Aircraft Leasing Malta was formally launched by Prime Minister Robert Abela this morning saying this new niche will complete the aviation cluster the island has been building over the years.

At the launch, Transport Minister Ian Borg announced plans to set up the Malta Aviation Roundtable, a forum for those involved in the civil aviation industry.

In his brief address, Dr Abela said the country was now back to normal and would continue strengthening the economy. The economy had to move ahead as fast as possible also by exploring new niches and the aircraft leasing initiative was one such case, the Prime Minister asserted.

Malta had built a sound civil aviation structure and what was left to complete the cluster was leasing, he said.

The Transport Minister recalled that the country had focused on boosting the Malta Air Register. At the last count, there were more than 478 aircraft bearing the 9H Maltese registration, including 98 that were registered this year, which was characterised by serious problems including in the aviation industry.

The Malta Register is considered to be the fastest growing aviation register in Europe.

He said Malta started looking at aircraft leasing about two years ago, also in the knowledge that lessors did not like putting all eggs in one basket.

When announcing the plans to set up the Malta Aviation Roundtable, Dr Borg said he was certain it will be good news to all stakeholders who could come together to pave the way forward.

Charles Pace, head of Transport Malta’s Civil Aviation Directorate, explained that the tendency today was for airlines to lease rather than buy aircraft themselves. A plane would usually be leased for 10 years, then going back to the leasing company, which would lease it out again.

Leasing companies would seek sound jurisdictions where to register the aircraft with Ireland, Singapore and France attracting the bulk of such companies. Malta wanted to see how it would fit in and an analysis established it could easily compete, Capt. Pace noted.

He said that many foreign aviation companies were already based in Malta. Three applications for air operator certificates are being processed and another three are on the waiting list. While the directorate was ‘closed’ during coronavirus outbreak, it certified two companies teaching English to aviation industry personnel.

Catering for aircraft leasing ensures a completes ecosystem for the aviation industry in Malta, Capt. Pace explained. Such companies did not require big space, like hangars, and, although not too many, they still employed people.

In terms of what it offered to the civil aviation industry, Malta is among the top 10, with a score of 85 per cent, he added. He was happy to learn that the Aircraft Registration Act will be improved, giving owners more peace of mind. Likewise, the Companies Act was also amended.

Capt. Pace said it was true the civil aviation industry was going through a bad patch but lessors were still very busy due to the many idle aircraft. Thus, launching Aircraft Leasing Malta now was timely, he explained.

“We are open for business,” Capt. Pace asserted, adding he was certain more aviation companies would be settling in Malta in the months to come even if the pre-COVID-19 figures would need to be revised.