Malta Allocates €2.3M to Defunct Air Malta Operations

Malta’s government is still allocating EUR2.3 million (USD2.3 million) annually to cover the salaries of 51 employees linked to Air Malta (Malta International), despite the airline ceasing operations in March 2024. The information was disclosed by Finance Minister Clyde Caruana during a parliamentary Q&A session earlier this week.

Caruana’s response followed a question from parliament member Mario de Marco. Air Malta, which faced prolonged financial challenges, was replaced by KM Malta Airlines as the national carrier. The transition was supported by EUR350 million (USD360 million) in state aid approved by the European Commission. Under the terms of this aid package, the Maltese government is required to secure a strategic partner for KM Malta Airlines within three years.

KM Malta Airlines has already established itself with a fleet of eight Airbus A320-200N aircraft, according to the ch-aviation fleets module. Notably, six of these jets, owned and managed by AerCap, were part of Air Malta’s fleet before its closure.

The government’s continued expenditure on Air Malta has raised questions about fiscal accountability and the effective use of resources, especially as the focus shifts to KM Malta Airlines’ growth and sustainability. The national airline’s transition marks a critical juncture for Malta’s aviation sector, with the government aiming to solidify KM Malta Airlines’ position as a key player while adhering to EU-mandated restructuring commitments.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com