Why So Many Airlines Register Their AOCs In Malta

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Several airlines, including the Icelandic low-cost carrier PLAY airline, have taken advantage of Malta’s aviation sector for strategic reasons. As part of its operational transition strategy, PLAY moved its AOC to Malta to streamline its North American expansion.

In addition to PLAY, MedSky Airways and WizzAirhave established themselves in Malta. The Some of the most well-known commercial operators that now register their aircraft in Malta are: Hi Fly, Corendon, SmartLynx, Ryanair subsidiaries Lauda Europe and Malta Air, and Eurowings, a part of the Lufthansa Group.

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This reflects a larger pattern in which airlines take advantage of Malta’s expanding standing as a major international aviation hub.

Why airlines are making the move
1. A strong regulatory foundation

One of the main reasons airlines choose Malta is the island’s aviation regulations. The government has developed a comprehensive set of laws that are consistent with European Union (EU) and international standards while providing operators with freedom. AOC registration and maintenance procedures are streamlined by the Malta Civil Aviation Directorate (CAD), which is renowned for its effective and business-friendly methodology.

Photo: KM Malta

Katrina Abela, founder of the boutique legal firm Vaia Legal, specializing in vessel and aircraft registration, tells BusinessNow.mt that Malta’s legal framework remains the biggest advantage. It makes its jurisdiction increasingly attractive for owners to place their aircraft with a Maltese-registered operator.

“The laws relating to aviation are robust and holistic and provide for all international standards and practices in the industry.”

2. Strategic Location and EU Membership

Malta is a member of the EU, which gives airlines the benefit of operating within the EU aviation framework. This membership grants access to the EU’s broad market and the benefits of open skies accords. Additionally, Malta is ideally situated for airlines wishing to extend their operations throughout Europe, Africa, and the Middle East due to its strategic location at the intersection of these regions.

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Since it is governed by the European Aviation Safety Agency ( EASA), aircraft owners may rest easy knowing that its ICAO rating is a testament to the stringent standards of safety and security.

3. Taxes

Malta’s tax system is particularly attractive to aviation companies. The country offers a competitive corporate tax rate and has double taxation treaties with numerous countries. According to Malta’s official website, here’s the list:

Europe

Albania Andorra Armenia Austria Azerbaijan Belgium Bulgaria Croatia Cyprus Czech Republic Denmark Estonia Finland France Georgia Germany Greece Guernsey Hungary Iceland Ireland Isle of Man Italy Jersey Kosovo Latvia Liechtenstein Lithuania Luxembourg Malta Monaco Montenegro Netherlands Norway Poland Portugal Romania Russia San Marino Serbia Slovakia Slovenia Spain Sweden Switzerland Ukraine United Kingdom

Asia

Bahrain Armenia Azerbaijan China India Israel Jordan Kuwait Lebanon Malaysia Qatar Saudi Arabia Singapore South Korea Turkey United Arab Emirates

Africa

Botswana Egypt Ethiopia Ghana Libya Morocco Tunisia South Africa

North America

Barbados Canada Mexico United States of America

South America

Oceania

Photo: Markus Mainka | Shutterstock

Cape Town Convention membership

Malta is also a member of the Cape Town Convention, which establishes global guidelines for registering aircraft for sale and standardizes transactions involving airplanes. In 2022 and 2023, Malta was rated top in Europe and second in the world in the Cape Town Convention Compliance Index, reinforcing its reputation as a reputable jurisdiction.

Photo: Vincenzo Pace | Simple Flying

The role of the Malta Business Aviation Association (MBAA)

Malta’s aviation sector has also benefited from the work of industry groups such as the Malta Business Aviation Association (MBAA). The MBAA promotes the interests of the island’s aviation sector and assists operators in navigating the regulatory landscape. The MBAA’s advocacy activities have fostered a collaborative atmosphere between the government and the private sector, contributing to the expansion of Malta’s aviation industry.

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Unsurprisingly, widebodies are dominant in this regard.

In addition, the group has tried to improve Malta’s reputation as a trustworthy aviation jurisdiction. The MBAA has played a significant role in establishing Malta as a competitive participant in the global aviation business by arranging industry events and attending international aviation conferences.

Growth in private aircraft registration

In addition to having many commercial airlines, Malta has developed into a major hub for private aircraft registrations. The same tax and regulatory advantages that attract commercial operators also attract wealthy individuals and businesses looking to register their private aircraft in Malta. The island is popular with high-net-worth individuals and private operators due to its strong private aviation legislative framework and quick registration procedure.

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Publish date : 2024-10-22 13:03:00

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