Special focus -Tax-efficient aircraft registration: Choosing a jurisdiction may be a business and lifestyle choice but service and reputation are priorities

In December 2010 EBAN published a special focus article on tax efficient jurisdictions for one's aircraft registration. You may read the full article here ; http://www.ebanmagazine.com/mag_story.html?ident=10137

EBAN asks;

Does the registry have an excellent reputation for safety and service?Is your aircraft compatible with the registry as currently specified?Can your pilot's type rated license be endorsed by the registry without the necessity for training or re-training?Is the registry user friendly and led by people who care about aviation?Can you choose from a wide selection of registration marks to make up your own names or phrases?Can you transfer your registration mark from aircraft to aircraft?Is the registry cost effective to register and maintain?Does the registry provide standardised manuals for things like RVSM?Is your aircraft holding structure compatible with the registry? Is the registry in a convenient time zone?

Flycorporate in its January newsletter had a lot to say in its January Newsletter. You may read this here; http://www.fly-corporate.com/letters/newsletter_january11b.pdf 

Malta Business Aviation Association - MBAA

DC Aviation Co. Ltd., BizAv Services Ltd. and FFF Legal have on the 23rd October formed the association of Malta Business Aviation Association (MBAA). The MBAA aims to promote excellence and professionalism amongst our Members to enable them to deliver best-in-class safety and operational efficiency, whilst representing their interests at all levels in Malta and consequently Europe. The MBAA will strive to ensure recognition of business aviation as a vital part of the aviation infrastructure of the Maltese and European economy. Amongst its top priorities the MBAA will deal with the challenging issues of setting up a successful aircraft register in Malta and promoting Malta as the ideal location to operate and own business aircraft. It will also deal with the challenging issues of the European Aviation Safety Agency (EASA) rulemaking process, as well as the Maltese Civil Aviation Act. On top of the MBAA list will be the access to Malta International Airport including Fees and Charges, Security and better facilities for business and General Aviation. For more information on how to join send an e-mail to president@mbaa.org.mt

Malta Aircraft Registration Act

The Minister has announced that shortly Malta would be enacting a new Aircraft Registration Act. The aim of this legislation is to support the aviation industry. Malta has recently attracted the likes of Lufthansa Technik, MCM, Comlux and DC Aviation, all renowned names in the aviation world. More recently, the Malese department of Civil Aviation has issued an air operator certificate to Carre Aviation Ltd. operating a CRJ 200 with 15 seats and Orion Malta Ltd. operating a Hawker 800. This legislation tackles a number of issues but primarly and of significant importance would be Malta's adoption of the Cape Town convention with regards to aircraft mortgage registration but again Malta on the forefront. This legislation also tackles important issues such as local representation, shared and frational ownership for residents and non residents both from the EU and non EU countries. Based on Malta's performance so far, its position of high standing with EASA, other important fiscal legislation all within the EU framework, Malta is expected to frow its register exponentially especially among business jet and general aviation aircraft owners, who want a cost effective, reputable aircraft registration within the EU framework.

EBACE Day 2 - 21st May

Business Aviation Will No Longer Be Neglected, EC Official Says During today’s EBACE opening session, European Commission director for air transport Daniel Calleja pledged more “proportionate” rules for business aviation in the future, acknowledging that this segment of air transport has “too often been neglected in the past.” According to Calleja, “The EC this year is launching key initiatives to make aviation more efficient, safer and environmentally sustainable.” He recognized the importance of general and business aviation, stating, “Almost one-fifth of Eurocontrol aircraft movements and two-thirds of EASA type certificates are for general or business aviation.” The EC thinks aviation needs “better,” as opposed to more, regulation, Calleja asserted. He promised the EC would make sure future safety regulations apply to business aircraft in a proportionate way. Another challenge Calleja sees concerns the international nature of the industry. “We want a level playing field,” he said, a sentiment echoed by NBAA president and CEO Ed Bolen. “The U.S. requires a 10-day notice for business flights from Europe. Yet, when we [Americans] face similar requirements in emerging countries, we find it unacceptable,” Bolen said. “We need to get our house in order.” Record EBACE Attendance Total Continues to Climb May 21, 2008 The record-setting attendance total for the 8th Annual European Business Aviation Convention & Exhibition (EBACE2008) continues its climb. By noon on the second day of the show, EBACE2008 had registered 13,137 Attendees. That was an increase over the first-day count of 12,483 Attendees, which was higher than the total attendance for any previous year's show. EBACE2008 has shattered other previous records, with more than 440 Exhibitors, an all-time high, displaying the latest products and services across a total of 1,958 booth spaces, a 38 percent increase over last year. The Static Display of Aircraft on Geneva International Airport also has a highest-ever total of 60 state-of-the-art business aircraft and three aircraft mock-ups. For the latest EBACE2008 news, podcasts, photos, presentations and more, visit www.ebace.aero/. And don't forget anyone wanting to discuss operating and managing Business Jets from Malta can call for an appointment.

