You are going to pay €356 million for a ‘new’, smaller Air Malta

The taxpayers will be absorbing the €356 million losses accumulated by the mismanaged national airline over the years.

A new company behind the flag carrier will be necessary after the European Commission refused the government’s request for a state cash injection.

The ‘new’ Air Malta will operate 17 routes with 8 aircraft, and re-employ Air Malta’s workforce of some 400.

The remaining destinations will be Amsterdam, Berlin, Brussels, Catania, Dusseldorf, London Heathrow and London Gatwick, Lyon, Madrid, Milan, Munich, Paris, Prague, Rome, Vienna and Zurich.

While the company name will change to KM Malta Airlines plc, the airline would be able to rent the ‘Air Malta’ brand which is owned by the government.

“We cannot be dependent on foreign airlines, we need to retain control of our national airline”, Prime Minister Robert Abela said.

He said the new airline would be more efficient and achieve profitability in about two years’ time.

Finance Minister Clyde Caruana said the government intended to either issue shares in the new company or seek a strategic partner.

However, the government would continue to own the majority holding of the new airline.

Refunds will be offered from 1 November for Air Malta bookings beyond 30 March 2024.

Tickets for flights with the new national airline from 31 March will go on sale on 1 December.

Later in Parliament, Opposition Leader Bernard Grech said Robert Abela will be remembered as the prime minister who bankrupted Air Malta.

He said while the prime minister was trying to pin the blame on former PN governments, the airline’s CEO said in 2013 that Air Malta was financially recovering.