Maltese Airline still ailing as latest offer failed, EU negotiations restarted

Local media has reported that an offer by Banayoti Holdings Ltd to buy a stake in Air Malta was turned down, as it was deemed not to fit with the government strategy for the Airline.

This has led to the restart of negotiations with the European Commission in order to obtain permission for further financial support by the government for the ailing national airline.

A partial sale of Air Malta to Banayoti Holdings Ltd, a UK-based company, had possibly been negotiated over the summer months. However following the commissioning of a due diligence report on Mr Banayoti and his companies, the offer was rejected.

There are currently talks between Airmalta and Italian airline Alitalia regarding a potential partnership, however the fact that negotiations with the European Commission have been reignited by the Maltese government indicate that these talks did not bear fruition.

Malta's previous government had managed to negotiate a 200-million-euro (about 212 million U.S. dollars) injection into Air Malta tied to a five-year restructuring plan.

However by the end of 2013 it became evident that the final targets set for 2016 by the airline would not be reached. The Maltese airline's future appears to be uncertain as strict EU rules state the Maltese government cannot provide further funding to the airline. Endit