The Tribune

The Bahamas risks falling behind in the fast-growing aviation sector, which accounts for $107 billion in regional revenue, if it does not keep pace with other countries that are making it easier and more attractive to do business, a local aviation law expert has warned.

Llewellyn Boyer-Cartwright, a leading proponent of the Bahamas establishing an international aircraft registry, is concerned that while this country is moving in the right direction, competition is getting stronger as other jurisdictions are aggressively marketing their registries.

“The Bahamas is making good progress toward the establishment of an international aircraft registry; however, the momentum has slowed somewhat,” said Mr Boyer-Cartwright, a partner at Callenders & Co, where he specialises in real estate and aviation law.

“The study committee completed its work, requests for tender went out, and proposals for the feasibility of establishing a global competitive registry have been received, which we trust the Government is reviewing.”

Aruba, meanwhile, has enacted new aircraft registration regulations to accommodate the demands of the rapidly expanding aviation industry, and there is evidence that the UK is inching closer to signing the Cape Town Convention, further enticing aircraft owners, lessors, insurers and financiers to remain registry loyal.

Brazil, in November 2013, enacted new regulations pertaining to its Aeronautical Registry (RAB). According to Mr Boyer-Cartwright, the new regulations will be of interest to both onshore operators and offshore lessors and financial institutions.

“No doubt the new regulations are indicative of Brazil’s commitment to its financial sector,” he said.

Just last month, the Civil Aviation Authority of the Cayman Islands hosted a seminar for law firms, corporate management companies and government officials with a view to improving legislation and processes for registering aircraft.

Mr Boyer-Cartwright has been leading the charge for an aircraft registry that he says will be a huge economic boost to the Bahamas.

The fees will be nominal, he added, but an international registry will be an extra bonus to this nation’s array of financial services products, allowing the Bahamas to rank among the most desirable of full-service offshore financial jurisdictions.

The registry could be headquartered in Nassau with satellite stations at the Bahamas Maritime Authority offices in London and Hong Kong, alongside the Bahamas Ship Registry and Yacht Registry.

“High net worth individuals who have mobile assets, including a private jet and a mega-yacht, and who choose to live in any one of the exclusive communities in New Providence or even on a private island, do not want to have to do business in multiple jurisdictions, which is more costly and less efficient,” said Mr Boyer-Cartwright.

“And by satisfying the needs of the high net worth individual or that company considering the Bahamas, we are then providing all sorts of opportunities for Bahamian entrepreneurs in new businesses.”

The Bahamas’ ship registry is the fourth largest in the world, and Mr Boyer-Cartwright believes the aircraft registry can be modelled after it, accepting only new aircraft or aircraft that are less than 15 years old – thereby avoiding the reputation of being regarded as a mere flag of convenience.

“We want the Bahamas International Aircraft Registry to operate with the same world-respected standards as the ship registry that attracts the finest tonnage, such as Disney, Carnival and Holland America,” said Mr Boyer-Cartwright.

“Orders for new aircraft have never been greater, and this is our opportunity to develop an industry that would have major benefits for so many young Bahamians.”