Registering, Operating and Managing a Business Jet From Malta

Having been a colony of Great Britain for 164 yearsDepartment of Civil Aviation full compliance to JAR
(1800-1964), and then continued to serve as a base forOPS 1.
Britain's Armed Forces for a further 15 years, MaltaAs per statistics published in 2006, Malta had the 10th
was introduced to the world of aviation from a verycheapest labour cost in the private sector from all
early start.European Union Countries. At just under 10 Euro per
From the construction of the first airfield to thehour, Malta is cheaper than Portugal, Slovenia, Cyprus,
ravages of World War Two, the build up for the SuezGreece and Spain. More importantly the rate of salary
canal, through four hi-jacks, and on to today's Maltaincrease was the second lowest from the 10 countries
International Air show, Malta has seen almost all thewith the cheapest labour cost, at under 3.5%.
uses an aircraft can be put to.That said, aviation being a very specialized industry,
The Malta Department of Civil Aviation records showsalaries in this sector are higher than the average, and
that when the Maltese aircraft register was opened inwith big players, such as Air Malta, Lufthansa Technik,
1969 introducing the Maltese register prefix 9H, the firstand Servisair Globe Ground already established in
aeroplane to be registered, 9H-AAA was in fact aMalta, there is already a healthy pool of aviation trained
Cessna 172. The next two aircraft on the registerpersonnel, in all the major areas, such as Flight and
were also general aviation aircraft, as were manyGround Operations as well as with Technical staff.
others that followed. The aircraft were largely ownedMalta has two flight schools and the Local
and operated by Maltese general aviation pilots.Government has assisted Lufthansa Technik amongst
Today, the local general aviation fleet includes a widerother ways by means of a collaboration between The
variety of aircraft types and categories ranging fromMalta College of Arts, Science and Technology, and
microlights to single engine private planes and publicLufthansa for the training and development of their
category aircraft available for rental. A small fleet oflocal employees.
training aircraft is operated by two flying schools.A company operating a Challenger 605 and a Lear 60
Malta has an excellent climate, is strategically locatedXR will pay the authority just over 36,000.00 Euros for
at the centre of the Mediterranean and has one of thethe first issue of an AOC and then barely over
last 24 hour airports. It has one of the longest runways16,000.00 Euros per annum for renewal fees. Hardly
in Europe with practically no slots issues. Localforbidding charges. More importantly an aircraft
business and the Maltese government are only nowregistration and/or AOC should be obtained within 90
starting to fathom that there could be a great potentialdays.
for managing and operating business aviation aircraftThis is achievable in Malta, as the Department of Civil
from Malta, offering very competitive licencing fees, inAviation is still relatively young and can give interested
an English speaking country in an EASA/JAAparties undivided attention. Assuming the owners
environment. This combined with excellent taxoperator provide all the necessary information and
structures for foreign investors, whereby, althoughdocuments.
corporate tax is fixed at 35%, foreign shareholders areOther costs involved would be the setting up a
refunded 30% within 14 days.company structure to own the aircraft and or apply
Strictly speaking an owner who is operating his aircraftfor the Air Operating Certificate. These costs are
for his own use, will not require an AOC, as the aircraftestimated to be in the region of 2,000 to 5,000 Euros
will be operated in the private category, however thisper annum, depending on the level of actual presence
scenario can be very restrictive, as it is unclearof the company on the island.
whether employees of the owner and sub-contractorsSo where would one start? Sierra Aviation was
can legally use the aircraft, as this could be deemedestablished in 2002 as a business aviation service
that there is gain and hence an AOC might required.company. As the only dedicated business aviation
Further more if the aircraft is given under managementcompany in Malta, Sierra Aviation's main line of
to a third party company, even if the aircraft is notbusiness is namely;o Aircraft Charter Brokerso Aircraft
available for third party charter, the third partyHandling at Malta International Airporto Aircraft Sales
company managing the aircraft must obtain an AOC.and Leasingo Aviation Consultancyo Aircraft
Simply put, an aircraft can be operated in the privateManagement
category without an AOC, however to obtain anSierra Aviation can provide a number of services to
AOC, the company must also have an ASL. Theowners/operators who may wish to exploit the great
applications for the AOC and ASL, should beopportunities which Malta can offer to the international
submitted together to the Director of Maltese Civilbusiness aviation community.
Aviation.Namely Sierra Aviation can be the co-ordinator
In order to apply for an AOC, a company mustbetween the foreign party and the Maltese authorities,
demonstrate ownership of an aircraft, or a leaseproviding constant follow-up from the day go to the
agreement for an aircraft.day that the aircraft is registered in Malta, and/or an
An aircraft need not be registered to be operated byAir Service Licence and Air Operator Certificate is
a Maltese AOC, however the registered aircraft mustobtained.
have a European Union and JAA country registration.For owners, Sierra Aviation can provide aircraft
The reverse is also through, ie a Maltese registeredmanagement. Through our numerous international
aircraft can be operated on a European Union andpartners, we can provide an unprecedented support
JAA AOC, however both of these scenarios are notthat commensurate with the best in the industry at a
preferred by the Maltese Department of Civil Aviation.fraction of the cost. Our staff, experienced in business
Similar procedures are required by the companyaviation, and with local knowledge, in so far as,
applying for an AOC as for company applying for anpersonal familiarization with the Civil Aviation Authority,
ASL.the Airport Authority, the local Government, as well as
The process for obtaining an AOC, ASL andthe local labour market, company formation legislation
registration of aircraft should take from three to sixwill make sure that each customers requirements are
months, subject to demonstrating to the Maltesemet efficiently, safely, and legally.