Reputional fears raised over links to Iran jet purchase

Monday 20 February 2023

Links between Guernsey’s aircraft registry and four passenger jets that were sold to Iran despite sanctions could cause reputational damage, Deputy Chris Le Tissier has said.

But Economic Development has largely dismissed his concerns, stressing that although the planes had been on 2-REG, they were not when they were flown to the country.

At the end of December, Iran’s Civil Aviation Administration confirmed the purchase of four Airbus A340 wide-body aircraft, despite US sanctions.

Formerly flown by Turkish Airlines and recently registered in Burkina Faso, they departed for a scheduled flight from South Africa to Uzbekistan 24 December. As they flew over Iran, the aircraft disappeared from flight tracking services. 

“It has recently been reported in the national and international media that four Airbus A340 jetliners with an estimated value of many millions of pounds that were registered on 2-REG have been transferred out to another party who has by subterfuge arranged to sell them to Iran breaking United Nations sanctions as well as UK and Guernsey sanctions,” said Deputy Le Tissier in an official written question to Economic Development.

JUST IN: Visual confirmation that the 4x ex-Turkish Airlines (red tail and wing tips) Airbus A340-300 from Johannesburg arrived to Mehrabad International Airport in Tehran, Iran.

Confirming identification, Sentinel-2 imagery shows that they were only recently parked here. https://t.co/cMNLyHCuhg pic.twitter.com/eyWVF4JZcW

— Gerjon | חריון | غريون | ኼርዮን (@Gerjon_) December 29, 2022

He said that there was “a possibility that 2-REG and by association Guernsey may see reputational damage or unfavourable comments among owners and other regulators because of the prior involvement of 2-REG which may lead to a loss of business to 2-Reg and the island”.

He posed a series of questions about the procedures in place to monitor those registering planes and transferring them off the dataplace.

Deputy Le Tissier also asked if a compliance review would be carried out of all registered owners in light of this transaction and whether the registry was continuing to accept business from the original registrant.

Pictured: Deputy Chris Le Tissier.

Economic Development said that the Guernsey Aircraft Registry always ensures that due diligence is properly completed prior to any aircraft being registered.

Only a qualified person may hold an interest in an aircraft or engine registered in Guernsey, something defined in law.

Regulations restrict the nationality of applicants and nationals of sanctioned countries are not permitted to register aircraft. 

“Where a person is not qualified, they may register an aircraft or engine provided that they employ a Guernsey licensed fiduciary to act as a resident agent and complete the necessary enhanced due diligence, sanctions and anti-money laundering checks as prescribed by the Guernsey Financial Services Commission.

“With regard to the four Airbus A340 jetliners referred to in the question, they were historically registered on the Guernsey Aircraft Registry (2-REG) but were not on 2-REG when they travelled to, arrived in, or were in any other way connected to Iran. Accordingly the Guernsey Aircraft Registry is not aware of the transaction and has no comment to make on it.”