Interview: Malta’s Growing Aviation Appeal
In mid-May, Wizz Air based in Hungary became the last carrier to announce plans to open a subsidiary in Maltaaimed for launch in October 2022.
The move followed a decision by Eurowings and Lufthansa Group to set up a new company in Malta and apply for an air operator’s certificate (AOC) there. A gradual transfer of 19 Airbus A319 / 320s and crew from Eurowings Europe registered in Austria to the new Maltese company, Eurowings Europe Limited, is planned for the winter flight schedule 2022/2023.
“There are 672 aircraft registered in Malta, with a major shift from business jets to commercial airliners,” Charles Pace, director general for Civil Aviation at Transport Malta (CAD), told Routes.
The largest player in terms of airline registered aircraft is Ryanair Group — consisting of Ryanair, Ryanair UK, Buzz, Lauda Europe and Malta Air — which has about 170 aircraft with a 9H registration prefix. ‘Malta. “Wizz Air could have about 80 aircraft on the register in the first year,” Pace added.
But what is making Malta — close to Italy, between Europe and North Africa — so popular?
“We talk to airlines in a lot of ways and there’s always simplicity,” said Pace, who is also a captain of the Boeing 737. “We stick to a simple model, not having too many weird restrictions in place like in some other countries. We have to be fair. We sit down, analyze and offer a better plan, establish good processes. ”
Pace said decisions to establish an AOC abroad are not taken lightly by the airline’s management: “They have all done their due diligence. We can say we want the business and make every effort to do the job diligently and efficiently. ”
And the demand for alternative AOCs is increasing. CAD is currently processing five airlines, including Eurowings Europe, Wizz Air, and Challenge Air Group, which has an AOC in Belgium.
You are also processing an application for Flight, partly owned by US regional Mesa Airlines. Mesa plans to launch its European Union-based subsidiary in a joint venture with UK aviation consultancy Gramercy Associates and to transfer several CRJ Regional Jets to Europe. The new carrier will offer capacity purchase agreements and ACMI services.
“The Mesa process has begun and Flight could start operating this summer depending on when the first aircraft is registered,” Pace said.
Malta is a very small island with 316 square kilometers and about 500,000 inhabitants. Its main economy is tuna fishing and tourism, and it has strength in financial services and shipping. However, the government is looking to rapidly expand its aviation industry.
In addition to airlines, global MRO companies such as Lufthansa Technik and SRTechnic have large hangars in Malta. Lufthansa Technik, for example, has 500 employees. There are also smaller MRO providers such as Aviation Cosmetics, MCM, and Medavia among others. “A total of 7,800 people in Malta are working directly in aviation,” said Pace. His department already has 70 people.
“For us, every small investment is important, every small company is welcome. Because we feel that you are a customer, you are an investor, ”said Pace.
CAD also does a lot of work with rental companies — all the parameters needed to make Malta an attractive alternative to rental companies.
The Maltese regulator is extremely strict when it comes to withdrawing certificates. Airlines have been suspended and even revoked if there is a continuing non-compliance with EASA and EU regulations. Malta has one of the strictest regulatory authorities in Europe and is regularly audited by EASA.
“We made some enemies, and some countries didn’t like us, because we managed to get good results,” Pace said. “But all of this is done safely as the ultimate goal,” he said, adding that CAD’s strategy is to grow sustainably.
“We have to grow in a controlled way. There is room for everyone, ”said Pace. Other key players in AOC airline trade are Ireland and Austria.
And how do local companies view Malta’s aviation strategy? “Transport Malta has done a fantastic job of putting Malta on the map in this regard,” Alan Borg, Chief Executive of Malta International Airport, told Routes.
Major players in the industry are turning to Malta for the licensing of aircraft operators and aircraft registration due to the reputation that the island has built in the last decade.
“It is worth noting that Malta has made a name for itself in this market through the introduction of pragmatic processes that facilitate the licensing and registration of aircraft, as well as a range of competitive benefits,” said Borg. .
He also believes that Malta International Airport will benefit from this development, saying, “The aviation industry has always presented many economic opportunities for the Maltese Islands, and all industry stakeholders have always worked hand in hand. to ensure that this sector continues to thrive through improved connectivity and diversification. “