The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A joint private-public sector committee is due to be formed by end-September to pursue the development of a Bahamian aircraft registry, the attorney spearheading the project yesterday saying its creation would “open the doors to the realms of all possibilities”.

Llewellyn Boyer-Cartwright, a Callender’s & Co senior associate and aviation legal expert, told Tribune Business that senior government ministers he had met with “were very responsive” to the aircraft registry proposal, believing it would “go hand in hand” with initiatives such as developing an International Arbitration Centre in the Bahamas.

Disclosing that he had met with the representative of a large international aviation logistics firm, which would “love” to establish a Nassau office if the proper infrastructure was in place, Mr Boyer-Cartwright said several key reforms could be accomplished fairly quickly.

These, as identified previously in Tribune Business, included removing the 10 per cent import tariff levied on aircraft, plus signing the Bahamas on to the Cape Town Treaty (Aircraft Convention).

The Bahamian aircraft registry drive also has the complete backing of the Bahamas Financial Services Board (BFSB), who were also in attendance at the ministerial meetings.

And KPMG, the international accounting firm, has offered to update the 1999 study that projected the Bahamas could earn $18-$20 million in annual registration fees alone from such a registry.

Mr Boyer-Cartwright confirmed to Tribune Business he and the BFSB had held one meeting with Ryan Pinder, minister of financial services and investments, and his permanent secretary, Harrison Thompson, on the Bahamian aircraft registry plan.

They had also met twice with minister of transport and aviation, Glenys Hanna-Martin, and her minister of state, Hope Strachan. The second of those two meetings was also attended by Captain Patrick Rolle, director of Civil Aviation, and Charles Albury from the Ministry of Tourism.

“It was decided we would form a committee, government and non-government, that would certainly look at the feasibility of moving forward with this, and I am waiting to hear back from the Government on that,” Mr Boyer-Cartwright told Tribune Business.

“I would sit on that committee. The way we left it was that by the end of September we would hear something.”

Mr Boyer-Cartwright is set to depart today for the second annual AeroPodium summit, a major international aviation conference, which is being held in Aruba.

Expressing hope that progress on the committee’s formation would have been made when he returned to the Bahamas next week, he added of the Government’s response: “They were very responsive, and we feel quite excited about it all.

“Things seem to be progressing at a fairly good pace. Both ministers seemed quite keen and excited. Ryan Pinder said he feels it’s needed, and it would tie-in very well with the Maritime Authority and his interest in establishing the Bahamas as an International Arbitration Centre. It would definitely go hand in hand.”

A Bahamian aircraft registry, targeted at both the domestic and international aviation markets, could potentially create a range of new industries and sub-sectors around it if it takes off.

It would also create strong synergies and linkages with industries such as financial services, providing a value-added product for high net-worth clients looking to do all their business in one jurisdiction.

Pointing out that the 10 per cent Stamp Duty on aircraft remained an impediment to aircraft registry development, Mr Boyer-Cartwright added: “It’s like I pointed out to both ministers. It’s not like as if the Government is collecting tens, hundreds of thousands or millions of dollars in revenue with that 10 per cent duty being there. At the end of the day, what is being lost?

“I would understand the Government, if they were losing great revenues from that, questioning why we would be asking them to give that up..

“But I think we have to look at what we’re getting compared to what we can potentially expect to get with the removal of it. It certainly wasn’t ill-received.”

As for signing on to the Cape Town Convention, Mr Boyer-Cartwright said questions had been asked as to why the Bahamas could not start by marketing and developing its domestic aviation registry.

“But, by signing the Cape Town Convention, it’s moving more than two steps forward,” Mr Boyer-Cartwright told Tribune Business.

“It extends that arm of financial services in terms of aircraft financing and leasing. You’re dealing with aircraft mortgages and leasing, so these things can be dealt with at an international level.”

The Callender’s & Co attorney recalled a meeting one month ago with an executive of an international aviation logistics firm, which has offices in Singapore, Dubai and London, and a corporate services provider arm in the Isle of Man.

The executive said that while the Isle of Man ‘was not the best place” for the firm, it “offers the whole package”.

“All the boxes were ticked, and he would love more than anything to have an office here, as he spends more time in the Bahamas, but that’s an example of why one jurisdiction is chosen over another,” Mr Boyer-Cartwright told Tribune Business.

Suggesting that a Bahamian aircraft registry would not require huge investment, as the infrastructure was in place to build on, he added: “It opens the doors to the realms of all possibilities.

“That’s the reason why we have to look at it. What do we have to lose?”

Asked about the AeroPodium summit, Mr Boyer-Cartwright said: “I’m hoping to forge some alliances. We’re not in a position to compete with Bermuda and Aruba, but I believe there’s enough to go around for everyone. I’m optimistic.”