Date : 10 March 2010

News Brief : Publication of a Bill entitled The "Aircraft Registration Act".

News Text : On 9 March, 2010, the Government published a Bill to regulate the registration of aircraft and aircraft mortgages in Malta. The Bill also incorporates the Implementing law on the Cape Town Convention on International Interests in Mobile Equipment and its Aircraft Protocol which is fast becoming a market standard in aircraft finance transactions. The Cape Town Convention is directed towards facilitating asset-based financing, enhancing secured creditors' rights to enforce their interests in the aircraft and provide increased predictability in an insolvency context on proprietary rights in aircraft and its equipment. The Bill seeks to promote the aviation cluster business concept by creating an appropriate legal framework that would increase industry interest in Malta. The Bill introduces the following novelties into our aviation law :

- Consolidation of the laws on aircraft registration and aircraft mortgages;

- Recognition of fractional ownership of aircraft;

- Widening of registration possibilities for aircraft that is not used for air service. Persons who are not qualified to register their aircraft under the eligibility rules, may register their private aircraft provided they are citizens of or, if corporate bodies, if they are formed and existing under the laws of a member country of the OECD; Furthermore, registrants of aircraft may register their aircraft in either of the following capacities:
(a) An owner of an aircraft who operates the said aircraft;
(b) An owner of aircraft under construction, or temporarily not being operated, or managed;
(c) An operator of an aircraft under a temporary title;
(d) A buyer of an aircraft under a conditional sale, or title reservation agreement or similar agreement) and who is authorised thereunder to operate the aircraft; or
(e) A trustee for the benefit of qualified persons.

- Aircraft under construction may be registered;

- The national aircraft register has been remodelled to facilitate searches, more informative and protective of third party rights;

- Details of the engine owner may be entered the Register;

- Permitted registration of irrevocable de-registration and export power of attorney in the national aircraft register;

- Mortgagees are granted extensive powers of cancellation.

If further information on the issues raised in this article is required, kindly contact Dr. Daniel Aquilina - email: daquilina@jmganado.com