Ebace 20 - 22 May - Geneva

Europe’s leading companies continue to find the competitive advantage that is gained through the use of Business Aviation, Europe’s engine for growth. European companies are prospering as their employees overcome distances between various locations throughout Europe (and the world), save time in congested airports, maintain security and optimize their time when they must travel to grow business. EBACE2008, in Geneva May 20, 21, 22, is the flagship forum for the European business aviation community to find products and services from the world’s top vendors. Also at EBACE, the European regulators and government officials who make decisions that directly affect business aviation operations in Europe and around the world meet face to face with the companies who are using aviation to facilitate their business. EXHIBIT/SHOW HOURS: TUESDAY, MAY 20 10h00 – 18h00 Exhibits in Halls 5, 6 and 7, and Static Display of Aircraft Open WEDNESDAY, MAY 21 09h00 – 17h00 Exhibits in Halls 5, 6 and 7, and Static Display of Aircraft Open THURSDAY, MAY 22 Exhibits in Halls 5, 6 and 7 Open 09h00 – 16h00 Static Display of Aircraft Open 09h00 – 15h00 We will be at EBACE from the 20th to the 22nd May, anyone who would like to meet to discuss, future trips to Malta, the potential of the Maltese register and AOC, feel free to drop me a line. In the meantime I will try to post some notes on my experiences at the show, while in Geneva.

Tax Implications in Biz Aviation

Malta is not yet synonymous with business aviation, but the business aviation industry my well look a little deeper in what this tiny island in the middle of the Mediterranean has to offer, other than the great weather and historical places. Over the years Malta made a name for itself as a low tax country, first by offering offshore legislation as far back as 1988 and of late, since Malta became a full member of the European Union, by offering a unique infrastructure whereby international trading companies can benefit from unique fiscal framework within the European Union. As airports become more congested and successful businesses experience growth and offer their services to a global audience, the more business aviation will increase. In a recent EU publication it was estimated that since 2002 the business and general aviation rate of increase was almost twice as high as that of scheduled airlines, percentage wise. In spite of the current air of economic doom and gloom, which invaribly will effect economic growth and business profitability, there is a school of thought that maintains that the current airline woes will just make business aviation more attractive, especially with the advent of VLJ's which make the service more affordable to a wider spectrum of businesses and individuals. With this growth in utilisation of business aircraft, the industry has started to attract greater attention from regulatory institutions, but also the more knowledgable end user, business traveler, is strating to frown upon the so called low-tax operations in so called flag of convenience countries. This is where Malta is in a league of its own. Malta was the first country to adopt JAR-OPS as its legislation, and today offers, JAR-OPS 1 Air Operating Certificates, soon EU OPS 1, as EASA takes over from JAA, thus Malta is no flag of convenience, but has a respected aviation authority within the European framework. The trade secret is that the Maltese government has legislated fiscal laws acceptable to the European Union, but not just, as Malta has in excess of 50 double taxation treaties, whereby one can have a tax effecient(low tax) infrastracture, not considered as tax evasive by the European Union. In essence non resident shareholders, individuals or organisations who setup a Maltese company for trading internationally, although the company is taxed at 35% on its pofits, on decleration of dividends, the non resident shareholders are refunded 6/7 of the tax paid. There are various scenarios possible of how one, whether an operator, an owner, a broker, a management organisation can benefit from the Maltese formula. We have put together a team of consultants with various expertise from airworthiness to financing, from legal to tax advise for individuals or organisations who want to investigate these opportunities further. A tax efficient infrastructure, does not neccessarily mean a Maltese Operating certificate, there various scenarios available which would allow an organsation to maintain its current AOC and country of register yet still benefit from the Maltese fiscal incentives. As oil prices and labour cost continue to increase, a tax efficient infrastructure could give an operation the competitive edge or a business the opportunity to become more efficient and own a business jet.

