Contributor: Eyal Doron, Partner, S. Horowitz & Co.
1. Which authority is in charge of the civil aviation registry in Israel? Does Israel use a single-registry system or is there a dual-registry system in place?
The Civil Aviation Authority of Israel (CAAI) is in charge of the civil aviation registry.
2. Is the registry an operator registry or an owner registry (or both)?
An owner registry.
3. What are the requirements and documentation to register an aircraft in Israel? Include references to formalities such as notarisation, legalization, etc.
In order to register an aircraft, the owner of the aircraft has to deliver to the Aircraft Registrar an original copy of a request to register the aircraft (in the form that appears on the CAAI website), a deed of sale signed by the seller or other documents evidencing the buyer’s ownership and a receipt regarding payment of the registration fee (see question 4 below).
If the aircraft is owned by more than one person, the request will be signed by each of the owners.
If the applicant is the agent or representative of the aircraft’s owner, the applicant shall: (a) indicate in the request the name of the aircraft owner; (b) sign his name and indicate that he is the owner’s agent; and (c) attach to the request a notarized power of attorney from the aircraft’s owner or a certified copy thereof.
4. What fees are payable to register an aircraft in Israel?
When submitting the request for a registration certificate, an aircraft owner shall pay, in respect the registration of the aircraft, a fee in accordance with the weight of the aircraft as specified below:
|Amount (NIS)||Aircraft weight (kg)|
|330||up to 200|
|440||over 200 and up to 700|
|550||over 700 and up to 2,000|
|660||over 2,000 and up to 5,700|
|1,970||over 5,700 and up to 45,000|
5. Are there any weight and/or maximum age restrictions to register an aircraft in Israel?
There is no restriction, but it should be noted that the amount of the fee applied in accordance with the Pilot Regulations (Registration, Licensing and Documentation fees), 2009, varies according to the weight.
6. Does registration of an aircraft in the national registry constitute proof of ownership under the laws of Israel?
Registration of an aircraft in the register shall not serve as proof of ownership of such aircraft. Registration of an aircraft in the register shall constitute conclusive evidence regarding the nationality of the aircraft for international purposes and prima facie evidence regarding the nationality of the aircraft in proceedings in accordance with Israeli law.
7. How is an aircraft title transfer effected in Israel? What are the formalities required to register such title transfer in the national registry of Israel (e.g., notarization, legalization etc.)? Please summarize the related costs and procedures.
See questions 3 and 3(a) above. In addition, please note that the owner of an aircraft has to notify the Aircraft Registrar of any change to the registered address of the aircraft within 14 days of the date of the change. Once the Aircraft Registrar has been notified of the change of the registered address, it shall issue to the owner of the aircraft an updated Certificate of Registration.
8. What information and details are reflected in the certificate of registration of an aircraft?
Certificate number, aircraft serial number, manufacturer, name of owner, address of owner, registration date, events in which the registration certificate will expire (if applicable) and details of pledges (if applicable) [*We were recently informed through one of the Israeli airline companies that pledges are no longer listed on the Certificate].
9. Are the entries in the aircraft registry of Israel made available to the public upon submission of a specific application to the competent authority? Are there any fees payable for this?
Any person may, with the consent of the Aircraft Registrar, review the registration of an aircraft in the register and receive a certified copy of such registration after payment of a fee in the amount of NIS 200 (approximately $62 USD).
10. What kind of aircraft operations can be conducted with aircraft registered in Israel (i.e., private use, commercial air transport or both)?
Both, subject to the applicable legislation and holding the necessary licenses and certifications.
11. Does the civil aviation authority in Israel authorise the operation of foreign registered aircraft? If so, with which countries has Israel entered into bilateral agreements on the basis of article 83-bis of the ICAO Chicago Convention for the delegation of regulatory oversight?
A person may operate in Israel a foreign aircraft registered in a country that is a party to the ICAO Chicago Convention in the event he has a license and a certificate equivalent to a medical certificate, issued or approved by the competent authority in the country of registration of the aircraft, and in accordance with such license and medical certificate.
We are not aware of any country with which Israel has entered into bilateral agreements on the basis of article 83-bis.
12. Is there a separate register of aircraft mortgages and/or leases and/or security interests in Israel?
As aforesaid in question 8 above, until recently, aircraft mortgages and/or security interests were registered on the registration certificate of the aircraft and with the registry. It seems this has just been changed and currently, they are registered only with the aircraft registry.
Leases are not registered in the register.
13. What are the formalities required to register a mortgage / lease / security interest in the national registry of Israel (e.g., notarization, legalization etc.)? Please summarize the related costs and procedures.
With respect to registration of a mortgage or a security interest, a request to the Aircraft Registrar in the CAAI to register such mortgage should be submitted via courier or mail (usually made by the owner of the aircraft). There is no specific form for this request; it should include details of the relevant aircraft, the relevant pledge and mortgagee (including the date the mortgage was executed and the date it was registered in the Israeli Registrar of Companies or as applicable, the Israeli Registrar of Pledges). Attached to such request should be a Certificate of Registration of the mortgage with the Israeli Registrar of Companies or, as applicable, the Israeli Registrar of Pledges, certified electronically by the Israeli Registrar of Companies or, as applicable, the Israeli Registrar of Pledges, and a receipt evidencing payment of the required fee for registration of the pledge with the Aircraft Registrar.
