The Maltese state is actually not allowed to pump further tax money into the state carrier Air Malta, because this has been prohibited since the last aid. The government is currently in talks with the EU Commission whether and, if so, in what form the state airline may be taken under the wings due to the corona pandemic.

Air Malta is currently posting high losses due to the long grounding phase and persistently low demand. At the same time, the state itself is putting pressure on the carrier with the airlines Malta MedAir and the Ryanair joint venture Malta Air. The first-mentioned airline previously flew exclusively for Air Malta and was colloquially referred to as the “wage dumping shack”. In the summer the strategy changed and the second state carrier was sent on the line on its own account.

Due to the subsidy ban for Air Malta, the endeavor of this airline is not that easy to take under the wings. In any case, it requires a special permit to be granted by the EU Commission. According to the Maltese Ministry of Economic Affairs, a formal application has now been made. The decision of the competition watchdog is still pending.