The first part of this article (published in The Business
Observer, 12th January 2017) dealt with the strategy underpinning
the new aviation laws and changes to the law of sale and promises
of sale in so far as they related to aircraft and aircraft engines.
This part picks up on the contract of lease, regulatory aspects of
financial leasing and interest rate rules in leases.
Contracts of lease
Article 1526 of the Civil Code was also amended to the same
effect in relation to the leasing of aircraft, which is probably
even more important than sales, because for every sale there are
probably five leases of the aircraft, if not more. Once again the
necessity of a judicial letter – too formalistic and local
– which has to be served on the lessor or the lessee,
probably both overseas, to terminate a lease of an aircraft has
been disapplied and the parties can agree on the methods for
notices to each other which can be in writing or even by electronic
means. As Maltese
