The choice of where to register an aircraft is a critical decision.

Romania offers a secure and creditor-friendly legal framework, fully compliant with EU regulations and the Cape Town Convention.

This guide breaks down the essential aspects of aircraft registration in Romania, highlighting the key legal protections that make it an attractive jurisdiction for aviation financing and leasing.

AIRCRAFT REGISTRATION IN ROMANIA BMA LEGAL

1. Overview of Aircraft Registration in Romania

Romania’s framework for aircraft registration is governed by the Romanian Civil Aeronautical Code (Law No. 21/2020). This Code establishes that any civil aircraft operating in Romanian airspace must hold a Certificate of Registration issued in accordance with the Chicago Convention and applicable EU regulations. The Romanian Civil Aeronautical Authority (AACR) administers the Romanian Civil Aircraft Register (RUIAC). Inscription in this national register confers Romanian nationality to the aircraft. Notably, while registration grants nationality, it is not proof of ownership or legal title – the Code specifies that registration and the certificate are not evidence of legal ownership.

Who Can Register

The Aeronautical Code explicitly recognises the rights of both Romanian and foreign individuals or companies to own or operate aircraft in Romania without discrimination. Thus, a foreign lessor or owner can register an aircraft in Romania, and a Romanian operator (lessee) can be recorded as the holder. The registration certificate includes key details such as the aircraft’s identity (make, model, serial number), its Romanian nationality mark, and the identification of the owner and/or legal holder. This practice ensures transparency about who has possession and operational control under lease arrangements, even though ownership may remain with an overseas lessor.

Registration Process

The AACR has streamlined procedures for registration. Applicants must submit a standard form and supporting documents to the AACR in accordance with Romanian aviation laws and applicable EU regulations. In recent years, AACR has introduced digital elements into this process – for instance, applications for de-registration can be lodged online via an AACR portal. This shift toward digitalisation signals a modern approach aimed at reducing paperwork and expediting transactions.  AACR may require a physical inspection of the aircraft or a documentary review, particularly if the aircraft is transferred from a non-EU registry. Upon successful registration, the AACR issues a Certificate of Registration, and the aircraft receives its Romanian tail number (nationality and registration marks), which must be displayed on the aircraft as per regulations.

Deregistration and Transfers

The Romanian register follows the international norm that an aircraft cannot be registered in two countries simultaneously. If an aircraft is to be exported or moved to another registry, it must first be deregistered from RUIAC. AACR handles deregistration on request of the owner, provided any registered mortgages or liens are addressed (creditor consent may be required). The AACR will issue a Deregistration Certificate (often needed for export/import to a new country). Notably, under EU rules and the Cape Town Convention, owners or creditors often utilize an IDERA (Irrevocable De-Registration and Export Request Authorisation) – a document which, when lodged with AACR, empowers a named creditor (such as a financing bank or lessor) to deregister and export the aircraft if the debtor defaults. Romania, having ratified the Cape Town Convention in 2018, recognises such remedies. In practice, an IDERA on file with AACR gives comfort to lessors and lenders that they can promptly repossess and remove the aircraft from Romania upon enforcement, without needing the operator’s further consent.

 2. Aircraft Mortgage Registration

One significant aspect of the Romanian system is the ability to register aircraft mortgages and other security interests on the national register. The Civil Aeronautical Code expressly provides that the owner of a civil aircraft has the right to constitute a mortgage or other encumbrance over the aircraft or its engines as security for a debt. However, if the aircraft is registered in Romania, the mortgage must be established according to Romanian law and recorded in the Romanian Civil Aircraft Register (RUIAC) to be effective.

In other words, the law of the state of registration governs the creation of security rights in the aircraft, and those rights must be transcribed in the encumbrance registry. This principle is crucial for financiers: a mortgage over a Romanian-registered aircraft should be executed in compliance with Romanian law (typically via a written agreement) and then filed with AACR for registration.

Registration Procedure for Mortgages

The AACR acts as the registering authority for aircraft mortgages and charges. Upon creation of an aircraft mortgage, the mortgagee (creditor) or mortgagor will submit an application to AACR to record the security interest in the RUIAC. The application generally must include the mortgage agreement or a summary thereof, proof of the parties’ consent, and evidence of the aircraft’s details and current registration. AACR will record the mortgage in the “charges registry” of the aircraft register. According to the Aeronautical Code, all acts concerning property rights, transfers of ownership, or the establishment of mortgages and other real rights over a civil aircraft must be registered in the Civil Aircraft Register. This registration serves a public notice function.

