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
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
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
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
This article first appeared in the Sept/Oct 2014 edition of
The European Magazine, published by Chase Publishing
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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