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					18-B                                                                Aviation & Business Journal                                                              April 2004

                     Business in Perspective
                     The Aircraft Registry Group
                     By W. Stephen           Registration of aircraft is a com-
                     Dennis                plex and detail-oriented process in
                                           which different factors come into
                        What makes a       consideration, including compliance
                      great venture in     with one of the three primary aircraft
                      the aviation         regulatories: (USA, FAA FARs; EU,
                      industry, or any     Joint Aviation Authority, JARs; or
                      business for that    the British CAA, Civil Aviation
                      matter, is expert    Authority) that govern any aircraft
                      knowledge com-       registration process.
                      bined with a           Seven years ago, Miami entrepre-
commitment to excellence.                  neur Jorge Colindres pioneered the
  A very important aspect of aviation      world’s first privately managed
is the world of international aircraft     Category 1 aircraft registration pro-
registration. Most every one in avia-      gram. With the Aircraft Registry
tion is familiar with the U.S. aircraft    Group, of which he serves as presi-
designation of an “N” number or “N”        dent and CEO, he wanted to stream-
registration, but there are a number       line the aircraft registration process
of options available to operators of       for clients throughout the world by
aircraft (primarily turbine) outside       changing what is normally a time-                   Airbus 310-304 owned by Saudi Royal family Kingdom of Saudi Arabia
the borders of the U.S. Most all           consuming and frustrating experience
countries issue aircraft registrations.    to something of an effortless process.    is not unique. Colindres does have           shore company in Aruba, have a
However, because of operating flexi-       He has accomplished this by empha-        competitors—in the form of national          choice of forming a limited liability
bility or tax advantages, “Flags of        sizing a “private enterprise”             governments that usually oversee the         company and are subject also to a
Convenience” emerged in the 1970s.         approach to providing a service that      registration process—but in certain          low rate of taxation in Aruba.
  The most well known countries to         is usually provided only by govern-       instances in the aviation business, it         After the introduction by the gov-
offer flexibility and benefits with for-   ments.                                    pays to be the small guy.                    ernment of The Aruba Tax Exempted
eign registration are Bermuda, the           His business savvy attracted own-         “Because of advancing aviation             Corporation, in 1988, large trust
Cayman Islands and Aruba. Rather           ers, operators and leasing companies      technology, airplanes are now chang-         companies that had previously con-
than the familiar “N” number, a dif-       of commercial and private aircraft        ing more rapidly than ever before,”          centrated their operations in Curacao,
ferent designation is utilized for each    across the globe that rapidly under-      said Colindres. “The smallest player         Venezuela, started operating offices
of the countries offering a “flag of       stood the benefits of his company’s       in this sector will have the advan-          in Aruba. This is an indication of the
convenience.” Bermuda is “VP-B,”           ability to provide real on-time air-      tage, flexibility and ability to inno-       increased acceptance of Aruba as an
Cayman Islands are “VP-C,” and             craft registry solutions.                 vate, implement and manage new               international financial center.
Aruba is “P-4.”                              The business of aircraft registration   economic ideas; we happen to be that           So, why register in Aruba?
                                                                                     small player.”                                 As an overseas territory and coun-
                                                                                                                                  try of the European Union and an
                                                                                         Why register in Aruba?                   autonomous country within the
                                                                                                                                  Kingdom of the Netherlands, Aruba
                                                                                       Aruba is an island situated in the         follows the Joint Aviation Authority
                                                                                     Southwest Caribbean Sea, 12 miles            standards and its civil aviation regu-
                                                                                     off the North coast of South                 lations are based on the JARs.
                                                                                     America. Its capital is Oranjestad;          However, since Aruba is geographi-
                                                                                     the island’s total population is             cally located in the Americas Insular
                                                                                     approximately 70,000 inhabitants.            Territory, the Department of Civil
                                                                                     The island is 9.6 miles wide by 6            Aviation is well versed in the knowl-
                                                                                     miles across.                                edge and applicability of the U.S.
