The ministry has published a draft new act that seeks to establish an appropriate legal framework that would help create and effectively support a successful aircraft register. While generally consolidating the laws on registration of aircraft and security interests over aircraft into a single act, the draft law aims to attract more aviation cluster business to Malta by providing incentives for growth and broadening the eligibility requirements for non-commercial aircraft.

A key feature of the draft law is the implementation of the provisions of the Cape Town Convention and its Aircraft Protocol which provide further effective remedies to financiers, lessors, or conditional sellers of aircraft having an interest in the aircraft, in addition to those already existing under domestic law.

The aircraft register is predominantly an operator register. Registrants of Maltese aircraft may be holders of a temporary title over the aircraft pursuant to a lease, management agreement, or a sale with reserved rights and conditions.

Non-EU/EEA/Swiss nationals may register their private aircraft which are not used to provide air services without having to set up a Maltese corporate vehicle to own the aircraft, provided they appoint a resident agent in Malta for the primary purpose of acting as a channel of communication between the Maltese administrative authorities and the international registrant.

Fractional owners of aircraft may request that their interests be recorded in the register and obtain a certificate from the director general of civil aviation, evidencing such entry.

Security over fractional interests in the aircraft may be registered in the national aircraft register and also in the International Register, as desirable.

Owners of aircraft may request that their rights in the aircraft be recorded in the register.

Owners of aircraft under construction are permitted to have the airframe registered as soon as it is uniquely identifiable.

A debtor who has granted security over his aircraft in terms of the Cape Town Convention and wishes to prohibit the registration of further mortgages over his aircraft in the national aircraft register may file a prohibitory notice to this effect in the national aircraft register.

The details of any power of attorney, irrevocable or otherwise, granted by way of security to a mortgagee or a third party may be entered in the register to ensure that it may be effectively relied upon by the mortgagee or security holder.

The draft act is fast attracting considerable attention from owners, operators and financiers. A capacity building exercise is currently underway to ensure that the Malta DCA is well equipped to meet the industry's demands with efficiency and the highest standards of competence to guarantee a promising future for aviation business in Malta.