New flagship airline to replace Air Malta on March 31, 2024, with partial privatisation planned

The Prime Minister, Robert Abela, has announced the launch of a new national airline to replace Air Malta, with its inaugural flight scheduled for March 31, 2024. This move comes after the European Commission rejected the government’s request for additional state funding for Air Malta, leading to the need for a transition to a new carrier.

The recapitalised new airline will maintain Air Malta’s existing fleet of eight Airbus A320 aircraft but reduce its route network to 17 destinations, discontinuing unprofitable routes. It will serve cities such as Amsterdam, Berlin, Brussels, London, Madrid, Milan, Paris, and more.

The government plans to invest €350 million in the new airline, with €300 million allocated for aircraft acquisition and airport slots. The remaining €50 million will be used as working capital. While the government will retain the majority ownership, there are plans for partial privatisation or the inclusion of strategic partners to ensure good governance.

Air Malta’s workforce of approximately 400 employees will be rehired by the new airline, with potential adjustments to salary structures according to international market standards.

The transition will involve refunds for passengers who have booked Air Malta flights beyond March 30, and bookings for the new airline will commence on December 1. The focus of the new airline will be on efficiency, aiming to maximise aircraft utilization and passenger load factors for profitability.