Q: At the end of an article on the Russian aircraft accident in Siberia, it was noted that the aircraft was registered in Bermuda. What's that about? Is the Bermuda registration a "flag-of-convenience" issue?
-- David Porter, Peachtree City
A: Russian airline operators use the Bermuda aircraft register when they need financing to buy aircraft, Julie McLean, an aviation attorney in the Bermuda office of Conyers Dill & Pearman, told Q&A on the News in an email. "They need to turn to Western banks for such financing," she said. "The Western banks would want a mortgage over such aircraft and [would] not [be] comfortable if the aircraft [was] registered on the Russian aircraft register." Russia and Bermuda have an agreement that transfers "certain regulatory oversight functions and duties" from the state of registry (Bermuda) to the operator's state (Russia), McLean said. Russian authorities would be responsible for the flight crew validation, she said. "The Bermuda Department of Civil Aviation [BDCA] is rated as a Category 1 Aviation Regulatory Authority by the U.S. Federal Aviation Administration and applies high regulatory standards," McLean said. "The Bermuda registry provides a 'low-profile' registration mark, which is valuable when operating in areas of the world subject to security risks or political instability. Bermuda is therefore seen as a neutral and safe jurisdiction in which to register these aircraft." Bernews.com, a media outlet in Bermuda, reported that hundreds of Russian aircraft are registered in Bermuda. A UTair ATR-72-200 crashed on April 2, killing 31 of the 43 people on board.
Andy Johnston wrote this column. Do you have a question about the news? We’ll try to get the answer. Call 404-222-2002 or email q&a@ajc.com (include name, phone and city).
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