The FAA is trying to enhance the privacy around business aircraft registered in the U.S. By limiting access to information about owners of U.S.-registered aircraft, the FAA has somewhat improved privacy, safety, and security, but significant challenges remain across the ownership and transaction experience. These issues extend not only to registered owners but also to lessees and the ultimate beneficial owners (UBOs) who call the shots behind the scenes.
Consequently, with the focus on owners, UBOs need to understand and insist on protocols that optimize privacy, safety, and security involving their aircraft. Initially, UBOs should deploy measures to achieve privacy through legal ownership structuring, use of regulatory policy tools, and aircraft management.
For situations where the parties require secrecy or identify credible threats of personal injury or physical damage to the aircraft, UBOs may elect to fly on a different aircraft via a jet card, charter, club, fractional share, or other lift.
Understanding the U.S. Aircraft Owner Registry
The U.S. has an “owner registry” system, meaning a qualified owner of an aircraft registers the aircraft at the FAA’s Civil Aircraft Registry. The FAA Registry collects the information necessary to establish and maintain the records for all U.S. civil aircraft. Categorically, the U.S. aircraft records system covers aircraft owners, lien holders, and lessees, along with their related aircraft registration documents and instruments. In contrast, other nations have an “operator registry” where the aircraft’s operator registers the aircraft it operates. Some registries may make personal information available to the public, while others limit access to particular registration documents.
Two FAA Privacy Policy Tools
The FAA has long viewed the collection, use, dissemination, and maintenance of personally identifiable information (PII) as an important issue in improving the overall safety of the National Airspace System. In this context, PII means the mailing address or registration address of the registered owner(s); an electronic address (including an email address) of the registered owner(s); the telephone number of the registered owner(s); and the name of the aircraft owner(s), if the owner or operator is an individual.
On Dec. 12, 2022, the FAA announced a change in its policy to restrict public access to “ancillary records” due to the FAA’s concern about the “inadvertent release of proprietary data and personally identifiable information.” Ancillary documents include statements in support of registration, which the FAA requires of limited liability companies (LLCs)—but not corporations—to file with the FAA, as well as powers of attorney, name change filings, merger documents, and trust agreements.
Even more recently, on March 28, the FAA introduced a process that allows private aircraft owners and operators to request through the FAA Civil Aviation Registry Electronic Services (CARES) website that their PII be withheld from the public. This implements Section 803 of the FAA Reauthorization Act of 2024.
The FAA has not yet clarified whether these privacy rules apply to, and protect the privacy of, operators and companies from the release of information publicly or how the process impacts gathering aircraft information to verify the ownership of, and liens on, U.S.-registered aircraft. These issues are particularly acute when selling, purchasing, financing, leasing, or making other filings related to affected aircraft. Like the 2022 policy change, the CARES process may slow the efficiency of aircraft sales transactions because most lawyers cannot access information to complete reliable diligence, ensure accurate drafting, and expedite closings.
How Privacy Breaches Occur
Privacy breaches happen frequently and with increasing sophistication. To determine the extent of privacy protocols and resources, UBOs may begin by consulting with relevant stakeholders to gather their views on safety, privacy, and security risks. Then, if necessary, UBOs can order thorough security studies.
- Online searches. Despite the FAA’s initiatives, certain information may be accessed from the FAA Registry.
- Flight trackers. So-called “flight trackers” or “plane spotters” act as aircraft photographers, investigative reporters, aviation enthusiasts, personality groupies, or even corporate espionage agents. They can obtain data on aircraft position, speed, and other information using publicly available technologies.
- Public information. UBOs may include their initials as part of the tail number of their aircraft. They may sign publicly available documents such as state aircraft registrations or local property tax forms. For public companies, financial reporting may disclose aircraft ownership by, and related-party transactions with, an executive. For example, think of an aircraft owned by an executive leased to the company for business use.
- Photographers. A stranger may photograph the UBO, family, crew, and other passengers in or near an aircraft without the UBO’s consent or realization that the pictures may be sold or posted online.