                                                                                       The island’s first experience with         FAA’s regulations.
                                                                                     the aviation world was 74 years ago.           Registration is efficient, under the
                                                                                     On July 24, 1925, the first hydro-air-       auspices of The Aruba Department
                                                                                     craft, “IDOR,” landed in Paardenbaai         of Civil Aviation, and conforms with
                                                                                     Harbor, Oranjestad. Lt. Governor Mr.         the ICAO, and to standards of coun-
                                                                                     H.E.G. Wagemaker of Aruba pre-               tries where excellence in aviation is
                                                                                     sented the first plans for the con-          the norm.
                                                                                     struction of an airport for the island         With its easy accessibility, political
                                                                                     in 1933.                                     stability, respectable and independent
                                                                                       The landing of the first tri-engine        judiciary system, modernized com-
                                                                                     Fokker aircraft, “Snip,” occurred on         mercial code, competitive adminis-
                                                                                     Dec. 23, 1934, at Savaneta. In 1935,         trative costs, and confidentiality,
                                                                                     Aruba got its first airport, “Dakota,”       Aruba is attractive for international
                                                                                     named after a former aloe plantation.        businesses.
                                                                                       Since an economic boom in 1987,              “Worldwide commercial jet and
                                                                                     Aruba has experienced spectacular            regional commuter airlines, financial
                                                                                     economic growth. This progress was           groups and aircraft owners are all
                                                                                     fueled primarily by heavy investment         prospective clients who may seek
                                                                                     in the tourism industry, oil refining,       Aruban registry if it applies to their
                                                                                     development of the trade sector and          aircraft,” said Colindres.
                                                                                     effective financial reforms.                   If you are considering registering
                                                                                       In July 1988, Aruba enacted the            your aircraft in a credible Category 1
                                                                                     Aruba Exempt Corporation Act,                assessed country, for political, fiscal,
                                                                                     introducing into the existing corpo-         economic, commercial or any other
                                                                                     rate law a new form of legal entity.         reason, registration in Aruba would
                                                                                     The A.E.C. is a modern, flexible cor-
                                                                                                                                  pertain to you.
                                                                                     porate body, tailored to the needs of          “With political, economic and tax
                                                                                     international business.                      benefits, Aruba is the registry of
                                                                                       Clients, either individuals or corpo-
                                                                                     rate, wishing to incorporate an off-         Bus. in Perspective cont. on page 21-B
April 2004                                                           Aviation & Business Journal                                                                     21-B
Bus. in Perspective cont. from pg. 18-B                                                                                             since the 9/11 slump. All the former
                                                                                                                                    Russian Republics are starting to
choice, with convenience, and is a
Category 1 country rated by the U.S.                                                                                                Westernize; opportunities are avail-
FAA,” said Colindres. “Also, it’s                                                                                                   able in other countries. Our focus is
important for the aircraft owner to                                                                                                 on the future. Even though our com-
register their aircraft where the laws                                                                                              pany is headquartered in Miami, we
and regulations protect ownership                                                                                                   operate our registry inspections and
interests.”                                                                                                                         maintenance out of Aruba. One hun-
  Note that the Aruba registration                                                                                                  dred percent of our clients are over-
process may also lower your aircraft                                                                                                seas.”
insurance rates.                                                                                                                      Aircraft Registry Group registers
  When it comes to the security of its                                                                                              20 percent commercial carriers and
assets, banks, leasing companies and                                                                                                80 percent private clients. Their com-
private operators have chosen Aruba                                                                                                 mercial clients include planes in
over other jurisdictions. Due to the                                                                                                Armenia, Peru, the former Russian
high regulatory standards and well                                                                                                  Republic and many other countries.
