1 General

1.1 Please list and briefly describe the principal legislation and regulatory bodies which apply to and/or regulate aviation in your jurisdiction.

The Cayman Islands is a British Overseas Territory. The Secretary of State of the United Kingdom Government takes lead responsibility for ensuring that the Cayman Islands (and other overseas territories) comply with the obligations of the Chicago Convention. The Civil Aviation Authority of the United Kingdom has established a subsidiary company, Air Safety Support International ("ASSI"), to oversee, support and promote aviation safety regulation in its overseas territories, including the Cayman Islands. ASSI is responsible for supporting the UK's overseas territories in all aspects of aviation safety regulation.

Regulatory Body: The Civil Aviation Authority of the Cayman Islands
The Civil Aviation Authority of the Cayman Islands (the "CAACI") is the body responsible in the Cayman Islands for ensuring that civil aviation in the Cayman Islands conforms to the standards of the International Civil Aviation Organization ("ICAO").

The CAACI's functions include the following:

  1. the regulatory oversight of the aviation industry throughout the Cayman Islands;
  2. the certification and licensing of aerodromes, heliports and air transportation services;
  3. registration of aircraft, including maintenance of the Cayman Islands Aircraft Register (the "Aircraft Register") and the issuance, renewal, cancellation, revocation and variation of certificates of airworthiness of aircraft;
  4. the validation of crew and maintenance personnel licences;
  5. the safety oversight of Cayman Islands Air Operator Certificate ("AOC") holders;
  6. the issuance of air transport permits and operating licences for foreign-registered scheduled and non-scheduled carriers operating in the Cayman Islands;
  7. the regulation of charges levied by airport operators;
  8. acting as liaison between the Government of the Cayman Islands and the UK Department for Transport; and
  9. regulation of air traffic.

It should be noted that the Aircraft Register is primarily for aircraft undertaking private use operations, and aircraft registered on the Aircraft Register must not be used for commercial operations (i.e. for hire or reward) unless an AOC is obtained or the aircraft falls within an Article 83 bis agreement.

Legislation
The principal legislation which applies to and regulates aviation in the Cayman Islands is the Air Navigation (Overseas Territories) Order 2013 ("ANOTO").

Other notable legislation pertaining to the aviation industry is as follows:

  • Air Navigation (Fees) Regulations, 2010.
  • Air Navigation (Overseas Territories) (Amendment) (No. 2) Order, 2014.
  • Air Navigation (Overseas Territories) (Amendment) (No. 2) Order, 2021.
  • Air Navigation (Overseas Territories) (Amendment) Order, 2014.
  • Air Navigation (Overseas Territories) (Amendment) Order, 2015.
  • Air Navigation (Overseas Territories) (Amendment) Order, 2021.
  • Air Transport (Licensing of Air Services) Regulations, 1977.
  • Aircraft (Landing and Parking Fees) Regulations, 2020.
  • Airport Regulations (1995 Revision).
  • Airports Authority Act (2005 Revision).
  • Civil Aviation Act 1949 (Overseas Territories) Order 1969 SI No. 592 of 1969.
  • Civil Aviation Act 1982 (Overseas Territories) (No. 2) Order 2001 SI No. 3367 of 2001.
  • Civil Aviation Act 1982 (Overseas Territories) Order 2001 SI No. 1452 of 2001.
  • Civil Aviation Act 1982 (Overseas Territories) Order 2021 SI No. 477 of 2021.
  • Civil Aviation Authority Act (2015 Revision).
  • Civil Aviation (Investigation of Air Accidents and Incidents) Regulations, 2019.
  • Mortgaging of Aircraft Order, 1972.
  • Mortgaging of Aircraft Regulations, 2015.

The Overseas Territories Aviation Requirements ("OTARs") provide guidance to the aviation industry in the Cayman Islands (and other UK overseas territories) on the effective implementation of the standards and recommended practices under the Chicago Convention and the ANOTO.

1.2 What are the steps which air carriers need to take in order to obtain an operating licence?

Application for an AOC must be made to the CAACI as the competent authority in the Cayman Islands with responsibility for issuing operator's licences.

The operation of aircraft on a foreign AOC is permitted; however, the grant of air transport permits and operating licences by the CAACI will be required for foreign registered scheduled and non-scheduled carriers to operate in the Cayman Islands. There are minimum requirements that must be met for non-scheduled/charter air transport operations to the urisdiction as well as scheduled/charter air transport operations to the jurisdiction together with payment of the applicable fees. In addition, companies that supply more than one-off ad hoc charters or who provide air ambulance services can be issued with either a blanket permit or verification letter.

1.3 What are the principal pieces of legislation in your jurisdiction which govern air safety, and who administers air safety?

