Business aviation on the Isle of Man

In the aftermath of 9/11, there has been an exceptional growth in sales of private and corporate business jets. It is also true that the increasing number of ultra high net-worth individuals globally has also contributed to this trend. Whilst this trend has been more prominent in the USA, it has recently become more widely spread within Europe, Russia and the UAE. It is no longer an elitist toy but an effective way of getting from A to B. Large corporations and entrepreneurs alike find it much more profitable to conduct business in one day by being able to hop between multiple destinations without the need to rely on scheduled flights or be restricted to airports served by commercial airlines.

During 2007, worldwide annual sales of new jets exceeded 1000 aircraft and order books for certain models have been filled for some years to come. Corporate aviation is increasingly providing the business community with a cost effective and flexible alternative to commercial travel with its increasing poor reputation for delayed flights and security queues.

The advent of the very lightweight aircraft (VLJ) at an average price of US$1.4m has made it a much more affordable consideration for businesses or those living the high-life.

On the 1st May 2008, the Isle of Man Aircraft Registry celebrated its first anniversary. During the course of the year, more than 50 aircraft were registered compared to the original estimate of 12. In June alone this year, 11 aircraft were registered and after only 15 months of operation the total now exceeds 80 registered aircraft.

The Isle of Man provides the only dedicated business aircraft register in Europe but does not accept commercially operated aircraft. The Registry has become yet another phenomenal success for the Island following in the wake of its equally well known Isle of Man SuperYacht Register. The group of companies attracted to the Register in its first year of operation has been very impressive. One of the world's largest business jet manufacturers has recently registered its own company aircraft. With a registry available 24 hours a day, the Isle of Man has now become widely accepted as a one-stop shop for worldwide aviation business.

This is supported by the Island's flourishing banking and insurance based sectors in conjunction with high calibre legal and fiduciary organisations which meet the registration and financing requirements of most aviation activities. Businesses are able to take advantage of the zero direct tax regime and can also benefit from the 0% standard corporation tax on all aviation transactions. Furthermore, there is no Manx insurance premium (usually 5%) which significantly reduces the cost of operating an aircraft from the Island.

Unlike some other registers, the availability of a neutral nationality registration prefix 'M' is very appealing as it can be transferred between aircrafts. International financier Jim Mellon registered the very first aircraft as M-ELON. This has since been joined by M-AGIC and M-YSKY and more recently M-AJOR and M-INOR, two new hawker 900XP's which were registered in sequence as they came off the production line.

Aside from its direct economic benefits, the Aircraft Registry adds significant prestige to the image of the Island as an international business location. This recognition is very important and support from the Government continues. A private-funded project is also underway in the build of a new hangar and facilities next to the existing airport terminal to cater for the demands of the new generation of business aviation.

For more information about how Cayman National can assist in the registration of an aircraft on the Isle of Man, please contact
anita.gould-davies@cnciom.com.

The Isle of Man Aircraft Registry is a sponsor of the 2nd Annual Future of Business Jets Conference on Thursday 23rd and Friday 24 October 2008 at Jolly Hotel St. Ermin's, London UK. More information is available at www.quaynote.com

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