enforced safety oversight, Aruba was                                                                                                  “We try to concentrate our efforts
invited to be a member of the                                                                                                       on the customers who are safety con-
International Maintenance Review               Air-Astana is a joint venture owned 51 percent by the Government of the Republic
                                                                                                                                    scious; there is a much more enjoy-
Board, composed by the civil avia-                                                                                                  able return when you work with a
                                                 of Kazakhstan and 49 percent by BAE Systems Ltd. Air Astana was founded in
tion authorities of the U.S., Canada,                                                                                               customer who’s not trying to cut cor-
                                               September 2001 to provide a western style scheduled domestic air service for the
European Union, Japan and                                                                                                           ners,” said Colindres. “If the airplane
                                                  Republic of Kazakhstan, in support of developing and improving the domestic
Australia.                                                                                                                          is managed by a separate entity, we
                                                                     aviation infrastructure within Kazakhstan.                     make sure that a safety oversight is
                                                   Aviation standards                    standards, rules in other countries        done on the airplane to ensure the
   Aviation venture with the                                                             can change. Since the countries            owners there are no liability issues
    Government of Aruba                                in the U.S.                                                                  present for passengers or crew,” said
                                                                                         themselves are economically not
                                                                                         totally stable, registration in Aruba is   Colindres.
  “We have the good fortune of hav-          Like Aruba, the U.S. also has very
                                                                                         a viable alternative. Because the            If a worldwide leasing company
ing entered into a joint venture with      high standards. Different departments                                                    wants to lease an airplane to a coun-
                                           of the FAA oversee commercial stan-           commercial aviation business in
the government of Aruba,” said                                                                                                      try with no experience, they come to
                                           dards and private standards of reg-           Europe and the U.S. is very competi-
Colindres. “We are in charge of all                                                                                                 Aircraft Registry Group in search of
                                           istry in the U.S., but only for U.S.          tive, airlines will do what’s necessary
Aruban aircraft registrations. Aside                                                                                                securing their assets overseas, he
from that, we conduct business on          airplanes. Foreign carriers have no           to safeguard their interests, and
our own behalf, marketing world-           opportunity to register in the U.S.,          sometimes that includes a foreign            “As an offshore registration, we
wide. Among all registries, we are         due in part to the fact that they don’t       registry.                                  can assure that a multimillion-dollar
the only one who participates in           operate mainly in the U.S.                      “Business was slow for a while, but      asset is protected,” he said. “We keep
trade shows. Unlike huge govern-             Also, since 2001, the U.S. has              in the last year it’s picked up again,”    a close watch on all of our airplane
mental registries, we’re in personal       employed more stringent air safety            said Colindres. “International avia-       operations by maintaining airplane
contact with our clients on an ongo-       standards and air space restrictions.         tion business has picked up more
ing basis.”                                International carriers must file flight       domestic business than the U.S. has        Bus. in Perspective cont. on page 22-B
                                           plans and get permits; there is a high
  The International Aviation Program
                                           level of approval needed to enter
of Aruba was developed to provide          U.S. airspace. Certain airports ban
owners of private and commercial           foreign private and commercial carri-
aircraft with an alternative registry in   ers. Just recently a couple commer-
a credible jurisdiction. As adminis-       cial flights out of France were can-
trators of the International Aviation      celled because they were deemed a
Program of Aruba, any aircraft regis-      high-risk security threat.
tration request operated international-
ly is made through Aircraft Registry          Aviation growth in the
Group’s Miami office.
  In seven years, the company has
                                             Former Russian Republic
gathered a little over 100 major
                                             Aviation business is sprouting up in
clients.                                   the former Russian Republic.
  “We are currently refining our             In contrast to many developing
existing system of registration            nations emerging out of the former
process. As part of the process, it’s      Russian Republic, Aruba has exten-
our job to keep track of all airplane      sive and high safety standards-—and
paperwork,” said Colindres. “Once          they comply with European stan-
we assign an inspector to the aircraft,    dards, which means airplanes both
we follow up with our client to make       commercial and private can operate
sure all official and mechanical busi-     throughout Europe.
ness is up to date.”                         Unlike Aruba’s stable and safe
  The normal process of registration
can take anywhere from two weeks
and longer. Aircraft Registry Group
completes the registration process in
three days.
