We would like to ensure that you are still receiving content that you find useful – please confirm that you would like to continue to receive ILO newsletters.
17 February 2016
The Jersey Aircraft Registry was launched on November 6 2015. Aircraft and aircraft engines, together with aircraft mortgages and aircraft engine mortgages, can be registered.
The Cape Town Convention on International Interests in Mobile Equipment and its Aircraft Equipment Protocol are expected to be extended to Jersey later in 2016, although no specific timings have been provided.
The Cape Town Convention creates a single harmonised international framework for the creation and registration of international interests (including title and security interests) against internationally mobile assets, such as aircraft and aircraft engines. This provides consistency and certainty, as international interests are recognised and enforced across all signatory countries. The Cape Town Convention also gives creditors access to basic default and insolvency-related remedies, and establishes an electronic registry of international interests which serves to provide third parties with notices of interest. This registration provides lenders with reduced credit risk when financing the lease or purchase of aircraft and aircraft engines, thereby increasing the availability and reducing the cost of such financing for borrowers.
The Aircraft Registry provides a platform for the registration of aircraft, as well as the creation, registration and enforcement of aircraft mortgages and aircraft engine mortgages. Further, the registry provides lenders with the opportunity to finance the lease or purchase of aircraft and aircraft engines which are registered in Jersey.
In order to establish the registry, two pieces of primary legislation have been introduced: the Aircraft Registration (Jersey) Law 2014 and the Air Navigation (Jersey) Law 2014.
The registry allows for the registration of aircraft and aircraft engines, other than aircraft that fly for the purpose of commercial air transport or aerial work, except in limited circumstances.
Any owner that is a citizen, resident, incorporated or established in any country in the European Economic Area, the Commonwealth or Switzerland can register aircraft and aircraft engines with the registry.
In accordance with the Aircraft Registration Law, aircraft mortgages and aircraft engine mortgages will be recognised and enforced in Jersey regardless of whether they have been granted under Jersey law or a foreign law. This will be of a particular benefit once the Cape Town Convention has been extended to Jersey.
Registration in Jersey offers the following advantages:
The materials contained on this website are for general information purposes only and are subject to the disclaimer.
ILO is a premium online legal update service for major companies and law firms worldwide. In-house corporate counsel and other users of legal services, as well as law firm partners, qualify for a free subscription.