Answer ... Procedure for registration: The National Aircraft Register is an operator register. Therefore, the following entities can register an aircraft in this register:
- the owner of an aircraft which operates that aircraft, or the owner of an aircraft under construction or temporarily not being operated or managed;
- the operator of an aircraft under a temporary title, which satisfies any conditions that can be prescribed by regulations issued under the Aircraft Registration Act (Chapter 503 of the Laws of Malta); and
- the buyer of an aircraft under a conditional sale, title reservation or similar agreement, which satisfies the conditions that may be prescribed (by regulations issued under the Aircraft Registration Act) and is authorised to operate the aircraft under this agreement.
Although the above potential registrants are limited by nationality requirements, these limitations do not generally apply where the aircraft is ‘in construction’ or where it is ‘not used to provide air services’. The general rule is that the person registering the aircraft must be a citizen of the European Union, the European Economic Area or Switzerland. In the case of an undertaking, not less than 50% of the undertaking must be owned and effectively controlled by such persons.
To register an aircraft, an application form must be completed and submitted to the Civil Aviation Directorate in Malta. This must be accompanied by:
- a copy of the bill of sale through which the owner of the aircraft has acquired the aircraft; and
- proof of the temporary title under which the registrant holds the aircraft.
If the registrant is a legal entity, certified copies of the constitutional documents of this legal entity must also be submitted to the Civil Aviation Directorate.
Furthermore, in order to register an aircraft, the Civil Aviation Directorate will usually require the following documents:
- documents on the owner of the aircraft, such as the certificate of registration, memorandum and articles of association, and an extract from the commercial register or certificate of good standing;
- an application form signed by the operator;
- the constitutional documents of the operator;
- a radio licence;
- insurance;
- a photo of registration marks and fireproof plates;
- the lease agreement;
- proof of ownership – such as a bill of sale (and also a power of attorney); and
- a statement of no mortgages.
The Civil Aviation Directorate reserves the right to request more documents and therefore it always suggested to first file the application form and then request a list of the documents required to register the aircraft.
Effect of registration: Registration in the National Aircraft Register – whether by means of a record or a notation – shall have the following legal effects in relation to the information and the acts to which it refers:
- It renders such information public and the information shall be considered to be within the knowledge of third parties.
- The acts shall be effective against third parties.
- It shall create priority, according to the provisions of the Aircraft Registration Act and applicable law, between different rights – provided that, except as stated in Article 31 thereof (preservation of special privileges or reservation of title of aircraft on accessories of aircraft) and in the First Schedule thereof, the notation of ownership or lessee rights shall not imply any priority over those of the holder of a registered mortgage.
- Where expressly conditional on registration, it shall create legal effects between the parties to certain transactions.
- It shall have all other effects under the applicable law.
Once an aircraft is registered in Malta, it starts operating under and is regulated by the laws of Malta (which implement relevant EU regulations and directives) and the Maltese Civil Aviation Directorate (which forms part of the European Aviation Safety Agency).
Under the Aircraft Registration Act, aircraft are a particular class of movables that are separate and distinct assets within the estate of their owners with respect to actions and claims to which the aircraft is subject. Therefore, in the case of bankruptcy and/or insolvency of the owner of an aircraft, all actions and claims relating to the aircraft have preference over other debts of the estate of the debtor.
Although a lessor may request its details to be annotated in the register, the lessor will not be deemed to be resident, domiciled or carrying on business in Malta.
The change of ownership is effective upon delivery of the bill of sale. However, rights against third parties (including priority arising from security interests) are achieved only upon registration.
Deregistration: There are two ways to deregister an aircraft:
- through the submission of an application form to the Civil Aviation Directorate (the same form as that for registration of an aircraft, but completing different sections of the form); or
- through the use of an irrevocable deregistration and export request authorisation (IDERA), which is typically granted by way of security from the operator of an aircraft (and sometimes also by the owner and any other intermediate sub-lessor of the aircraft) to a secured creditor.
Where an IDERA has been granted, the holder of the IDERA becomes the sole person entitled to deregister and export the particular aircraft.
On deregistering an aircraft, the Civil Aviation Directorate will typically issue an aircraft deregistration certificate.
Although deregistration is generally a swift process, when deregistration is carried out through the use of an IDERA, the Civil Aviation Directorate (and any other relevant administrative authority) must “expeditiously co-operate” with and assist the authorised party in the exercise of its rights under the IDERA.
Additionally, the registrar general has the right to cancel the registration of an aircraft in certain instances. However, if a mortgage is registered over that aircraft, the registration cannot be cancelled without the consent of the mortgagee. The only exception to this rule is if the minister responsible for transport in Malta is of the opinion that it would be inexpedient in the public interest for the aircraft to be, or to continue to be, registered in Malta.