Aircraft Operating Certificate (AOC)

Aircraft Operating Certificate (AOC)

Setup and Administration of AOC

Air transport organisations are required to have an AOC – which authorises 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 (Regulation).

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’ the operator’s the professional ability and that it has the organisation to ensure the safety of operations specified in the AOC.

AOC holders are also required to obtain an Air Operator’s Licence – see below.

In Malta, the competent authority to regulate the aviation sector is Transport Malta. The Maltese Civil Aviation Directorate (CAD), has established rules and procedures for the grant of an AOC.

AOC – Main Requirements

What are the main requirements to obtain an AOC under Maltese law:

• 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 to be responsible for the management and supervision of flight operations; crew training; ground operations; and continuing airworthiness.

The 5 stages of obtaining an AOC

Note: The application for the issue of an AOC must be submitted ninety (90) days before the date on which the applicant intends to begin operations.

1. Pre-Application Stage
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 which may be authorised, details of the data that the applicant needs to be provide and the procedures which will be followed in 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 CAD of the financial, economic and legal status of the applicant and the proposed operation.

2. Application Stage
Upon completion of the assessment concerning the financial, economic and legal aspects of the application and after any deficiencies have been 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), this second phase of the certification process will commence: it is only once the issuance of the AOL is cleared that this stage can commence.

The formal AOC application is filed during this stage: it is prepared, showing 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, including the functioning of the administrative and operational organisation.

3. Document Evaluation Phase
This third phase involves the detailed examination of all the applicant’s documentation and manuals. This is required to establish that every aspect required by the regulations has been dealt with.

It is important that the applicant would have coordinated all aspects of the development of the required documentation with the Flight Operations Inspectorate of the CAD, before submitting the formal application. This will facilitate the evaluation of documents at this stage.

4. Inspection and Demonstration Phase
Inspections will need to be carried out: these involve base and station facility inspections, inspection of the operational control and supervision facilities and inspection of training programmes and training facilities.

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

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

Obtaining an Air Operator’s Licence (AOL)

As mentioned above, every AOC holder is also required to obtain an AOL. Article 3 of the Regulation states that:

No undertaking established in the Community shall be permitted to carry by air passengers, mail and/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 are 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. Upon issuance of the AOC, which specifies the activities that will be indicated in the AOL, the applicant can proceed to apply for the AOL formally.

What are the Conditions for Granting an AOL?

• Applicant must have principal place of business located within Malta;
• Applicant must hold a valid AOC issued by the CAD;
• Applicant must have one or more aircrafts 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 aircrafts 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 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.

Process for an AOL to be issued
An AOL may be obtained within a maximum time frame of three (3) months from receipt by CAD of all necessary information. The CAD is required in all cases to observe this time frame in advising the undertaking whether or not an AOL will be issued.