Protection Of Third-Party Owners Of Installed Engines

While Malta is effectively a creditor-friendly jurisdiction, legislation dealing with the enforcement of security or rights over aircraft gives specific and direct protection to owners of installed engines owned by third parties.

Overview

Under Maltese law, an aircraft constitutes a separate and distinct asset within the owner's estate and it is subject to the liabilities incurred in relation to transactions regarding its operation.¹ While the definition of 'aircraft' includes "airframes with aircraft engines installed thereon",² the provisions regulating security over aircraft afford specific protection to third-party owners of installed engines so that:

where an engine has been attached to an airframe, which is not also owned by the airframe owner, each of the owners shall retain the ownership of their thing and the engine shall not accede to the airframe.³