davidjohnson6
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Joined: Mon Jun 20, 2016 10:10 pm

ACMI airlines setting up in Malta - why ?

Fri Jul 12, 2019 12:58 am

I've noticed that an increasing number of ACMI charter airlines are being established in Malta. While Malta is in the EU (thus giving traffic rights across a very large region), it is unusual that so many airlines are choosing to incorporate in Malta rather than any other EU state.

I understand that the choice of Malta is driven substantially by tax law - but can someone explain how tax law for charter airlines is particularly advantageous in Malta compared to anywhere else in the EU ?
 
A380MSN004
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Re: ACMI airlines setting up in Malta - why ?

Fri Jul 12, 2019 6:49 am

Tax optimisation + quick clear aoc process
 
davidjohnson6
Topic Author
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Re: ACMI airlines setting up in Malta - why ?

Fri Jul 12, 2019 7:13 am

Anything more specific than 'tax optimisation' ?
 
sandyb123
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Re: ACMI airlines setting up in Malta - why ?

Fri Jul 12, 2019 8:17 am

davidjohnson6 wrote:
Anything more specific than 'tax optimisation' ?


It kind of is that simple. Malta has a tax regime that allows for a lot of wealth to be onshored there. If you look at a lot of the mega yachts around the Mediterranean basin a lot of them are registered in Malta for the same reason.

The Maltese authorities are probably good to deal with as EASA has a minimum requirements for staffing and process but of course Malta only has one commercial airline so going through the certification process should be quick and relatively easy. It’s probably less bureaucratic as a result.

Sandyb123
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debonair
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Re: ACMI airlines setting up in Malta - why ?

Fri Jul 12, 2019 10:14 am

A380MSN004 wrote:
Tax optimisation + quick clear aoc process


True, Malta = "Flag of convenience"; see: https://en.wikipedia.org/wiki/Flag_of_convenience

I have seriously my doubts and expecting the worse to happen soon. In my opinion, the Maltese CAA has not enough resources to oversee the sector. Airlines in Malta are growing like mushrooms - so is the need for qualified CAA staff. On top, most airliners are not based in Malta - the a/c are only flying into Malta for registration purpose; it is very difficult to have an oversight of maintenance, standards of a/c which are not available for inspection. PLUS most airlines are just have a "letter box" in Malta - the operations, crewing etc. is done somewhere else like in the Baltics, Portugal, Ireland, Turkey - so outside of Malta. Difficult for the Maltese CAA to see operations irregularities, if the "real office" is outside Malta. :alert:
 
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zkojq
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Re: ACMI airlines setting up in Malta - why ?

Fri Jul 12, 2019 10:26 am

sandyb123 wrote:
davidjohnson6 wrote:
Anything more specific than 'tax optimisation' ?


It kind of is that simple. Malta has a tax regime that allows for a lot of wealth to be onshored there. If you look at a lot of the mega yachts around the Mediterranean basin a lot of them are registered in Malta for the same reason.


Malta is a secrecy jurisdiction. If you want to own a Superyacht and want to conceal this from creditors/taxauthorities/ex-wife etc, Malta is a great place to register it.
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Cunard
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Re: ACMI airlines setting up in Malta - why ?

Fri Jul 12, 2019 7:13 pm

zkojq wrote:
sandyb123 wrote:
davidjohnson6 wrote:
Anything more specific than 'tax optimisation' ?


It kind of is that simple. Malta has a tax regime that allows for a lot of wealth to be onshored there. If you look at a lot of the mega yachts around the Mediterranean basin a lot of them are registered in Malta for the same reason.


Malta is a secrecy jurisdiction. If you want to own a Superyacht and want to conceal this from creditors/taxauthorities/ex-wife etc, Malta is a great place to register it.


And that's why the likes of CELEBRITY CRUISES register their vessels in Malta.

I work for a major shipping company and before I'm eventually paid my wages go through Malta for probably the same reasons, for a months wage I can usually expect it to be paid into my account at least six weeks late, am I happy with the situation no I'm not but what can I do!

The European Union should seriously look into the offshore tax regime in Malta. Remember the female Maltese journalist and anti-corruption activist Daphne Caruana Galizia that was assassinated in Malta a few years because she was actively investigating it. The whole situation is totally corrupt, the Maltese Mafia are very active indeed and the Maltese government are full of them!
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