The Cayman Islands government is hoping to attract aviation businesses with an expansion of the Cayman Maritime Services Park that provides “special economic zone” benefits to aviation entities. Businesses that locate with the renamed Cayman Maritime and Aviation Services Park (Cayman Enterprise City), will operate in a tax-neutral environment with lower registration fees, concessions on permits and eased processes, according to the Civil Aviation Authority of the Cayman Islands (CAACI, Booth C11022).

“It is envisioned that this development will attract numerous specialist aviation companies from around the world, including but not limited to air transport operators, firms specializing in insurance, legal, consulting and information technology for the aviation industry,” CAACI said.

The government passed legislation approving the Cayman Maritime and Aviation Services Park in April, and officials since have been putting in place procedures and processes. CAACI officials plan to officially launch the new zone during this week’s NBAA convention.

CAACI called the addition of aviation to the maritime park “a good fit,” citing a natural synergy between the maritime and aviation sectors. “We can leverage that synergy, capitalizing on clients of the jurisdiction that desire to maintain and manage their asset within Cayman Islands’ companies.”

The new development within Cayman Enterprise City will open an option for the entrance of offshore commercial air transport operations, including charter operations. The CAACI aircraft registry had been limited to onshore commercial operations—Cayman Airways, Cayman Express and Cayman Islands Helicopters—as well as onshore and offshore private aircraft.

“Over the years the CAACI has established a credible and reputable aircraft registry for the jurisdiction, with the primary focus being private/corporate aircraft that are operated globally,” CAACI said. “This development offers the opportunity for global commercial air transport operators (i.e., charter operators) to also be associated with a sound aircraft registry for regulatory oversight of its operations.”

The Cayman government has strongly supported the CAACI registry, calling it the “registry of choice” and highlighting a number of advantages of participation, These range from the VP-C Online portal that enables aircraft owners to apply for various approvals and manage documents to CAACI’s close partnerships with local aviation, legal and financial services to help ease the necessary processes for aircraft registrants and facilitate access to expertise.

CAACI stresses that that the Cayman Islands “provides a safe, stable and ‘friendly’ flag for registration of aircraft.”

CAACI received a boost in 2015 with the enactment of the International Interests in Mobile Equipment Law, 2015, which brought the Cape Town Convention into force in the Cayman Islands and gives it international recognition.

“This milestone development…will raise the profile and credibility of the registry, which is already known for its strict safety standards, as a key player for aircraft owners wanting to register their aircraft on a professional and reliable offshore aircraft register and the institutions providing financing,” CAACI said.

Also on the international front, CAACI notes that Cayman-registered aircraft are exempt from certain TSA waiver authorization requirements, easing the process for flying within or over U.S. airspace on short notice.

As the Cayman government promotes the registry, it has had steady growth, typically running between 3 and 5 percent a year, CAACI said. The registry now numbers 236 aircraft. The bulk of the offshore clients are from the Middle East, followed by Europe. Interest from the Middle East remains strong and interest is picking up from owners in China. Owners from North America remain a relatively small segment of the registry.