Vaia Legal

Menu
  • Aviation

Fractional Ownership in Aircrafts

Fractional Ownership in Aircrafts

date

area

  • Aviation

reading time

3 minutes

The Evolution of Fractional Ownership in Aviation

The Aircraft Registration Act, Act VIII which came into force in 2010, (hereinafter the ‘Act’) allows the notion of fractional ownership whereby the ownership of an aircraft may be split into one or more shares through co-ownership and through trust structures which may be individually financed by various creditors. The holder of the part share may use the aircraft for a designated amount of time over a specified period, therefore cutting the user cost of business aviation significantly and granting more flexibility.

The Director General shall record certain information on the Maltese-registered Aircraft in the National Aircraft Register. This includes specifically the ownership rights in the aircraft or an engine, when held by a trustee, for a single interest or more, and when held by one or more owners, and when divided into fractional shares or otherwise.

The Aircraft Registration Act lists the conditions of eligibility to fractional ownership as it states:

‘‘Where the application for registration of an aircraft is based on ownership and where interest in an aircraft is vested in more than one person, then at least fifty per cent of the owners of the shares in the aircraft must be eligible as qualified persons, provided that the Minister may by regulations establish different conditions, including different minimum thresholds on ownership participation by qualified persons for the eligibility to register an aircraft when owned by more than one person’’

(The same rule shall apply when the applicant for registration is a trustee.)

‘‘Where the application for registration of an aircraft is based on the operation of such aircraft and where such operation is being carried out by more than one person, then all the operators of the aircraft must be eligible as qualified persons:

Provided that in the case of an aircraft which is not used to provide air services, the Minister may by regulations establish different conditions for the eligibility to register an aircraft when operated by more than one person.’’

The Act defines qualified persons in Section 6.

The Act also recognises the benefits resulting from the engagement of trusts in the ownership of an aircraft and fractional ownership, whereby the provision for coordination and regulation of the beneficiaries’ interests and rights are noted in the trust deed.

The concept seems to be increasing in Malta with individuals seeking to invest and becoming part-owners in aircraft, as a number of operators such as Flexjet and JetClub, have shown an interest in providing a fractional ownership product.

For more information about the above and other aviation related matters, you can contact our office on [email protected]

recent articles

  • corporate

The Role of a Company Secretary Under Maltese Company Law

Read now
  • Aviation

Fractional Ownership in Aircrafts

Read now
Menu

Yanika Ciantar-Barbara

Lawyer

Dr. Ciantar-Barbara is an experienced lawyer specialising in corporate and commercial law. She graduated with a Doctor of Laws degree from the University of Malta in 2012 and went on to obtain a Master of Laws (LL.M.) in Corporate and Commercial Law from Queen Mary, University of London in 2014.

With over a decade of experience at a leading Big Four firm, Dr Ciantar-Barbara has advised a wide range of local and international clients on complex company law matters. Her practice covers all stages of a company’s lifecycle, including formation, continuation, restructuring, cross-border mergers and divisions, acquisitions, and liquidations. She also assists clients with their day-to-day corporate governance and compliance obligations, including beneficial ownership requirements and statutory reporting.

In addition to her core focus on corporate law, Dr Ciantar-Barbara has handled various employment law matters, offering guidance on issues such as employment contracts and
workplace policies.

Proud member of the Chamber of Advocates and the Institute of Financial Services Practitioners.

Yanika Ciantar-Barbara

Legal Consultant

Dr. Ciantar-Barbara is an experienced lawyer specialising in corporate and commercial law. She graduated with a Doctor of Laws degree from the University of Malta in 2012 and went on to obtain a Master of Laws (LL.M.) in Corporate and Commercial Law from Queen Mary, University of London in 2014.

With over a decade of experience at a leading Big Four firm, Dr. Ciantar-Barbara has advised a wide range of local and international clients on complex company law matters. Her practice covers all stages of a company’s lifecycle, including formation, continuation, restructuring, cross-border mergers and divisions, acquisitions, and liquidations. She also assists clients with their day-to-day corporate governance and compliance obligations, including beneficial ownership requirements and statutory reporting.

In addition to her core focus on corporate law, Dr Ciantar-Barbara has handled various employment law matters, offering guidance on issues such as employment contracts and workplace policies.

Proud member of the Chamber of Advocates and the Institute of Financial Services Practitioners.

Valeriia Simutina

Valeriia Simutina

Office Administrator

As the Office Administrator at Vaia Legal, Valeriia ensures that the firm’s operations run smoothly and efficiently. She specializes in administrative coordination, office management, and business support, allowing the legal team to focus on delivering top-tier services to clients.

Holding a degree in Marketing from Kyiv University, she brings strong organizational and communication skills to her role. Since moving to Malta in 2022, she has been actively involved in office administration, supporting the firm with structured processes and strategic planning. Her ability to anticipate operational needs and implement effective solutions makes her an invaluable part of the Vaia Legal team.

Giovana Cauchioli

Legal Administrator

Giovana Cauchioli joined Vaia Legal as a Legal Administrator, bringing a strong background in legal operations and compliance. She graduated with a Bachelor of Law degree from Universidade Presbiteriana Mackenzie in 2019 and was admitted to the Brazilian bar in the same year. With several years of experience in litigation and general contracts, Giovana has developed a solid understanding of legal frameworks and regulatory processes.

Her professional experience covers various legal sectors, allowing her to provide valuable support in legal administration, contract management, and compliance-related matters. Throughout her career, she has refined her ability to assist in structuring efficient legal processes and ensuring that regulatory requirements are met.

At Vaia Legal, Giovana plays a key role in facilitating legal operations, ensuring that the firm’s work is carried out smoothly and efficiently. Her analytical approach, attention to detail, and commitment to excellence contribute to the firm’s ability to deliver high-quality legal services to its clients.

Dr. Katrina Abela

Founder

Seasoned Lawyer, specializing in Maritime and Aviation Law, having graduated from the University of Malta in 2013. Experienced in yacht and aircraft sale and purchase transactions as well as ownership structures, customs importations, and registration. Successfully assisted several companies in acquiring a Maltese Air Operator’s Certificate, as the key link between the applicant and local authorities, while also consulting on regulatory matters.


Specialties: Commercial Agreements, Sale and Purchase Transactions for Vessels and Aircrafts, Regulation of Aircraft Customs and VAT Status, Importation and Registration matters, AOC applications, Ownership structures and others



Proud member of the Chamber of Advocates, Malta Business Aviation Association, Malta Maritime Law Association and the Advocacy Committee of the European Business Aviation Association.