Malta: An Aviation Hub in Europe

Malta’s economy has flourished and the jurisdiction has worked hard to establish a prosperous and stable legal system which accommodates both the island’s strongest industries as well as innovative and emerging sectors. It adopts a competitive tax system with 70 double taxation treaties worldwide and has invested in the development of key industries across the island, with substantial growth within the field of aviation.

Aviation and Malta

The country’s constructive laws within the industry not only eliminate bureaucratic issues, but also allow for a wide range of incentives. Under Malta’s Aircraft Registration Act, operators can register aircraft under construction and also allows for fractional ownership. The law also ensures protection for creditors financing within the aviation industry and implements major conventions such as the Cape Town Convention and the Chicago Convention. Malta is part of the Open Skies Agreement, recognises the Air Operator’s Certificate (AOC), is a reputable Flag EASA certified state with FAA Category 1 rating, and is equipped with excellent facilities for MROs and OEMs.

In addition, the recent launch of the Research and Innovation Strategy for Malta 2020 Plan ensures the increased development of the aviation industry in Malta. The island is seeking to further increase its facilities, as well as enhance research and innovation in Aerospace technology with the setting up of a National Aerospace Centre in order to attract foreign investment.

Malta’s Ties with Britain

A small island in the middle of the Mediterranean Sea, Malta’s strategic position has always been beneficial. Its position was in fact one of the main factors which prompted the British to colonise the island. Under British rule the island also served as an aviation base in WWII, and today Malta enjoys Commonwealth membership and a strong British influence throughout the country’s business, language, legal framework and everyday life. Apart from this, Malta’s key position provides great connections to many international airports.

As Brexit looms closer and uncertainty lingers within the aviation industry, Malta is a key jurisdiction for businesses looking to safeguard the market as concerns have arisen over the right of UK-based airlines to roam freely within the EU. To guarantee free circulation of flight across the EU, airlines are looking to EU jurisdictions to manage the free flow of people and goods through the single aviation market or European Common Aviation Area (ECAA).

Chetcuti Cauchi Advocates just hosted a number of webinars on how Malta can be a post-Brexit Solution. Click here to register and watch the webinars’ recordings.