Aircraft finance structures and the legal infrastructure required to promote the local aircraft finance industry

Abstract

The purpose of this thesis is to discuss the adequacy of the Maltese legal framework in promoting the local aircraft finance industry. An analysis of the legislative instruments to which the local aircraft finance industry is subject has been undertaken in order to assess the extent to which recent legal developments in this field have facilitated the acquisition and finance of aircraft, thereby attracting aircraft operations to the local jurisdiction. A study of different aircraft finance structures was carried out, together with an assessment of the availability of such structures locally, in order to examine the way in which the local legal infrastructure supporting the aircraft finance industry has adapted in relation to internationally-recognised aircraft finance structures. The security interests which are available to financiers, the local fiscal regime as well as other mechanisms provided under the local jurisdiction which sustain the industry, were also examined in order to determine the efficacy of the local legal framework in protecting the rights of the parties involved in an aircraft financing deal. Finally an examination of the hurdles which have recently been faced by the industry was undertaken in order to obtain an understanding of the way in which these have shaped the aircraft finance industry. This analysis led to the conclusion that while noticeable progress has been made in the promotion of the local aircraft finance industry through the revision of the Maltese legal infrastructure, the legislator should seek to continually revise such laws in order to cater for the ever-changing international economic scenario.