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Thursday, 28 June 2012 08:54

Europe backs restructuring aid for Air Malta

European Commission says €130 million in aid complies with EU rules

Following an in-depth investigation, the European Commission has concluded that €130 million in aid given to the state-owned airline Air Malta for restructuring is in line with EU state aid rules. The commission found that the restructuring plan “adequately addresses the financial problems of Air Malta”. The restructuring measures include significant capacity reduction and the sale of assets, and these should ensure long-term viability without continued state support, while avoiding distortions of competition.
In November 2010, the commission authorised a loan facility of €52 million for Air Malta as rescue aid, subject to the submission by the Maltese authorities of a restructuring plan within a six-month period. In May 2011, Malta notified the commission about a €130 million capital increase to help restructure the company, which has been in difficulty for several years.
Europa
[pictured: Air Malta Airbus A320-200]

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