EU EXPECTED TO SAY NO TO AIR MALTA CASH INJECTION

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By TESTCustomwebLP TESTCustomwebLP 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.

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By TESTCustomwebLP TESTCustomwebLP November 1, 2010 14:44
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