Dutch aviation company ordered out of Safi Park

A Dutch aviation company operating from a government-funded hangar at Safi Aviation Park has been ordered by the court to vacate the premises within 15 days after failing to pay rent for the past two years.

In a ruling delivered by Magistrate Claudio Zammit, the court upheld a request filed by INDIS Malta, the government agency responsible for managing industrial estates.

The court ordered Aviation Cosmetics Malta Ltd to leave and empty its leased hangar at the Safi Aviation Park and to settle €453,000 in outstanding lease arrears.

The case was heard under an urgent procedure after INDIS argued that the company had repeatedly breached the terms of its lease agreement and failed to pay rent for an extended period. The agency also requested that the publicly funded hangar be returned so it could be redeployed to attract new aviation investment.

During proceedings, the company’s director, Tom Jensen, admitted that the company still owed the outstanding rent and did not contest the claims made by INDIS.

Court filings indicate that the company has been under growing financial strain for several years.

Aviation Cosmetics, which specialises in aircraft painting and finishing services, established its Malta operations in 2013 with the support of incentives provided by Malta Enterprise.

However, its financial position has deteriorated significantly over the past few years.

The company’s most recent publicly available accounts show losses approaching €1 million in 2023, with liabilities exceeding its assets.

The firm has accumulated millions of euro in debt and has faced legal action from creditors. Court records show that it was already subject to a garnishee order and a warrant of seizure last year.

Industry sources told The Shift that, despite the latest court order, a takeover bid by another foreign company is expected to be concluded, taking over the ongoing business lock, stock and barrel.

This is not the first takeover bid for Aviation Cosmetics.

In 2024, Ireland-based Shannon Technical Services had agreed in principle to acquire Aviation Cosmetics for €15 million. The agreement later fell through after the Irish company alleged that Aviation Cosmetics’ owners had misrepresented financial records to present a more favourable financial position. Aviation Cosmetics has denied the allegations.

Shannon Technical Services has since initiated separate legal proceedings seeking the repayment of approximately €3 million in deposits linked to the aborted transaction.