The new aviation legal infrastructure in Malta : its attractiveness, or otherwise, to international aircraft owners and operators

Abstract

The scope of this thesis is to assess Malta's attractiveness of the new aviation legal infrastructure, to international aircraft owners and operators. The development of this sector took off through the enactment of the Aircraft Registration Act and the ratification and implementation of the Cape Town Convention and the Aircraft Protocol attached thereto, which has been adopted in the First Schedule of the Act.1 The Act has established the main legal framework for the registration of aircraft and provisions relating to mortgages on such aircraft which prior to the enactment of the Act were regulated by the Merchant Shipping Act. The introduction of the new concepts of fractional ownership and the registration of aircraft under construction, which are becoming ever more necessary in the way the industry works, has given the Maltese legislation an enhanced attraction. Emphasis is also made on the fiscal incentives provided for in different chapters of the Laws of Malta, as these incentives are fundamental in attracting foreign owners and operators to Malta. However, it is not advisable to explore such a niche without having a strong legal and administrative infrastructure. Hence, importance should also be given to Malta's worldwide recognized excellent reputation as an International Service Centre and the experience which Malta has within the Maritime sector. Investing in a well regulated and stable jurisdiction gives the person peace of mind, and therefore providing efficiency, a strong legal framework supporting the new administrative infrastructure is vital and makes Malta a more attractive jurisdiction to make business in. The maritime sector should also be given due importance as the aviation project has been undertaken in an attempt to replicate the success story under the maritime sector. The fact that Malta has successfully become one of the world's most respected jurisdictions within the maritime sector together with its experience also has a bearing on whether an international owner or operator would entrust his investment in the Maltese infrastructure considering that Malta is undertaking this project on similar lines as the maritime sector.