European Commission asks to curtail Air Malta state aid


The European Commission reportedly rebuked a €290 million state-aid proposal to Air Malta, asking the Maltese government to curtail the sum.

In mid-April 2021, the Maltese government sent to the European Commission a quinquennial refinancing plan proposal for Air Malta amounting to €290 million. This was already the second attempt from the authorities at supporting their national carrier, after the first proposal in December 2020 was sent back to the drawing board. 

After the second proposal was submitted, the Minister for Finance Clyde Caruana told the Malta Independent that the airline would have “weeks to live” if the European Commission was to refuse the plan.

But judging that €290 million in state aid was disproportionate, the European Commission now asked Malta to revise the amount downwards by around €100 million, according to sources quoted by the Times of Malta. “The talks are of a very technical nature but the global figure was deemed too high and we will have to come up with a more realistic funding plan,” the source said. In addition to the lowered sum, new conditions may be added.

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