Malta Enterprise-backed firm in aviation industry faces court orders, auditor exit, and investor lawsuit

Local aviation industry authorities, including the government and Malta Enterprise, are closely monitoring a Dutch company that established operations in Malta several years ago and is currently involved in numerous legal battles regarding its uncertain future.

Aviation Cosmetics Limited, owned by Dutch businessman Tom Jensen, was established in Malta in 2013. The company set up a paint business for commercial planes at the Luqa Aviation Park, with support from taxpayer funds through Malta Enterprise.

Despite attracting several clients from major commercial airlines and military forces, the company has been facing serious financial difficulties. Its latest published accounts show that it has more liabilities than assets, casting doubt on its future viability.

The company accumulated millions in debt and was in dispute with Indis Malta, the government’s industrial parks agency, which was not receiving its lease payments for a building constructed for the company at the government’s expense.

The 2023 accounts indicate that Aviation Cosmetics recorded over a million in losses for the year, and its auditors did not provide a positive assessment regarding its ability to continue as a going concern. The auditors resigned earlier this year.

Moreover, the company has recently faced further difficulties as the court issued a garnishee order and a warrant for the seizure of shares against it just a few weeks ago.

Court documents viewed by The Shift indicate that an Irish company, Shannon Technical Services Ltd, had agreed in 2024 to purchase all the shares of Aviation Cosmetics from its owners for €15 million. However, the deal did not materialise for reasons that remain unclear.

Shannon Technical Services has accused Aviation Cosmetics and its related owners of deceit and manipulating financial records to create a misleadingly positive financial outlook. Aviation Cosmetics has denied these allegations.

Shannon Technical Services is now demanding the repayment of approximately €3 million in deposits that it paid for a failed deal. The court has issued a garnishee order and a warrant for a prohibitory injunction against the company based in Luqa.

In recent years, Malta has developed a well-respected aviation maintenance industry, with companies such as Lufthansa Technik, EasyJet, and Ryanair utilising the island as a hub for maintaining their fleets.

Industry sources are concerned that the Aviation Cosmetics episode is causing reputational damage to the still-developing industry on the island. International major players are beginning to doubt whether their planes might be grounded due to potential legal actions against the struggling company.

While the court cases are ongoing, questions are being raised about Aviation Cosmetics’s ability to operate, resulting in reputational harm to other industry players.