Insights

Malta has made considerable efforts in the field of aviation in recent years. Malta’s aviation laws were revamped and modernized by the Aircraft Registration Act, 2010 (Chapter 503 of the Laws of Malta) and Malta’s accession to the Convention on International Interests in Mobile Equipment, 2001 (the Cape Town Convention) and its Aviation Protocol in 2011 contributed to no small extent to put Malta firmly on the aviation map.

In tandem with these legislative efforts, a Civil Aviation Policy for Malta 2014 – 2020 was launched by the Ministry of Tourism following the creation of an Aviation Advisory Committee (AAC). The introduction of a general policy framework for aviation and its relation to tourism, security, environmental matters and advanced technology is welcomed as it continues to build on the efforts made in the last few years to promote the growth of the aviation sector in Malta. Regular meetings are held with stakeholders involved in business aviation and Malta Enterprise has also played an important role in organizing meetings and discussions. Aviation is arguably one of the fastest growing sectors in Malta in recent years and, as a jurisdiction, Malta needs to build on this success consistently and intelligently.

The number of aircraft registered on the National Aircraft Register continues to grow and the number of Maltese AOC holders has grown at an impressive rate not to mention the strong presence of several MRO’s, operators or aviation companies being established in Malta. Flight schools are also thriving and the active MBAA is regularly seeking improved conditions for business aviation in Malta.

Malta must however continue to be bold and ambitious in its efforts to continue to strengthen the aviation industry. One such initiative is the current drafting of amendments and fine-tuning to the ARA and associated legislation addressing issues which have emerged since the introduction of the legislation five years ago. The amendments deal primarily with the enforcement and arrest of aircraft and aircraft engines; judicial sales or court approved sales of aircraft and the exercise of various judicial and non-judicial remedies over aircraft by creditors. The amendments will be finalized in the coming weeks.

Another area which needs attention is the resources available to the Civil Aviation Directorate which need to be increased to deal with the ever-increasing workloads. The existing qualified persons at CAD are doing a tremendous job but are clearly stretched to the limit. The register has grown remarkably over the past few years, but the number of qualified staff has not grown in tandem with the industry growth and this needs urgent attention particularly due the increased responsibilities of the CAD with the increase in number of AOC holders.

In addition, there is the need to follow up on Malta’s accession to the Cape Town Convention in order to maximize on the benefits of accession to the Convention. Malta needs to become recognized as being eligible for what is known in the industry as ‘Cape Town discounts’. The Cape Town Discount is available if an operator is based in a country which (a) ratified the CTC, (b) made the qualifying declarations and (c) properly implemented the CTC. The list of states whose borrowers or operators qualify for the discount is maintained by the OECD Secretariat. Malta is not yet on the list so Maltese borrowers / operators do not currently qualify for the discounts. Placing Malta on the list would not imply that Malta needs to have an export credit agency in place and it would not directly affect Malta’s government revenues. This step needs to be taken because Malta, like all other CTC states, is monitored for its progress by the industry and by the Aviation Working Group (AWG). Malta needs to effectively set the ball rolling by requesting action to this effect by a participant at OECD level.

Malta is fast becoming a respected player in the field of aviation. Many practitioners are investing time, money and energy in this sector and we must strive to keep the current momentum to make this yet another Maltese success story.