NewsLine - BizAv Sevices Malta EBACE 14 - Special Edition

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Malta in par cular has experienced a surge in business jet registra ons and other related avia on ac vi es. The Malta experience has shown that where jurisdic ons co-exist with sound fiscal and legisla ve structures, operators have the advantage of being able to focus Capt. Philip Apap Bologna more a en on on increasingly important BizAv Services Ltd commercial objec ves. Malta has proven to benefit from a most efficient tax and It’s great to be back at EBACE again a er legal system which favours both operaanother year of hard work with posi ve tors and owners of the assets employed. indica on of growth in the business avia- It is this within this climate that Malta on sector in Europe. has seen business avia on thrive.

Tඁൾ Cൺඌൾ ൿඈඋ Sඎർർൾඌඌ

The global economic slow down in recent years has had its effect on our industry but we are now star ng to see the light at the end of the tunnel and indica ons auger well for 2014 –2015.

Bඎඌංඇൾඌඌ Aඏංൺඍංඈඇ Cൾඇඍඋൾ ඈൿ Eඑർൾඅඅൾඇർൾ Stanley Bugeja President The recent increase of Air Operator Cerficates (AOC’s) for business avia on aircra issued by the Maltese jurisdic on has put Malta in the forefront of the business avia on industry. Malta is no offshore jurisdic on or flag of convenience. The 9H prefix has been assigned to Malta since 1968. Registraon of aircra in Malta is nothing new, the enactment of the Malta Aircra Register Act of 2010, signified that Malta was the second country to ra fy the Cape Town Conven on within the EU. Malta is an island in the Mediterranean with a climate to match. Influenced by its Bri sh history, English is an official language while commercial law and aspects of Maltese legisla on are based on es

EBACE 2014 EDITION have been painful especially to the smaller business jet operator, we can now look forward to reaping the benefits of our work. Being part of a system which is recognized world-wide as being the most advanced and one that ensures safety has proven to a ract avia on business ac vi es to Europe as global travellers increasingly look for accountability and safety in our industry.

The case here is for operators to recognise the advantages of good sound legisla on supported by regulatory authories and agencies. Sustained avia on EASA member states ensure the highest growth can only be driven by efficient standards of avia on safety on a global infrastructures at European, Na onal level. While some adjustments were and industry levels. necessary to be made to EU-OPS requirements and in certain cases these may

tablished Bri sh principles. Malta has been very successful over the years in crea ng niche markets where it can provide added value. Malta has one of the largest ship registers in the world, its financial services sector is becoming a force to be reckoned with in its own right, it is the largest online gaming jurisdic on in the world and con nues to be voted year in year out as a top 10 country to re re in, having the best climate and a safe (secure) environment. The country has embraced an avia on policy which has iden fied in business avia on not only an industry to which perhaps Malta could sell its services as a jurisdicon but also an industry which is instrumental to its economic survival. The growth of an efficient, reliable and safe business avia on sector in Europe is in the na onal interest of Malta. The rela onship between the Maltese jurisdic on and the business avia on industry will con nue to grow over the coming years as the country is inves ng heavily in the industry’s specific requirements, such as human resource training,

research and development, with projects such as the Na onal Aerospace Centre and inclusion in the government’s naonal avia on policy. Since the launch of the Malta aircra register act - the na on witnessed an exponen al growth of the business aviaon sector. The country today not only numbers more than 50 business jets on its register but a number of business avia on service support companies have commenced their opera ons from Malta. On the Island one can find more than five flying schools, a Bombardier Approved service centre, an EASA approved Design organisa on, avia on consultancy firms and business aircra handling companies. There is s ll room for improvement but the Malta Business Avia on Associa on is adamant that the country is becoming a business avia on centre of excellence. It is the MBAA’s pledge that it will connue to focus all its efforts in suppor ng the business avia on community as well as the local government to further grow the business avia on industry.

Aඋൾ ඒඈඎ ඀ൾൺඋൾൽ ඎඉ ൿඈඋ ඌൺൿൾඍඒ? Capt. Joseph Markham Although the industry is in the midst of safety management systems implementa on, several safety concepts remain obtuse and ill-defined. Consequently, the benefits of a safety management system are not realised to the maximum possible extent within the organisa on. How can one understand what safety management is all about?

of safety.

required ac ons, undertaken by manThe first 'wheel' in the system is Hazard agement, to tackle the risks iden fied by Iden fica on. This comprises all sources the previous process. The process is of data available to management, such shown in the adjacent diagram. as CIRS, LOSA, FDM, CM, etc. and the However, this systema c movement will extrac on of hazards which have a po- grind to a halt unless it is lubricated. Where does this lubrica on come from? ten al effect on the organisa on. There is only one possible source. A JUST CULTURE – which enables company employees to report anything knowing they will not be blamed or vic mised for repor ng genuine errors. A just culture is easy to preach but difficult to put into prac ce, especially in small organisaons.

