EU EXPECTED TO SAY NO TO AIR MALTA CASH INJECTION

admin
By admin November 1, 2010 14:44

EU EXPECTED TO SAY NO TO AIR MALTA CASH INJECTION

The European Commission is expected to turn down the Maltese government’s proposal to inject €100 million into Air Malta’s shareholding capital. The Maltese government now has no option but to go for a restructuring and rescue plan in order the secure the airline’s long-term future. This new information confirms our editorial comment of last week.

EU rules permit the granting of state aid to Air Malta as long as this is just a one-time opportunity and is tied to a restructuring programme aimed at putting the airline on a sound financial footing.

Unless Air Malta’s cost base is brought under control fast, the airline is under threat of collapse, a disaster for an island state in the 21st century. Look to the government to both get tough and realistic about the airline’s future.

admin
By admin November 1, 2010 14:44
Write a comment

No Comments

No Comments Yet!

Let me tell You a sad story ! There are no comments yet, but You can be first one to comment this article.

Write a comment

Only <a href="http://www.aviationnews-online.com/wp-login.php?redirect_to=http%3A%2F%2Fwww.aviationnews-online.com%2Fairline%2Feu-expected-to-say-no-to-air-malta-cash-injection%2F"> registered </a> users can comment.