Washington groups not pleased with FAA aircraft re-registration rule

The Federal Aviation Administration released its new rule calling for re-registration of all civil aircraft over the next three years and every three years after that. Comments about the notice of proposed rule making submitted by Washington-based groups more than a year ago were largely ignored.

Randy Babbitt, FAA Administrator, said the new rule will give the Agency up-to-date registration information and better information about the state of the aviation industry. Aviation groups say the rule requires too much paper work, could ground some aircraft, and exacerbate the ‘stress’ and liquidity issues for aircraft financing providers.

The adopted rule establishes specific expiration dates over a three year period for all aircraft registered before October 1, 2010 and calls for re-registration for those aircraft according to a specific schedule. Re-registration of all aircraft will be completed by December 31, 2013.

In May, 2009, nine stakeholders in the manufacture, operation, and financing of civil aircraft with offices in the nation’s capital area submitted comments to the FAA reiterating their concerns over the new rule. The nine did not object to the re-regulation but cited complications the structuring of the rule could bring. Most aircraft—personal, business, and airline—are financed by secured loans or leases. Likelihood of failed or incorrect registrations, the group told the FAA, will undermine the reliability of existing financing and could have uncertain and unpredictable adverse affects on liens held by lenders, possibly discouraging financing in the aerospace market. The group also said the rule could result in an increase in non-registered aircraft operating in the U.S. airspace, affecting security.

Before the letter signed by nine organizations was sent to the FAA, individual groups had made comments in response to the notice of proposed rule making issued in 2008. Now that the rule has been issued and takes effect Septembe1, 2010, the groups will continue to meet to work with the FAA to achieve the goal of re-registration without the burdensome legal and regulatory paperwork involved under the FAA’s rule.

Washington organizations involved in working with the FAA on this issue are: Air Transport Association of America, National Aircraft Finance Association and Pacific Northwest Business Aviation Association, Equipment leasing and financing Association, National Business Aviation Association, National Aircraft Resale Association, Aircraft owners and Pilots Association, Regional Airline Association, National Air Transportation Association, and Air Carrier Association of America.