The Maltese government has announced its decision to close the unprofitable airline, Air Malta, in MAR 2024. However, Prime Minister Robert Abela announced in a release on Monday, 02OCT, that the nation will promptly introduce a replacement carrier.
The successor airline will go by the name "KM Malta Airlines" and use the same aircraft. Abela emphasized that customers can expect a mostly uninterrupted transition, though some non-profitable routes will be scrapped. While Air Malta had 37 operational routes in 2019, the new entity will only maintain 17.
KM Malta Airlines will commence operations on 31MAR 2024, subject to the new airline obtaining the necessary authorizations from the Maltese Civil Aviation Directorate. The carrier will, at inception, have the Government of Malta as its sole shareholder.
Prime Minister Robert Abela reiterated Malta's commitment to maintaining a national airline with a "sustainable and realistic business model."
The central objective behind this change, as Abela stated, is to establish a financially viable airline that doesn't continuously depend on governmental financial backing except for initial capitalization.
According to the PM, the airline will retain its current 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 for Finance and Employment Clyde Caruana stated that significant work was undertaken with "international industry experts" to develop a credible five-year business plan based on two central drivers – an efficient network and a well-planned fleet.
The route network has been designed by SABRE, connecting Malta to the capital cities and primary airports of mainland Europe and beyond.
This "organic point-to-point network" will be supported by existing and new codeshare partnership agreements with major airlines operating from key European transit hubs, which provide important connections to their long-haul international services. The core network will continually be reviewed to identify new opportunities for commercial growth.
Malta will operate a single-type aircraft fleet of eight Airbus 320NEOs, in a two-class configuration with a flexible premium-class cabin averaging 168 total saleable seats with up to 36 premium-class seats. The Airbus 320NEOs were chosen due to their fuel efficiency, operating cost, and environmental performance, with reduced CO2 emissions per passenger and noise pollution. In line with industry best practice, the fleet will comprise a mixed owned and leased ownership structure for aircraft and spare engines.
Air Malta will cease operations on 30MAR 2024. Air Malta will honour all tickets for flights up to this date. Flights with travel dates 31MAR 2024 and after will be operated by the new airline. Furthermore, all Air Malta employees will be given the opportunity to work with the new airline.
Air Malta verified that it intends to refund customers the total cost of any tickets already issued with travel dates on or after 31MAR 2024. Refunds are guaranteed by the Government of Malta as the principal shareholder of Air Malta. From 01DEC 2023, tickets which have been refunded by Air Malta as part of this transition will have the opportunity to book the same flights with the new airline.
More information on Air Malta's website.
