Aicraft Title & Registrations
25. How long does deregistration take, both where there is co-operation from the defaulted party (mortgagor / lessee / Operator) and where there is no such co-operation from it?
Austria
Deregistration can be effected very promptly provided that the required documentation is submitted to the authority.
The owner, as well as lessors or finance providers, usually request to obtain a power of attorney (POA) from the operator in order to be authorized to deregister or arrange other changes to the registration of the aircraft and to avoid non-cooperation by the operator regarding registration or deregistration. In this respect, the lease, the operating agreement or the finance agreement regularly contain specific provisions in this respect.
Colombia
Numeral 20.5.3.3.2 of Colombian Aeronautical Regulations (RAC) states that the liens must be cancelled before the deregistration, but exemptions to the cancellation of those liens made by the creditors are allowed.
Germany
If the original application and the original documents mentioned in No. 23 have been provided, deregistration can be effected within one or two days. However, if the operator does not cooperate in relation to those documents, court proceedings need to be initiated which could take a longer time.
India
The holder of an IDERA may apply to the DGCA for cancellation of the registration of the aircraft at the end of the lease term or prior to the expiry of the aircraft lease after (i) providing the original or notarised copy of the IDERA; and (ii), ensuring that either all registered interests in respect of the aircraft have been discharged; or the holders of such registered interests have consented to the deregistration or export of the aircraft. If the owner/lessor of an aircraft, in an event of default submits the IDERA to the DGCA, the DGCA is duty bound to deregister the aircraft, without the need for any co-operation/consent from the defaulted party (mortgagor/lessee/operator) or judicial intervention. It is mandatory for the DGCA to deregister an aircraft within five working days of the submission of an application as per the above-mentioned procedure.
Israel
The time for processing the request for deregistration is up to 14 business days from the date of receipt of the documents at the Aircraft Registrar’s office.
Kenya
In leasing and financing transactions, the lessees and mortgagors are asked to provide deregistration powers of attorney enabling the seamless deregistration without the need for cooperation by the defaulted party. Following this, the timeline for the deregistration process varies on a case-by-case basis, but ordinarily takes five to 21 business days.
Malta
If there is cooperation from the registrant, then deregistration should not take long (probably one to two weeks) as long as arrangements are made for the aircraft to be registered in another registry.
If there is no cooperation from the registrant and an IDERA is being utilized then the same time frame should apply, though this may depend on the actual facts of the case at hand.
Mexico
With the cooperation of the lessee/operator, deregistration process can be completed in about five to 10 business days after the filing of the deregistration request.
Without the cooperation of the lessee/operator/defaulting party, deregistration can only occur upon termination of the lease by the parties or by means of a court resolution. To obtain a court resolution, lessor/owner/creditor will need to initiate legal proceedings and seek court action against lessee/operator/defaulting party, which can take approximately 18 months.
Norway
There is no information about the specific time for deregistration. The same principles as stated above, regarding how long registration take (bullet point 4a), applies correspondingly here.
Pakistan
There is no time prescribed under law within which the deregistration request is required to be processed. However, in practice the PCAA has processed deregistration requests within three to four weeks provided the necessary documents have been submitted.
Panama
When there is co-operation of all parties involved for the deregistration process, this may take from two to four weeks. When there is no co-operation from any of the parties the process may take years.
Peru
Yes, according to Peruvian law, liens must be cancelled before the deregistration or have the consent of the creditors.
Philippines
It cannot be easily determined how long a deregistration process may take if there is without cooperation from the defaulted party. As mentioned in the previous question, difficulties may arise if the document involved was executed outside the Philippines. The CAAP may also require further information and documentation to assure itself of the facts and circumstances of the default.
On the other hand, if there is cooperation from the defaulted party, the process may be done faster and will depend on how fast the parties will be able to prepare and submit the required documents.
Once the necessary documents are complete and submitted, officially at least, the application for deregistration should take three (3) days to process. But based on actual experience, the average processing time is about two (2) weeks.
Poland
With good cooperation, deregistration may be done on the day of filing, or at most in a few days. We are not aware of any situations where the operator has refused to cooperate in deregistration, based on our overall experience with the CAA and regulatory matters. We are not aware of any situations where the operator has refused to cooperate in deregistration. Based on our overall experience with the CAA and regulatory matters, we estimate that it could take between one to three weeks if the main difficulty is persuading the CAA to accept a solution to deregister in the absence of the actual handover of the Certificate of Registration. There is a small but non-negligible risk that the process could take longer and/or could require engaging other authorities or the repossession of the COR from the operator.
Portugal
The deregistration procedure is fairly quick if there is cooperation from the defaulted party. This should not take more than a few days. However, if the defaulted party denies access to the aircraft, logbooks, and other technical documents, court proceedings will have to be instituted to regain repossession of the aircraft. Urgent injunction proceedings are available. In this case, it will take more time to deregister the aircraft and these cases will be determined on a case-by-case basis.
Romania
If there is cooperation from the defaulted party, deregistration is granted in a matter of few days, although the law provides for 30 days calculated from the submission of the complete documentation.
If there is no cooperation from the defaulted party, then the procedure shall be prolonged, and the duration cannot be estimated.
Serbia
As mentioned above, since the consent from all persons entered into the Registry is necessary for deregistration, mortgagor’s / lessee’s / operator’s cooperation is necessary for this; in case it fails to cooperate, a complicated and time-consuming court procedure must be conducted in order to effectuate a decision replacing the missing consent. Such court proceeding can last up to several years.
Slovenia
The required time for deregistration is 15 days from the date of submitting the full set of required documentation.
South Africa
Deregistration can be effected within two to four weeks, depending on the availability of the required information to effect deregistration and workloads at the SACAA. Where there is no co-operation from the defaulting party, a court order is required and, depending on the urgency, this may take a few weeks to months.
Sweden
If there is co-operation, it takes approximately two weeks. If there is no co-operation the application for deregistration can be pending until co-operation and consent is present.
Switzerland
If well prepared and with co-operation of the parties involved, a deregistration should not take more than one to three working days. In case of no such co-operation from the defaulting party, such deregistration may take substantially longer and, in case of a mortgage, usually is part of the foreclosure procedure (see section 26 below). For completion’s sake, deregistration powers of attorney are valid and in principle accepted by the FOCA. However, as a matter of Swiss law, powers of attorneys are revocable by the grantor at any time, notwithstanding anything stated to the contrary therein.
The Bahamas
Deregistration of an aircraft is straightforward and typically can go into effect between 24 to 48 hours. As indicated above, no cooperation from mortgagee / lessor is required.
USA – Miami
No response.USA – Oklahoma City
The FAA will typically process the deregistration documents and issue the notice of deregistration within 72 hours of filing (not including weekends or federal holidays).
If the defaulted party is uncooperative, an IDERA holder (if any) may request deregistration. If the secured party does not hold an IDERA, then the secured party should engage appropriate counsel to determine alternative courses of action (e.g., repossession).
If the parties do not file releases or consents by all lienholders, then the FAA registry will delay deregistration until the necessary releases or consents are filed. If a release or consent is not obtainable, then the parties should engage appropriate counsel to explore alternatives with the FAA.