Malta is aiming to make a major push in the aircraft leasing sector after revealing the creation of its very own agency to take advantage of the potentially lucrative sector.

Aircraft leases are leases used by airlines and aircraft operators in lieu of shouldering the massive financial burden of buying them. The system can also be crucial when certain operators need a temporary increase in capacity.

Malta already has a competitive tax system and robust legal landscape to cater to the lucrative market. The country has a growing aircraft industry, with Lufthansa Technic, Vista Jet and Ryan Air’s Malta Air setting up roots in Malta. It has one of the latest growing registers in Europe, with around 480 aircraft registered in the country.

However, the government is set to undergo a promotional campaign to begin attracting the leasing industry to Malta’s shores.

Most aircraft leasing companies are currently based in Ireland, Singapore, and Hong Kong – and state authorities believe Malta can capitalise.

Speaking at a press conference, Abela said he was proud that the government was able to announce ambitious plans straight after the COVID-19 shutdown.

“We’re back to normal and this is part of our plans to kickstart the economy,” he said. Abela explained that the initiative will give Malta a diverse portfolio in the aviation sector.

The plans will give the aviation sector more capabilities to recover from the devastating affects of the pandemic, Abela said.

Transport Minister Ian Borg, who was also in attendance, echoed similar sentiments.

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