Callenders & Co. Senior Associate Llewellyn Boyer-Cartwright, a former commercial jet pilot and the first Bahamian to be admitted to the Lawyer Pilots Bar Association, today outlined a three-step process he says could pave the way for the establishment of an aircraft registry in The Bahamas.
The first step is to ratify the Cape Town Treaty (Aircraft Convention), says Boyer-Cartwright, who has actively led the call for an international Aircraft Registry in The Bahamas. “Becoming a signatory to the Cape Town Convention builds international confidence in The Bahamas as a serious and competitive aviation jurisdiction by eliminating uncertainty about who has a right to buy, sell, lease or even repossess an aircraft or its engines,” said Cartwright. “It is the equivalent of having a GPS or tracking device so you always know where what you own or lease is at all times. Without that protection, an engine could be sold while it is thousands of miles away from its owner whether that owner is a corporation, institution or individual. It sounds bizarre, but it can and has happened where engines have been sold to third parties. The only protection is to be covered under the Cape Town Treaty Convention. This is really important in a world where the biggest increase in the aircraft industry is in smaller planes, in fractional ownership and corporate jets.”
The United States, the full European Union, India, China and, in our own region, Aruba — all countries that would be competitive international aircraft registry jurisdictions — are signatories, he noted.
“Not being a signatory to the Cape Town Convention puts us at a great disadvantage,” says Boyer-Cartwright, “and I think the only reason we are not is that it has not been a priority. It was just not at the forefront of anyone’s mind. There are no drawbacks. It’s totally a win-win situation.”
The second step is to create and appoint a committee or body to establish the framework for an aircraft registry and create an Aviation Authority.
“This should involve representatives from all interested sectors, finance, law and, of course, Civil Aviation,” said Boyer-Cartwright, who flew thousands of air miles before turning his attention to law and joining the country’s oldest law firm, Callenders & Co., headquartered in Nassau with satellite offices elsewhere.
The third step, but one that is not immediately essential to the start-up of an aircraft registry, is the removal of 10% stamp duty on aircraft.
“Elimination of duty on aircraft would not be a great loss to government as little duty is collected now because there are so few aircraft on the register in The Bahamas. It would also be more of an incentive for domestic or Bahamas-based airlines to own rather than lease aircraft,” said Boyer-Cartwright. “There are so many other ways to generate revenue through dutiable goods and supplies for aircraft maintenance and operation that the way we are doing it now is actually, in my opinion, costing rather than creating revenue.”
But, he says, duty-related discussions should not stop government from taking immediate action to set the establishment of an international aircraft registry in motion.
“Aruba is 20 years ahead of us,” he said. “They have done so well as a jurisdiction that some 10% of all the aircraft on the international register which is held electronically in Ireland comes through the Aruba registry. But we can catch up and I believe that we can surpass other regional jurisdictions for several reasons, including our advantageous location. If we do this and we do it right, the benefits can be enormous.
Because of our advantageous location, we can become a recognized international aircraft centre with a maintenance facility that is used by many aircraft operators and airlines, especially those in the Caribbean and Central and South America. We can become one of the top centres in the world for financing, leasing, servicing, charter, training and all the ancillary services.”
According to Boyer-Cartwright, considered the country’s leading expert on aviation-related legal matters, an international aircraft registry provides comfort for financing and leasing companies, allowing them to offer better rates.
“The establishment of an international Aircraft Registry with standards that meet or exceed those of ICAO, the regulatory body (International Civil Aviation Organisation),” he said, “could open countless jobs and entrepreneurial opportunities.”
