Brussels, 25/01/2012 (Agence Europe) - The European Commission opened an in-depth investigation on Wednesday 25 January to assess whether a €130 million restructuring aid for the Maltese state-owned airline Air Malta is in line with EU state aid rules. The opening of an in-depth investigation allows interested third parties to comment on the measures under investigation. It does not prejudge the final outcome.
In November 2010, the Commission authorised a loan facility of €52 million for Air Malta as rescue aid. The Maltese authorities pledged to notify a restructuring plan within six months after the rescue aid decision. In May 2011, Malta informed the Commission of a €130 million capital increase to help restructure the company, which has been experiencing financial difficulties for several years. The underlying restructuring plan covers a five year restructuring period from 2011 to 2016.
The Commission has doubts whether the notified restructuring plan complies with the requirements of the 2004 EU Rescue and Restructuring Guidelines. It is concerned that the forecasts on long-term viability may not be sufficiently realistic and that the proposed capacity reduction may not be appropriate to compensate for the distortions of competition created by the state support. The Commission also has doubts as to whether Air Malta's own contribution to the restructuring cost is sufficient. Finally, the Commission needs more information to determine whether Air Malta is eligible for restructuring aid in view of a capital injection carried out by Malta in 2004. (LC/transl.rt)