New Proposed FAA Re-Registration Requirement

All owners, lessors, and lessees of U.S.-registered aircraft and holders of security interests and aircraft mortgages in such aircraft, should be aware of a new proposed rule that is about to be adopted by the Federal Aviation Administration (FAA). The new rule requires (1) re-registration of all 340,000+ U.S.-registered aircraft at a specified time during the 15-month period after the final rule is published and (2) renewals of these registrations, new registrations filed after the rule becomes effective, on a three-year rolling basis. The final rule is expected to be published in early June 2010.

According to the FAA, the primary purpose of the rule is to improve the accuracy of the FAA's records and, as a collateral benefit, assist U.S. law enforcement authorities in combating the use of improperly registered aircraft for illegal activities. The FAA estimates that close to one-third of all currently registered aircraft do not qualify for registration, yet under