IAC to take over Aviation Cosmetics Malta following financial collapse

International Aerospace Coatings (IAC) will take control over the operations of Aviation Cosmetics, following the company's financial collapse leaving employees without pay since the start of the year.

Through the agreement, IAC will retain all 58 workers previously employed by Aviation Cosmetics in Malta, whose outstanding salaries have been settled in full. 

Josef Bugeja, General Secretary of the General Worker’s Union (GWU) said that following months of work, the union is satisfied that the worker’s wages have now been paid, while also attracting a company that will offer them a steady income and strong careers.

The US-based company is expected to upgrade the facility while also growing the workforce with up to 90 new jobs over the next three years. 

“Our aim was to turn a challenge into an opportunity” said economy minister Silvio Schembri on Wednesday. “We promised to stand by these workers, and today we are delivering on that promise.”

In March, workers for Aviation Cosmetics approached the GWU after over 50 employees went without pay since January.

That same month, Aviation Cosmetics was ordered by the court to leave the government-funded hangar they operated on at the Safi Aviation Park after failing to pay rent for two years, amounting to €453,000 in outstanding payments.

The company had been under growing financial strain for several years, with the previous 2024 deal to be acquired by Shannon Technical Services (STS) collapsed following allegations that Aviation Cosmetics misrepresented financial records. Aviation Cosmetics denies these claims.