
6 minute read
Flying into the future
CAACI I PROFILE
The Civil Aviation Authority of the Cayman Islands (CAACI) monitors safety and the economic regulation of the Cayman Islands aviation industry. Richard Smith, DirectorGeneral, Civil Aviation, reviewed recent events with Phil Nicholls.
The major economic sectors of the Cayman Islands are predominantly tourism and international finance. Safe and reliable air transport has always been central to the islands’ development: responsibility for this aspect of island life falls to the Civil Aviation Authority of the Cayman Islands (CAACI).
The CAACI primarily functions as the regulatory organisation responsible for safety oversight and economic regulation of the aviation industry throughout the territory. The authority also ensures that the Cayman Islands’ aviation industry conforms to the standards and recommended practices of the International Civil Aviation Organisation (ICAO).
CAACI operations were impacted by Covid19, explained Mr Richard Smith, DirectorGeneral Civil Aviation: “The pandemic had a devastating impact on scheduled commercial air transport with border restrictions that grounded aircraft fleets globally. This resulted in a significant increase in our niche activity of facilitating the transitioning of aircraft between jurisdictions.”
During this time, many aircraft lessors took advantage of the aircraft transition scheme offered by the Cayman Islands’ Aircraft Registry (CIAR), operated by the CAACI. Mr Smith said this bespoke package provided lessors with “efficient registration and deregistration of the aircraft, including all the relevant certificates, at a fixed cost.”
One result of the pandemic, Mr Smith noted, was an increase in CAACI clients needing their private aircraft for their own use, as flying commercially was much more challenging. However, the CAACI already had a robust risk assessment in place with extensive contingency plans in place prior to the pandemic. Additional personnel were




The Cayman Islands Ministry of Financial Services and Commerce acknowledges the credible regulatory framework and positive reputation of the Civil Aviation Authority of the Cayman Islands (CAACI) as the custodian of the Cayman Islands Aircraft Registry (CIAR).
The CIAR is recognised globally for compliance with financial anti-money laundering regulations, internationally mandated safety standards, customer needs, and resilience, demonstrated by its agile response to financier needs for bespoke transition aircraft solutions. The CIAR is valued worldwide by aviation industry owners, operators, aircraft lessors and other national aviation authorities.
The Ministry supports CAACI’s vision for “Excellence & Innovation in Aviation Regulation”.


CAACI I PROFILE
required, but otherwise the CAACI was positioned to weather the pandemic.
According to Mr Smith, the biggest challenge of the pandemic was the physical inspection of aircraft for continued airworthiness.
“As Covid made travelling very difficult for inspectors, so the CAACI moved to remote safety oversight utilising virtual means and enhanced risk assessments,” he said. “In some instances, temporary extensions were issued to keep aircraft flying. These were acceptable short-term measures with many processes in place to ensure an acceptable level of safety was assured.”
Reviewing the performance of CAACI staff during the pandemic, Mr Smith was deeply impressed by the whole team: “We discovered the resilience of our staff and their adaptability when working under difficult circumstances.” The pandemic forced the Authority to expand its capabilities for enabling staff to work remotely.
“Remote auditing is a reasonable short-term mitigation,” he said. “However, we need to return to engaging with physical inspections.”
Despite the impact of Covid, the CAACI continued moving forward. Over this period the authority issued four Air Operators Certificates (AOC) to airlines established in the Special Economic Zone (Cayman Enterprise City). The first AOC for fixed wing commercial operations in the Cayman Islands was issued in May 2019 to Cayman Bellawings, an affiliate of Hong Kong Bellawings, a business jet management company. Bellawings currently operates nine aircraft on the Cayman Islands Aircraft Registry, including the Gulfstream G-200 operated by Cayman Bellawings under the AOC.
“We are seeing much interest in a Cayman AOC,” Mr Smith said. “Owners of Cayman-registered aircraft have the option of operating the aircraft for charters when not using them, which helps to offset the costs.”

Launching drones
The CAACI has sponsored several workshops focused on the emerging drone technology within the Cayman Islands. The use of Small Unmanned Aircraft (SUA) and Small Unmanned Surveillance Aircraft (SUSA) is beneficial to the island economy where they are used by many sectors, such as photography and real estate agents.
Commercial operation of SUA and SUSA is regulated by the CAACI under Article 73 Air Navigation (Overseas Territories) Order. Mr Smith noted “this segment of the aviation industry is appealing to and represents an opportunity for young people and entrepreneurs.”
Engagement with the island community is a feature of the CAACI. The authority has been involved with a group of aviators who formed a flying club on the island.
“The CAACI is keen to see general aviation activity increase and for there to be an avenue for young Caymanians to learn to fly,” Mr Smith outlined.
The island community
“In addition, the CAACI staff have continued their philanthropic efforts by donating to various charities and non-profit organisations to help support residents who have lost jobs and been displaced by the pandemic, such as within the tourism sector.”
Recent CAACI charitable donations include Meals on Wheels in Grand Cayman and the R3 Foundation, a charitable organisation focused on Readiness, Relief and Recovery in the Cayman Islands.
The CAACI has embraced the global trend for sustainability. The authority constructed a new energy-efficient office complex and implemented updated remote work policies to minimise the ‘office footprint’. The CAACI follow ICAO’s environmental protection initiatives and only accepts aircraft over 20

years old onto the Cayman Registry after an extensive air worthiness review.
Turning to the broader travel industry, Mr Smith conceded that commercial travel is still trying to recover from restrictions imposed because of the pandemic. However, these restrictions also brought increased demand for private air transport. The CAACI witnessed this trend in the steady growth in the registration of private aircraft.
Onwards and upwards
The CAACI continues to push forward. Over the next year the authority will implement an updated version of VP-C Online, the bespoke electronic data management platform. VP-C Online manages all aircraft registry applications, certificates, and authorisations electronically. The system makes it easier for CAACI clients to apply for the various approvals that are required for both initial aircraft registration and for continuing airworthiness including the renewal of documents. It is designed to streamline processes within the CAACI and allow more efficient service provisioning to clients. The upgrades will make VP-C Online even more powerful and user-friendly.
In addition, the CAACI recently engaged in a strategic planning exercise with stakeholders to redefine its forward-looking plan through 2025. The plan includes introducing a modernised, risk-based approach to regulatory oversight. The authority confirmed it will continue its programme to improve service delivery and innovative solutions. Finally, the CAACI intends to develop and sustain its high-performing, complimentary and cohesive professional team committed to organisational excellence.
Concluding, Mr Smith was optimistic for the future: “The CAACI has enjoyed steady, planned growth in aircraft registrations, focused on safety, providing exceptional service and building long term relationships with our clients.” n