Around 50 employees working for a Dutch aviation company operating at Safi Aviation Park are facing an increasingly uncertain future after months without wages and a court order requiring the company to vacate its hangar.
One of the workers told The Maltese Herald that employees have not been paid since January 26, leaving many struggling to meet daily expenses.
“We have families and bills to pay, and we are finding ourselves in a very difficult situation,” the worker said. “We are trying to raise awareness so that the public and the authorities understand what is happening to the employees.”
The company, Aviation Cosmetics Malta Ltd, operates from a government-funded hangar at Safi Aviation Park and specialises in aircraft painting and finishing services.
However, the situation worsened after a court ruling ordered the company to vacate the premises within 15 days after failing to pay rent for the past two years.
In a judgment delivered by Magistrate Claudio Zammit, the court upheld a request by INDIS Malta, the government agency responsible for managing industrial estates. The court ordered the company to leave the hangar and settle €453,000 in outstanding lease arrears.
The case was heard through an urgent procedure after INDIS argued that the company had repeatedly breached the terms of its lease agreement by failing to pay rent for an extended period. The agency said the publicly funded hangar should be returned so it can be used to attract new aviation investment.
During court proceedings, company director Tom Jensen acknowledged that the outstanding rent was still owed and did not contest the claims made by INDIS.
Court documents also show that the company has been under growing financial pressure for several years. Aviation Cosmetics established its Malta operations in 2013, benefiting from incentives provided by Malta Enterprise.
But the company’s financial situation has deteriorated significantly. Its most recent publicly available accounts indicate losses approaching €1 million in 2023, with liabilities exceeding its assets.
The firm has accumulated millions of euros in debt and has faced legal action from creditors. Court records reveal that it was already subject to a garnishee order and a warrant of seizure last year.
Industry sources said that despite the latest court ruling, a takeover by another foreign company is expected, which could potentially acquire the business and its operations.
This is not the first attempted takeover of Aviation Cosmetics. In 2024, Ireland-based Shannon Technical Services had reached a preliminary agreement to acquire the company for €15 million. However, the deal collapsed after the Irish firm alleged that Aviation Cosmetics’ owners had misrepresented financial records to present a stronger financial position. Aviation Cosmetics denied those allegations.
Shannon Technical Services has since filed separate legal proceedings seeking the return of around €3 million in deposits linked to the failed acquisition.
Meanwhile, workers at the Safi facility say their immediate concern remains their unpaid wages and the uncertainty over their jobs, as the company’s future in Malta hangs in the balance.
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