The government is in the process of amending the law to attract more business to the sectors of aircraft leasing and aircraft maintenance, Tourism Minister Edward Zammit Lewis said yesterday.
Addressing a press conference marking Malta’s 100 years of aviation, Dr Zammit Lewis said that while the country was doing well in the field of aircraft registration, it was lagging behind in the fields of aircraft leasing, financing and maintenance.
The government’s vision, he continued, was to create an aviation cluster made up of a number of ancillary services which surround successful activity such as aircraft registration.
“There is definitely room for improvement,” he told Times of Malta.
“I don’t think it’s an issue of training but, rather, that business is being absorbed by other jurisdictions. Is the packet of incentives we are offering to attract investment to our country good enough? Why are we losing out on such business?”
Aircraft financing, Dr Zammit Lewis explained, involved a lot of professionals and banking arrangements, leaving behind a lot of money.
Aircraft can be mortgaged or hypothecated but the current law only allows for the hypothecation (the pledging to a creditor as security without delivering over) of an entire aircraft.
The changes to the law will allow for part of an aircraft, such as its engine, to be hypothecated as a guarantee.
To celebrate Malta’s 100 years of aviation, a ceremony will be held on February 12 to officially recognise those who have given a valuable contribution to the Maltese aviation sector.
An open day at a number of main aviation companies will be held on February 10 while a flypast will be organised on February 15 and will involve aircraft belonging to Maltese companies as well as to the Armed Forces of Malta.
Secondary and post-secondary students will have the opportunity to participate in an art competition based on the ‘100 years of aviation’ theme.
The flying start of Malta’s history in the air
1915: The first recorded flight in Malta was made by a seaplane over Grand Harbour.
1958: The first civil airfield was constructed at Ta’ Qali.
1959: Malta joined the International Civil Aviation Organisation.
1973: Malta’s flag carrier Air Malta was set up.
1977: Luqa Airport’s runway was extended to cater for larger aircraft.
2010: The Aircraft Registration Act was enacted to regulate the registration of aircraft and aircraft mortgages and to introduce rules on special privileges on aircraft.