November 17, 2020

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November 17, 2020

Luqa: Government submits state aid requests for Air Malta in Brussels

The Maltese state is not actually allowed to pump any more tax money into the state carrier Air Malta, as this has been prohibited since the last subsidy. The government is currently in talks with the EU Commission about whether and, if so, in what form the state airline can be given a helping hand due to the corona pandemic. Air Malta is currently making high losses due to the long grounding phase and persistently low demand. At the same time, the state itself is putting pressure on the carrier with the airlines Malta MedAir and the Ryanair joint venture Malta Air. The first airline has so far flown exclusively for Air Malta and was colloquially referred to as a "wage dumping company". In the summer, the strategy changed and the second state carrier was sent on the route on its own account. Due to the ban on subsidies for Air Malta, the undertaking to give this airline a helping hand is not that easy. In any case, it requires a special permit to be granted by the EU Commission. According to the Maltese Ministry of Economic Affairs, a formal application has now been submitted. The decision of the competition authorities is still pending.

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