Are we heading for the demise of another national airline? There is every reason to believe so in Malta. The management ofAir Malta has been a disaster for more than a decade. Several local newspapers have reported senior government officials talking about a likely refusal by the European Union to grant a further 300 million euros in state aid to the carrier.
In 2022, Finance Minister Clyde Caruana had already stated that Air Malta needed a capital injection". but when and how will depend on the European Commission's decision" . He added that without a green light from the Commission, " Air Malta will not live" .
If this green light were not given, there would be no more to the Maltese government that the option of winding up Air Malta 1.0 to create an alternative carrier, an "Air Malta 2.0.
The government seems to have been preparing for this eventuality for several months and, according to local newspapers, has begun drawing up plans for an alternative carrier. In fact, the scheme would be similar to that of the now-defunct Alitalia. A new carrier would immediately take over Air Malta's assets.
The low-cost model as inspiration?
The government source told MaltaToday that the new company would have to be rebuilt from scratch. " The plan calls for a more rational and efficient company, managed according to strictly commercial principles. Without state subsidies" explains the person speaking to the newspaper. The company is more likely to adopt a "low-cost business modelThis is particularly important for future employees and for its network. And all of this in response to competition from existing companies.
For the time being, discussions are continuing between the Maltese government and the Commission. In a televised interview, Finance Minister Clyde Caruana stated that the European Commission was still seeking information. And that it would then issue a final decision. Which would be expected over the summer. If Air Malta's financial aid is rejected, the company would have to cease operations at the end of the year.
