The Key Considerations Before You Change Aircraft Registry

Choosing the right aircraft registry for your business jet is an essential part of an aircraft owner’s decision-making process. The registry of choice can make or break the ownership experience.

While there is no one-size-fits-all approach to choosing the right registry for an aircraft, owners should evaluate several key factors to ensure a smooth and beneficial transition.

The regulatory framework plays a key role, according to Captain Charles Pace, Director General for Civil Aviation at Transport Malta. “An essential factor in safeguarding the rights of the aircraft owner and the integrity of the asset itself is to ensure that the jurisdiction of choice has a robust and efficient legislative framework which is in line with international standards and conventions,” he shares.

Safety standards are also a top consideration and are tightly linked to the legislative framework.

Simon Williams, Director of Civil Aviation at the Isle of Man Civil Aviation Administration and Aircraft Registry, notes that proportionate and effective safety regulatory oversight of an aircraft will assist with achieving and maintaining high operational safety standards.

“Banks and lending institutions require an aircraft registry with a robust legal system that facilitates the registration of security interests and recovery of financed aircraft in the event of a default," he adds.

The reputation and international recognition of the new registry are also vital, since a well-regarded registry can enhance the aircraft’s value and facilitate smoother operations abroad. For instance, being a member of the Cape Town Convention offers significant advantages.

Jorge Colindres, Founder and Executive Chairman of The Registry of Aruba, shares that the Convention provides a standardized international legal framework that protects the rights of aircraft owners, lessors, and financiers, reducing risks associated with cross-border transactions, such as repossession in cases of default.

“Aruba stands out in this regard, being the first public-private aircraft registration program rated Category 1 by the FAA, with a regulatory framework fully compliant with the International Civil Aviation Organization (ICAO) standards,” he adds.

Operational Use, Costs, and Timelines Factor in Aircraft Registry Choice

Registries are typically geared towards one type of registrant, which can be split into two main categories.

The first is an owner’s registry – which mainly consists of aircraft owners, who are the registrants of the aircraft – and caters to private operations.

The second is an operator’s registry, whereby an operator (holding a valid air operator’s certificate) acts as the registrant of the aircraft, and thus assumes all responsibility for the operation and activities of such aircraft while allowing for both private and commercial operations.

Pace explains that having an operator manage an aircraft, or not, is a major variable that will significantly impact the aircraft’s operations and safety considerations. “An owner’s registry is usually limited to the owner of the aircraft being the registrant, while an operator’s register will ensure that the registrant – and therefore the operator – is fully certified to manage and operate such type of aircraft.”

Before transferring to another aircraft registry, carefully considering the aircraft's intended use is also essential. For example, aircraft registered on the Isle of Man Registry (IOMAR) may be used for private, corporate, and some aerial works flights, but commercial air transport is prohibited. So, if an owner wishes to charter their aircraft the M-REG would not be the appropriate choice.

Williams highlights that determining who can act as a flight crew before changing registries is also very important, as some licenses may only be recognized in the issuing country.

“The IOMAR offers flexibility through the validation of flight crew licences, issued by appropriate contracting states to ICAO, and accepts the licensing/medical certificate variations/exemptions issued by the licensing authority,” he highlights.

The duration and costs of transferring aircraft registries largely depend on the specific registries involved. For instance, Colindres explains that the Registry of Aruba offers a process that allows aircraft registration within 24 to 48 hours, ensuring a quick and efficient transition.

“The cost of registration varies based on the aircraft’s maximum takeoff weight (MTOW),” he adds. “Aircraft owners and operators need to inquire about the exact costs and processing times with the specific registry they are considering to fully understand the financial considerations and time commitments required for the transfer.”

Williams supports the idea that registration can be a swift process which could potentially be completed in one working day. “All certificates and documents are issued in digital format only, which reduces the time between registration, the issue of operational certificates, and the aircraft being able to operate,” he says. 

When Does Changing Aircraft Registry Make Sense? 

The reasons for considering a change of aircraft registry must be carefully considered to ensure that the same problems will not be a reality with the next registry. Experts concur that aircraft owners should seriously consider the projected use of the aircraft and mode of operations as well as the service and product a jurisdiction may offer.

“We often see aircraft owners making such a choice based on preliminary discussions or advice given by third parties who may not necessarily have the expertise in such matters, and this more often than not leads to disappointment,” warns Pace.

Changing aircraft registries can be a good idea, though, especially if the aircraft’s current registry imposes more limitations than the new one. For instance, if the existing registry has less favorable regulatory conditions or does not meet international standards.

“Moving to a new registry that offers higher regulatory standards, flexibility, and improved customer service could be highly beneficial,” says Colindres. “Enhanced flexibility might mean fewer bureaucratic hurdles or more efficient operational requirements, significantly streamlining the aircraft’s operations.”

For Pace, a big decision driver is demonstrating that a registry is business-friendly — just how efficient is it, and how willing is it to work hand-in-hand with the operator and (where necessary) the interested party, e.g., the financier, or the aircraft owner to arrive at a satisfactory solution?

“The registry’s willingness to work with other authorities, both local and foreign (such as the customs department), ensures a seamless procedure,” Pace explains. “A registry may be flexible while respecting and adhering to all laws and regulations, and this stems from the willingness of the registry to develop and grow, and be open to business.”

Other Aircraft Registry Considerations Before Making the Move 

The legal framework, operational use, and sheer flexibility and reputation of a registry have been discussed as critical elements that support a change. But before transferring an aircraft to another registry, it is essential to determine the new State of Registry’s requirements for type certificate compliance.

