Air Malta on the brink of bankruptcy

LA VALLETTA (MALTA) (ITALPRESS/MNA) – The Maltese Government is holding talks with the European Commission to grant state aid to the national airline, Air Malta. Clyde Caruana, the Minister of Finance confirmed that negotiations are taking place and added that Air Malta is making a loss of €170,000 every day just to operate its aircrafts, and without the state aid, the Maltese national airline will go into bankrupcy in few weeks.

Minister Caruana said that the present administration needa to present the European Commission an “honest and credible” plan to save the national airline. The Nationalist Opposition is accusing the Labour government that over the years, the European Commission was told false information about the state of the national airline.

The Executive Chairman of Air Malta, David Curmi confirmed that the airline will stop operating to unprofitable destinations and further pay cuts will come into effect. While the present payroll amounts to €50 million, Air Malta has already cut salaries and made hundreds of pilots and cabin crew redundant. He also added that Air Malta will focus on “core destinations” like the United Kingdom, Italy, France and Germany.

Air Malta was hit very hard due to the travelling restrictions as a result of the COVID-19 pandemic.

Source: medNews