Malta & Cyprus Aviation Solutions

Aviation Industry 720X242

Malta & Cyprus Aviation Solutions 

Aviation law is the branch of law which concerns flight, air travel, and associated legal and business concerns. Malta and Cyprus, both being hubs for international commerce and travel throughout history, are no strangers to the world of flight. Indeed, both islands are argued to have been the most important strategic aviation bases in WWII. 

Changes in legislative frameworks were kickstarted upon the countries’ entry into the European Union. Therefore, this changed both the Maltese and Cypriot positions in the Aviation sector, bringing forward new customs and competition rules. Subsequently, the introduction of an increasing number of service providers was brought forward and, both countries have since been regarded as reputable and cost-effective destinations.  

The Maltese Aviation Industry

With regards to Malta, recently revamped rules and regulations have given new life to the aviation industry. The country has now embarked on an innovative, ambitious project to establish one of the largest aircraft registers globally. The increase of Malta’s popularity as a leading aviation base is due to various factors;

  • The implementation of the Aircraft Registration Act of 2010 has augmented the number of aircrafts being registered on the island. Indeed, by 2015 Malta enjoyed some 200 registrations; a ground-breaking record for the country. This Act, therefore, intends to encourage the growth of the industry and provide for border eligibility rules for the registrations of aircrafts that are not used for commercial air service and recognition of fractional ownership of the aircraft; 
  • The integration of the principles of the Cape Town Convention on International Interests in Mobile Equipment and its Aircraft protocol;
  • Participation in numerous international aviation agreements, as well as conventions, including the Chicago Convention; 
  • Mutual recognition of the Air Operator’s Certificate, flight crew licenses and engineer’s licenses; 
  • Membership in EASA with high reputation for safety standards; 
  • International mutual recognition of Maintenance Organization; 
  • Adequate laws assisting parties to seek remedies in various forms, including mortgages. 

Additionally, Malta is regarded as a case-sensitive and responsive jurisdiction, having a sound set of aviation laws which address head-on the complexities arising between players in the aviation industry. Moreover, in being an EU member state, a Malta-registered aircraft can operate freely within the EU. 

The Cypriot Aviation Industry

Within the ambit of the Cypriot aviation industry, there are many types of economic benefit. The economic value generated by this industry benefits customers, passengers and shippers alike, who make use of the air transport service. Moreover, aircraft owners who register their aircraft in Cyprus benefit from fiscal incentives due to specialized tax legislation. 

Tax exemption of income from aviation activities, as well as any income which is derived from ownership, leasing or operation of aircraft or aircraft engines, in turn, used for or employed in the international transport of passengers or goods, is exempt from tax in Cyprus. Indeed, such income is deemed to arise outside Cyprus for Cypriot income tax purposes. 

Our Aviation Law Services

Our team consists of a specialized multi-disciplinary team of legal advisors, accountants and tax experts, drawn up from our transport, corporate and tax practices, who have an unparalleled span and depth of knowledge in the transportation industries. Thus, our consultants do not simply focus on the legal and regulatory aspects of this industry but, they also provide result-driven practical counsel to our aviation clients on some of their more complicated and unique transactions. All this, to help them address some of their most challenging business issues. 

Chetcuti Cauchi enjoys a wealth of experience in this captivating and complex field of law. Our Aviation team assists our aviation client portfolio in setting up, obtaining the relevant licenses and operating under a legally regulated regime. Our team also provides the following services; 

  • The registration of commercial aircrafts and private aircrafts in Malta; 
  • Insurance solutions and procurement; 
  • Aircraft chartering and leasing advisory services;
  • Negotiation and drafting of aviation-related service agreements, maintenance and repair agreements;
  • Legal advice on Bilateral Air Services Agreements and Conditions of Carriage and Regulations of airlines.

We work alongside promoters, resident legal and financial consultants, executives and other officers to ensure the best possible solution for the client. The firm’s expertise and familiarity with the anomalies of the aviation industry, considered with our comprehensive understanding of Maltese and Cypriot regulatory processes, has made us the firm of choice for clients seeking a consolidated solution provider. 

In turn, such procedures and solutions have ensured that clients within the tourism sector, transport maintenance and logistics and, aviation service providers alike, can make efficient and effective use of our diversification of services in this sector. 



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