The MBAA's Linked-In group has now in excess of 100 members

In less than 2 years, Malta one of the smallest EU Aviation jurisdictions has a business aviation association with more than 25 members.

Malta is a business aviation friendly EU jurisdiction and has firmly put itself on the business aviation map. The Malta Business Aviation Association supports this industry in Malta and has been in its short existance working tirelessly to promote and assist the industry.
If you like to find out more or want to support us further why not join us? Visit our website to appreciate the values of a paid membership and details on how you could become a member.

Do you afford not to be a Member of the Malta Business Aviation Association

Ladies/Gentlemen,


2011 is not so new anymore and we thought that it would be opportune to review the milestones achieved by the MBAA and also layout the plans for the year ahead.

2010 was the first full year of the association and with everyone’s effort we must say that a lot got going for the Maltese jurisdiction. The Malta Aircraft register has been enacted and Malta is now a signatory of the Cape Town convention. More aircraft have been put on the aircraft register, including a helicopter in the private register and we are please to see that our membership continues to grow and our members continue to increase their foothold in Malta but also their finger print in Europe.

As many of you know the MBAA is represented since March 2010 in the European Business Aviation Association at Board level. Malta is also Chairing a subcommittee with the purpose to review the EBAA’s Code of Ethics and Standards for Business Aviation Handling Companies.

The MBAA was for the first time represented at EBACE on the EBAA’s stand at EBACE in May 2010. Also at EBACE last year the MBAA assisted Transport Malta and the CAD with a number of high level meetings with potential to attract business and influential entities in the industry.

Our effort to continue bringing the Maltese Jurisdiction in forefront of the business aviation media continued throughout 2010, the latest articles having been published in December 2010, on EBAN, giving us a 3 page spread, http://issuu.com/european_business_air_news/docs/210/10 and more recently in FlyCorporate, January’s 2011 newsletter which was entirely dedicated to the Maltese jurisdiction. With these articles we have also managed to secure advertising space for our members with significant discounts.

With the help of the EBAA and the support from ETI we have organised the first Safety Management System course in Malta, which was very well attended not only by members of the MBAA, but also by EBAA members.

The MBAA has been throughout 2010 been publishing statistics on business aviation aircraft movements in Malta. Based on data supplied by Eurocontrol we have monitored the growth of the industry in Malta. 2010 not only showed signs of recovery but has been a record year for Malta with the largest number of business aircraft movements in Malta since 2004. More information can be found on the publications section the MBAA website.

In November last year we have taken the opportunity of the first board meeting of the EBAA held in Malta to organise a forum whereby members of the MBAA could interact with the board of governors of the EBAA.

We have closed the year with one of the most significant milestones in our opinion, that is participation in MEBA in Dubai with a Malta Pavillion, an initiative by Malta Enterprise, fully supported by Transport Malta and the MBAA. Almost all the participants were members of the MBAA.

So what do we have planned ahead for 2011, as you all know we are supporting Malta Enterprise to participate for the first time at EBACE in May 2011. For more information one may contact Ms. Carmen Walls by email on carmen.walls@maltaenterprise.com .

Our intention is also to support all the local authorities involved with promoting the Maltese Aviation Jurisdiction. We are hoping to soon resolve the issue with regards to applicable VAT for private aircraft, which should add value to the Maltese jurisdiction.

We are working closely with TM and the CAD for Malta to recognise the IS-BAO certification for private operators, which we hope will be achieved before EBACE. We are fully supported by both IBAC and the EBAA and in turn to be able to organise already this year a seminar on IS-BAO certification as well as an IS-BAO auditor certification course.

Recently we have launched an initiative to write up a common Malta Valued Proposition which would serve as common paper when promoting the Maltese jurisdiction, so far the following members have offered their support and participation;

Capt. Philip Apap Bologna – BizAv Services Ltd.
Mr. Nick Ebenhoeh – MCM
Mr. Boris Ioffe – Orion (Malta) Ltd.
Mr. Charlot Cassar – Transport Malta
Mr. Dennis Vella – Malta Enterprise

We would like to have at least one member from a law firm and one member from an audit/accounting clerk. The intention is to have this paper ready for EBACE.

Following the success of the Vienna Regional forum organised by the EBAA, we are lobbying to have a Mediterranean Regional Forum in Malta.

So can you afford not to be a member of the MBAA? More information on how to join the MBAA can be found on our website www.mbaa.org.mt. If you still have any queries do not hesitate to contact us on office@mbaa.org.mt.

Looking forward to welcome you onboard.

Your sincerely,

Stanley Bugeja – President
Malta Business Aviation Association
http://www.mbaa.org.mt/

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 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.

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.

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.

Malta: Not just an island in sun

Malta is a small island in the centre of the Mediterranean having a population of less than 400,000 people, famous for its sun, sea, history and culture, but not just. Joined the European Union in 2004 and at the start of 2008 became part of the Eurozone as Malta adopted the Euro. As the manufacturing industry sought greener pastures in Eastern Europe and the Far East, and with the emerging tourist markets again in Eastern Europe giving Malta a good run for its money, Malta had to seek alternative sectors wherefrom to attract foreign investment. An island bereft of any natural resources, except for maybe its weather, Malta betted on the service industry, especially in Information and Communication industries. One such success was becoming the first European country to offer a licence to online gambling sites, similarly with the yacht register and call centres. Malta has two major advantages on the rest of Europe; a. its tax infrastructure and b. the language. The former was an important part of Malta’s negotiation for the accession into the EU, whereby the Maltese government based on the island’s socio/economic standing with respect to the rest of the EU successfully negotiated a very favourable tax rate for foreign investment in the island, where in effect a foreign shareholder was taxed at only 5% on the revenue. The latter being the language, which Malta wisely had after its independence from the UK in 1964, kept the English language as its national language together with Maltese, which means that all of Malta’s laws are in both Maltese and English and the whole population is fluent in the English language. Which brings us to what to date is probably one of Malta’s best kept secrets. Sierra Aviation, the islands only dedicated business aviation company, realised that Malta was sitting on a gold mine. As the business jet owners community continued to increase on the European continent, and with ever stringent regulations for the operation of such business jets especially in Europe, Malta gives the opportunity to business jet owners to register their aircraft, management companies to obtain world recognised JAA/EASA operating licence from an English speaking EU country, with a 5% tax rate and double taxation with agreements with most EU countries, low labour cost, and amongst the lowest authority fees in Europe. With support of the Maltese Government, and the Department of Civil Aviation, Stanley Bugeja CEO of Sierra Aviation reckons that it is only a matter of time before Malta would become renowned for the safest, yet cheapest business jet operating licence infrastructure in Europe. Malta should have the first non Maltese owned but Maltese registered aircraft and operating licences as early as the first half of 2008. If you are a business jet owner, Malta offers probably the best European tax infrastructure and lest we forget best weather all year round in Europe.