Whatever is keeping much of the world’s economy from taking off isn’t affecting the airline industry where orders for non-military aircraft are coming in at record highs.
So says a senior attorney and aviation specialist who believes what’s happening in the airline industry worldwide holds promise of “immeasurable economic benefits” for The Bahamas if the country acts quickly and carefully to establish the long-discussed international aircraft registry. Llewellyn Boyer-Cartwright, a former commercial jet pilot who has been specializing in aviation law for the better part of two decades, said he has never seen aircraft orders in such numbers. “In the past year, orders for aircraft have hit record highs with billions of dollars pouring in and contracts being signed. Boeing has had its best year ever and airlines from Indonesia to Latin America are hedging bets that the travel industry – both leisure and business—will take off and continue to climb to new heights.”
How does that affect The Bahamas?
“Every single aircraft has to be financed, every aircraft has to be registered and to register an aircraft, there has to be a company,” said Boyer-Cartwright, a senior associate with Callenders & Co. law firm and the outspoken proponent of a Bahamas international aircraft registry. “Registration fees, which are straight revenue for government, can be substantial, but only represent part of a much larger picture. You’ve got company formation, financing, staffing, repair, maintenance and all the small businesses that service those businesses.
“I believe The Bahamas has the potential to become the aviation hub for the region with private and commercial aircraft registered here, adding that final missing link to attract the high net worth individual who does other business with The Bahamas but has to register his private or corporate jet elsewhere, and more importantly, creating an environment which gives rise to repair facilities, entire new industries for employment and entrepreneurship for Bahamians.”
Calls for the creation of a registry that could also be based in London similar to the Bahamas Maritime Authority are being met with action. The government recently appointed a consultative committee to study the feasibility and report back to the Ministry of Transport in a matter of months. That move comes more than a decade after the Bahamas Financial Services Board commissioned the first thorough study on a registry in 1999.
Now, Boyer-Cartwright, whose voice helped re-ignite interest, says the timing has never been better.
“Wherever you look, there are orders for new aircraft that even a few years ago would have seemed unimaginable,” says the pilot-turned-lawyer-turned-registry advocate. “It’s reported that China Southern Airlines has committed to 10 Airbus A-330-300s at $188 million each. That deal is valued at $1.9 billion.” Massive as it is, the order is due to be completed and delivered by 2016, according to reports. In fact China Airlines will order six Boeing 777-300ERs as a part of a fleet renewal plan to meet the fast-growing market demand. Turkish Airlines has also firmed up its commitment for 15 Boeing 777-300ERs and five options in a deal valued at $4.7 billion.
“Much closer to home, Embraer, the Brazilian airline, just broke ground on a $26 million Engineering and Technology Centre in Florida at Melbourne International Airport. The plans are for such a sophisticated facility with 3-D virtual reality in design and testing that it is likely to draw top engineering talent. I believe we can do much the same in The Bahamas. Our tax environment is friendly, weather conducive, we are close to Latin America, South America and North America hubs and our potential is limitless.”
But, Boyer-Cartwright says, it is critical to set and maintain high standards if the proposed registry is to succeed long-term and attract business and private jet aircraft as well as commercial. “We do not want to become a flag of convenience,” he says.
“I have kept track of the aircraft and airline industry for 30 years and never have I seen so much activity, so many orders for new non-military, large aircraft. If we move with due speed and care, I believe The Bahamas can reap immeasurable economic benefit, but we cannot stall out. This is the time for take off.”
Diane Phillips and Associates
Caption: Llewellyn Boyer-Cartwright – Senior associate with Callenders & Co. and former commercial pilot says now is the time for The Bahamas to move to establish an international airline registry as it could hold promise of “immeasurable economic benefits.”
