An original version of this article was published in RBCC Bulletin, September 2014.
By Fiona Le Poidevin, Chief Executive of Guernsey Finance
Guernsey’s aviation registry, 2-REG, is the latest addition to Guernsey’s wealth management offering.
The first of its kind to be established in the Channel Islands, 2-REG provides for the registration of aircraft involved in non-commercial
flying activity around the world. An aircraft does not have to be physically present in Guernsey to be entered onto the register provided
that the legal and beneficial owners meet the requirements to register.
The registry complements Guernsey's existing expertise gained in banking, wealth management, investment funds, insurance and
wider financial services, all of which can be important in the structuring, financing and holding of an aircraft. Therefore what Guernsey
provides goes beyond the registration of jets and helicopters. Indeed, many aircraft transactions are one element within more complex
private wealth management or corporate arrangements and Guernsey, with its community of international banks, wealth managers, tax,
legal and fiduciary professional advisers, is perfectly placed to meet these client needs.
The 2-REG offering
2-REG has its legal basis in the Aviation Registry (Guernsey) Law, 2013. It is made up of three separate registers, one each for aircraft,
engines and mortgages. This structure allows the financing and security arrangements on Guernsey registered aircraft and engines to
be implemented in the internationally recognised way.
The registry’s name is based on the fact it offers the unique registration mark '2-', with the first few registrations including 2-PLAY, 2-
HIGH and 2-OFUS. In recent months, a major international aircraft leasing and finance business has registered the first Airbus A319 on
2-REG and the first corporate jet, a Gulfstream GIV, has been registered with the registration mark 2-TRAV.
Advantages of 2-REG
Guernsey has monitored the development of other registries, carefully selected the components which work effectively and made
amendments where necessary. The licensing and registration fees vary depending on the weight of the aircraft but the Guernsey
registry is very competitively priced in comparison with other registries, such as the Isle of Man.
Other advantages of 2-REG include:
a 24/7 support system for urgent matters, which is considered unique in the industry.
the registration of aircraft with a maximum take-off weight of 5,700kg – meaning that more types of aircraft can be registered
in Guernsey than can typically on other offshore registries.
a choice of aircraft maintenance programs, including the certification standards of the US Federal Aviation Administration (FAA), Transport Canada Civil Aviation (TCCA) or the European Aviation Safety Authority (EASA).
issuance of pilot licences with options under the US, Canadian and European rules, meaning owners and operators can choose according to their own preferences and circumstances.
Guernsey provides a benign tax environment to structure aircraft transactions within wider private or corporate transactions.
Guernsey has acted to ensure it can continue to offer relevant solutions to individuals and corporates wherever in the world they may be based. The availability of quality legal, tax and other advisory services as well as insurance and financing services completes the full picture for Guernsey’s offering in the aviation registration sector.
2-REG provides another tool for Guernsey practitioners to offer their clients, particularly in the area of private wealth. It follows on from the launch of Guernsey’s own foundations law at the beginning of 2013 and the introduction of the world’s first image rights legislation and image rights register in late 2012.
2-REG is therefore part of the continued evolution of Guernsey’s financial services industry and is anticipated to prove attractive to internationally mobile business aircraft owners, who wish to benefit from registering their aircraft in a highly regarded, stable and well regulated jurisdiction, whilst making use of Guernsey’s mature, financial, legal and fiduciary services infrastructure.
For more information visit www.2-REG.com
Fiona Le Poidevin is the Chief Executive of Guernsey Finance – the promotional agency for the Island’s finance industry.