History of Maltese Business Aviation

In some of my earlier posts, I have mentioned that the Maltese Department of Civil Aviation has issued the first AOC to a foreign based Lear 60XR. Further to the interest that the Maltese infrastructure is soliciting in the Business Aviation community, I thought that I expand a little further on this niche industry in Malta. Due to Malta's strategic geographical location, this island at the heart of the Mediterranean has always played an important role in international trade, even before the advent of the aircraft, in fact Malta has always played an important role in the maritime trade. Having been a colony of all the major empires, Phonecian, Roman, Arab, Knights of St. John, French and the British Colony, Malta has played an important part in the history of the Mediterranean. Having been a colony of the British Empire during World War II, Malta was introduced early first to military and then to commercial aviation. Malta had its aircraft register established in the sixties. Because of Malta's strategic importance, maritime industry, as well as our association and influence by the United Kingdom, although not a Geneva, London or Paris, Malta always had a steady flow of private and general aviation aircraft passing through. As Malta started to aspire to become a member of the European Union, and established itself as a respectable and stable democracy, with sound legal and financial legislation framework in the early nineties, Malta started seeing a number of business entrepreneurs who flew to our shores in their business jets. One can describe Capt. Lino Xuereb as a pioneer in this industry, having been the first person to set-up a company with a business jet based in Malta. Capt Xuereb got the first busness aircraft in the early nineties, a Citation II, which served both the local community of businessmen and individuals and corporations in the surrounding Mediterranean countries. Having got the first Maltese AOC with a business jet on its licence, Capt Xuereb never looked back, today he is the most experienced Maltese business jet pilot, and still is flying and running the only company with a business jet, a Lear 60, based in Malta. On the otherhand, myself at Sierra Aviation, established in 2002, Sierra Aviation, which todate remain the only company dedicated to business aviation services. As Malta became a full member of the EU, adopted the Euro and is a member of JAA/EASA, I feel Malta has a lot to offer to the business aviation community. Malta is not only strategically located in the heart of the Mediterranean, offering a bridge between Europe and North Africa, but our 300 days of sunshine (no icing conditions), relatively low labour cost(in comparison with mainland Europe), excellent fiscal infrastructure within an EU environment, and of course internationally recognised aircraft operating infrastructure such as JAR OPS 1/EU-1. If one is shopping for an aircraft register Malta has a lot to offer, aircraft can be operated commercially and privately (Isle of Man on aircraft in the private category are allowed), freedom of movement (Swiss registered aircraft are not allowed to fly between Moscow and France, and are restricted with regards to internal flight in some EU countries), excellent fiscal benefits and yes why not great weather.

Managing and Operating a Business Jet on the Maltese Register - Part 4

In the final part of this series of articles we give you a hint on the what's next. So where would one start? Sierra Aviation was established in 2002 as a business aviation service company. As the only dedicated business aviation company in Malta, Sierra Aviation’s main line of business is namely; o Aircraft Charter Brokers o Aircraft Handling at Malta International Airport o Aircraft Sales and Leasing o Aviation Consultancy o Aircraft Management Sierra Aviation can provide a number of services to owners/operators who may wish to exploit the great opportunities which Malta can offer to the international business aviation community. Namely Sierra Aviation can be the co-ordinator between the foreign party and the Maltese authorities, providing constant follow-up from the day go to the day that the aircraft is registered in Malta, and/or an Air Service Licence and Air Operator Certificate is obtained. For owners, Sierra Aviation can provide aircraft management. Through our numerous international partners, we can provide an unprecedented support that commensurate with the best in the industry at a fraction of the cost. Our staff, experienced in business aviation, and with local knowledge, in so far as, personal familiarization with the Civil Aviation Authority, the Airport Authority, the local Government, as well as the local labour market, company formation legislation will make sure that each customers requirements are met efficiently, safely, and legally.

Managing and Operating a Business Jet on the Maltese Register - Part 3

In this article we will treat the labour conditions in Malta and typical charges related to operating a business jet on the Maltese Register. As per statistics published in 2006, Malta had the 10th cheapest labour cost in the private sector from all European Union Countries. At just under 10 Euro per hour, Malta is cheaper than Portugal, Slovenia, Cyprus, Greece and Spain. More importantly the rate of salary increase was the second lowest from the 10 countries with the cheapest labour cost, at under 3.5%. That said, aviation being a very specialized industry, salaries in this sector are higher than the average, and with big players, such as Air Malta, Lufthansa Technik, and Servisair Globe Ground already established in Malta, there is already a healthy pool of aviation trained personnel, in all the major areas, such as Flight and Ground Operations as well as with Technical staff. Malta has two flight schools and the Local Government has assisted Lufthansa Technik amongst other ways by means of a collaboration between The Malta College of Arts, Science and Technology, and Lufthansa for the training and development of their local employees. A company operating a Challenger 605 and a Lear 60 XR will pay the authority just over 36,000.00 Euros for the first issue of an AOC and then barely over 16,000.00 Euros per annum for renewal fees. Hardly forbidding charges. More importantly an aircraft registration and/or AOC should be obtained within 90 days. This is achievable in Malta, as the Department of Civil Aviation is still relatively young and can give interested parties undivided attention. Assuming the owners/operator provide all the necessary information and documents. Other costs involved would be the setting up a company structure to own the aircraft and or apply for the Air Operating Certificate. These costs are estimated to be in the region of 2,000 to 5,000 Euros per annum, depending on the level of actual presence of the company on the island.

Business Aviation Articles

1. Embraer Legacy will be visting Malta
2. Embraer Demos Legacy 600 in Malta
3. First Business Jet Manufacturer Visits Malta
4. Why Charter a Business Jet?
5. History of Maltese Business Aviation
6. Airlines vs Business Aviation
7. Tax Implications in Biz Aviation
8. GAMA RELEASES FIRST QUARTER SHIPMENTS
9. EBACE 20 - 22 May Geneva, Switzerland
10. DC Aviation will be exhibiting at MEBA, Dubai 16-18 November 2008