The Registry recognises that there are occasions where aircraft owners/operators have a valid need to conduct demonstration and/or delivery flights for the potential sale or lease of an aircraft. It is also recognised that it is generally the aviation industry norm for the actual costs of such flights to be borne by the potential aircraft buyer/lessee.
Article 11 of the Air Navigation (Isle of Man) Order 2015 (“the Order”) currently prohibits an aircraft registered in the Isle of Man from flying on a flight for the purpose of commercial air transport or aerial work*; therefore, recovering the actual cost of a legitimate demonstration/delivery flight would be in breach of our legislation. Article 12 also prohibits a person from offering flights in an aircraft registered in the Isle of Man for the purpose of commercial air transport.
*Aerial work is currently defined in Isle of Man legislation as, “a purpose, other than commercial air transport, for which an aircraft is flown if valuable consideration is given or promised for the flight or the purpose of the flight.” (Note: this definition of aerial work is a variance from ICAO and a project is currently underway to correct this.)
Therefore, to ensure that legitimate demonstration and/or delivery flights with appropriate cost recovery can be permitted, the IOMAR has issued an Exemption from Articles 11 and 12. This specifies the following conditions:
1. the only remuneration or valuable consideration given or promised by a person for the flight is limited to the direct costs of either:
a. a demonstration or pre-purchase inspection flight;
b. a necessary positioning flight to enable the demonstration or pre-purchase inspection flight to take place and a subsequent repositioning flight; or
c. a delivery flight necessary to facilitate an aircraft sale or lease.
2. the aircraft operator must keep a record of the remuneration or valuable consideration received under point 1a, including the relevant direct costs of the flight, for one year or such longer period as the Department may in a particular case specify;
3. the aircraft operator must produce any documents required to be kept under point 1b to the Department within 14 days after being so requested to do so or such longer period that has been agreed by the Department.
If you require further advice or guidance then please contact [email protected].