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Just read in local news Israeli regulator is giving a hard time on a company operating regularly out of Israel a plane with foreign (US) registration.

The company wants US registration to get better freedom to fly to various countries. This I understand. But what difference does it make otherwise? Why would the regulator care, and make it difficult to operate regularly without local registration? Are such limitations common in other countries?

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  • $\begingroup$ In many ways this isn't an aviation question as much as a political and economic one. If you run a business in Israel, why can't you register your company car in France (or any other country you choose)? Most countries want to have legal and economic control over people, companies and goods based there. Without that, there would be no way to enforce local safety standards, collect taxes and other fees, and generally run the country. There may be some interesting parallels with shipping and flags of convenience, but law.SE or politics.SE might be better places to ask about that. $\endgroup$
    – Pondlife
    Sep 23 '20 at 17:28
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Perhaps the biggest reason for this is that countries have different standards of safety.

One example, is a few years ago, Cessna recommended that basically all their piston aircraft have a thorough maintenance inspection known as a SID once they reach 20 years of age. The FAA didn't feel that these inspections justified the fairly considerable cost. Other countries though - Australia, NZ, Germany come to mind - felt the manufacturer knows best, and made the inspections mandatory.

This is just one example of the broader problem of differing standards throughout the world. When an aircraft gains Israeli registration, it must comply with all local laws and airworthiness directives, giving authorities confidence that their standards are being met. Being locally registered also makes it easier to track movements and to target inspections. There could also be tax implications too, as it would become a local asset.

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