Why Are Airlines Choosing Malta for AOC Registrations?

The small Mediterranean Island nation of Malta is becoming a popular choice for many airlines to register their Air Operators Certificates or AOCs. The aviation sector of Malta has seen rapid growth in the last ten years, with many commercial and private aircraft registrations. More than 860 aircraft were registered in Malta by January 2024, a substantial number considering the island nation's size. Let us look at the reasons for this. 

Aviation Regulations 

The regulations related to aviation registration in Malta are designed to be consistent with the European Union Laws and international standards. The country is also a signatory of the Cape Town Convention, which eases the enforcement of registration security rights for Maltese-registered aircraft owners in the territories of other signatory nations.  

The Aircraft Registration Act of Malta also helps in the easy and smooth registration of aircraft. Its laws are designed in such a manner that they allow the owners to grant mortgages and register international interests over aircraft and engines. 

The Securitisation Act of 2006, brought in by the Maltese government, provides a smooth structure for raising finance or converting other assets into cash. This securitisation can be done over aircraft, helicopters, and other related parts and one can also get some tax benefits in the process as well. 

Apart from these advantages, the Maltese aviation authorities also have a business-friendly approach and make operating from the island a hassle-free experience for commercial airlines and private jet owners alike. 

Aircraft registered in Malta enjoy equal rights as interests registered by a Maltese local, so in case of conflict, owners of these Maltese-registered foreign aircraft can fight court cases in Malta if the need arises. 

Tax Benefits  

Malta’s attractive tax system makes it a popular choice for aviation companies, it offers tax benefits for both individuals and corporations. For companies, all parts of an aircraft may be tax-depreciated over an accelerated period of four years. There is also no withholding tax on dividends, interest, and royalties. Individuals of certain nationalities working in aviation pay a small tax of only 15%. 

A Well-established Maintenance Facility in the Mediterranean  

With the growing aviation industry in the island nation, multiple well-known Maintenance, Repair and Overhaul (MRO) facilities have made their home on the island. Facilities like SR Technics and Lufthansa Technik provide maintenance services to all types of aircraft. The island also has multiple runways and airstrips which have at times landed gigantic A380s. 

With an extensive reach in the aviation industry, Brookfield is pleased to see that countries like Malta are taking the initiative and measures to make aviation business easier and more accessible.