DC Aviation Malta - New Vehicle Fleet

DC Aviation Ltd. rode the rough ride of the economic down turn. The Maltese FBO although did not see the customary increase in business jets travelling to Malta, in 2009 maintained the same numbers as 2008, and if the last few months keep the October trend then DC Aviation might even register a minute increase, in spite of the circumstances. As of the 1st of November, DC Aviation will also be handling business jets flying into Malta, which should increase our market share and improve over all the level of service afforded to business aviation in Malta. This gives us hope for the coming year and it was also because of this that we have invested heavily in ground equipment, namely a fleet of cars, from crew to VIP limousines, as well as a GA toilet cart. Our positive outlook is further strengthened by the local government who has identified business aviation as an area of economic growth. We expect that once the new legislation on Aircraft registration is launched in the first quarter of 2010, more business aviation traffic will come to our shores. Finally with the setting up of the Malta Business Aviation Association, we feel that Maltese business aviation community is properly geared up to tackle the future challenges.

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.

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.

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.

Business Aviation from Malta

1. Malta: Not just an island in sun
2. Business Jet Handling in Malta (LMML)
3. Managing and Operating a Business Jet on the Maltese Register - Part 1
4. Managing and Operating a Business Jet on the Maltese Register - Part 2
5. Managing and Operating a Business Jet on the Maltese Register - Part 3
6. Managing and Operating a Business Jet on the Maltese Register - Part 4
7. Embraer Legacy will be visting Malta
8. Embraer Demos Legacy 600 in Malta
9. Malta, Fiscal Incentives, Business Aviation and Embraer
10. History of Maltese Business Aviation
11. Tax Implications in Biz Aviation
12. EBACE 20 - 22 May Geneva, Switzerland