Air transport organisations are required to have an AOC authorising them to carry out any air service within the EU in accordance with Council Regulation 1008/2008 on common rules for the operation of air services in the Community.

An AOC allows an operator to perform specific operations of commercial air transport. The Regulation defines an AOC as: “A certificate delivered to an undertaking confirming that the operator has the professional ability and organisation to ensure the safety of operations specified in the certificate, as provided in the relevant provisions of Community or National law, as applicable.”

The requirements to obtain the AOC are centred on the operational and technical aspects of the business. This covers equipment (including aircraft and their support equipment), the organisation and its employees.

The AOC attests to the operator’s professional ability, and that it has the organisational ability to ensure safe operations as specified in the AOC.
AOC holders are also required to obtain an Air Operator’s Licence (see below).

In Malta, the competent authority that regulates the aviation sector is Transport Malta. The Maltese Civil Aviation Directorate (CAD) has established rules and procedures for granting an AOC.

The main requirements to obtain an AOC under Maltese law are:

• The principal place of business and, if any, the registered office, must be in Malta
• The applicant must satisfy the CAD that they are able to conduct safe operations
• Applicants must appoint an accountable manager who will be responsible for establishing and maintaining an effective management system, and
• They must nominate persons responsible for the management and supervision of flight operations, crew training, ground operations and continuing airworthiness.

The applicant enters into preliminary discussions with the Flight Operations Inspectorate of the CAD.

The CAD provides applicants with complete information concerning the type of operations that may be authorised, details of the data that the applicant needs to provide and the procedures required for the processing of the application.

This stage also includes:

• Submission by the applicant of a Pre-Assessment Statement (POPS form) to the Flight Operations Inspectorate in order to establish his intent to pursue the issue of an AOC
• A parallel assessment by the CAD of the financial, economic and legal status of the applicant and the proposed operation.

Upon completion of the assessment concerning the financial, economic and legal aspects of the application, and any deficits corrected, CAD will make a provisional determination on the general feasibility of the operation.

If the operation is found to be provisionally acceptable, and an AOL has been cleared (see below), the second phase of the certification process will then commence.

The formal AOC application is filed during this stage, and prepared to illustrate the operator’s method of compliance. The application will be evaluated in-depth, including a demonstration and inspection, concerning the required manuals, training programmes, operational and maintenance facilities, aircraft, support equipment, record keeping, dangerous goods programme, flight crew, and key management personnel. It also includes the functioning of the administrative and operational organisation.

This third phase involves the detailed examination of all the applicant’s documentation and manuals to establish that every aspect required by the regulations has been met

Next, inspections will be carried out. These include the inspection of base and station facilities, the operational control and supervision facilities, and an inspection of all training programmes and training facilities.

The applicant will also be required to carry out demonstrations, including the operational control system and flights.

Once the Flight Operations Inspectorate of the CAD has determined that all operational certification requirements have been completed in a satisfactory manner, that the operator complies with the applicable regulations and is fully capable of fulfilling its responsibilities of conducting a safe and efficient operation, the AOC can be issued.

Article 3 of the Regulation states that:

• No undertaking established in the Community shall be permitted to carry air passengers, mail, or cargo, for remuneration and/or hire unless it has been granted the appropriate operating licence
• Any undertaking that fulfils the requirements as listed in the Regulation is entitled to be granted an AOC
• The granting and validity of an AOL is dependent upon the possession of a valid AOC specifying the activities covered by the AOL

Therefore, an assessment is carried out to ensure that an undertaking fulfils the requirements and, once this is assured, the AOC application process takes place. On issuing of the AOC, which specifies the activities that will be indicated in the AOL, the applicant can proceed to apply for the AOL formally.

The conditions for granting an AOL include the following:

• Applicant’s principal place of business must be located within Malta
• Applicant must hold a valid AOC issued by the CAD
• Applicant must have one or more aircraft at its disposal through ownership or a dry lease agreement
• Applicant must have as its main occupation (e.g. objects of the company) the operation of air services in isolation, or in combination, with any other commercial operation of aircraft or the repair and maintenance of aircrafts
• Applicant must have a company structure which allows CAD to implement the provisions of the Regulation
• Applicant must be owned and effectively controlled by an EU Member States and/or nationals of Member States to the extent of more than 50% of the undertaking, whether directly or indirectly through one or more intermediate undertakings, except as provided for in an agreement with a third country to which the EU is a party
• Applicant must meet the financial conditions as specified in Article 5 of the Regulation
• Applicant must comply with the insurance requirements as specified in Article 11 of the Regulation, and in Regulation (EC) No 785/2004, and
• Applicant must comply with the provisions on good repute as specified in Article 7 of the Regulation

An AOL may be obtained within a maximum time frame of three months from receipt by CAD of all necessary information. The CAD must in all cases observe this time frame in advising the undertaking whether or not an AOL will be issued.