TORONTO — The Maltese Islands has announced a new national airline that will take off on March 31, 2024.

Called KM Malta Airlines p.l.c., the new company will essentially replace Air Malta, which will cease operations on March 30, 2024. Customers can continue to book and purchase tickets as normal, with Air Malta honouring all tickets for flights up to March 30. Flights with travel dates from March 31 onward will be operated by the new airline.

Air Malta will refund customers the total cost of any tickets already issued with travel dates on or after March 31, 2024. Refunds are guaranteed by the Government of Malta. From Dec. 1, 2023, customers whose tickets are refunded by Air Malta as part of this transition will have the opportunity to book the same flights with the new airline.

According to Malta’s Minister for Finance and Employment, Clyde Caruana, it would not have been possible for Air Malta to become viable without continued state subsidies. So in agreement with the European Commission, the Government of Malta decided to establish a new airline built on a realistic business model.

“Throughout our discussions and negotiations with the European Commission, I have always insisted on the importance of our country to have a national airline,” said Minister Caruana. “We consider our national airline to be a critical part of the infrastructure of our Islands, and the air connectivity that the national airline provides is inextricably linked to the economic growth and success of the Maltese Islands.

“In the absence of a solution for the capitalization of Air Malta within the parameters of EU state aid rules, it has been decided to establish a new airline from a clean sheet – a new airline that builds on the many strengths of Air Malta but with a strong focus on long-term financial sustainability.”

Malta’s Prime Minister Robert Abela assured that the airline would retain its current workforce, fleet size and route network. The establishment of KM Malta is still subject to it obtaining the necessary authorizations from the Maltese Civil Aviation Directorate. Upon inception, the Government of Malta will be its sole shareholder.

THE NETWORK & FLEET

KM Malta’s five-year business plan is based on two central drivers: an efficient network and a well-planned fleet. 

The route network, designed by SABRE to ensure optimal connections to capital cities and primary airports in mainland Europe and beyond, will initially include a total of 17 routes, with increased frequencies added on some existing mature routes. The point-to-point network will be supported by existing and new codeshare partnerships with major airlines operating from key European transit hubs.

Upon launch, KM Malta will offer a fully unbundled product with economy and premium services. It will operate a single type aircraft fleet of eight Airbus 320neos in a two-class configuration, with a flexible premium-class cabin averaging 168 total saleable seats with up to 36 premium class seats. The fleet will comprise a mixed owned and leased ownership structure for aircraft and spare engines.

Minister Caruana added: “We also expect the new airline to prioritize its commitment to sustainability. This will mean aligning its policies with the UN Sustainable Development Goals and Malta’s Sustainable Development Plan 2025, which set out our long-term aspirations and priorities for sustainable development, and to take the necessary measures to comply with the requirements of the EU Green Deal and Fit for 55 policy objectives to mitigate its environmental impacts.”

More details will be released by Air Malta in due course.