FAA records access and the road to CARES 2.0

I recently sat down with Jack Gilchrist, an aviation transaction attorney based in Oklahoma City, at the National Aircraft Finance Association conference to talk through where things stand with FAA records access and where the CARES system is headed. There's a lot on the line for brokers, lenders, and attorneys working transactions right now so the direction of record keeping is going to affect how deals get done. Why Records Access Matters for Transactions For transaction attorneys like Gilchrist, FAA aircraft records aren't a convenience, they're the foundation of every deal:"The records that the FAA receives on an aircraft, specifically on engines, become immediately part of the aircraft record itself, even when they're filed. Whether the FAA ultimately records the documents or rejects them, they're part of the record. Our ability to read them, to see them, to tell whether they're valid — that's vital to being able to determine whether the owner actually owns the aircraft, free of liens and encumbrances." Without that access, basic questions of title and ownership go unanswered and deals don't close. As Gilchrist put it: "Who's going to lend money on an airplane unless they can confirm the borrower owns it?" The Current State of CARES The FAA's CARES system is central to the agency's plan to modernize aircraft recordkeeping. But Gilchrist is straightforward about where it stands today:"As the CARES system is right now, you couldn't rely on it, because the system is not accurate yet. The FAA also confesses that CARES now is not really the record. The FAA record is still the physical documents that we've been accessing over time." CARES in its current form is a work in progress. The real question is what version 2.0 looks like and whether it gets built with meaningful input from the people who use it. Reason for optimism, but with conditions Despite the current limitations, Gilchrist came away from an April meeting with FAA leadership with more confidence than he's had in a while. He believes the CARES system can eventually serve the industry, but only if the FAA genuinely involves the Oklahoma City aviation community in shaping it. He pointed to the agency's development of Subpart K regulations on fractional aircraft ownership as the model: the FAA sat down with industry stakeholders, listened, and came out with a framework that functions:"If we get an opportunity to interact with them on what CARES needs to do and how it needs to do it, I think they could get there within the year. That's the way it's been successful in the past — when the regulators interface with the community." Professional access is a promise worth watchingOne of the most immediate concerns for brokers and transaction professionals is whether qualified industry players will keep privileged access to FAA records as the agency moves toward broader privacy restrictions. Gilchrist says the FAA gave direct assurances on this point at the April meeting:"The assurance we got from the FAA was: ‘We were not planning to change the access that you have in Oklahoma City. It's been in place for decades, it's worked for the industry, and it's helped propel it forward.'" He's encouraged but pragmatic. "Promises are only promises when they get carried out in regulations," he said. Still, he believes the FAA understands that transaction professionals must retain access for the system to function. The April meeting included representatives from NBAA, AOPA, and GAMA, alongside transaction attorneys. Gilchrist noted a shift in the FAA's engagement compared to recent years:"You can sort of read the room, and the FAA was very engaged in the process. I've seen the FAA push industry away over the last few years. I see them sort of turning that around now. If my reading of the room was right, they realize the value in that." Can Brokers Eventually Handle Transactions Independently Through CARES? Looking ahead, Gilchrist sees a future where a knowledgeable professional could execute an aircraft transaction entirely through an electronic system, but that day is not here yet:"Right now, you'd be foolish to do it. It'd be like throwing darts in the dark. But if they perfect the system and provide full access, I think it can happen — for someone who truly understands what they're doing." Where Things Stand The industry remains in a holding pattern. Based on Gilchrist's account of the April meeting, records access for qualified professionals is expected to be maintained. CARES in its current form isn't reliable as a transactional record. The underlying physical documents remain the authoritative source. CARES 2.0 could be functional within the year if the FAA follows through on engaging the Oklahoma City aviation community. Until then, be aware that independent electronic transactions remain inadvisable until the system is accurate, complete, and formally recognized as the official FAA record. Jack Gilchrist is an aviation transaction attorney at Gilchrist Aviation Law, specializing in aircraft acquisitions, financing, and title matters.