By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Bahamas could unlock a potential “multi-billion dollar industry” if it gets its planned aircraft registry right, an aviation legal specialist said yesterday, adding: “We have great momentum.”

Llewellyn Boyer-Cartwright, pictured, the Callenders & Co attorney who has been a long-time advocate for the registry’s transformation, told Tribune Business that the greatest economic benefits lay with the spin-off opportunities it can create for financial services and jobs “in fields that do not yet exist here”.

He hailed the government’s recent signing of a Memorandum of Understanding (MoU) with Aviation Registry Group (ARG), the entity responsible for creating Aruba and San Marino’s aircraft registries, for further getting “the ball rolling in the right direction” on a value-added initiative likely to prove attractive to the high-net worth clients The Bahamas is seeking to attract.

Mr Boyer-Cartwright, voicing optimism that the MoU could be firmed into a binding agreement with ARG relatively quickly, said the establishment of an overhauled aircraft registry could be achieved within 12-14 months of that being concluded.

He acknowledged, though, that reforms to existing aviation laws and regulations were required to facilitate the transformation. The Callenders & Co attorney revealed that the aircraft registry working group, of which he is part, had in late 2018 submitted draft legislation to the Attorney General’s Office that will enable The Bahamas to sign on to the Cape Town Convention.

That treaty gives aircraft financiers and leasing companies confidence that their liens, charges and other security over planes - and plane parts - will be recognised and secure whatever jurisdiction the craft is in. It provides a vital underpinning to any nation’s efforts - including those of The Bahamas - to establish an aircraft registry.

Eager that The Bahamas move quickly to build on the Aviation Registry Group MoU, Mr Boyer-Cartwright said the deal - and company’s selection - stemmed from 14 months of work by the working group in partnership with the government and Bahamas Civil Aviation Authority (BCAA).

“I think it gives it great momentum,” he told Tribune Business of the Aviation Registry Group deal. “I’m quite positive that the ball is rolling in the right direction. This puts us in a completely different position than we were in six months to a year ago. It’s been a long road.”

Besides advising the Government “on the various intricate aspects of the registry, what it entails and how we’d like to see it structured”, Mr Boyer-Cartwright said the working group had received multiple proposals in a structured Request for Proposal (RFP) exercise before deciding that Aviation Registry Group was “the best fit” for The Bahamas.

He added that Dionisio D’Aguilar, minister of tourism and aviation, and the wider Minnis administration had seen value in moving the aircraft registry plan forward within months of taking office following the May 2017 general election.

“He [Mr D’Aguilar] is confident, as we are, that it will only be a benefit to the country and the economy. Tourism and aviation are so closely linked that what is good for the goose is good for the gander,” Mr Boyer-Cartwright said. “In the latter part of 2018, we got draft legislation to the Attorney General’s Office to accede to the Cape Town Convention.

“This initiative will not only boost the public sector but also the private sector, particularly the financial services sector with respect to the financing and leasing of aircraft, and structuring the ownership of aircraft whether it is a corporate entity, trust structure or any other type.

“It’s a multi-million dollar industry. If we take it a step further with the financial services industry, you’re dealing with a multi-billion dollar industry. As I’ve told the minister, aviation is no longer a service industry. It’s also a business that offers lots of opportunities and benefits. Other jurisdictions would not be doing it if it was not at least financially viable.”

Besides the financial services industry spin-offs and increased aircraft registration fees/revenues for the BCAA, Mr Boyer-Cartwright added: “It’s also envisioned there will be a creation of jobs and, down the line, jobs that are not yet existing in the field here.

“It opens, offers a plethora of opportunities. Let’s go to the basics. There will be an influx of aviation traffic, increased revenue at the FBOs (Fixed Based Operators such as Odyssey), increases in the maintenance and fuel, and parking and landing fees.

“With maintenance is the creation of maintenance, overhaul and repair facilities. We know this won’t be overnight, but long-term there are so many opportunities that can unfold...The aircraft registry, if we get it right - and we plan to get it right - we can be just as competitive as the existing aircraft registries around the world.”

Suggesting that an aircraft registry can do for aviation what the shipping registry has been for the Bahamian maritime sector, Mr Boyer-Cartwright said Aviation Registry Group brought “a wealth of experience” to help make The Bahamas’ vision a reality.

He added that the San Marino registry, whose creation it oversaw, was “doing extremely well” despite having been “started from scratch” just a few years ago. Yet The Bahamas already has “a platform on which we can build” and is “not starting from the bottom”.

“We have a good infrastructure, good relationship with ICAO,” Mr Boyer-Cartwright told Tribune Business. “There’s no reason why we can’t do this. One might say we need a little help doing this, and that’s what Aviation Registry Group brings to the table; their expertise and competence from an administrative and technical aspect.”

He added that there were “still a few hurdles we have to overcome” in creating a new Bahamian aircraft registry, such as legal and regulatory reforms, and said: “It’s the little things that have to be dealt with, but we do have a good idea of what’s in front of us before we can actually launch the registry.

“I honestly believe that once we get the agreement signed with Aviation Registry Group, and I’m hoping that will not be too far off, we can keep this momentum going. If all goes well, once the agreement’s signed, we’d like to see it [the registry] happen anywhere from 12 to 14 months. Earlier than that would be good as well.”