Malta will be asking Brussels for permission to pump further taxpayers’ money into the ailing national airline, the Economy Minister confirmed in parliament on Monday.

Silvio Schembri was replying to a question from Opposition MP Claudio Grech, who asked whether the government was in the process of seeking permission from the European Commission to give state aid to Air Malta.

The airline suffered huge losses due to the pandemic as most of its operations ground to a halt. 

Under normal circumstances governments are forbidden to give financial support to private, or even state entities, to ensure a level playing field among all economic players.

However, this restriction has been temporarily lifted by the commission in the wake of the devastating effect that the COVID-19 outbreak had on certain sectors like travel and aviation.

The Economy Minister said that the government would be making a formal request for state aid to Air Malta in the coming days.

While he declined to provide any more details, he said that the exact figure was based on detailed calculations drafted by international experts.

Schembri declined to comment when asked about the company’s performance in the last financial year which ended in March.

Grech welcomed the government’s decision to request state aid as a means to support Air Malta. 

Asked if the state aid was based on projections made when the airline had not yet fired most of its pilots, Schembri remarked that the request was meant to make the airline sustainable in the coming years.

Independent journalism costs money. Support Times of Malta for the price of a coffee.

Support Us