Aircraft Services

Aircraft Registration

The Cayman Islands has been predominantly known for its thriving mutual (investment) funds industry, but other areas of business have also flourished as the Cayman Islands have continued to develop and become increasingly sophisticated a jurisdiction. The registration of aircraft in the Cayman Islands is an example of this. The absence of any form of direct taxation in the Cayman Islands (income, sales or otherwise) has generated a favourable tax regime which has made the Cayman Islands an attractive offshore financial centre. The Cayman Islands government has been accredited with an AA3 rating by Moody's, the highest in the Caribbean. The Cayman Islands are involved in no international disputes and have entered into various treaties and implemented legislation to meet with internationally accepted anti-money laundering and due diligence standards.

    Background

Implemented in 1987 the Civil Aviation Authority of the Cayman Islands ("CAACI") is a statutory body with its head office in Grand Cayman and a representative office in London. The average time taken to effect a registration is 6 to 8 weeks and an aircraft mortgage registration can be completed within 24 hours. The CAACI is a very "hands on" authority and will attempt whenever possible to accommodate the needs of clients.

The CAACI's Aircraft Register is primarily a "Private Register" which means that, other than Cayman Airways and other airlines mainly servicing the public of the Cayman Islands on a regular basis, the Aircraft Register is not open for commercial activity.

In the majority of cases a Cayman Islands exempted company will be incorporated as a special purpose vehicle in order to qualify as an applicant for registration. Neither the directors or shareholders of that company need to be resident in the Cayman Islands in order for the company to qualify. The minimum size of plane based outside the Cayman Islands which is eligible for registration is a piston powered aircraft of 5,700kg take-off weight.

   Why Register in the Cayman Islands?

The Cayman Islands is a Category 1 aviation regulatory authority, as rated by the US Federal Aviation Administration. Lenders are generally agreeable to using the Cayman Islands as a country of registry as they are comfortable that their aircraft mortgage will be recognised and enforced due to the fact that the applicable Cayman Islands' laws generally follow the aircraft registration and mortgage registration scheme of the United Kingdom. In addition, the Cayman Islands nationality and registration mark (VP-C) is relatively anonymous.

The main feather in the CAACI's cap will always be the efficiency and professionalism of its staff.