Aircraft operators in the Cayman Islands could soon pay three times more for radio licence fees under a proposal that would raise the annual charge from CI$98 to $300 per aircraft.
The Utility Regulation and Competition Office (URCO) published the proposal in a public consultation document on 23 March, saying the current fee – unchanged since 2007 – no longer covers the cost of running the licensing programme.
The flat rate would apply across the board regardless of size or seating capacity.
The case for the increase rests on two factors – inflation and a sharp rise in demand.
Consumer Price Index data from the Cayman Islands Economics and Statistics Office shows prices climbed 45.5% between 2007 and 2024, with a further 7.8% rise projected through 2027.
The number of radio licence applications processed by the office has ballooned from nine in 2007 to more than 280 in 2024 – a 33-fold jump in 17 years.
Activity dipped in 2020 as the COVID-19 pandemic grounded much of global aviation, but figures have since recovered and are expected to keep climbing.
URCO said much of the processing work remains manual, with staff handling errors, tracking payments, and conducting compliance reviews. An electronic application system is in development but is not yet in place.
The proposed $300 fee is split into two equal halves. One $150 portion covers administrative costs such as processing and compliance checks, while the other reflects the broader value of the licence, including spectrum management and oversight of aeronautical communications.
A benchmarking exercise across 11 international markets suggests the proposed rate falls within the international range.
The Bahamas charges from US$200 depending on tier, Barbados roughly $199, Jamaica about $161, and Bermuda – classified as a large aviation flag-carrying state – $400.
Countries with lower fees, such as Canada at $32 and the United States at $110, benefit from larger-scale operations and automated digital platforms that bring down per-licence costs.
URCO acknowledged the increase may affect licensees but described the annual charge as a small portion of overall aircraft operating expenses.
The consultation closes at 5pm on 10 April.
