over aircraft assets. Guernsey law and foreign law charges can be registered in the charges register.
A registered charge over an aircraft asset will rank ahead of unregistered charges and other debts. Where there is more than one registered charge, those charges rank in order of registration, with the first in time having priority.
The Guernsey Registry also provides for the filing of priority notices. A priority notice gives notice of an intention to take security in respect of an aircraft asset. Once registered, the security is deemed to have been registered on the date on which the priority notice was filed.
The Cape Town Convention
In 2015, Guernsey adopted the Cape Town Convention on International Interests in Mobile Equipment (and its Protocol) (the "Cape Town Convention"). The Cape Town Convention creates an internationally recognised body of law in respect of aviation assets including the registration of ownership and security interests.
By the creation of an electronic registry of international interests which serves to give notice to third parties, the Cape Town Convention also provides creditors with certainty in respect of insolvency and default situations.
How we can help?
Bedell Cristin can provide Guernsey advice on all aspects of aircraft and aircraft engine registration as well as assistance with the registration of and enforcement against mortgages of aircraft and aircraft engines.
If you would like further information or wish to discuss using the Guernsey Registry to assist you or your client's business, please do get in touch.