Italian Aircraft - Irish Registered?
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Italian Aircraft - Irish Registered?
I am sure someone has asked this question before but couldn't did anything, & apologies if this is in the wrong forum!
But why do so many Italian airlines have some or all of ther fleet registered to Ireland (EI-)?
Air Italy for example had B757 I-AIGA which is now EI-IGA. Likewise Alitalia I-BIXZ is now EI-IXZ.
Sure there is a logical explanation, just dying to know what it is!
Many thanks
TCX69
But why do so many Italian airlines have some or all of ther fleet registered to Ireland (EI-)?
Air Italy for example had B757 I-AIGA which is now EI-IGA. Likewise Alitalia I-BIXZ is now EI-IXZ.
Sure there is a logical explanation, just dying to know what it is!
Many thanks
TCX69
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Also from what I understand if your (a leasing company) aircraft is Italian registerred and the airline goes bust, you are responsable for all the unpaid bill (fuel, landing fees, parking fees...) of that aircraft. If you have an Irish registered aircraft all those unpaid bills relating to your aircraft are the respnsability of the operator.
I may be wrong though...
I may be wrong though...
There are a range of legal and tax reasons in certain operating countries why aircraft belonging to leasing companies get registered out-of-country. Particular ones include taxation loopholes, and legal issues that restrict the lessor, particularly if the operating airline defaults on payments or declares bankruptcy. On the other hand some operating countries have restrictions on overseas registrations for crew licencing etc. Things change over time, leading to re-registration.
Ireland is favourite in the EC because of the long association with the old Guinness Peat leasing company, for whom easy registration arrangements were made available. Similarly France has special arrangements which assist Airbus/ATR-manufactured aircraft, a number of which operate with French "overseas" registrations in the F-O... series. Bermuda is another location which is favoured. Different combinations of lessor, manufacturer and operator find different registration administrations suit them.
Italy is a notable operator of out-of-state registrations, but the most widespread nowadays is Russia, where virtually the whole of the Airbus/Boeing fleets acquired by operators there is registered overseas, due to a very substantial import tax on non-Russian manufactured aircraft, which this gets around. Aeroflot is now mostly an Airbus operator, generally registered in Bermuda.
Ireland is favourite in the EC because of the long association with the old Guinness Peat leasing company, for whom easy registration arrangements were made available. Similarly France has special arrangements which assist Airbus/ATR-manufactured aircraft, a number of which operate with French "overseas" registrations in the F-O... series. Bermuda is another location which is favoured. Different combinations of lessor, manufacturer and operator find different registration administrations suit them.
Italy is a notable operator of out-of-state registrations, but the most widespread nowadays is Russia, where virtually the whole of the Airbus/Boeing fleets acquired by operators there is registered overseas, due to a very substantial import tax on non-Russian manufactured aircraft, which this gets around. Aeroflot is now mostly an Airbus operator, generally registered in Bermuda.
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EI-
The main reason for the use of foreign registers in jurisdictions such as Italy is perfection of security. The Italian register does not permit lessors to reposess their aircraft easily in a bankrupcy because of local judicial procedures. It could take a very long time for a lessor to prove its ownership or financial interest ina n aircraft in the Italian court system. In addition there is no efficient recognition of mortgages. The same is also true in Russia.
Ireland has very favourable double taxation treaties with many countries and this, coupled with gererous tax breaks offered by the Irish government, engouraged leasing companies to locate there - particularly in Shannon and the Dublin Doocklands - both of which were heavily subsidised by the government.
Bermuda and Ireland are the most favoured 'flags of convenience' for commercial aircraft. Corporate aircraft are additionally registered in the Isle of Man, Aruba and Cayman as well as the US.
Hope this helps
WOD-DET-DVR
Ireland has very favourable double taxation treaties with many countries and this, coupled with gererous tax breaks offered by the Irish government, engouraged leasing companies to locate there - particularly in Shannon and the Dublin Doocklands - both of which were heavily subsidised by the government.
Bermuda and Ireland are the most favoured 'flags of convenience' for commercial aircraft. Corporate aircraft are additionally registered in the Isle of Man, Aruba and Cayman as well as the US.
Hope this helps
WOD-DET-DVR
