KM Malta Airlines

Air Malta has been struggling financially ever since its creation in 1973 because of political interference which ultimately led its demise.[2] Air Malta was reportedly facing a loss of €30 million, a year after recording profit for first time in 18 years. Air Malta faces uncertainty and it plans to lay off a large chunk of its workforce. [3]

In August 2022, the Maltese government announced it would dissolve Air Malta should the European Union deny further financial state aid to the airline. It would then move its assets to a succeeding carrier.[4] Shortly after, the decision regarding the airline's future was delayed to the end of 2022; however, the route network and frequencies saw extensive cuts by October 2022, including the termination of several destinations.[5]

On 18 April 2023, Chairman David Curmi announced that the European Union had declined to allow to the Maltese government to inject 290 million euro of state aid into the airline.[6] On 2 October 2023, the Government announced plans for the closure of Air Malta on 30 March 2024, to be replaced by this airline the next day. [7]

During the Press Conference on 3 October 2023, Prime Minister Robert Abela said the newly recapitalised airline will retain Air Malta’s current fleet of eight Airbus A320 aircraft, even though the European Union initially wanted a reduction. It will fly to 17 destinations, discontinuing routes which were unprofitable. Air Malta operated to 37 destinations as recently as 2019. [8]

It was also announced that the new airline will employ approximately 390 employees and will eventually phase out the early retirement schemes of Air Malta within the next four years. Refunds will be offered from November 1, 2023 for those who booked Air Malta flights beyond March 30. Booking for flights with the new airline after March 31 will go on sale on 1 December 2023. Those who accumulated air miles will be paid for them as from February 2023. [9]

The new airline would be able to rent the Air Malta branding which is owned by the Government, after a competitive process and therefore its aircraft would still fly under the Air Malta brand and the aircraft livery would continue to carry the Maltese Cross. [10]

Minister Clyde Caruana then announced that when the new airline is financially stable and making a profit, the government will begin the process of looking into partially privatising the airline, with the Government of Malta as the majority Shareholder. [11]

This airline is set to operate a fleet of 8 Airbus A320neo aircraft, three of which will be fully owned by the Airline. Initially the airline will operate the following aircraft: