Air Malta Is ‘No Sacred Cow’ For European Commission, Finance Minister Warns Over State Aid Request
Air Malta is “no sacred cow” for the European Commission, Finance Minister Clyde Caruana has warned as the airline continues to struggle to stay afloat.
Speaking during his budget speech, Caruana said that the European Commission is still “evaluating its options” on Malta’s bid for state aid, which was submitted at the start of 2021.
The government remains in talks on the issue, but Caruana was coy about the potential outcome.
“We will not be getting any form of special treatment when countries and airlines far larger than ours did not,” he said.
However, he backed recent government action in the airline, warning that it would have folded if nothing was done.
The government has asked the EU to provide some €290 million to the airline. But officials in Brussels asked for a more realistic figure.
Still, sources are not optimistic that a deal will come to fruition and could be the final nail in the coffin for the crucial airline.
The government has undergone an extensive restructuring plan at Air Malta to make the airline financially viable.
However, it has run into a massive stumbling block with pilots and other staff, who were promised major golden handshakes upon their retirement from the airline.
Caruana previously said on ONE TV that it could end up costing the country some €200 million to address this issue.
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