Helping you make the right private aviation

choices….

AQuotient briefing

Private or commercial operations the choice is no longer a simple one.

New European wide legislation closes the

gap where previously the only consideration

was the potential for charter revenue.

Single regulation for all European

registered aircraft administered by

European Aviation Safety Agency (EASA)

From August 2016 all aircraft over 5.7 tons

will have to operate either Commercial

(Part-Cat) or Non-Commercial Complex

(Part-NCC)

Part-NCC regulation is similar to Part-CAT

and mandates enhanced quality, safety and

maintenance management systems with

regulatory oversight

Existing operators with commercial Air

Operator Certificates (AOC) should

already be compliant. Existing private

operators will have to develop, implement

and gain regulatory approvals to comply

with Part-NCC

Owning and operating your own private

aircraft, where on earth do you begin?

Private aviation guidance when you

need it….

Until recently the choices available to an owner of aEuropean registered private or business aircraft havegenerally been a simple decision on how the aircraft wasto be operated, private or commercial?

Commercial allows for the carriage of passengers forreward. To do this you would be required to select anoperator holding a suitable Air Operator Certificate(AOC) or private where the owner of the aircraft couldenjoy the use of his own aircraft but without the abilityto operate for reward.

Over the years there had been perceived concerns aboutsafety standards in the relatively unregulated world ofprivate operations. Similarly AOC operators complainedof regulatory burden and abuse of the system through theillegal ‘grey’ charter market but for many years nothingsignificant changed.

In recent years several key events have started to drivechange throughout Europe.

First, the United Kingdom fully complied with theEuropean Union (EU) VAT Directive and closed theloophole which had allowed aircraft over 5 tons inweight to be imported to Europe through the UK as VATzero rated.

This change meant that unless an aircraft was beingoperated by an Airline operating for reward on chieflyinternational routes then import VAT would be liable atthe prevailing rate for the point of import to the EU.

The definition of airline attracted considerable debate butit was generally accepted that in principle the holder ofan AOC qualified as an airline on the assumption that itcould prove the aircraft was being operated for rewardand on international routes.

The next event to change the operating environment wasthe creation of the European Aviation Safety Agency(EASA).

EASA was tasked with implementing a single set ofaviation regulations applicable to every EU memberstate.

As a result of this regulation the choices available to theowners of private or business aircraft are now changing.By August 2016 all EU member states will no longeroperate aircraft on the basis of private or commercial.Instead the language and content of the regulation willchange to replace commercial with Part-CAT(Commercial Air Transport) and private by Part-NCC(Non-Commercial Complex). Exact implementationdates will vary in each member state but must be fullyadopted by August 2016.

Operators with existing AOC’s are deemed to be Part-CAT compliant and automatically qualify although theyare required to change the format of their existingoperations manuals to match the changed format of Part-CAT regulation.

We work for our clients and for our clients only;

delivering realistic advice with impact that

adds real value.

Existing or new private operators now have to complywith the Part-NCC regulation which in reality is similarto that required of an AOC increasing the complexityand regulatory oversight of their operations.

So what are the impacts of these changes? Is theadoption of Part-NCC really going to make a difference?

A major change still to be agreed is the implementationof a common flight time limitation scheme which willmandate the number of hours a crew is permitted tooperate along with post flight rest periods. This willhave significant impact when we now consider that thelatest long-range aircraft are capable of flights in excessof 6000 miles which will likely no longer be possiblewith a single crew.

It will certainly add previously unknown regulatoryburden to private operators and also the cost ofcompliance could have a significant impact on bottomlines where margins may already be tight.

It may be easier in some cases to for a private operatorto actually obtain Part-CAT approval. At least that waythey have the potential to recoup some of the increasedcosts involved in compliance by adding charter revenueto their operation.

They won’t really address the issue of illegal or ‘grey’charter unless EASA and the European Union have thedesire and resources required to police the issue.

Will it make the skies a safer place? Maybe, it certainlyis going to help.

Agreed flight time limitations and common trainingstandards are all big steps forward in terms of safetymanagement.

But to really deliver in this area then EASA is also goingto have to prove that they can also effectively monitorthe quality of training providers in order to ensure thateverything possible is being done to make increasinglybusy and limited airspace above us a safer place.

The purchase of a private aircraft is a lifestyle enhancingdecision. AQ select is there to support aircraft buyersand owners along with their legal and financial teams asan aviation knowledge resource, helping you make theright aviation decisions.

You work around the globe, we will meet you

there.

Lets start the conversation….

Andrew HughesDirector

+44 7720 089897andrew.hughes@aq-select.com

AQ select offers private aviation advisory

services you can trust.

We do not represent any of the manufacturers,

but we know them well. We are not brokers

but we work closely with them. We are not

operators but we know the good ones.

Our people, our approach, our knowledge and

our global relationships set us apart.