Malta Air CEO to government: Stand up to Brussels over EU aviation policies
Aviation sector stakeholders fear Malta is being damaged by EU policy decisions
Malta's government should stop accepting "baubles and trinkets" from Brussels and instead push back against EU aviation policies that risk threatening the island's long-term prospects, Malta Air's CEO has said.
David O'Brien, who also leads Lauda Europe, said Malta and other peripheral states like Ireland and Cyprus are being unfairly penalised by EU climate policies that fail to account for their geographic realities.
“We are sleepwalking into a protectionist trap. Current EU policies punish states on the periphery for their geography. Our options are limited. We can’t holiday by road. Aviation is our lifeline, and it's being priced out,” he said.
The CEO was speaking at a joint panel hosted by the Malta Business Network (MBN) and the Irish Business Network (IBN) - the first event jointly organised by the two
O’Brien called on national governments, including Malta, to push back against policies that unfairly burden smaller, island-based nations.
KM Malta Airlines Executive Chairman David Curmi, who also spoke at the event, criticised the Sustainable Aviation Fuel (SAF) mandate, saying airlines operating out of Malta are often being charged for SAF even when airports don’t supply it.
“We land in Munich—no SAF available—but we’re still charged. These costs are staggering. The reality is, margins in aviation are wafer-thin, and these new charges may push us over the edge,” he said.
Curmi agreed that Malta faced significant challenges for the future of its connectivity.
The main airlines operating to and from the country, he said, face serious pressure from rising operational costs—many of them policy-driven.
“Destinations like Tel Aviv and St. Petersburg were cut for strategic reasons, but we’re increasingly having to make decisions based on cost pressure, not opportunity. It’s becoming harder to justify routes when the cost of doing business keeps escalating,” Curmi said.
Beyond the EU, panellists also expressed frustration at the lack of strategic planning and foresight from Malta’s own government.
There was a shared sentiment that the country’s approach to long-term connectivity and sustainable growth remains reactive and politically cautious.
Stephen Xuereb, CEO of Valletta Cruise Port, pointed out the growing disconnect between regulatory ambition and practical implementation, especially in infrastructure.
“There’s a lot of talk about sustainability, but not enough investment to match it. We’re expected to meet green targets, but where’s the support to actually get there?” he asked, referencing the cruise industry's growing compliance demands and Malta’s limited infrastructure to support them.
The event was moderated by David Delicata, Partner and Transportation, Hospitality & Services Leader at Deloitte Malta.
“Peripheral economies must be part of the policy conversation—not just policy recipients. Malta needs to lead, not follow, if we want a tourism sector that’s future-ready,” Delicata said.
The Malta Business Network brings together industry leaders, experts, and policymakers for monthly panel events, discussions, and networking.
Correction April 25, 2025: Statement about SAF made by David Curmi were incorrectly attributed to David O'Brien in a previous version.