It is important to note that, under Romanian law, registering a mortgage is not what creates the underlying rights – the mortgage agreement itself (once validly executed) creates the security right between the parties. The role of the AACR registration is to give opposability against third parties. In other words, an unregistered aircraft mortgage may be valid between the debtor and creditor, but it will not be effective or enforceable against third parties (such as other creditors or a buyer of the aircraft) until it is entered in the public register. The Civil Aeronautical Code is explicit that registration in RUIAC is not constitutive of the right but only confers publicity and priority vis-à-vis third parties.

Priority of Mortgages

Romanian law follows a “first-to-file” priority system for aircraft mortgages. A mortgage takes effect between the parties from the moment the contract is signed, but it is perfected (and takes effect against others) only when registered.

Enforcement and Remedies

Under Romanian law, duly executed mortgage contracts (including those over aircraft) are considered enforceable titles. This means if the debtor defaults, the creditor can proceed directly to enforcement against the mortgaged aircraft without needing a lengthy court judgment.

3. Implications for Lessors and Financiers

The Romanian aircraft registration regime has several implications for aircraft lessors and financing parties:

Recognition of Leasing Rights

The Aeronautical Code recognises leasing as a distinct legal arrangement. A lessee under a dry lease is considered a lawful holder of the aircraft for the lease term. This means that even though the lessor (owner) retains title, the lessee’s right to operate the aircraft is formally acknowledged. The register and the Certificate of Registration can reflect the lessee’s details as the operator/holder alongside the owner. For lessors, this provides clarity and security: their ownership is recorded, yet the day-to-day operator is identifiable. It also helps lessors by clarifying that registering an aircraft in Romania in the name of the lessee (as holder) does not jeopardise the lessor’s ownership – ownership remains with the lessor and is merely recorded in the register, not transferred.

Mortgages and International Interests

Financiers (such as banks) typically require a mortgage over the aircraft as collateral for a loan. In Romania, the financier will ensure the mortgage is executed in compliance with local law and then registered with AACR for priority. The registration gives public notice to all that the aircraft is encumbered, protecting the lender’s interest. Lessors and financiers should coordinate so that any ownership interest of a lessor and any security interest of a lender are properly recorded in all relevant registries (national and international).

Enforcement and Repossession

From a creditor’s perspective, Romania’s framework is relatively creditor-friendly  The fact that mortgage agreements are enforceable titles means that if a Romanian lessee or debtor defaults, the creditor can initiate repossession procedures efficiently. Furthermore, with an IDERA on file, AACR will cooperate in deregistering the aircraft and will not obstruct export, allowing a lessor or mortgagee to swiftly move the aircraft out of Romania to a jurisdiction of its choice. Lessors in operating lease deals likewise benefit from this system: they often obtain an IDERA and a locally registered Power of Attorney so that if the airline fails to perform, the lessor can repossess its asset with minimal bureaucratic delay.

Visibility and Due Diligence

Because the Romanian Civil Aircraft Register is public, lessors and lenders can conduct due diligence on a Romanian-registered aircraft to check for existing liens or other claims. Financiers and lessors are wise to ensure all their rights are duly registered; not only does this protect them, but it also signals to other parties (and the AACR) the existence of these rights, preventing unauthorized dealings. For example, an aircraft cannot be legally sold or removed from Romania without clearing any registered mortgages – the AACR would require mortgagee consent or a release prior to deregistration.

Romania’s system offers a robust framework for protecting security interests and ownership rights. Lessors retain ownership throughout, and lessees gain operational rights but cannot dispose of the aircraft. Financiers obtain strong security that is enforceable and backed by both national law and international treaty.

4. Final Thoughts

Ultimately, aircraft registration in Romania is a robust process backed by strong national laws and international treaties. This system provides legal certainty and powerful protections for owners and creditors, with the AACR’s modern approach further enhancing its appeal for cross-border financing.

While the framework is creditor-friendly, navigating the specific requirements is crucial to safeguard your investment.

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