Everyone is familiar with the concept of a building – comprising founda ons, on which walls or pillars are built, which, in turn support the ceiling structures. The tradi onal view of a Safety Management system is as a structure which rests on the support of 'pillars'. These pillars are the familiar (1) Policy (2) Risk Manage- Fig 1 ment (3) Safety Assurance (4) Safety The second 'wheel' processes this data Promo on. and produces an analysis of the risks However, this model suffers from one inherent in these hazards. This risk analdrawback. It is sta c. It does not change. ysis and assessment is an ongoing proA be er model is one which is in perpet- cess, performed by the organisa on ual mo on. A model such as a gear-box through a safety ac on group (SAG). The in a vehicle as shown in Fig 1. Safety SAG, comprising the accountable manManagement is one such gear box which ager, safety manager and other senior permits the transmission of safety data managers quan fies and qualifies the into meaningful management infor- resul ng risks and priori ses ac on. ma on resul ng in an acceptable level The third wheel in the gearbox are the

Eඏඈඅඎඍංඈඇ Iඇ Tඋൺංඇංඇ඀ Capt. Philip Apap Bologna Head of Training ‐ BizAv Services ltd As technologies in avia on develop faster than our human capabili es can adapt, the ques on of how relevant and effec ve training is in this day and age needs to be repeatedly ques oned.

Our Safety development encompasses the whole sphere of SM – from the inial project management, to development of the required Safety Manuals, to the ongoing or periodic consultancy to enable a JUST culture leading to an effec ve SMS. Only then will you be sure that the safety wheels are constantly turning and producing results which are effec ve and relevant to the organisa ons' operaons. Adapted from: Anthony Thomas, “SMS on Wheels”, AeroSafety World (2009)

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training requirements do li le in aiding the training of our crews in complex problem solving. This is because the scenarios we train for are o en repeated as part of a standard training program with While regula on is important, minimum li le emphasis given to the training of

ner that addresses the unique characteris cs of our diverse cultures, types of opera on and more importantly those of the individual trainee.



Avia on courses star ng September 2014 in MALTA A F C F D C

The investments we make in training are Courses are designed to accommodate part me trainees who wish to take up a significant and a sizable chunk of our professional career in the avia on industry. opera ng costs. It is therefore important both from a safety point of view and also malta‐ from an opera ng efficiency stance to Tel: +356 2147 0829 ensure that we target training in a man2

pabili es. The challenges on how we train to deal with our limita ons and how we cope with our fast evolving Tඋൺංඇංඇ඀ (ർඈඇඍ..) complex machines will remain our indusbasic thought and reasoning processes. try’s greatest challenge as long as the human element is part of the system. Crew Resource Management (CRM) training is certainly the closest we have While no man thinks exactly like each got to, in preparing our crews to think other, computers priori se and process both from within and from outside the data in a more or less iden cal pa ern. box. The development of CRM over re- It is therefore important to appreciate cent years has played a major part in the unique characteris cs of each indikeeping us safe, however, this ongoing vidual person before expec ng the outposi ve change needs to be fuelled in come of the training we provide them order to maintain momentum. Many with, to give us the best results and exinvolved in crew training will tell you pected performance.

Eඏඈඅඎඍංඈඇ Iඇ

that the CRM revolu on is s ll in its infancy with good prospects for innova ve ways to further develop our human ca-

BංඓAඏ Sൾඋඏංർൾඌ Lඍൽ Aඏංൺඍංඈඇ Cඈඇඌඎඅඍൺඇർඒ Telephone +356 2147 0829 Targe ng individual and operator specific training requirements needs to be part of the next genera on training formula which will offer con nued safer and more efficient opera ons in future years.

Aඏංൺඍංඈඇ Eඇ඀අංඌඁ

based English language programme. The T.E.A –The Test for EngETI also offers course programmes in lish in Avia on Franco Debono English language training for In-Flight The T.E.A assesses a canEnglish today is established as the lan- Cabin Crew and Aircra Maintenance didate’s spoken and listening ability acguage of global communica on – in sci- Technicians. cording to the ICAO framework. The test ence, business, avia on and diplomacy. Notwithstanding its small size Malta is a is a one-to-one interview between the However, it is not enough just to learn key player within the Avia on industry in candidate and the examiner covering all the language – one also needs to be an Europe and the Mediterranean. Since ICAO tes ng requirements and las ng effec ve communicator. Since the intro- the incep on of avia on, Malta played a approximately 20 minutes. T.E.A. has duc on of the ICAO language proficiency strategic role as a Bri sh military avia- been officially approved by civil avia on requirements we together our partner, on base within the Mediterranean authori es in more than twenty counETI, have developed a range of Avia on throughout the early part of the 20th tries. English courses specifically designed Century. Malta s ll manages a Flight ETI is an accredited centre around these requirements. These Informa on Region that extends from for providing the profilecourses are delivered by qualified and just south of Sicily and south west of assessed test (Test of Engtrained teachers in Avia on English Greece to the North of Libya 3420N. lish for Avia on - T.E.A.) for Pilots and backed by consultants in the Avia on Malta today provides the ideal environ- Air Traffic controllers. The T.E.A. test will field. ment for intensive language and com- give candidates a sound and reliable The Avia on English course programme munica on training includes face-to-face tui on comple- throughout the year. mented with Climb Level 4, an internet-

