Are you insuring any foreign registered aircraft?

In Malaysia, foreign registered aircraft can be used only for privateaircraft1 purposes, ie. company staff and families. The aircraft cannot be used for hire because the rules said, the aircraft should only be operating where they are registered. Thus if aircrafts are not registered in Malaysia, they cannot be used for hire – can fly to Malaysia, drop off passengers and then leave. Foreign registered planes can be in the country for 6 months, the most. If they intend to trade or use Malaysia as the hub, they must use Malaysian registered aircrafts and must have the air operating certificate (AOC) which is issued by the Department of Civil Aviation (DCA).

Despite what the rules are, many local aviation companies work hand-in-hand with foreign companies bringing in their planes and using them for charter, taking paying passengers for meeting and holidays. Let’s just call their usage “illegal flights”. If any aircraft crashes, it is very difficult to sue the company that owns the aircraft because it is foreign based and their insurance company may repudiate any liability (although not too likely but there are are potential).

Currently there are already 30 to 40 aircrafts, foreign registered in the country and are being use as charter flights. Some of these aircrafts include brands like, Learjet 60, Gulfstream 550, Cessna Citation Bravo, Fokker 1000 and Falcon 900. Some sources said, reasons being why these planes were registered overseas….like in America and Europe, citing glamour for their customers…thus can charge abit higher. Another source told us that registering overseas is to do with the bridging loans and facilitates easy documentation and approval by that country’s civil aviation department. Our DCA can be abit tricky….. Is that so…??

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