The government of Malta has announced the establishment of a new national airline for the Maltese Islands. The new company will be called KM Malta Airlines and will commence operations on March 31, 2024 with the Maltese government as its sole shareholder.
Finance Minister Clyde Caruana said it was determined that it wouldn’t be possible for Air Malta to become viable without continued state subsidies. As a result, in agreement with the European Commission, the Maltese government decided to establish a new airline “built on a realistic business model underpinned by a sustainable long-term strategy.”
Prime Minister Robert Abela assured that the airline would retain its current workforce, fleet size, and continue serving 17 important routes. He stressed the importance of connectivity for Malta, situated in the heart of the Mediterranean, and highlighted how the new national airline would continue to be a key player in Malta's tourism industry.
Minister Caruana stated: “We consider our national airline to be a critical part of the infrastructure of our Islands and the air connectivity the national airline provides is inextricably linked to the economic growth and success of the Maltese Islands. In the absence of a solution for the capitalization of Air Malta p.l.c. within the parameters of EU state aid rules it has been decided to establish a new airline from a clean sheet – a new airline that builds on the many strengths of Air Malta but with a strong focus on long-term financial sustainability.”
The new airline will operate a single type aircraft fleet of eight Airbus 320NEOs, in a two-class configuration with a flexible premium-class cabin averaging 168 seats, including up to 36 premium class seats.
Air Malta will cease operations on March 30, 2024, but will continue to operate as planned all flights up to that date.
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