The Department of Civil Aviation received an extra $2.9 million in this year's Budget but is expected to produce an additional $3.6 million in revenue.

In yesterday's national Budget the Department of Transport saw its budget rise to $82.9 million, up from $78.5 million a 5.6 percent increase.

Bus and ferry fees did not rise this year although Government is looking to add to the bus schedule.

The Department of Transport's revenue is expected to rise by eight percent or $5.9 million, largely from an increase in civil aviation revenue, vehicle registration and mooring fees.

While delivering the Budget yesterday morning Finance Minister Paula Cox said: "There are currently more than 500 aircraft on Bermuda's Register.

"The vast majority of these aircraft are certified in the Commercial Air Transport (CAT) category while the balance falls into the private category. The register's growth can be attributed to the tremendous demand for western built aircraft in Russia.

"The leasing and financing companies for these aircraft require the aircraft to be registered in a jurisdiction outside of Russia given the Russian regulatory environment.

"Bermuda has benefited and become one of the registers of choice.

"Accordingly, the Department of Civil Aviation is considering the establishment of a satellite office in a European location. A European location is viewed as ideal for supporting current and future expansion of the aircraft registry."

Last year the Island's aircraft register rose by 22 percent, with 92 new planes. This resulted in 2009's $16 million revenue rising $3 million from the previous year.

Premier Ewart Brown, who is also Minister of Transport, said: "Bermuda's aircraft register has experienced record growth in the past few years generating increasingly more significant sums of revenue for the Government.

"We expect to continue to grow the register in 2010 while being ever mindful of the safety and regulatory oversight that such growth will necessitate."

And regarding the new mooring fees, which have risen, he said: "Some will, of course, argue that the new fees associated with moorings are dramatic. However, when compared to the market value of moorings, the taxes remain relatively low and are not at all disproportionate."