On the 22 June, 2010 Parliament approved and published the Aircraft Registration Act. The Act will come into force at a date yet to be announced by the Minister responsible for Transport.  

The Raison d’être behind such legislation is to regulate the registration of aircraft and aircraft mortgages; to repeal and re-enact various existing laws relating to such matters; to regulate the aircraft register; to introduce rules on aircraft mortgages, their registration and their enforcement; to introduce rules on special privileges on aircraft; and to implement the Convention on International Interests in mobile Equipment and Protocol thereto on Matters Specific to Aircraft Equipment (collectively referred to as the “Cape Town Convention”).  

With the implementation of the Cape Town Convention, the Act introduces also its objectives which are:

• to create ‘international interests’ in aircraft;

• establish an international registry;

• seek to provide creditors with a range of remedies for enforcement of their rights or interests over aircraft;

• ensure that the particular needs of the aircraft finance sector are met; and afford financiers and creditors in the aviation market greater confidence when granting credit.

The Act also introduces a number of innovative concepts in order to make the Maltese Aviation Register competitive with the world’s leading aviation registers.

Such novel concepts include:

• that aircraft under construction may be registered;

• the recognition of fractional ownership of aircraft;

• the widening of registration possibilities for aircraft not used for air service; and

• the permitted registration of irrevocable de-registration and export request authorisation.