Business Fleet Report YE 2022 MENA

AIRCRAFT REGRISTRY OVERVIEW
OFFSHORE REGISTRY
OFFSHORE REGISTRY MARKET SHARE
By Country/Region
By Size Category
Aruba P4-, 7 (5%)
Bermuda VP-B/VQ-B, 7 (5%)
Medium 13 (9%)
Very Light 3 (2%)
Light 1 (1%)
Malta 9H-, 13 (9%)
139
San Marino T7-, 47 (34%)
Cayman Islands
VP-C, 32 (23%) Isle of Man M-, 33 (24%)
Corp. Airliner 27 (19%)
Large 41 (30%)
139
Long Range 54 (39%)
San Marino (T7-), was best-performing offshore registration
closely following the United States registration, and increased by
eight registrations, for a total of 47 aircraft in the region at the
end of 2022. The UAE accounted for more than half of all aircraft
with the T7 prefix, while Israel had six. There were several key
factors that contribute to the popularity of registration in the
MENA region. As a non-European Union member on the European
continent, San Marino is crucially not obliged to comply with
the European Aviation Safety Agency (EASA), and this delivers
greater flexibility in regard to selecting pilots, for instance, who
are certified with other aviation authorities outside of EASA.
The San Marino government has pledged to fully support the
registration in collaboration with the private business sector,
providing attractive exemptions over insurance tax and import
tax and protecting mortgagee rights over their registrations with
special provisions after having secured the mortgaged asset with
the local Civil Aviation Authority.
The inability to operate within the European Member States
for commercial purposes has only enhanced the registration’s
viability among aircraft that primarily operate outside of
Europe. The San Marino registration is supported by a focus
and commitment on delivering outstanding quality of services,
highlighted through its extensive network of airworthiness
inspectors and engineers around the globe, helping to ensure that
its registered aircraft comply with ICAO regulatory standards.
This ensures that registered owners in the MENA region have
peace of mind over the management and operation of their fleet.
The Cayman Register enacts particular advantages for its aircraft
owners due to its favourable financing infrastructure and support
from the British Civil Aviation Authority, as well as its adherence
to English Common Law. A compromise jurisdiction and the
incorporation of special purpose vehicles as owning entities
to lease or own aircraft make the Cayman Islands a suitable
jurisdiction for customers and financiers to secure favourable
aircraft transactions. The island nation is also a forerunner
in promoting stringent and transparent financial regulatory
practices, having become one of the first partners with the US to
enact the Foreign Account Tax Compliance Act (FATCA). Along
with other treaties and agreements, the Cayman Islands has
proactively sought to uphold standards regarding tax disclosure
and anti-money laundering law enforcement. Overall, a strong
commitment to regulatory adherence and being an attractive hub
for major financial institutions make the VP-C registry a viable
proposition. With a total of 32 registrations, the Cayman Register
accounted for 23% of offshore registrations in the MENA region.
Among the offshore registrations that have experienced growth,
the Malta registration (9H-) saw the greatest growth rate with
nine additional registrations. It has now surpassed Bermuda’s
(VP-B and VQ-B) and Aruba’s (P4-) registries with 13 registrations.
Some 84% of Maltese registered aircraft were based in the UAE,
while the remaining aircraft were based in Saudi Arabia. These
aircraft were likely tied to connections based in Europe, as the
Maltese registration is regulated by the EASA. As part of the
European Union, registered aircraft can travel freely within the EU
Member States while enjoying tax exemptions.
Aircraft registration from the Isle of Man (M-), known for
its political neutrality as a designation, saw an additional
two registrations in the MENA region, which now places it
second behind San Marino among the most popular offshore
registrations. Israel had the largest share of registered aircraft
24 | YE 2022 MENA BUSINESS JET FLEET REPORT