Aviation registry aims for the skies

Tuesday, 01 April 2014
In December 2013, Guernsey introduced the 2-REG, the Channel Islands Aircraft Registry. Here Fiona Le Poidevin explores what it offers international clients

Guernsey’s aviation registry, the 2-REG, is the first of its kind to be established in the Channel Islands. It provides for the registration of high-quality aircraft involved in non-commercial flying activity around the world. An aircraft does not have to be physically present in Guernsey to be entered onto the register (nor does it have to be possible for the aircraft to come to Guernsey) provided that the legal and beneficial owners meet the requirements to register.

In practice, international clients are likely to want to register their aircraft in Guernsey as part of complex private wealth management or corporate arrangements.

What is the 2-REG?

The 2-REG was established by the Aviation Registry (Guernsey) Law, 2013 and is operated by SGI Aviation through a public-private partnership.

The registry maintains three separate registers, for aircraft, engines and mortgages. This structure allows the financing and security arrangements on Guernsey-registered aircraft and engines to be implemented in the internationally recognised way.

The register offers a unique registration mark, ‘2-’. The first few registrations in December 2013 included 2-PLAY, 2-HIGH and 2-OFUS. There is an additional fee for having an out-of-sequence ‘cherished’ plate.

Advantages of the 2-REG

The US’ N-REG and the UK’s G-REG are currently the world’s most popular aircraft registries. The Isle of Man offers an ‘offshore’ registry through its M-REG. Guernsey’s registry can be differentiated from these. 

The 2-REG offers benefits to aircraft owners and operators that are not available through other registries, including a 24/7 support system for urgent matters, which is considered unique in the industry.

The 2-REG permits the registration of aircraft with a maximum take-off weight of less than 5,700kg. This means more types of aircraft can be registered in Guernsey than can typically be registered on other offshore registries, including the M-REG.

The 2-REG also offers the opportunity to select the maintenance programme for aircraft. The options include the certification standards of the US Federal Aviation Administration, Transport Canada Civil Aviation or the European Aviation Safety Agency. Therefore, where a client has familiarity with, or a preference for choosing, one programme over another, they can do so.

The 2-REG also issues pilot licences, with options under the US, Canadian and European rules, allowing owners and operators the flexibility to choose according to their own preferences and circumstances.

Fees

The licensing and registration fees vary depending on the weight of the aircraft but the Guernsey registry is very competitively priced in comparison with other registries, such as that of the Isle of Man.

The registry is anticipated to be particularly attractive to internationally mobile business aircraft owners, who can benefit from registering their aircraft in a highly regarded, stable and well regulated jurisdiction, while making use of Guernsey’s mature, robust and sophisticated financial, legal and fiduciary services infrastructure. 

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Fiona Le Poidevin

Fiona Le Poidevin is Chief Executive of Guernsey Finance.

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