In a PCC, each cell within the company operates independently, meaning that the assets and liabilities of one cell are legally ring-fenced from the others. This structure allows an aviation business to operate multiple cells for different purposes or projects, such as leasing aircraft, managing individual aircraft portfolios, or financing specific aviation transactions. For example, one cell might be dedicated to the ownership of an aircraft, while another is used for leasing arrangements or managing operating contracts. The separation ensures that financial or legal issues in one cell do not impact the others, making it a highly secure and flexible structure.
The primary advantage of using aviation cell companies in Malta is the protection and segregation of assets, which is critical for reducing risk in large-scale transactions. This risk mitigation is particularly valuable in the aviation sector, where significant capital is tied up in aircraft and leasing arrangements. Furthermore, this structure simplifies compliance and regulatory requirements, as each cell can be managed individually while benefiting from the overarching corporate framework of the PCC.
Additionally, Malta’s aviation sector benefits from the country’s EU membership and access to the European market. Malta’s regulatory environment is designed to support aviation businesses, with the Malta Civil Aviation Directorate providing oversight and ensuring compliance with EU regulations.
The country’s competitive tax regime further enhances its appeal to international aviation businesses. Specifically for PCC structures, a cell is treated as a separate taxpayer for Maltese tax purposes and this in itself could provide certain opportunities.
Malta’s strategic location between Europe and Africa and its strong regulatory framework make it a highly attractive jurisdiction for aviation companies. With a robust legal system based on English common law, Malta offers stability and transparency for international businesses. As the global aviation industry continues to evolve, Malta is well-positioned to remain a key player in the sector, with its aviation cell companies offering innovative solutions for managing aviation assets, financing, and operations efficiently and securely.
If you have any queries or would like to know more about how PwC can support your aviation business, please contact our aviation team.
