The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE $17-$18 million in revenue that Bermuda expects to earn from its aircraft registry by 2017 points the way for the Bahamas, an aviation attorney yesterday telling Tribune Business that establishing such a facility here would create numerous “spin-off” opportunities - particularly in aviation and financial services.

Addressing a meeting of the Rotary Club of Nassau Sunrise, Llewellyn Boyer-Cartwright, a Callenders & Co senior associate and the first Bahamian admitted to the Lawyer Pilots Bar Association, said creating a Bahamian international aircraft registry represents a quick means of economic diversification.

He pointed out that the Bahamas could not continue relying on the same economic drivers, and needed to create a new product.

“In this ever-changing economy, the Bahamas needs to create a new product. We can’t continue to go out into the world and sell the same product over and over,” said Mr Boyer-Cartwright.

He added that countries such as Aruba, Bermuda and Malta were “well ahead” of the Bahamas with regards to the establishment of a international aviation registry.

“The Bermuda registry has approximately 650 aircraft on its register and expects early next year to surpass 700. They anticipate by 2017 that it can generate revenue of $17-$18 million a year and I don’t think any government would balk at that kind of revenue,” Mr Boyer-Cartwright said.

He added that the establishment of an international aircraft registry would attract numerous high net worth individuals and companies to the Bahamas.

Mr Boyer-Cartwright said colleagues at Bahamas-based financial institutions had received several inquiries over the years about aircraft registration, leasing and financing, but had to direct the business elsewhere as the services were not offered here.

“I think there is room to grow in that area, not only on the banking/lending side but also on the legal side. It will also create a safe, stable aviation jurisdiction for the Bahamas,” Mr Boyer-Cartwright said.

“In other words the Bahamas will get better recognition as an aviation destination in terms of safety and maintenance. We have to meet certain standards. The International Civil Aviation Organisation (ICAO) sets the standards, and if countries can meet those standards then all the better. An international aircraft registry, I think, will generate spin-offs in other areas of finical services - and not only financial services but outside of that, and certainly in aviation itself.”

Mr Boyer-Cartwright said: “It’s not that we don’t have an aircraft registry, we do, but with the addition of the word international it will attract investors to bring their aircraft to this jurisdiction for registration.”

He added that such individuals could be attracted to the Bahamas due to its tax regime, proximity to the US or because they wanted to have all their assets offshore.

Explaining the international aircraft registry concept, Mr Boyer-Cartwright said: “In the simplest form it’s an electronic registry based in Ireland, accessible 24/7, and it’s available to any jurisdiction which is a signatory to the Cape Town Convention.

“The Cape Town Convention was ratified in 2001 by 50 countries; it came into force in 2007. It’s really the convention dealing with movable assets,

Mr Boyer-Cartwright added that aircraft owners, leasing companies and financing companies can register their interests on the international registry, and that gives them better protection.

To establish a Bahamian international aircraft registry, Mr Boyer-Cartwright said the Bahamas needed to sign on to the Cape Town Convention, which would give the industry confidence in this nation, with financiers and leasing companies knowing that plane parts, for instance, would be recognised and secure wherever the craft was in the world.