Malta
, a small Mediterranean island nation, has emerged as a popular choice for airlines seeking to register their Air Operators Certificate
(AOCs). Over the past decade, Malta’s aviation sector has grown exponentially, becoming a hub for both commercial and private aircraft registrations.

A Ryanair plane at sunset from the La Valette Club Malta Airport terrace

Photo: Jonathan E. Hendry | Simple Flying

Malta’s aviation industry has expanded rapidly during the last 10 years, becoming a major hub for registering private and commercial aircraft. The reasons behind this rapid expansion and why so many airlines choose Malta as their base for AOC registration are multifaceted, ranging from regulatory advantages to tax incentives and strategic geographical positioning.

The rise of Malta as an aviation hub

As of January 2024, more than 860 airplanes were registered under the Maltese flag, a surprising quantity given the island’s tiny size. Although the US and Ireland have long been well-liked locations for aircraft registration, Malta has grown in popularity because of a strong aviation legal framework, business-friendly regulations, and regulatory flexibility.

Wizz Air Airbus A320ceo landing at a rainy Bergen Airport BGO shutterstock_2189399929

Photo: Photofex_AUT | Shutterstock

Several airlines, including the Icelandic low-cost carrier PLAY airline
, have taken advantage of Malta’s aviation sector for strategic reasons. As part of its operational transition strategy, PLAY moved its AOC to Malta to streamline its North American expansion.

In addition to PLAY, MedSky Airways and WizzAir
have established themselves in Malta. The Some of the most well-known commercial operators that now register their aircraft in Malta are: Hi Fly, Corendon, SmartLynx, Ryanair subsidiaries Lauda Europe and Malta Air, and Eurowings, a part of the Lufthansa Group.

Medsky Airways Airbus 320

Photo: InsectWorld/Shutterstock

This reflects a larger pattern in which airlines take advantage of Malta’s expanding standing as a major international aviation hub.

Why airlines are making the move

1. A strong regulatory foundation

One of the main reasons airlines choose Malta is the island’s aviation regulations. The government has developed a comprehensive set of laws that are consistent with European Union
(EU) and international standards while providing operators with freedom. AOC registration and maintenance procedures are streamlined by the Malta Civil Aviation Directorate (CAD), which is renowned for its effective and business-friendly methodology.

KM Malta 32N

Photo: KM Malta

Katrina Abela, founder of the boutique legal firm Vaia Legal, specializing in vessel and aircraft registration, tells BusinessNow.mt that Malta’s legal framework remains the biggest advantage. It makes its jurisdiction increasingly attractive for owners to place their aircraft with a Maltese-registered operator.

“The laws relating to aviation are robust and holistic and provide for all international standards and practices in the industry.”

2. Strategic Location and EU Membership

Malta is a member of the EU, which gives airlines the benefit of operating within the EU aviation framework. This membership grants access to the EU’s broad market and the benefits of open skies accords. Additionally, Malta is ideally situated for airlines wishing to extend their operations throughout Europe, Africa, and the Middle East due to its strategic location at the intersection of these regions.

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Since it is governed by the European Aviation Safety Agency ( EASA
), aircraft owners may rest easy knowing that its ICAO rating is a testament to the stringent standards of safety and security.

3. Taxes

Malta’s tax system is particularly attractive to aviation companies. The country offers a competitive corporate tax rate and has double taxation treaties with numerous countries. According to Malta’s official website, here’s the list:

Europe

  • Albania
  • Andorra
  • Armenia
  • Austria
  • Azerbaijan
  • Belgium
  • Bulgaria
  • Croatia
  • Cyprus
  • Czech Republic
  • Denmark
  • Estonia
  • Finland
  • France
  • Georgia
  • Germany
  • Greece
  • Guernsey
  • Hungary
  • Iceland
  • Ireland
  • Isle of Man
  • Italy
  • Jersey
  • Kosovo
  • Latvia
  • Liechtenstein
  • Lithuania
  • Luxembourg
  • Malta
  • Monaco
  • Montenegro
  • Netherlands
  • Norway
  • Poland
  • Portugal
  • Romania
  • Russia
  • San Marino
  • Serbia
  • Slovakia
  • Slovenia
  • Spain
  • Sweden
  • Switzerland
  • Ukraine
  • United Kingdom

Asia

  • Bahrain
  • Armenia
  • Azerbaijan
  • China
  • India
  • Israel
  • Jordan
  • Kuwait
  • Lebanon
  • Malaysia
  • Qatar
  • Saudi Arabia
  • Singapore
  • South Korea
  • Turkey
  • United Arab Emirates

Africa

  • Botswana
  • Egypt
  • Ethiopia
  • Ghana
  • Libya
  • Morocco
  • Tunisia
  • South Africa

North America

  • Barbados
  • Canada
  • Mexico
  • United States of America

South America

Oceania

A Malta Air Boeing 737 MAX On an airport apron.

Photo: Markus Mainka | Shutterstock

Cape Town Convention membership

Malta is also a member of the Cape Town Convention, which establishes global guidelines for registering aircraft for sale and standardizes transactions involving airplanes. In 2022 and 2023, Malta was rated top in Europe and second in the world in the Cape Town Convention Compliance Index, reinforcing its reputation as a reputable jurisdiction.

PLAY A320neo flying low

Photo: Vincenzo Pace | Simple Flying

The role of the Malta Business Aviation Association (MBAA)

Malta’s aviation sector has also benefited from the work of industry groups such as the Malta Business Aviation Association (MBAA). The MBAA promotes the interests of the island’s aviation sector and assists operators in navigating the regulatory landscape. The MBAA’s advocacy activities have fostered a collaborative atmosphere between the government and the private sector, contributing to the expansion of Malta’s aviation industry.

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Unsurprisingly, widebodies are dominant in this regard.

In addition, the group has tried to improve Malta’s reputation as a trustworthy aviation jurisdiction. The MBAA has played a significant role in establishing Malta as a competitive participant in the global aviation business by arranging industry events and attending international aviation conferences.

Growth in private aircraft registration

In addition to having many commercial airlines, Malta has developed into a major hub for private aircraft registrations. The same tax and regulatory advantages that attract commercial operators also attract wealthy individuals and businesses looking to register their private aircraft in Malta. The island is popular with high-net-worth individuals and private operators due to its strong private aviation legislative framework and quick registration procedure.

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