Select your language:

FAQ

FREQUENTLY ASKED QUESTIONS

FAQ Questions


Why the USA
Arizona in the USA is indeed the best place to create a flight operator company.
  • Most of the time we are using N- reg aircraft for our operations. It’s obvious that it is suspicious to have a flying operator company elsewhere than in the USA.
  • Arizona (in the USA) is a good place to have a flight operating company because it’s the world’s biggest flying state!
  • US companies are easy to manage from Europe with assistance from USA specialist especially because we all speak the same language.
  • The banking and communication system in the USA is stable and easy to manage.
  • African countries as Morocco, Tunisia, etc. are often countries with a difficult legal commercial business system and for Europeans are difficult to access the banking and communications system, often handled and serviced by persons who often don’t speak English.
Why NOT Morocco, and not Gibraltar, Malta, Man Island, Guernsey but the USA?

Why NOT Morocco, and not Gibraltar, Malta, Man Island, Guernsey but the USA?

  • Morocco is the worst place to create such operating companies.
  • Although Moroccan taxes might seem to be particularly friendly, in order to persuade investors importing their foreign currencies and exchange, it’s still doing medieval business.
  • Policy is very unstable and officials are often not trustworthy.
  • The banking system works poorly, is slow and is not adapted to European systems.
  • Only when you know the right people they will help you. (If you tip them enough)
  • Business in Morocco works only if you have built an extensive network of corrupt business connections, or if you have friends in the justice and administration system.
  • Besides that it is a French speaking country, which is not the world’s aviation language.

All these components together are a warning for you and make you understand why Morocco is NOT a good location to create operating companies.

The USA is the only legal place to have an aircraft operating company for USA (N) registered airplanes and FAA flying operations.

AFTCA Arizona was created in order to serve its customers in Europe; special branch AFTCA offices in Antwerp & Liege (Belgium), Cuers & Bourg en Bresse (France), Canillo (Andorra) with plans to open branch offices in Frankfurt (Germany), Barcelona (Spain) and Geneva (Switzerland). This solution improves direct customer service drastically.

Operating Companies based in Gibraltar, Guernsey, Isle of Man, Malta, Bahamas or other tax shelters with only mailboxes, are unusable as the FAA has no jurisdiction or influence on the flight regulations and operations are not taking place in the USA. 

It’s the USA who registered the aircraft and issued the flight certificates. This last point is particularly important in order to deal with EASA & FAA aviation authorities as aircraft operator.

What is the risk to bypass the law?
EASA implicated new laws with the help specialists in order to have full control over the European flying community.
As EASA is not governing the world and has to respect laws in other countries, they never can refuse other than European operators to fly in Europe especially not with countries with who they have mutual flying agreements.
Do you believe that an operator as American, or Delta cannot operate in Europe anymore? Are laws not equal for every one? Besides that we are not by passing the EASA law from which ach word of the law has been thought and measured carefully. The “foreign operator” exception is a full and official part of this European law.

So we are not “bypassing” the law, we only apply it completely.
Whenever the European Parliament decides to adapt the law again in our favor, the problem is maybe solved, luckily  you still have a foreign opening company to keep your flying out of European Laws and Taxes.
What if Europe discovers this construction?
Yes this construction is a USA legal construction and is often solely aimed to avoiding an European law, it could be considered abusive. But in the USA it’s legal and as the (N-Reg) aircraft is owned by a USA owner and operated by an other USA operator and flown by a FAA certified pilot, there is nothing Europe can do.
When our team asked the authorities: If a foreign company operates (private) flights, can you confirm that the new EASA regulation won’t apply ? The answer was: private flights may be operated by a foreign  operator which is not the pilot-in-command when  the company really operates the flight, it can not be considered abusive of the EASA law.
If the operating company is based out of Europe and e.g. in the USA, this EASA law doesn’t apply. The pilot, can continue flying with FAA licenses and ratings even after April 8th 2016 if he is the PIC of a foreign operator. The pilot may continue flying with a foreign registered aircraft under  IFR and under US conditions of equipment and maintenance, if the aircraft has the navigation equipment needed for the airspace overflown.
Is fuel and maintenance exempted from VAT?
Normally you are operating a foreign flight operation exempted from VAT.
The written proof carried (from your flight operating company) in your aircraft, that you are operating outside Europe a US registered aircraft is normally sufficient for being exempted from VAT.
We provide you with an official USA company address where everyone can send their invoices. We pay them for you (after your authorization as you are the owner of the company) by you Wells Fargo account. You can also pay with you USA Visa creditcard issued by Wells Fargo. It’s obvious that you need money on your bank account. The minimum on you  bank account is foreseen to 750 USD.
As your service provider we cannot guarantee the exemption of VAT as regulations differ in the European countries. An eventually refund of VAT must  be asked in Europe by yourself as company owner, as we don’t have these contacts in Europe.
BASA agreements and discussions?

There are some new discussions, but nothing to solve the European treat for FAA pilots and operators. It is absolutely sure that Europe never will accept to convert FAA certificates into EASA licenses without expensive training and tests, because in that case they will admit that FAA flight training is not worse than EASA training.