Williams shares that some states will only accept one type certificate, others multiple. “The IOMAR accepts type certificates issued by the UK, Canada, USA, Brazil and the EASA Member States,” he illustrates.

“As a result, an aircraft from another State of Registry can be registered with IOMAR with minimal inconvenience and expense, and if subsequently sold it can be easily exported to another jurisdiction.”

Whether or not the aircraft is financed is another variable in the equation. “Should the aircraft be financed, the financing institution will impose a selection of jurisdictions to choose from,” Pace highlights. “[These] jurisdictions will safeguard the rights of the financier through the legal framework in place and efficiently facilitate the enforcement of such securities.”

Similarly, the size and age of the aircraft also factor, since some registries impose age and weight limits. These could restrict or impose additional requirements on older aircraft to ensure they meet safety and operational standards.

Older aircraft may need more extensive inspections or modifications to comply with the new registry’s regulations, Collindres outlines. “They might face more intricate logistics related to documentation, inspections, and potential modifications needed to meet the new registry’s standards.

“Additionally, the technical implications for older aircraft may have higher expense considerations,” he notes.

The area of navigation is also a key aspect for Pace. “An aircraft owner should consider the geographical use of the aircraft and in which locations the majority of its activities will take place, as there may be some restrictions between certain jurisdictions in relation to traffic rights,” he notes, adding that this applies mostly to commercial operations. 

And ease, plus client convenience of keeping one’s aircraft maintained is another factor to consider. In fact, says Williams, some registries insist on only using maintenance organizations that they have directly approved. 

“The IOMAR unilaterally and automatically accepts EASA, UK or FAR Part 145 maintenance organizations and EASA or UK Part M, Subpart F, or Part CAO,” he illustrates. “Alternatively, the maintenance may be certified by the holder of an aircraft maintenance engineer’s licence validated by the IOMAR or, in exceptional circumstances, by a person authorized by the IOMAR.” 

Changing Aircraft Registry? Pave the Way with Active Engagement 

Once the decision to change registries is made, aircraft owners and the chosen registry must prepare the groundwork to ensure all details are met. The registry must work closely with the aircraft’s owner or operator to provide the expected service and deliverables. 

To ensure that the new registry better suits their operational needs, aircraft owners and operators should prepare in several steps. 

Colindres explains that first it’s crucial to conduct a comprehensive assessment of the current registry’s limitations and compare them with the benefits offered by the prospective new registry. “This involves identifying any regulatory differences, operational requirements, and service levels that could impact operations,” he says. 

“Next, thorough research into the new registry’s regulatory environment, customer service standards, and specific requirements or benefits is essential.” 

Pace adds that in preparation for registration, “the owner should also have a clear ownership structure to suit the chosen jurisdiction”. 

Should the aircraft be financed, these negotiations need to be concluded by the owner, financier and operator before the registration process is concluded, he adds. 

Also, staying on top of changing frameworks is paramount, and here registries can play a major role in actively communicating with owners and operators. For instance, Colindres highlights a recent law that required the AA to close loopholes that allowed foreigners to anonymously register their aircraft in the US. As a result of this new regulation, a migration of N-registered aircraft is expected. 

“This example highlights how changes in regulatory environments can prompt aircraft owners and operators to make the decision to change registries and underscores the importance of carefully evaluating registry options,” he adds. 

Alog the same lines, Williams believes that customer service is a major added value once the decision is made – an effective way to avoid customer churn. “We frequently hear the phrase ‘time is money’, which seems to be true for many aircraft owners.

An aircraft registry that offers excellent service and efficient turnaround times is crucial for owners.” 

Interestingly, Williams adds that when all is said and done, personal choice can also have an influence. “Patriotism sometimes plays a factor in choosing an aircraft registry,” he elaborates. “For others, it’s a desire to have a particular cherished registration mark – perhaps linked to a personal or company name.” 

In Summary… 

With many competing factors in the life of an already busy aircraft owner/operator, aircraft registries should be aiming to offer a more streamlined, flexible approach, with fewer bureaucratic hurdles and a stronger emphasis on customer service with strong regulatory requirements that make sense to the interested party.

This can translate into quicker response times, more personalized support, and an overall smoother experience operating an aircraft worldwide. The legal framework, heavily tied to safety, a registry’s reputation, and other specific considerations like financing terms, area of navigation, and maintenance, is all part of the decision-making process. 

Regulatory simplicity is another important consideration for aircraft owners, as simplified procedures and minimal bureaucratic hurdles reduce administrative burden for businesses. 

And operational benefits, such as high standards of regulatory requirements, flexible tax regimes, and access to a network of support services can make a registry more attractive, Colindres adds. 

“Finally, a registry that facilitates global operations and provides access to various regions without complex restrictions is particularly valuable for international operations,” he summarizes. 

The efficiency and flexibility of the Civil Aviation Authority regulating aircraft registration cannot be overlooked and might affect the overall experience and use of the aircraft. 

“Certain administrative delays may lead to unnecessary downtime, expenses, and inconvenience,” Pace concludes. 

Overall, registries should aim to create a secure and predictable environment for aircraft ownership, financing, and operation, making them appealing options those who register with them.

More information from:
Isle of Man Aircraft Registry: www.iomaircraftregistry.com
Registry of Aruba: www.theregistryofaruba.com
Transport Malta: www.transport.gov.mt