The Channel Islands Aircraft Registry, 2-REG, has completed its first year in business and registered aircraft with a combined value of more than £250m, the Guernsey Press has reported.
Operator SGI Aviation said it had been a successful year, though a lawyer closely involved in some of the registrations made said that business had gone in a different direction to what was originally expected.
In its first year, 2-REG has completed 32 registrations of small aircraft from Guernsey residents and large aircraft of corporate owners and lessors. As part of that it has issued more than 400 certificates, approvals, permits and validations and carried out business transactions with 34 different countries.
SGI Aviation Executive Director Wim Ovaa said: "I don't think I can stress enough the boost this gives Guernsey plc. As a Guernsey-based business, we have flown the flag for Guernsey with some economic heavyweights such as Brazil, the UAE, Australia, Canada, the USA, India, Malaysia and China. We work with many organisations, individuals and aviation authorities across the globe and are very much looking forward to the continued expansion of 2-REG over the year and further."
Carey Olsen Senior Associate Ruth Abernethy said that the original plan for the registry was to attract light aircraft, then business jets and airliners between leases a couple of years on. She said the success of attracting airliners in particular had surpassed expectations.
"Having an aircraft registry is extremely useful for Guernsey. The Island wants to be a full-service jurisdiction, able to provide solutions to any asset management and finance need and 2-REG is part of that offering," said Ms Abernethy.
"The launch of 2-REG has also provided the opportunity to speak with businesses about other things that Guernsey can offer as many of the businesses that may make use of 2-REG also make use of non-aviation specific services such as banks, insurance and trust companies. It is interesting that the registry is attractive to lessors of airliners. The world's biggest lessors, all global businesses, are either using or about to use the Guernsey aircraft registry, which is attractive because of its excellent service levels."
The registration process can take as little as 10 days.
Ms Abernethy added: "The aircraft registry market is a crowded one and Guernsey's ability to provide excellent customer service, efficient turnaround and good availability of airworthiness inspectors - vital in the registration process - makes it very attractive globally. 2-REG is good for Guernsey. It is low risk, with SGI bearing the majority of any burden, and it is another opportunity for the Island to demonstrate the breadth and depth of its offering.
"Aircraft ownership is expensive and requires expertise in terms of the finance and structuring, and lenders want security if they are to finance the purchase of an aircraft. Having the registry means that Guernsey trust companies and wealth managers, as well as lawyers, insurers and other related services, have another tool in the toolbox."
An original version of this story first appeared in the Guernsey Press, January 2015.
For more information about Guernsey's finance industry please visit www.guernseyfinance.com.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
