Isle of Man Register

[neutron]

Some details of the new IOM aircraft register now on the Manx Government website at
http://www.gov.im/dti/Aircraft/legislation.xml

[IO540]

Any news of another registry is always interesting.

It doesn't say the minimum requirements for aircraft weight etc but I gather (from a well connected resident) that it will be like the Cayman Islands etc, in other words of no use to sub-turboprop GA should the DfT kick out N-reg planes from the UK.

The larger planes are well catered for by all the well known registries. Aruba in particular is a nice one, but again > 5700kg, IIRC (I wrote to them).

[Newforest]

Any news of another registry is always interesting.


Would the registry be of any use in importing aircraft to the U.K. with paying duties like Denmark?

[dublinpilot]

The Isle of Mann are inside the EU, so VAT does apply.

The question is what VAT rates apply. Do they use the same tax system as the UK?

dp

[Cathar]

The Isle of Man is not part of the European Union but has a special relationship with the EU under Protocol 3 of the UK’s Treaty of Accession. Under Protocol 3, the Isle of Man is part of the customs territory of the Community and there is free movement of goods and trade between the Islands and the EU Member States. I believe that the VAT rate is the Island is the same as the UK (although most other taxes are much lower).

[Jodelman]

I believe that the VAT rate is the Island is the same as the UK (although most other taxes are much lower).
Mostly the VAT rate is seventeen and a half percent but some industries have a lower rate - e.g. hotels charge 5%.

[gcolyer]

The VAT rate on the Island is 17.5%

[IO540]

An IOM aircraft registry would have considerable advantages to residents on the island, I would imagine. As with yachts, etc.

I also guess they can't upset the CAA all that much... well not for the time being.

I mean, look at the rest of the new EU members - any of them would make many millions by the simple expedient of accepting FAA licenses and ratings (and certification) in their own reg planes, with the addition of having no ownership or residence requirements. This would rapidly terminate most of the N-reg scene and its daft trust arrangements; almost nobody would bother to be on N-reg if they could do something simpler.

But, so far, nobody has had the ba11s to do this. I am sure they have been leant on heavily. There is so much politics in this game.

[Cathar]

I also guess they can't upset the CAA all that much... well not for the time being.
As I understand it the CAA have got no say in the matter. It is purely a matter for DfT whether the Isle of Man can run a register and under what conditions.
I mean, look at the rest of the new EU members - any of them would make many millions by the simple expedient of accepting FAA licenses and ratings (and certification) in their own reg planes,
Are there millions to be made from running a flag of convenience for the lower end of the market. If there were, why do Bermuda, Cayman Island and IoM only aim their registers at business/corporate market. In any case EU members (new or otherwise) are bound EASA type certification standards for CofA aircraft. So far as PPLs are concerned all Member States have undertaken to follow the requirements of JAR-FCL so far as practicable. Arbitrary departures from those requirements would, I'm sure, not be looked on favourably by the European Commission or other Member States

[IO540]

That's not the whole story, Cathar.

Firstly, the CAA describes itself as the aviation consultant to the UK Govt. So it's no use anybody pretending that the CAA is some independent body and the DfT is another. They all know each other by first names; this is evident when one phones up one bit or the other. They could just as easily all be in the same building and be the same Govt department.

Secondly, JAR-FCL is not binding on JAA members. For example, the UK automatically validates ICAO licenses for VFR privileges in a G-reg, and allows an ICAO IR for IFR OCAS. Another country could equally validate ICAO IRs for IFR in CAS.

EASA will soon be taking over FCL, but does that mean an end to ANO Article 26 and the automatic ICAO license validation which the UK does? It would also mean a total end to ICAO license validation (automatic or not) throughout the EU. I don't think EASA is going to force that because it would deprive so many EU-resident pilots of their flying privileges. Such pilots would be forced to move to own-reg planes and then EASA has to deal with the much bigger (and much more controversial) fish of foreign reg planes based here.

Certification, I agree, is something else and EASA is already getting its teeth into that. I doubt any JAA state is going to accept FAA certification; well not without formality. The CAA used to issue AANs for FAA STCs, under a bilateral treaty with the FAA, until they signed up to JAA, and possibly for some time after that.

But as I say EASA has much bigger fish to fry; for example they can't simply screw Airbus sales in the USA by doing some "on principle" action against N-reg planes based in the EU. They are much more likely to use a carrot than a stick.

[Cathar]

IO540

I am, of course, well aware of the relationship between the DfT and the CAA. However, they are two different organisations and they can and do function independently of each other in many areas.

Again I am aware that JAR-FCL is not binding on JAA member states which is why I phrased my answer as I did. As I understand it, the UK system of validating licences for VFR privileges in G registered aircraft complies with the requirements of JAR-FCL 1.015(b). However, JAR-FCL 1.015(b) provides that the validation of non JAA PPLs with an IR is restricted to one year and that such validations can only be granted in accordance with certain stated requirements.

It is difficult to predict how the proposed EU Regulation FCL requirements but if they did adopt the current JAR-FCL requirements on validations it would not, as you appear to suggest, prevent the validation of licences. It would simply mean that licences would have to be validated in accordance with harmonised requirements and the current UK practise could continue.

From what I have heard the FAA are not particularly fussed about any action to prevent US registered aircraft operated by non US citizens from being based in the UK/Europe. US legislation is already designed to prevent this which why the owners of such aircraft need to enter into "daft trust arrangements". In any case the EU/EASA could easily stamp out the practise by asserting (on behalf of Member States) the rights afforded by Article 32(b) of the Chicago Convention which would not give the US any cause for complaint. I therefore cannot see there being a trade war should the EU/EASA decide to act on this matter.

Anyway I still don't see how any of the new EU Member State "would make many millions by the simple expedient of accepting FAA licenses and ratings (and certification) in their own reg planes"

[englishal]

Another country could equally validate ICAO IRs for IFR in CAS.
This is the bit that interests me. Bermuda will validate foreign ICAO complient licenses, including professional licenses and ratings, for use in Bermuda registered aircraft at all levels. If the M register did the same, guess what reg everyone would have on their tail ;) (and Bermuda is overseen by the ANO (OT) ).......

[IO540]

Bermuda and Caymans accept FAA IR for all CAS, yes, and they also accept FAA certification (which is quite funny since AFAIK one or both of these employ CAA inspectors to do it) but they also have a lower limit on aircraft size (around turboprop size) which makes them worthless for "us". Same for Aruba, which is basically Netherlands and thus probably within JAA.

Cathar - the money would be made by running a registry. You would get say £500/year from every small plane, and much more from the bizjets etc.

There wouldn't be any formal trade war, but it wouldn't take much to p*ss off the American buyers of European (particularly French) products if UK or Europe took such action against US aircraft. The decision whether to buy a Boeing or an Airbus is a very finely balanced one. Look at the EADS adverts in the USA; they go to huge trouble to put an American face on the company, by putting up pictures of Americans running the U.S. bits of it. Anything to hide the fact it is a European, and virtually French-run, business. These are important dimensions. Why do you think the French withdrew their own proposal to kick out N-reg planes so rapidly, once the word got out?