INDIS moves to evict Dutch aviation company from Safi Park – claims €453,000 payment in arrears

The government has moved to evict a Dutch aviation company from a state-funded hangar at the Safi Aviation Park, citing alleged breaches of contract and almost €453,000 in unpaid lease obligations.

INDIS Malta, the state agency responsible for managing industrial property, has filed court proceedings against Aviation Cosmetics Limited, a company specialising in aircraft painting, requesting its eviction from the premises and the settlement of outstanding rental dues.

According to court filings, INDIS argues that the company has failed to honour the terms of its lease agreement, despite repeated warnings, and has not paid rent for a prolonged period. The agency is asking the Rent Regulation Board to order an expedited ruling, noting that the publicly funded hangar could be redeployed to attract new international investment.

Aviation Cosmetics was established in Malta in 2013 with the support of incentives provided by Malta Enterprise. However, its financial position has deteriorated sharply in recent years. Earlier reporting by The Shift highlighted mounting losses and liquidity pressures at the company, despite securing contracts from commercial airlines and military operators.

The company’s latest publicly available accounts show that liabilities exceed assets, with losses approaching €1 million in 2023. Auditors raised material uncertainty over its ability to continue as a going concern. The company has also accumulated millions of euros in debt and has been embroiled in disputes with creditors, including banks.

Court records show that Aviation Cosmetics was subject to a garnishee order and a warrant of seizure last year, further tightening financial pressure.

In 2024, Ireland-based Shannon Technical Services agreed in principle to acquire the company for €15 million. The transaction later collapsed, with the Irish firm alleging that Aviation Cosmetics’ owners had misrepresented financial records to present a misleadingly positive outlook. Aviation Cosmetics has denied the accusations.

Shannon Technical Services has since initiated separate legal proceedings seeking the repayment of approximately €3 million in deposits paid in connection with the aborted deal.

Industry sources say the dispute risks damaging Malta’s reputation in the international aviation sector, where the country has spent years positioning itself as a credible maintenance and aviation services hub. Malta has successfully attracted major operators such as Lufthansa Technik, easyJet and Ryanair, making the collapse of a state-backed project particularly sensitive.