EBACE 20 - 22 May Geneva, Switzerland

EBACE is the most important European business aviation event, and is held every year in Geneva, Switzerland. The event is set in an extensive exhibition space with stands for all the major international partners in business aviation in ‘Geneva PALEXPO’, located right next to Geneva international airport. In addition, an extensive open-air exhibition is also mounted on airport land. On the fringes of EBACE, numerous briefings, press conferences and workshops are also held in the adjoining conference facilities. EBACE 2008 – the place to be for anyone interested in this extremely fast-growing aviation sector – will be held this year from Tuesday 20 to Thursday 22 May. As in previous years, we will be visting at the fair.

EBACE can thus be regarded as a key European contact point for the ever-growing business aviation activities. We find that EBACE is a very good place to meet new potential customers, operators and get a better feel of concerns and upcoming buzz in this market. One can find more info at www.ebace.aero.

Any one interested in a one to one meeting on the advantages of operating, registering and managing a business jet from Malta is welcome to set an appointment. Simply drop us an e-mail on info@sierra-aviation.com.

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.

Managing and Operating a Business Jet on the Maltese Register - Part 2

Air Operating Certificate.

Yesterday we sarted this series of articles investigating the Maltese legislation relative to operating a business jet using the Maltese infrastructure. in this post, Part 2 of this series, we will talk about the requisites to obtain an AOC.

Strictly speaking an owner who is operating his aircraft for his own use, will not require an AOC, as the aircraft will be operated in the private category, however this scenario can be very restrictive, as it is at best unclear whether employees of the owner and sub-contractors can legally use the aircraft, as it can be argued that the aircraft will be operated for gain, and hence an AOC will be required. Further more if the aircraft is given under management to a third party company, even if the aircraft is not available for third party charter, the third party company managing the aircraft must obtain an AOC. Simply put, an aircraft can be operated in the private category without an AOC, however to obtain an AOC, the company must also have an ASL. The applications for the AOC and ASL, should be submitted together to the Director of Maltese Civil Aviation. In order to apply for an AOC, a company must demonstrate ownership of an aircraft, or a lease agreement for an aircraft. An aircraft need not be registered to be operated by a Maltese AOC, however the registered aircraft must have a European Union and JAA country registration. The reverse is also true, ie a Maltese registered aircraft can be operated on a European Union and JAA AOC, however both of these scenarios are not preferred by the Maltese Department of Civil Aviation. Similar procedures are required by the company applying for an AOC as for company applying for an ASL. The process for obtaining an AOC, ASL and registration of aircraft should take from three to six months, subject to demonstrating to the Maltese Department of Civil Aviation full compliance to JAR OPS 1.

Managing and Operating a Business Jet on the Maltese Register - Part 1

In a number of articles we will try to identify why Malta can be an interesting avenue where one could register a business jet. The first part of these series of articles deals with a brief introduction about aviation in Malta and a brief outlook of the Maltese Fiscal system.

Having been a colony of Great Britain for 164 years (1800-1964), and then continued to serve as a base for Britain's Armed Forces for a further 15 years, Malta was introduced to the world of aviation from a very early start. From the construction of the first airfield to the ravages of World War Two, the build up for the Suez canal, through four hi-jacks, and on to today's Malta International Air show, Malta has seen almost all the uses an aircraft can be put to. The Malta Department of Civil Aviation records show that when the Maltese aircraft register was opened in 1969 introducing the Maltese register prefix 9H, the first aeroplane to be registered, 9H-AAA was in fact a Cessna 172. The next two aircraft on the register were also general aviation aircraft, as were many others that followed. The aircraft were largely owned and operated by Maltese general aviation pilots. Today, the local general aviation fleet includes a wider variety of aircraft types and categories ranging from microlights to single engine private planes and public category aircraft available for rental. A small fleet of training aircraft is operated by two flying schools.

Malta has an excellent climate, is strategically located at the centre of the Mediterranean and has one of the last 24 hour airports in the European Union. It has one of the longest runways in Europe with practically no slots issues. Local business and the Maltese government are only now starting to fathom that there could be a great potential for managing and operating business aviation aircraft from Malta, offering very competitive licencing fees, in an English speaking country in an EASA/JAA environment. This combined with excellent tax structures for foreign investors, whereby, although corporate tax is fixed at 35%, foreign shareholders are refunded 30% within 14 days.