Operating with foreign companies could this not be considered as abuse?

I think that, If Europe has notion that this legal construction solely is aimed at circumventing a law regulating, then the legal construction will be considered abusive and void.

In case with operating companies in Morocco, San Marino Gibraltar, Guernsey, Isle of Man, Malta, Bahamas, could this not be considered as abuse?



Yes you are right: if legal constructions solely were aimed to avoiding the EU law, it would be considered abusive. This is Not only with this EU law, but with laws in all the EU countries as well.

That's why we did clearly ask the authorities:
If a foreign company operates private flights, can you confirm that the new regulation won't apply?

The answer is the same as that of others:

  1. 1) Private flights may be operated by an operator, which is not the pilot-in-command, 
  2. 2) if the flight company really operates the flight, it will not be considered abusive, 
  3. 3) in this specific circumstance, if the operating company is based out of Europe, the law doesn't apply, 
  4. 4) the pilot can continue to fly with FAA licenses and ratings even after April 8th 2016, 
  5. 5) this pilot can continue to fly with his aircraft and IFR under US conditions of equipment and maintenance.

 

BUT

 

Abuse could be considered, and EU governments can be suspicious, if the registration of the aircraft is NOT done in Morocco, San Marino Gibraltar, Guernsey, Isle of Man, Malta, and Bahamas etc. but in the USA.
When you are flying a FAA (N. registered in the USA) aircraft it makes sense that it is operated in the USA and not in a tax or license shelter as Morocco, San Marino Gibraltar, Guernsey, Isle of Man, Malta, Bahamas.

THAT ALONE IS ALREADY AN IMPORTANT REASON TO HAVE YOUR FLIGHT OPERATIONS DONE BY AN OPERATING COMPANY IN THE USA.

 

AND

 


What if the authorities of Morocco, San Marino Gibraltar, Guernsey, Isle of Man, Malta, accept the European law to adapt itself to Europe?
Probably you are NOT allowed to operate your USA registered aircraft there too.

THIS IS AN OTHER IMPORTANT REASON TO HAVE YOUR FLIGHT OPERATATIONS DONE BY AN OPERATING COMPANY IN THE USA.

Glossary


Associate Direction Services

The the client gives absolute full power to the appointed Associate Director for all the management and financial formalities of his company.

Aircraft Operator

According to 14 CFR 161.5 [Title 14 Aeronautics and Space; Chapter I Federal Aviation Administration, Department of Transportation; Subchapter I Airports; Part 161 Notice and Approval of Airport Noise and Access Restrictions; Subpart A General Provisions],

Aircraft Operator, for purposes of this part, means “any owner of an aircraft that operates the aircraft, i.e., uses, causes to use, or authorizes the use of the aircraft; or in the case of a leased aircraft, any lessee that operates the aircraft pursuant to a lease. As used in this part, aircraft operator also means any representative of the aircraft owner, or in the case of a leased aircraft, any representative of the lessee empowered to enter into agreements with the airport operator regarding use of the airport by an aircraft.”

BASA discussions

America and the European Union have officially concluded a long-awaited bilateral aviation safety agreement (BASA) designed to make government oversight of aviation more efficient and to pave the way for future regulatory cooperation. The BASA, signed on March 15th, allows reciprocal acceptance FAA and EASA certification and oversight of civil aviation products and repair stations. The US and the EU specifically agree to recognise each other’s ‘findings of compliance and approvals.’ This means, for example, that the FAA can determine a US repair station is eligible for an EASA approval to work on European registered products without a separate inspection by European regulators.

The BASA is good news for the aviation industry. Duplication of oversight was a real fear, and the BASA takes a lot of expenses and bureaucracy out of the equation. Importantly, the BASA makes provision for annexes to be developed and added by a Bilateral Oversight Board, leaving the door open for agreements in other areas, including flight crew licensing. EASA’s proposals to hammer the N-register operator in Europe have been put back to April 2016, and may now be subject to bilateral negotiations.
EASA

The EASA agency  - The European Aviation Safety Agency is the centerpiece of the European Union’s aviation safety system comprised of the Agency, the European Commission and the National Aviation Authorities (NAAs). The Agency develops common safety and environmental rules. It monitors the implementation of standards through inspections in the Member States and provides the necessary technical expertise and training to the system. The Agency works hand in hand with NAAs, which have their own role to play in the EU system.

Inc.

incorporated - organized and maintained as a legal corporation;
“a business” set up in corporate form.

N-reg.

November registered  - FAA (USA) Registered aircraft. N is first charter of FAA registration number. Sometimes called tail number.
Owners of operational aircraft need to register the aircraft in the register of the FAA. Registration is valid for 3 years.

Contact
  • HQ Address: 15905 N. Greenway Hayden Loop,
    Suite 104 Scottsdale, AZ 85260
  • Branche Offices Antwerpen, Brasschaat, Brussels, Liege, Roosendaal, Eindhoven, Cuers
  • Phone: +14805355629
  • Email: info@usaflightoperators.com
  • Between 09.00 GMT & 15.00 GMT
Contact us
© 2014 USA Flight Operators in Europe All right reserved.