Malta’s New National Carrier, KM Malta Airlines, Set to Debut in Late 2024

Malta is gearing up to welcome its new national carrier, KM Malta Airlines (Malta International), slated for launch by March 31, 2024. The announcement came from Prime Minister Robert Abela and Minister for Finance and Employment Clyde Caruana. The transition aims to replace the existing loss-making carrier, Air Malta (KM, Malta International), with KM Malta Airlines, subject to regulatory approval from the Maltese Civil Aviation Directorate.

Initially, the government of Malta will be the sole shareholder, injecting EUR 350 million (USD 370 million) into the new entity, of which EUR 50 million (USD 53 million) will serve as working capital, and EUR 300 million (USD 317 million) will be in the form of assets. After three years, the government plans to seek a strategic partner while retaining majority shareholding, adhering to an agreement with Brussels.

The new flag carrier is set to implement a five-year business plan focusing on profitable routes, a well-planned fleet for long-term financial sustainability, and environmental goals. KM Malta Airlines will maintain Air Malta’s workforce and fleet size, operating a single-type fleet of eight A320-200Ns in a two-class configuration.

The transition follows challenges faced by Air Malta in achieving financial viability without state subsidies, prompting the government to seek permission from the European Commission for a capital injection. The new airline is positioned as a fresh start, building on Air Malta’s strengths while emphasizing long-term financial sustainability.

KM Malta Airlines aims to streamline operations by reducing the current network from 37 to 17 key point-to-point routes and prioritizing codeshare partnerships supporting Malta’s tourism industry and connectivity. The move comes after Air Malta accumulated operating losses of EUR 258 million (USD 295 million) since 2005, with the pandemic exacerbating its challenges.

The new carrier’s launch is set to replace Air Malta’s operations on March 30, 2024, ensuring a largely seamless transition. Customers with flights scheduled after March 30 will be refunded by Air Malta, with the option to book with KM Malta Airlines from December 1, 2023.

As Malta welcomes this new chapter in its aviation landscape, stay tuned for further updates on the debut and operations of KM Malta Airlines.