With an emphasis on quality and not quantity, the Cayman Islands is a perfect fit for private aircraft ownership, writes Sherice Arman and Barnabas Finnigan in the Sept/Oct 2014 edition of The European Magazine.
By their very nature, private aircraft owners are sophisticated and highly discerning people for whom time is an important and valuable commodity. They therefore value and appreciate high quality and efficient service.
The Cayman Islands is well known as a tax neutral jurisdiction, with no income tax, withholding tax, sales tax, capital gains tax or other direct taxes being levied on payments to or from the jurisdiction. The Cayman Islands' status as an overseas territory of the UK means that the jurisdiction is able to benefit from a high level of political, social and economic stability. As such, the Cayman Islands is able to offer a stable and dependable legal structure, which is acceptable to owners, financiers and operators alike.
The Civil Aviation Authority of the Cayman Islands (CAACI) applies international standards of safety regulation over the aircraft maintained on the Cayman Islands Register of Aircraft. In order to improve the quality, ease of use and efficiency of the service it provides to its customers, CAACI has recently introduced a new online electronic data management portal known as VP-C Online.
As well as maintaining the register in respect of aircraft, CAACI also maintains a register of mortgages (the Mortgage Register) in respect of those aircraft recorded on the register. By recording a mortgage on the Mortgage Register against an aircraft, financiers can obtain priority for any security interest which they hold in respect of such aircraft, and protection against the deregistration of the aircraft from the register without the consent of the registered mortgagee. It is also possible to register a notice of intention to file a mortgage for a financier prior to an aircraft being registered Priority Notice. The effect of a Priority Notice is that, provided the financier's mortgage is registered on the Mortgage Register within 14 days of the Priority Notice being registered, their mortgage will be deemed to have priority over any other subsequent mortgage registered against such aircraft from the date upon which the Priority Notice was registered. Under the Cape Town Convention Law (2009 Revision) mortgagee can opt to register their interest over Cayman registered aircraft with the International Registry.
CAACI remains committed to offering a personal, responsive and high quality service to its customers, and to finding innovative and efficient solutions to the needs of those with whom it works. This, coupled with the benefits which the Cayman Islands is able to offer as a jurisdiction, as well as a concentration of highly skilled professionals with expertise in the aviation industry, means that the Cayman Islands continues to maintain its reputation as a first class jurisdiction for private aircraft registration, and as a jurisdiction of choice for many owners, operators and financiers.
This article first appeared in the Sept/Oct 2014 edition of The European Magazine, published by Chase Publishing Ltd.
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