The Maltese government is currently considering the dissolution of the national airline Air Malta. The background is that the labor costs are considered too expensive to be able to keep up with the competition from the low-cost segment. The Ryanair Group has been the market leader at Luqa Airport for some time.

This also comes amid government doubts that the European Commission will approve Malta's request for a €290 million state-funded coronavirus rescue package for Air Malta. The contingency plan would come into effect if Brussels did not authorize the government aid, which would result in the dismissal of the entire Air Malta workforce. New contracts based on current market conditions would be drawn up for any employees reinstated by the new state airline.

Following the example of Alitalia/Ita Airways, the aim in this scenario is for the existing sister company Malta MedAir to take over the role of today's Air Malta. This is currently mainly in ACMI and charter use. The company currently has three Airbus A320s and is waiting for the delivery of brand-new A320neos. Air Malta has also taken over slots in Gatwick and Heathrow.

Local media reports that not all routes will be taken over by Malta MedAir. Affected passengers should receive refunds or tickets for the successor airline. Air Malta has accumulated significant losses since at least 2005. Most recently, the intention was to part with around 600 employees who were supposed to get new jobs in the authorities, but the project has stalled because their salaries would be higher than those that the civil servants would receive.