The principal legislation in the Cayman Islands that governs air safety is the ANOTO. The CAACI is responsible for administering air safety in the jurisdiction under the provisions of the ANOTO and the Civil Aviation Authority Act (2015 Revision).

1.4 Is air safety regulated separately for commercial, cargo and private carriers?

The CAACI regulates all aspects of safety in the aviation industry.

1.5 Are air charters regulated separately for commercial, cargo and private carriers?

Air charters are not regulated separately for commercial, cargo and private charters.

1.6 As regards international air carriers operating in your jurisdiction, are there any particular limitations to be aware of, in particular when compared with 'domestic' or local operators? By way of example only, restrictions and taxes which apply to international but not domestic carriers.

The Airports Authority Act (2005 Revision) provides that one of the functions of the Airports Authority is to ensure airports in the Cayman Islands conform to the standards and recommended practices of ICAO.

Pursuant to Article 135 of the ANOTO, all foreign-registered aircraft operating into the Cayman Islands for valuable consideration are required to be licensed to do so by the CAACI.

1.7 Are airports state or privately owned?

Airports in the Cayman Islands are state-owned.

1.8 Do the airports impose requirements on carriers flying to and from the airports in your jurisdiction?

Airports in the Cayman Islands prescribe and regulate conditions of use, as well as charges. Users of airports are subject to charges, which are regulated by the Cayman Islands Airports Authority under the Airport Regulations (1995 Revision), the Airports (Security Tax) Regulations (2016 Revision), the Airports Authority (Charges) Regulations, 2008, the Airports Authority Act (2005 Revision) and the Aircraft (Landing and Parking Fees) Regulations, 2020.

1.9 What legislative and/or regulatory regime applies to air accidents? For example, are there any particular rules, regulations, systems and procedures in place which need to be adhered to?

There are extensive laws, regulations and guidelines that regulate the reporting and investigation of accidents and incidents that are applicable in the Cayman Islands. These include the following:

  1. ICAO Annex 13 Aircraft Accident and Incident Investigation.
  2. The Civil Aviation Act 1982 (Overseas Territories) Order 2001 – Article 75.
  3. Memorandum of Understanding between the Governor and the UKAAIB 2006.
  4. Civil Aviation (Investigation of Air Accidents and Incidents) Regulations, 2019.
  5. The ANOTO – Articles 5, 7, 174, 175.
  6. OTAR Part 13 Occurrence Reporting (OTAR 13 Issue 4 dated April 2012).
  7. Overseas Territories Aviation Circular ("OTAC") 13-1 Occurrence Reporting (OTAC 31-1 Issue 4 dated July 2015).

The Manual of Aircraft Accident and Incident Reporting – Part I and Part II issued by the CAACI sets out in detail a summary of the legislation, regulations and guidelines relating to aircraft accident and incident reporting.

The Civil Aviation (Investigation of Air Accidents and Incidents) Regulations, 2019 provide for the Governor of the Cayman Islands to, amongst other things, appoint a chief investigator to carry out investigations into accidents involving aircraft involved in civil aviation. Accidents, Serious Incidents and Incidents (each as defined in ICAO Annex 13 Aircraft Accident and Incident Investigation) are required to be reported and investigated.

1.10 Have there been any recent cases of note or other notable developments in your jurisdiction involving air operators and/or airports?

We are not aware of any cases dealing specifically with air operators and/or airports.

1.11 Are there any specifically environment-related obligations or risks for aircraft owners, airlines, financiers, or airports in your jurisdiction, and to what extent is your jurisdiction a participant in (a) the EU Emissions Trading System (EU ETS) or a national equivalent, and (b) ICAO's Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA)?

The Air Navigation (Overseas Territories) (Environmental Standards) Order 2014 as amended by the Air Navigation (Overseas Territories) (Environmental Standards) (Amendment) Order 2015 has been extended to the Cayman Islands. This Order requires certain aircraft to obtain a noise certificate in accordance with the standards set out in the sixth edition – July 2011 of Volume I of Annex 16 to the Chicago Convention and certain emissions certification as to compliance with the standards set out in the third edition – July 2008 of Volume II of Annex 16 to the Chicago Convention. As a member of ICAO, the UK is obliged to implement CORSIA in its national law. For the purposes of the Chicago Convention, the UK's Overseas Territories (which include the Cayman Islands) are treated as part of the UK. The Cayman Islands will therefore join CORSIA along with the UK and the UK would be required to legislate for CORSIA in the Cayman Islands and other Overseas Territories of the UK.

Aeroplane operators have been voluntarily monitoring, reporting and verifying their emissions since 2019 to set the global baseline for CORSIA.

Consultation is currently ongoing in relation to the development of a draft Air Navigation (CORSIA) (Overseas Territories) Order. This is not yet in force.

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Originally published by ICLG.com.

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