The European Commission no longer allows the government to pump money into Air Malta, but the company cannot survive without that support. That is why the Maltese government has decided to start a new state-owned company and start with a clean slate.
The idea is that the new company, KM Malta Airlines, will be more efficient and therefore ultimately able to survive without support. Something similar previously happened in neighboring Italy, where the very loss-making Alitalia was replaced by ITA Airways.
According to the government, KM Malta Airlines will take over Air Malta’s staff (with a new, likely cheaper contract) and have the same fleet size (of eight aircraft). The big difference is that soon there will be “a realistic business model with a sustainable long-term strategy”.
The government is pumping 350 million euros into the new company.
Long consultations with the European Commission
The establishment of KM Malta Airlines is the result of long consultations with the European Commission. As Malta was keen to retain a national carrier to ensure the connectivity of the archipelago, this was the best possible outcome, according to the government.
The last Air Malta flights will take place on March 30, after which KM Malta Airlines will launch on March 31. Anyone who already has a ticket for the period after March 30 can request a refund. This is guaranteed by the government. KM will start ticket sales on December 1.
Since KM will continue to fly seventeen major routes, scheduled services to Schiphol and Brussels do not appear to be in danger, but this must be confirmed at the start of ticket sales. The new airline will only fly with economical Airbus A320neos.
KM will be fully owned by the state in the first years, but later the company will have to be partly privatized by the European Commission. The government will then retain a major interest in society.
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2023-10-02 15:51:00
#Air #Malta #replaced #airline