  “We are very efficient, and flexi-
ble,” said Colindres. “We are able to
dispatch our inspectors in a
moment’s notice. Our customers
value us for efficiency, cost contain-
ment, financial benefits, high safety
standards, maintenance conformity
and regulations compliance to JAA
& FAA requirements. If you register
through Aruba, your plane is ensured
to meet the highest safety require-
ments, under the government of
22-B                                                                         Aviation & Business Journal                                                          April 2004
                                                                                             Bus. in Perspective cont. from pg. 21-B    around the world.”
                                                                                                                                          David Colindres, the international
                                                                                             standards in many countries that are       marketing director, travels quite fre-
                                                                                             just now becoming stable. It’s great       quently.
                                                                                             to be a part of progress in motion.”         “I love the travel that’s involved
                                                                                                                                        with my job,” he said. “It’s amazing
                                                  LIQUID METAL POLISH                          The future of International              to meet people from different coun-
                                                                                                      Registration                      tries and oversee the aviation regis-
                                                 • Chemically Engineered                                                                tration process.”
                                                   To Bring Back a Bright                      The company is poised and ready            David ensures that the standards
                                                                                             for continued growth. That’s proof         Jorge established when he formed
                                                   Shine to Dull Metal                       there is still business to be found in a   the Aircraft Registry Group seven
                                                   Surfaces.                                 variety of sectors of aviation busi-       years ago continues to be the “stan-
                                                                                             ness.                                      dard” against which the other “flags
                                                                                               Some of the planes the company           of convenience” are measured.
                                                 • Substantially reduces                     has registered include Airbus A310,          “Since we started seven years ago,
                                                   the polishing time on                     A31020, Boeing 747SV, MD11,                we’ve created a presence and reputa-
                                                   Aircraft Bright Work                      Boeing 757, 737-700 and 737-800.           tion in the business,” said Colindres.
                                                                                             Smaller airplanes include                  “Based on that, we’ve grown into a
  PRESTIGE SHOW QUALITY PRODUCTS                                                             Bombardier Challengers, Lear Jets,
                                                                                             Hawkers and Cessna Citations.
                                                                                                                                        large multinational company.”
                                                                                                                                          Today, Aruba is the leading and
                                                                                               Presently, the International Air         most sophisticated Civil Aviation
 • NO BUFFING                                                                                Safety Group (Aircraft Registry            Offshore Registry, which offers to
   REQUIRED                                                                                  Group and the Government of                owners and operators the highest
                                                                                             Aruba’s joint venture) has on staff        degree of safety oversight, asset pro-
 • NO UNPLEASANT                                                                             five local Aruban maintenance              tection, compliance and enforcement
                                                                                             inspectors and five operational            as well as customer service.
   ODORS                                                                                     inspectors who were all trained in
                                                                                             Holland at an aerospace training cen-        W. Stephen Dennis is the founder,
 • EASY                                                                                      ter in order to learn the Western sys-         CEO and president of Aviation
   APPLICATION                                                                               tem of operation and maintenance.             Resource Group International, a
                                                                                               There are over 30 approved                leader in aviation advisory services
       Introductory                                                                          Aircraft Registry Group maintenance           since 1975. He has more than 25
                                                                                             facilities throughout Europe and the       years of varied aviation industry and
           Price                                                                             U.S.
                                                                                               Jorge’s son, David, joined the busi-       executive and senior management

       16            95                                                                      ness almost two years ago. The                 experience covering specialized
                                                                                             father and son team make for great         areas such as operational efficiency,
                                                                                             business.                                    profitability conversions, business
                     16oz. bot-
                                                                                               “It’s wonderful to be working with          development, strategic planning,
                                                                                             my son; he’s learned the ropes in a        marketing and corporate restructur-
 ORDER ONLINE at www.PrestigeTransport.com                                                   very short time,” said the senior                ing. He can be contacted at
                                                                                             Colindres. “He handles marketing

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