The Department of Civil Aviation will open a satellite office by November this year.

Earlier this year Premier Ewart Brown flew to Russia with a delegation to "reassure" industry partners that Bermuda's aircraft registry was compliant with international standards after the UK Government questioned whether it met international safety requirements.

The Premier said the UK's concerns were "unfounded" and that new developments were underway for the registry.

"I am pleased to report that implementation of the Department of Civil Aviation's business plan has commenced and [advertisements for] two senior positions for head of airworthiness and flight operations [began last] Friday, August 27," he said.

"Three proposals were received in response to the department's request for proposal for the running the London DCA satellite office and the process of establishing that office will now move forward.

"The department is confident that the satellite office will be staffed and open for business by November 2010."

Last year Bermuda's registry generated $16 million in revenue and is expected to generate $19 million this year.

In the last seven years the number of planes registered locally has risen from 140 to 500.

Many of those planes are western-built aircraft that operate in Russia and are financed by US companies.

Those companies choose the Bermuda registry because they are more confident in the Island's regulatory framework, which makes it easier for them to retrieve the plane should the operator default on the contract.

Some companies also see a tax advantage to registering in Bermuda, according to the Department of Civil Aviation.

During the last year the fact that many of the planes are operated in Russia has been a sticking point for the UK Department of Transport.

According to the Opposition, the UK's concerns are based on a less-than-favourable audit of the Department of Civil Aviation by an international organisation.

In 2009 the International Civil Aviation Organisation (ICAO) audit concluded Bermuda did not have a sufficient number of technical staff to effectively fulfil its safety oversight responsibilities. While the registry has more than tripled in size over the last seven years the number of staff employed had only risen by one at the time of the audit.

As the UK is the actual signatory of the ICAO agreement, they have questioned whether Bermuda is living up to the standards required by the international group.

Premier Brown's announcement addressed the issues outlined in the ICAO audit.