MALTA Trends and Developments Contributed by: Nicholas Valenzia and Joshua Chircop, Mamo TCV Advocates
Malta remains a jurisdiction of choice for the avia - tion sector, including in the finance and leasing space. The registry of aircraft has risen to over 930 planes, and there are now almost 60 local air operators. In recent years, the likes of Ryanair, Lufthansa’s Eurow - ings and Wizz Air have chosen to fly to Malta, which is testament to the island’s offering for big players. The Maltese market continues to be rife with activity, with several air operators and maintenance organi - sations seeking to set up shop there and establish entities licensed with the Transport Malta Civil Avia - tion Directorate (TMCAD). A fair number of M&A deals have also taken place there, with prospective buyers on constant look-out for operators, and MROs already established on the ground. By way of example, in the past year, EasyJet has acquired the Maltese SR Tech - nics maintenance facility. With this in mind, lenders and lessors are prepared to fund aircraft registered in Malta, and significant financing and security is being provided for large fleets of aircraft. Cape Town Convention In the first quarter of 2025, Malta once again achieved a top ranking in the Cape Town Convention Compli - ance Index, coming first in Europe and second world - wide, scoring 95 out of 100. Malta’s compliance with the Cape Town Convention on International Interests in Mobile Equipment and the Aircraft Protocol thereto on Matters Specific to Aircraft Equipment (CTC) has been ranked as Very High. The explanatory comments to the Index noted that, in Malta, the “CTC prevails over national law and is comprehensively implemented through legislation, rules and regulations. There is judicial precedent with both mixed outcomes relating to compliance with the terms and intent of CTC (Wind Jet S.p.A.) and out - comes that are substantially compliant with the terms and intent of CTC (Air X Charter vs. Avmax; Hi Fly). Such precedent has medium predictive value for the outcome of future cases with similar facts. There has been positive practical experience on CTC issues. Malta is and should remain eligible for the OECD dis - count. The government has established a communi - cations channel with AWG, and work on CTC issues has been effective and efficient”.
One of the most noteworthy cases in this respect con - cerned Air X Charter Limited and Air X Aircraft Finance I Limited v Mamo TCV Advocates as deputy curators acting on behalf of Avmax Aircraft Leasing Inc, Bank of Utah and The Malta Transport Authority. The exercise of rights under the Irrevocable De-Regis - tration and Export Request Authorisation (IDERA) was highlighted in this ground-breaking decree delivered by the First Hall, Civil Court when it was called upon to determine whether a warrant of prohibitory injunc - tion could be issued to stop the holder of an IDERA registered in Malta from enforcing the IDERA and deregistering an aircraft from the Maltese Registry. The court ultimately upheld the rights granted by the IDERA, rejecting the warrant of prohibitory injunction that aimed to restrict those rights, claiming that the law is clear and does not allow for any exceptions in the manner in which an IDERA is implemented or enforced – meaning the power granted to any author - ised person or certified designee under an IDERA is binding. Represented by Mamo TCV Advocates, Avmax, as owner of eight aircraft registered in Malta, and Bank of Utah (as owner trustee of the Aircraft) successfully staved off a warrant of prohibitory injunction from limiting their rights to enforce their IDERAs over the aircraft. Cell Companies Pursuant to amendments to the Companies Act in recent years, the Companies Act (Shipping and Avia - tion Cell Companies) Regulations (“the Regulations”) allow for the incorporation of cell companies that con - duct aviation business. The Regulations also allow for the conversion into a cell company of an exist - ing company that conducts aviation business. A cell company may create one or more cells within itself for the purposes of segregating and protecting cellu - lar assets. Each cell has distinct assets and liabilities and can therefore be used to carry out separate and distinct business from the cell company and from the other cells. The Regulations cement Malta’s position as a leading jurisdiction in the aviation business. Aviation compa - nies are able to segregate their assets and liabilities
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