Russian Tussle: Bermuda & United Kingdom

Bermuda’s lucrative aircraft registry has come under scruntiny, with the UK appearing to be looking closely at the practice.

The UK’s attention seems to have been drawn by Bermuda registered aircraft that are in use by Russian airlines.

The Aircraft Registry operates like the Registration of Shipping or Maritime Registry. The Maritime Registry means that a ship claims that its home port is Bermuda, and is supposed to follow and meet Bermuda maritime or marine regulations.

Following a dispute with the United Kingdom Government over Bermuda Aircraft Registry, Premier Dr Ewart Brown will be flying to Russia next week, and will be discussing matters of aviation with the Russian authorities.

In 1999, the Bermuda Department of Civil Aviation entered into an agreement with the Russian Aviation Authority to undertake certain safety oversight functions of aircraft which are registered in Bermuda.

The UK Government’s Department of Transportation [DfT] has now informed Bermuda that it has insufficient details on the arrangements between Russia and Bermuda. The DfT says it is unclear how problems are addressed and which responsibilities remain with Bermuda and which are transferred under the agreement.

The UK has informed our local government that “Bermuda is conducting a revenue raising business” and that the “Department of Transportation in London would find it hard to accept the ongoing operation of the register in it’s current form.”

For Bermuda, both the ship and aircraft registries are money-makers. In 2003, the Bermuda Aircraft Registry earned $3.5 million dollars. Five years later, in 2008, the Registry brought in $10 million. In 2010/11, the Finance Minister projected that the Aircraft Registry would bring in $20 million.

Premier Dr Brown said:

We hold the view that the UK is unjustifiably attempting to use certain technical aviation factors to adversly affect the viability and reputation of the Bermuda Aircraft Register and we will vigorously oppose these efforts.

The Bermudian Government will make a formal response to the UK Government, through the Governor, after the Premier returns from Russia.

Speculation has arisen that the hijacking of a Bermuda-registered ship by Somali pirates may have contributed to the United Kingdom’s interest in the aircraft register, and resulting international issues. The MV Talca, carrying 25 crew members, was hijacked by Somali pirates on March 25, and as of this writing is still being held.

For further reading on the Bermuda Aircraft Registry see here [4 page PDF]

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