It’s an enormous day for aviation in Malta… kind of. From in the future to the subsequent, Air Malta has ceased operations after over 50 years, and has been changed by KM Malta Airways. Why? Properly, primarily to get round European Union restrictions concerning limits on state support.
Air Malta ceases operations resulting from an excessive amount of authorities support
Air Malta has stopped flying as of March 30, 2024. For context, Air Malta was Malta’s nationwide airline since 1973, working a fleet of Airbus A320-family plane to Europe, North Africa, and the Center East. The federal government of Malta considered the nationwide airline as an essential a part of the nation’s financial technique, by offering direct hyperlinks to and from the nation.
Sadly Air Malta has been exceptionally unprofitable — the airline has misplaced cash for a few many years. Amazingly sufficient, the federal government of Malta was completely satisfied to maintain pouring cash into the airline, however there was one main difficulty.
European Union laws require that if firms obtain authorities support, they have to turn into commercially viable inside 10 years, and the federal government can’t inject more cash into these airways inside that timeframe.
Within the case of Air Malta, the airline obtained authorities support in 2012, after which it bumped into monetary difficulties once more in 2020. Malta had requested the European Union for permission to speculate one other €290 million into the airline as a ultimate effort to make it worthwhile. Malta’s authorities proposed a 5 12 months plan, with the aim of the airline being worthwhile by the top of it.
That was finally rejected, however that hasn’t deterred Malta from its aim of sustaining a nationwide provider.
KM Malta Airways is Malta’s new nationwide airline
Air Malta ceased operations on March 30, 2024, and KM Malta Airways launched operations on March 31, 2024. What’s completely different between Air Malta and KM Malta Airways? Maybe most importantly, this enables Malta to skirt European Union laws concerning state support.
Past that, KM Malta Airways seems mighty just like Air Malta. KM Malta Airways has launched operations with eight former Air Malta Airbus A320-family plane. The airline has round 400 employees, virtually all of that are former Air Malta employees.
Maybe we’re seeing a slight technique shift with KM Malta Airways, because the airline is adopting a method of specializing in key European markets, linking Malta with the principle capital cities in Western Europe (with no preliminary service to North Africa or the Center East). KM Malta Airways even has a codeshare settlement with Lufthansa Group, permitting the airline to attach into the lengthy haul networks of airways like Lufthansa and SWISS.
For the summer time of 2024, KM Malta Airways is serving 15 European cities, comprised of Amsterdam (AMS), Berlin (BER), Brussels (BRU), Catania (CTA), Dusseldorf (DUS), London (LGW & LHR), Lyon (LYS), Madrid (MAD), Milan (LIN), Munich (MUC), Paris (CDG & ORY), Prague (PRG), Rome (FCO), Vienna (VIE), and Zurich (ZRH). In the summertime of 2024 schedule, the airline is promoting 1,430,000 seats, working 284 weekly flights, and has a mean plane utilization of simply over 12 hours per day.
Backside line
Air Malta has ceased operations, and has been changed by KM Malta Airways. It is because Air Malta had been dropping cash for years, to the purpose that the airline was violating European Union laws concerning state support. With the airline principally being compelled to close down, the federal government of Malta is now launching a brand new airline, which seems fairly just like the previous one.
The federal government of Malta insists the brand new airline will turn into worthwhile inside a number of years, so let’s see how this performs out…
What do you make of the airline scenario in Malta?
