Why are some commercial aircraft registered outside their countries?

Read the forum code of contact

Member for

14 years 9 months

Posts: 493

Why are some commercial aircraft registered outside their own countries? For example, this China Airlines Boeing 747SP bears the tail number N4522V.

N is the registration prefix for US-registered aircraft, while B is the prefix for Chinese and Taiwanese-registered aircraft.

http://images3.jetphotos.net/img/2/7/4/2/98154_1107722247.jpg

Wasn't the registration changed when it left the aircraft plant after customer delivery?

How about this one, an Aeroperu Boeing 757, tail number N52AW, which crashed into the Pacific off the Peruvian coast on October 2, 1996.

http://www.airdisaster.com/dbase/graphics/n52aw.jpg

Peruvian-registered aircraft have OB as the registration prefix. Why was this aircraft registered offshore despite serving with the Peruvian national airline?

Your opinions are welcome.

Original post

Member for

18 years 1 month

Posts: 2,098

A good question.. Certainly some are registered as a tax dodge (eg: VP-B, VP-C, M-) Possibly with ones retaining US reg's is to do with the leasing company that own the aircraft?(Wilmington Trust in the case of the SP) Off the topic sorry, that SP that you linked to has a colourful history and is (i believe) the only 747SP to fly supersonic!! whilst in a dive!

Member for

14 years 9 months

Posts: 493

A good question.. Certainly some are registered as a tax dodge (eg: VP-B, VP-C, M-) Possibly with ones retaining US reg's is to do with the leasing company that own the aircraft?(Wilmington Trust in the case of the SP)

You mean something like a commercial aviation version of a 'flag of convenience', e.g. a South Korean supertanker flying a Panamanian flag?

Under FAA guidelines, N-numbers on aircraft intended for export to a foreign customer have to be removed following delivery.

Off the topic sorry, that SP that you linked to has a colourful history and is (i believe) the only 747SP to fly supersonic!! whilst in a dive!

It was China Airlines Flight 006 that gave the crew and passengers 'an uneventful flight' they would never forget on February 19, 1985 over the Pacific near California.

Member for

18 years 6 months

Posts: 2,343

Does it not also depend on the bilateral agreements between each country?

I don't know anything about the particular aircraft you feature in your OP, but say for example, an airline chooses to charter, damp/wet-lease an aircraft for a particular length of time, if the operator of that aircraft is from a different country, the registration will still show the country that aircraft is officially registered in, not the one it is necessarily flying in.

Take Manx2.com for example, based on the Isle of Man (UK), they fly a small fleet of Let 410's & Metroliners...but you do not see their aircraft holding the M- registration. The reason being is because these aircraft are in fact operated by various European aircraft operators, because there is a bilateral agreement between most EU countries that permits the operation of each other's aircraft in each others countries.

I might be wrong, but just a thought.:o

Member for

14 years 5 months

Posts: 366

There are a number of reasons for registrations other then the home country of the operator.

In the seventies and eighties the US leasing or financing companies insisted on registrating the planes they leased out or financed in the states. The planes would then also still resort under US law which would make for example reposession in case of non payment simpler.
The KLM also flew a number of their jumbo's with american regs for some years. Once they had been fully paid they became fully Dutch.
Another example is Alitalia which is selling its planes to an Irish leasing company and leasing them back. Those planes are flying Irish now.

Another reason is to avoid import taxes in the home country. This is happining a lot in Russia at the moment. Russia is still protecting its own aviation industry and is charging import duties on foreign manufactured planes. All airbuses an Boeings going to Russia are registered in Bermuda which is a recognised off-shore platform for them.

A third reason is a ban on flying the EU has imposed on a number of countries. These countries and airlines involved may wish to continue flying to the EU. One of the ways to do this is to register the plane in another country that is allowed to fly. (This then also includes adhering to the maintenance and other regulations of that other country). Portugeese airline Hi-fly does this for a number of airlines from Africa, their services include maintaining and operating the aircraft.

You also see a fair number of light, privat aircraft flying around europe still with American registrations. This is mostly because their owners have an American pilots license which is not easily (or cheaply) converterd to their home country. They fly here under american law and rules.

There are still more reasons for doing so. On the other hand countries can also require a commercial airliner operating in their country to fall under the laws of that country and be registered with them.

hope this helps

rgds
EC

Member for

18 years 10 months

Posts: 2,757

You can keep an American built aircraft on an N reg, which is advantageous to the owner for various reasons ie cost, slightly less stringent rules etc than going on your home country's civil register. The aircraft has to be manufacturered in the USA though, whether the pilot has an American or British license makes no difference, you can put a Mustang on an N reg in the UK but you couldn't for a Spitfire

Member for

16 years

Posts: 1,059

A third reason is a ban on flying the EU has imposed on a number of countries. These countries and airlines involved may wish to continue flying to the EU.

How very reassuring.

Member for

16 years 4 months

Posts: 144

How very reassuring.

The full paragraph goes on to say that the third party airline has to fully comply with the EU regulations, so what's the problem? The airline then has a cheaper operation, say domestically, where standards do not need to be as high but also complies internationally. Best of both worlds.