April 14, 2014 – Newsletter
We have an opportunity for everyone in the world to have access to the entire world’s information. This has never before been possible. Why is ubiquitous information so profound? It’s a tremendous equalizer. Information is power.
-Eric Schmidt, University of Pennsylvania Commencement Address, 2009
Q. What do you submit to FAA to renew registration once a certificate of registration has expired?
A. An Aircraft Registration Application and $5.00 fee. Remember the FAA does not allow operation under the pink slip after an aircraft’s registration has expired. So the aircraft must remain parked until the FAA can issue the new certificate.
Q. How can I get an N-number assigned to an import before the FAA receives the confirmation of registration from the foreign country?
A. The FAA allows us to assign an N-Number if we present a notarized affidavit to the Registry that states the number will NOT be painted on the aircraft until the FAA receives the confirmation of deregistration from the foreign country.
Q. How long does it take to process aircraft registration documents?
A. FAA follows statutory requirements – documents are worked in the order in which the FAA receives them. The FAA’s backlog is generally about 4 weeks. This backlog varies from time to time, for instance, when the government closed down last October for 17 days, the backlog grew to two months.
Q. Can BATI help with a like-kind exchange?
A. You should have your client contact one of the like-kind exchange companies that specialize in aircraft exchanges. By missing a deadline or mis-wording a document, the results can be financially devastating. It is well worthwhile to pay the fee to have a like-kind exchange company handle your transaction.
Q. Why should I register my eligible interest with Cape Town and why is it so expensive?
A. Because the law requires registration to perfect your interest. Period.
In a world of $5 registration and recording fees, the costs of registering yourself as an entity at the IR and making registrations there seem prohibitive; however, the FAA hasn’t kept abreast of inflation and hasn’t, in fact, changed their fee schedule in over 40 years! If the aviation budget ever gets passed, we will be looking at $130 to register an aircraft and a like sum to record an interest in an aircraft at the FAA.
FAA and IR Update
FAQ’s – International Registry
Q. What aircraft objects are covered under Cape Town?
A. The Protocol lays down the following definitions to determine if an object is eligible for registrations:
Airframe means airframes (other than those used in military, customs or police services) that, when appropriate aircraft engines are installed thereon, are type certificated to transport:
- at least eight persons including crew; or
- goods in excess of 2750 kilograms (6063 pounds)
Helicopters means heavier-than-air machines (other than those used in military, customs or police services) supported in flight chiefly by the reactions of the air on one or more power-driven rotors on substantially vertical axes and which are type certificated to transport
- at least five persons including crew; or
- goods in excess of 450 kilograms (990 pounds)
Aircraft Engines means aircraft engines (other than those used in military, customs or police services) powered by jet propulsion or turbine or piston technology and:
- in the case of jet propulsion aircraft engines, have at least 1750 lb of thrust or its equivalent;
- In the case of turbine-powered or piston-powered aircraft engines, have at least 550 rated takeoff shaft horsepower or its equivalent.
BATI POT POURRI
Sharon Hoaglin Schroeder, President
Lisa A. Gaskin, Vice-President