Brussels, 16/11/2010 (Agence Europe) - On 15 November, the European Commission authorised a temporary loan facility worth €52 million from the Maltese state to save Air Malta from bankruptcy. It is seeking to “avoid a sudden disappearance of the airline which would lead to serious disturbances in the Maltese economy,” said Competition Commissioner Joaquín Almunia.
While Air Malta is a small airline carrying less than 1% of intra-EU air traffic of passengers, it is of great economic importance to the island which is heavily reliant on tourism. Tourists make up more than 50% of Air Malta's passenger traffic and of the roughly 133 destinations served from the Malta international airport, more than half are operated only by Air Malta.
The short term loan seeks to tackle liquidity problems at the airline. The Commission authorised it because the aid amount is limited to what is needed to keep the company in business over the next six months and on condition that the state pledges to submit a restructuring plan for the company within six months. Failure to do so will mean that Air Malta will have to reimburse the loan or go into liquidation. (F.G./transl.rt)