DisclaimerThe information contained in this presentation is for general

guidance on matters of interest only. The application and impact of laws can vary widely based on the specific facts

involved. Given the changing nature of laws, rules and regulations, and the inherent hazards of communication, there

may be delays, omissions or inaccuracies in information contained in this presentation. Accordingly, the information in this presentation is provided with the understanding that the authors, publishers and presenters are not herein engaged in rendering legal, accounting, tax, or other professional advice

and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other

competent advisers. Before making any decision or taking any action, you should consult a legal or tax professional or consult

KAYWAY.AERO – Roland McKay and its legal and tax adviser.

9H-Reg – A good step into Africa . Malta´s potential benefits

vs. other registration3rd Annual Mediterranean Business Aviation Summit

Friday 12th September 2014

?

3

True SizeofAfrica

Source:

4

Location

5

Closings byRANGE

Source:

6

ClosingsbyREGION

Source:

7

USD-$pending$

TYPE Region

Source:

8

GlobalUSD-$pending$

Source:

9

Key RegionflownEurope EU - ME

Source:

10

TopDestinationsEU

Private Charter

Source:

11

ULR City pairsFH´s

Source:

12

Country Activity

Source:

13

MarketShare

Source:

?WHY MALTA

“Malta has a clear strategic political vision &

a national policy in supporting business in the aviation industry

and its clusters”

16

MemberStates

Source: EASA website

17

transport.gov.mt/aviation

Source:

18

Benefits ofMaltaAircraftRegistration

Government

Maltese Government has geared several initiatives to improve and update legislative and business infrastructure for the aviation industry.

Thus to replicate the success of the Shipping Industry.

Ownership

Malta offers various opportunities to set up an AOC with various ownership and operational structures to suit Owner and Operator requirements, e.g.:

Directly in the name of an owner, applying the AOCDryLease agreement and using an established AOC Flexibility to meet best client solution by fiscal considerationMeet requirements of EU regulation 1008.2008 Safeguard interest of Non-European Owners operating in EU under EU AOC

Source:

19

Malta Benefits

AOC Set-up

Setting up an AOC

English speaking countrystrategically placed at the center of the Mediterranean, Good Quality of Life

Transport Malta Civil Aviation Directorate has a good reputation

EASAICAO

FAA acknowledged for Im/Export

Receptive AND supportive to the business aviation needs. Civil Aviation Directorate has a pro-active, practical and hands on approach Especial in assisting prospective operators with AOC set-up Maltese Civil Aviation Directorate has considerable experience in the registration of aircrafts under AOC, withVarious aircraft types from commercial carriers on Boeing and Airbus families, including turbo-props and business jets like Global Express, Challenger, Falcon or Learjet´s.

20

List ofAOCHolders

Source: Transport Malta, Status May 2014

21

LHT Malta

Source: internet

22

Benefits

Income Tax

Income Taxes

An Malta AOC may benefit on general refunds on income tax.

Payment of income tax at the rate of 35% at corporate level is subject to a refund of 6/7th of the tax paid – Provided a declaration of dividend is made to non-resident shareholder.

Special purpose vehicles (SPV’s) not holding an AOC in their name may also be subject to the aforementioned tax benefit or

could otherwise not declare any taxable income in view of expenses being incurred for holding the aircraft.

23

Benefits

VAT

VAT

Operator may be entitled to register for VAT in Malta.

Operative structure can be modelled to maximize the VAT efficiency of an operation in Malta

taking into account an exempt credit status relating to airline operations as possible in Malta VAT act.

Particular scenarios and transactions may be efficiently structured for VAT purposes,

whether a transaction relates to the actual aircraft operation

or other services such as management services or charter.

24

Malta Benefits

Importing Aircraft

Import of aircraft

Fiscal benefits mentioned before may be considered for importing an aircraft into (via) Malta.

Depending on the adopted operative structure adopted, the aircraft can be customs clearedand imported into Malta orvia Malta into the European Union without having to pay VAT upon importation.

Importation of an aircraft operated under a Maltese AOC benefits from an automatic exemption.

Other possibilities for the importation of an aircraft in the name of an SPV are available.

25

Benefits

Financing&Mortgage

Aircraft Financing & Mortgage

The introduction of Malta Aircraft Registration Act strengthens position of financiers.

Aircraft financing may be backed up with a Maltese registered mortgage.

Aircraft mortgages provide security by creating a privileged charge over an aircraft.

Mortgages enjoy a relatively high priority in an eventual ranking of claims against a Maltese registered aircraft.

26

Benefits

Cape Town

The Cape Town Convention

Malta was one of the first European states to ratify the Cape Town Convention, offering advantages to the registering parties.

The registry allows enhanced visibility of rights and provides strong remedies to creditors in the event of default.

This gives comfort in cross-border transactions, and as a result, debtors situated in Malta may negotiate a reduction on their borrowing costs, “Cape Town discount”.

27

Cape TownSignatoryStates

Source:

Thank Y:o)u

Roland McKayHangar: +41. 61. 567 37 96 Phone: +41. 61. 500 03 74Mobile: +41. 79. 700 88 04Email: roland.mckay@kayway.aeroSkype:roland.mckay Map: CH-4030 EuroAirport Basel | Hangar ASB

Aviation Consulting | Aircraft Asset Management | Appraisal | Audit | Inspection

DisclaimerThe information contained in this presentation is for general

guidance on matters of interest only. The application and impact of laws can vary widely based on the specific facts

involved. Given the changing nature of laws, rules and regulations, and the inherent hazards of communication, there

may be delays, omissions or inaccuracies in information contained in this presentation. Accordingly, the information in this presentation is provided with the understanding that the authors, publishers and presenters are not herein engaged in rendering legal, accounting, tax, or other professional advice

and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other

competent advisers. Before making any decision or taking any action, you should consult a legal or tax professional or consult

KAYWAY.AERO – Roland McKay and its legal and tax adviser.