Updated: 'Air Malta has to become profitable'

Air Malta has no option but to become profitable, chairman Louis Farrugia said this morning. Speaking on the airline’s restructuring process during the annual general conference of the Malta Hotels and Restaurants Association, Mr Farrugia said that it was only once the airline was profitable that it could attract new funding. Under state aid rules Air Malta cannot receive state funding for the next 10 years so the only way to expand was through a private capital injection “which will only be forthcoming if profits are made,” he said. He noted that, in November 2010, the government applied to the EU commission for approval to give the airline a €52 million emergency loan that was “extremely vital for the airline to continue operating until such time the government be granted permission to inject State-aid funds”. Chief executive Peter Davies noted that had it not been for this loan, Air Malta would not be here today. Easyjet’s Ali Gaywar announced during the conference that the British low-cost airline will be increasing its weekly flights to Manchester from five to six next summer, to cater for an additional 10,000 passengers.