European business jet owners are being targeted by a new aircraft register in the Isle of Man.

The British crown dependency, located in the Irish Sea between the U.K. and Ireland, expects to have its new aircraft registry up and running early in 2007. It will be open only to corporate and private aircraft.

Brian Johnson, the Isle of Man's director of civil aviation, says: "We have got an extremely successful marine registry that has over 900 ships and these include more than 40 mega yachts," he adds. "We expect to register another 40 mega yachts in the next three years. Pretty much all of these owners operate their own jets. Currently the jets may be registered

in locations ranging from the Caribbean to the Mediterranean but there is a strong commercial logic in registering them in the same jurisdiction as the yachts."

Practitioners in the Isle of Man, an international financial centre that provides management, financial support and corporate services, see the potential for developing a much bigger market.

Steve Malley heads the yacht and aircraft group in the Isle of Man for Fortis Inter Trust. He believes the group could be providing services already for up to 300 private aircraft owners. The attraction of a CAA registration and a favourable financial environment will persuade many to consider the Isle of Man.

"We have talked to a number of professionals including brokers about the prospect of having a CAA qualification registered within Europe but with IATA European safety standards," Malley told EBAN.

"Factor in efficient financial ownership structures and we believe that the market will really take to what is on offer."

The U.K. government recently notified ICAO that it is allowing the Isle of Man to use the "M" tail number registration that was allocated to the U.K. in 1919 (along with the "G" tail number). Brian Johnson, the Isle of Man's director of civil aviation, has incorporated all the necessary legal articles into the air navigation order and presented a draft of this to the U.K. Department of Transport. Over the next six months, Johnson's department will be employing aircraft surveyors and setting the standards by which aircraft will be considered for entry to the new registry.

Malley says: "I think that the owners and operators of the larger business jets will be very interested. We have received enquiries from the Ukraine and Russia from owners who plan to fly anywhere in the world."

The financial advantages include being able to set up ownership companies that have zero corporation tax and Value Added Tax (sales tax) liabilities.

The location of the aircraft, be it in North America or in Asia, is irrelevant to the eligibility for the Isle of Man register. "The aircraft doesn't have to be based here," says Malley.

Fortis Inter Trust has offices in key locations around the world. "We will be in competition with our other offices in different jurisdictions but the Isle of Man has a very attractive package to offer," says Malley.

Mark Byrne, a director of ICM Aviation of the Isle of Man and Martyn Fiddler Associates of Stansted Airport in the U.K. says: "We are already heavily involved in the yachting industry providing registration services and holding companies. The Isle of Man is a very good jurisdiction from which to offer the same kind of services for aircraft."

He adds: "It makes sense if people already have yacht assets looked after in the Isle of Man for them to consider locating other assets, such as aircraft, in the same jurisdiction. They will share similar advantages with the advantages of dealing with one set of professionals that they know. It would be a yacht-aircraft one-stop shop."

Martyn Fiddler is a specialist in VAT and European Union customs regulations. It is owned by ICM which in turn is owned by Inter-Continental Management. ICM will use its expertise in company incorporation and related financial services.

Byrne says: "We deal with aircraft ranging from 747s to King Airs but our clients tend not to deal in small aircraft. The rarely deal in aircraft worth less than US$1 million to US$5 million or more. A great many long range aircraft are owned by potential clients."

Simcocks is another company preparing its marketing plan. Phil Games, ceo of Simcocks Advocates, and a director of Simcocks Yachts, says: "I have been talking to clients including one who has got three jets within his organisation. A great deal of interest has been expressed and it is just a matter of how many will want to change aircraft jurisdictions and move their aircraft to the Isle of Man. We as a company have scores of people that have shown initial interest."

Katherine Ellis, manager of the Anglo Irish Trust Company based in Douglas, Isle of Man, says: "The commercial yacht register has been a big success. It has established the Isle of Man as a place that gives excellent customer service from known staff at a local office. That will apply to aircraft registrations. We will be happy to market our range of aircraft services in conjunction with the official launch of the register by the Isle of Man government."

Johnson says the Isle of Man will offer an aircraft registry that combines credibility for technical requirements with flexible and attractive fiscal terms of an international financial centre.

U.K. crown dependencies owe a now largely historical allegiance to the English crown but have their own parliaments and are self-governing. Many are financial centres.