Air Malta ceased operations replaced by new Airlines

Air Malta ceased operations on 30 March 2024, after European Union regulators blocked
another public bailout for the flag carrier of Malta, ending its 50 years of operations.

Air Malta would be succeeded by another airline, KM Malta Airlines, which would also serve
as the new national airline for Malta. KM Malta Airlines would be operating 8 Airbus A320neo
Aircraft, while employing 375 employees, according to a pledge made by Malta’s Finance
Minister Clyde Caruana. This comes as he comments on the state of inefficiency of Air Malta
“Air Malta had 1,500 employees for 8-9 planes.

With 1,500 employees, they could probably make the planes fly by hand! Things can’t keep going on like this.” The closure of Air Malta comes amidst its long history of inefficiency and mismanagement, together with the advent of low cost airlines which were able to out-price Air Malta.

Furthermore, the European Commision has refused to allow the Maltese government from
injecting €290 million into the ailing airline to prevent it from collapsing in August 2022, as
reported by The Shift. This is not the first time Air Malta had to receive a cash injection, with
Air Malta also receiving €130 million in 2012 after 2 years of talks, on the condition that it
implements a strict restructuring plan and return to profitability by 2015.

A New Beginning?
KM Malta Airlines is set to take to the skies on 31st March 2024, with it operating a leaner
fleet with a focus on efficiency. Utilising a fleet of 8 Airbus A320neo Aircraft, they will be
flying to 17 destinations including London-Heathrow, Paris, Zurich and Vienna, discontinuing
routes that are unprofitable for the airline. KM Malta Airlines also plans to add a route to
Copenhagen in its third year of operations.

Pilots and cabin crew of Air Malta, the predecessor airline, would have four years to benefit from the early retirement scheme, after which the benefits are forfeited. However, opting for the Early Retirement Scheme would forfeit pilots from working in the public sector permanently, while Cabin Crew would have to wait for 6 years. This is a change from the previous system, where pilots get to enjoy two-thirds of their salary over 10 years and which the Finance Minister plans to terminate.