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