In order to operate a leased aircraft, the lessee shall provide the manager of CAAI with a copy of the lease agreement which includes certain details as specified in the Israeli Aviation Law, 2011 and the regulations issued under it, within 72 hours of its execution, and a copy of such lease agreement shall be kept on the aircraft. In addition, the lessee or the registered owner of the aircraft, if the lessee is not an Israeli citizen or permanent resident of Israel, shall notify the manager of CAAI at least 48 hours before the first departure of the aircraft under the lease agreement, which shall include the airport from which the aircraft shall depart, the date of departure and the registration mark of the aircraft.
14. Is a mortgage priority notice an available security instrument for aircraft financiers in Israel?
Registration of a caveat over an aircraft is not an available security in Israel.
15. Does an aircraft mortgage duly registered in the national registry of Israel extend to engines and other parts of such aircraft (either installed or not on the airframe)?
It could be extended to engines as well as other parts, as long as the document creating the mortgage includes such parts specifically and, accordingly, also the mortgage registered with the Israeli Registrar of Companies or, as applicable, the Israeli Registrar of Pledges specifies such pledges.
16. What statutory liens (if any) would rank prior to an aircraft mortgage duly registered in the national registry of Israel?
Please note that the following are not specific to aviation law.
There are three ranks of creditors that would rank prior to the mortgagee:
- Employees – wage debt, up to a certain amount.
- Withholding tax deductions – VAT and tax deductions that the debtor deducts from the salaries of his employees that have not yet been transferred to the tax authorities.
- All of the following creditors are in the same rank:
- debts in respect of tax and property tax;
- rent (of one year at most);
- debt in respect of alimony.
The court may, if there are special reasons, not give priority to all or some of the debts above.
17. Do the laws of Israel provide for possessory rights and/or rights of detention over aircraft in favor of third parties (such as airport taxes, customs duties, air navigation charges, crew’s wages, MRO’s receivables)?
The Airports Authority (Fees) Regulations, 1991 stipulate that the Israel Airport Authority may refuse to permit the departure of an aircraft, if fees owed to the Authority have not been paid on time by the owner and/or the lessee and/or the captain of the aircraft. The Regulation practically allows the Authority to delay / ground the aircraft until the fee is paid.
18. Are foreign law-governed security agreements (e.g., mortgages) recognized in Israel in order to validly create a security interest over an aircraft registered in the national registry of Israel? If so, are there any formalities/requirements to bear in mind?
Yes. Such security agreements shall be registered in Israel in the same manner as a mortgage that is subject to the laws of the State of Israel will be registered (see question 13 above).
19. Are foreign law-governed leases recognized in Israel in order to validly lease an aircraft registered in the national registry of Israel to a lessee incorporated in Israel? If so, are there any formalities/requirements to bear in mind?
We have not found any explicit law or case law in this regard. It is possible that the same requirements that apply to the operation of a leased aircraft (as detailed in question 13 above), shall apply in this regard as well.
20. Has Israel ratified the Cape Town Convention on International Interests in Mobile Equipment and the related Aircraft Protocol? Has Israel made any declarations to better determine the scope of application of the Convention / Protocol in Israel? If so, what is the impact of such declarations on aircraft registration issues? Are there any specific aspects relating to the enforcement of IDERA’s to be considered?
Israel ratified the Cape Town Convention on International Interests in Mobile Equipment and the related Aircraft Protocol in 2006. No declarations with respect to the scope of application of the Convention / Protocol have been made.
21. What are the requirements and documentation to deregister an aircraft from Israel? How does the aircraft deregistration process work?
The aircraft owner or its proxy may request the cancellation of the aircraft registration by submitting to the Aircraft Registrar a request for cancellation of the registration certificate containing a description of the aircraft according to the nationality and registration marks, the name of the manufacturer, the model and the serial number of the aircraft. The request will be delivered together with the original registration certificate of the aircraft. After checking the correctness of the documents, the aircraft will be canceled from the aircraft.
23. Is the consent of the mortgagee / lessor (as the case may be) required in order to deregister an aircraft from Israel?
It is not possible to deregister an aircraft that has a mortgage or any other restriction registered with respect to it. The restriction must be removed before submitting the request for deregistration.
24. What are the usual practical difficulties (if any) involved in deregistering aircraft from Israel?
See answer to question 23 above.
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?
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.
26. Please outline the applicable repossession rules under the national laws of Israel (and the Cape Town Convention, if applicable) following an event of default under a mortgage or a lease, including registration issues with the national registry in Israel.
The applicant for registration of a foreclosure in the register will pay the prescribed fee and issue the Aircraft Registrar the Certificate of Registration of the aircraft, if it is in his possession. The Aircraft Registrar will indicate on the Certificate of Registration the record of the foreclosure in the register.
An applicant for registration of a foreclosure in the register with respect to an aircraft shall deliver to the Aircraft Registrar, together with his request, a certified copy of one of the following:
- A notice of pledge of the aircraft in respect of which the provisions of the Israeli Pledge Regulations have been complied with.
- A certificate signed by the Israeli Registrar of Companies regarding the registration of mortgages or pledged over the aircraft, registered under the Israeli Companies Ordinance.
- A certificate signed by a registrar under law regarding the registration of mortgages or pledges over the aircraft under such law.
- An order by any court, tribunal or head of enforcement regarding the imposition of a pledge or foreclosure on their behalf.