The Mediterranean island of Malta will replace its ailing national airline, Air Malta, with a new state airline in 2024, Prime Minister Robert Abela announced.
The Maltese government has been negotiating with the European Commission for more than 18 months to inject some €290 million in public aid to the airline.
Given the refusal from Brussels, the Government decided to close Air Malta and replace it with a new airline, explained Robert Abela.
“We are ensuring that Malta continues to have a national airline (…) A stronger, profit-generating airline that serves this country economically and socially,” he declared, estimating that Malta “cannot depend on foreign airlines.” .
Last flight before his 50th birthday
Air Malta will operate its last flight on March 30, 2024, two days before its 50th anniversary, and will be replaced by an airline that will operate under a new company, KM Malta Airlines.
The new company will retain Air Malta’s fleet of eight Airbus A320s, but will eliminate more than half of its routes. It will serve 17 destinations compared to the current 37.
The government said it would invest 350 million euros in the new airline, of which 50 million euros would constitute its working capital, with the hope of being profitable in 2025.
After three years of activity, the State will have to find a strategic partner or partially privatize the airline.
Created in 1974, Air Malta experienced increasing financial difficulties. In 2012, Valletta obtained authorization from the European Commission to inject 200 million euros into the company, without being able to stop its decline.
Source: BFM TV