Nൾඐ Bඎඌංඇൾඌඌ Lඈඎඇ඀ൾ ൺඍ MIA Maria Vella Galea Over the last months Malta Interna onal Airport have been in discussions with the Government of Malta to convert part of the exis ng Ministerial Lounge into an area to be used for commercial purposes. Under the proposed changes, a new facility will be made exclusively

expenditure on the island, with ripple effects for the economy at large and the Whilst the Malta Interna onal Airport’s tourism sector in par cular. primary focus is that of commercial aviaon, the airport is fully aware that busi- Through this investment, the Airport ness avia on is a fast growing sector and would be also in a posi on to process all is thus seeking ways on how best to sup- immigra on and other formali es. Furport this industry to further develop its thermore, we are also looking into the possibility of having dedicated stand growth. alloca ons closer to the terminal in orThe upgrading of the Lounge will help der to mi gate the problems with using elevate the airport’s interna onal standthe secondary runway at Malta Internaing and a ract more investment and onal Airport.

available to high end customers.


programmes assessment of their skills across the 6 profiles as recommended by ICAO.

Sඍඋඎർඍඎඋංඇ඀ ඍඁඋඈඎ඀ඁ Mൺඅඍൺ Chris an Vella 3a Malta

Most of the rules and procedures pertaining to a par cular company have to be wri en down in what are called Memorandum and ArƟcles of AssociaƟon.

should make an assessment of whether it should be registered for VAT in Malta or not, depending on the ac vity to be carried out. The standard VAT rate in Malta is 18%. VAT exemp ons apply when a company is assigned with an Malta’s fiscal set‐up Effec vely, the Maltese company tax AOC. rate stands at 35%, which, at a glance it Malta’s banking system may tend to be looks like being not compe ve at all! conserva ve but very robust at the same Nonetheless, our no on of full imputa- me and that is one of the reasons why on system makes it cleverly possible to it managed to a ract various financial reduce the effec ve tax rate from a size- services ac vi es. It is usual that banks able 35% to a very slim 5%. That may in Malta carry out their due diligence cons tute huge tax savings for the oper- procedures and normally ask for documents such as passports, u lity bills to a ons of a company. establish place of residence, bank references, shareholders’ profile and web-site of the company if applicable. Malta has adopted the Euro as from 1st January 2008.

An AOC in Malta is largely operated through a Malta limited liability company which may be formed with a minimum share capital of €1,200 and which can be paid up only up to 20%. This means that the shareholder would only need to show a cash deposit of €240 by way of capital to set up the company. In addion, this cash deposit may be later u lised to pay expenses when the bank account of the company is officially opened. With this level of minimum share capital, the ini al registra on fee payable to the Registrar of Companies is approximately €275 while the annual A registra on fee amounts to €100. Unlike A other European countries, Malta does A not have any thin‐capitalisa on rules. Thin-capitalisa on rules dictate the ra o between debt and equity in a company. Other factors So in Malta you can have a minimum share capital of €1,200 but shareholders’ Malta follows the VAT direc ve and all loans of €1.2 million. Having said that, if other EU direc ves given that it is a full a company needs to set up an AOC the member of the European Union. Thereminimum share capital requirement fore Malta also has its own VAT Act and a would be that of €100,000. This comes company carrying out an ac vity in Malta out of avia on regula ons and not company law. With this level of share capital, the annual registra on fee of a company increases accordingly at approximately €600 per annum.

Malta’s labour laws are very straight forward and not complicated. There exists also the possibility of having full- me and part- me employees both on definite or indefinite contracts. The current minimum wage for a full- me employee working at 40 hours per week stands at €8,615 plus 10% employer’s share of social security contribu ons which amounts to €862. Therefore the total minimum labour cost in Malta per employee is €9,477 per annum.

A company is usually formed within 5 days by the Maltese Registrar of companies, given that the required documentaon is in hand. Usually the following documenta on is required: Cer fied passport copy of par es Bank reference for all involved par es Personal reference for involved par es Original U lity bills par es

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