- Freedom of Information Act. In the U.S., individuals seeking information about a UBO may use the Freedom of Information Act (FOIA) to access certain records at the FAA or other governmental authorities. Fortunately, FOIA exempts items from release that cause an “unwarranted invasion of personal privacy.”
- Corporate Transparency Act. U.S. entities or persons became exempt from filing “beneficial owner reports” (BOIRs) to FinCEN as of March 26, 2025. Thereafter, only non-exempt entities formed in a foreign country and registered to do business in any U.S. state or Tribal jurisdiction must file BOIRs online. Existing domestic and all “foreign reporting company” BOIRs should not be publicly obtainable.
Available Technology To Limit Aircraft Detection
Two main technology options exist in the U.S. to enhance privacy. The Limited Aircraft Data Displayed (LADD) program filters aircraft ownership data shared with third parties by the FAA from its ADS-B feeds. The Privacy ICAO Address (PIA) program enables aircraft owners to request an alternate, temporary ICAO aircraft address that is not assigned to the aircraft. PIA is not available internationally. Trackers can rely on sources other than the Aircraft Situation Display to Industry (or ASDI) data stream, which reduces the desired safety, privacy, and security.
Legal Structures, Terms, And Protocols To Protect Owner Privacy
Various legal structures can shield the identity of UBOs and thereby improve their privacy. One of the most common methods is using a limited liability company (LLC) to own the aircraft. For example, an LLC with a name that does not identify the UBO can take title to the aircraft, and unrelated LLC managers can exclusively handle the affairs of the LLC instead of using the name or signature of the UBO/LLC member(s).
Significantly, UBOs can form anonymous or private LLCs in a few states, including Delaware and Nevada, that do not publicly disclose the names of LLC owners (or managers in some states). Non-U.S. jurisdictions, such as the Isle of Man, also provide similar privacy. However, the UBO’s anonymity does not mean that UBOs and LLC managers can operate with impunity, violating the law or evading legal processes such as subpoenas, personal liability, or tax scrutiny related to their LLCs.
Another common structure involves forming an owner trust that takes legal title to the aircraft. This inserts an obstacle to identifying UBOs. An even more private structure entails the formation of a second trust to own the beneficial interest in the aircraft owning trust, as “trustor,” in this “double trust” structure. The trustees will not release information without the beneficial owner’s approval, except that the FAA can obtain certain information regarding the registration of aircraft in the U.S. by U.S. citizen trustees for non-U.S. citizen trustors and beneficiaries who otherwise cannot register their aircraft on the FAA Registry. Such an arrangement is commonly referred to as a non-citizen trust. An LLC rather than the UBO(s) or a trust can hold beneficial interests. For example, an LLC can be the trustor/beneficiary of an aircraft owning trust.
Last Thoughts
Aircraft owners understandably expect safety, privacy, and security in their use of private aviation. Although the FAA continues to make strides in protecting privacy, UBOs and the individuals in their orbit should insist on proactive measures to mitigate risks to the security, safety, and privacy of such individuals on the ground and in the air.
David G. Mayer is a member of the global Aviation Practice Group at Shackelford, McKinley & Norton in Dallas, which handles private aircraft matters, including regulatory compliance, tax planning, purchases, sales, leasing and financing, risk management, insurance, aircraft management and operations, hangar leasing, and related corporate work. Mayer frequently represents corporations and high- and ultra-high-net-worth individuals and other aircraft owners, flight departments, lessees, borrowers, operators, sellers, purchasers, corporations, and managers, as well as lessors and lenders. He can be contacted at [email protected], via LinkedIn, or by telephone at (214) 780-1306.
None of the discussions in this blog creates an attorney-client relationship or provides legal advice of any kind. Readers should consult their trusted aviation advisors for transaction and other assistance in matters contemplated in this blog. The opinions expressed in this column are those of the author and are not necessarily endorsed by AIN Media Group.