This practice is international in outlook but is certainly strongly connected to the fast-growing success of the relatively young Guernsey aviation registry, 2-REG.
2-REG, a public-private partnership between the States of Guernsey and SGI Aviation, has been quick to secure its position as a market leader. Within 17 months of being established 50 aircraft had been registered, increasing to over 150 aircraft now registered, including a number of high-profile clients and aircraft such as the Boeing 787 Dreamliner, and interest continues to take off.
Distinguishing itself from rival registry jurisdictions, in November 2015 Guernsey ratified the Cape Town Convention on International Interests in Mobile Equipment (the Cape Town Convention) and the corresponding Aircraft Protocol. This has proven to be a great benefit to 2-REG giving global certainty and recognition to Guernsey-registered aircraft and international interests created in Guernsey itself. The Cape Town Convention is an ambitious piece of international commercial law with the purpose of providing a stable international regime for the protection of secured creditors, conditional sellers and lessors of aircraft.
Amendments to the aviation laws in Guernsey have also paved the way for the issue of aircraft operator certificates (AOCs) by 2-REG, a real “USP” for 2-REG increasing its attractiveness globally. AOCs allow for the commercial operation of Guernsey-registered aircraft in accordance with international law and provide a valuable opportunity for owners to generate additional revenue from their aircraft when not being used.
All in all the success of 2-REG, the introduction of AOCs and the convenience of Guernsey as a location for a non-EU stop to transfer title in an aircraft have kept the Appleby team extremely busy in an area which is constantly developing.