MALTA Trends and Developments Contributed by: Nicholas Valenzia and Joshua Chircop, Mamo TCV Advocates
into various cells, which are considered to be a distinct patrimony from the core company and the remaining cells, whilst taking full advantage of the cost benefit of maintaining one company as opposed to several. Importantly, a creditor of one particular cell only has recourse to the assets of that particular cell, and not the remaining cells or the core company. As a result, the insolvency of one particular cell has no impact on the remaining cells or the core company itself. Cell companies have been regulated under Maltese law for some time, and are used by insurance com - panies under the Companies Act (Cell Companies Carrying on Business of Insurance) Regulations, and also by securitisation vehicles and investment compa - nies with variable share capital under the Securitisa - tion Act. The Second Schedule to the Civil Code also allows for the use of segregated cells by foundations and associations. In their short lifetime, Maltese aviation cell companies have already proved to be a success, with asset own - ers choosing to place their aircraft into cell structures. Such cells have also received the wholehearted sup - port of global lenders who have provided significant financing in respect of aircraft owned by such cells. Air Navigation Act In recent years, Malta has continued to strengthen and streamline the legal framework applicable to its aviation sector, and on 1 January 2024 introduced the Air Navigation Act (Chapter 641 of the Laws of Malta) (“the Act”). The Act repealed the Civil Aviation (Air Operators’ Certificates) Act (Chapter 218 of the Laws of Malta), the Air Navigation Order (Subsidiary Legislation 499.09) and the Civil Aviation Subsidiary (Air Transport Licensing) (Fees) Regulations (Subsidi - ary Legislation 499.33). The primary objective of the Act is to govern aircraft navigation within Maltese airspace and to establish technical compliance standards. The Act applies to aircraft registered in Malta and accompanying crew, together with aircraft present in Malta, irrespective of where it has been registered. However, it does not apply to state aircraft.
According to the Act, the competent authority respon - sible is the TMCAD (the “Competent Authority”), established under the Authority for Transport in Malta Act (Chapter 499 of the Laws of Malta). This author - ity exclusively oversees aircraft navigation over Mal - tese airspace and ensures compliance with techni - cal standards for Malta-registered aircraft and their operations. The Act mandates that the Competent Authority shall fulfil those obligations under the Chicago Convention and European Union Regulations concerning aviation safety. One such obligation is to ensure that aircraft and related components, such as engines and pro - pellers, comply with the environmental protection requirements outlined in Annex 16 of the Chicago Convention, the Carbon Offsetting and Reduction Scheme for International Aviation. Article 5 of the Act empowers the Competent Author - ity, with the consent of the Minister, to issue Regula - tory Instruments that have the force of law. This power has been delegated by law in view of the Competent Authority’s obligation in the public interest to ensure adequate safety standards within the aviation industry. It is responsible for the oversight of aircraft operations, for ensuring the safety of all crew members, passen - gers and cargo on board. Accordingly, the Competent Authority is obliged to ensure the security, public order and the safety of air navigation in Malta. The Compe - tent Authority therefore has a duty to take such meas - ures to address risks pertaining to safety, privacy, pro - tection of personal data and security, that may arise from time to time pursuant to aircraft operations. By way of example, on 24th March 2025, TMCAD issued a Regulatory Instrument on the Safety and Security of Aircraft and Passengers. Sanctions Sanctions imposed against Russia and ancillary countries remain at the forefront of advice sought by financiers and operators in the day-to-day opera - tions of their aircraft. The 16th EU sanctions package represents a significant tightening of restrictions on Russia, with a strong focus on closing any existing gaps and preventing the circumvention of measures by engaging foreign aviation operators. By expanding bans in key sectors such as aviation and trade, the
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