The losses incurred by Medavia throughout the Libya crisis "were not insignificant", the company's general manager said this morning.

Joe Formosa said during a visit by Finance Minister Tonio Fenech that prospects, however, were looking good as oil companies have started to return to Libya.

"We will recover," Mr Formosa said confidently.

Medavia operates exclusively in Libya and its business was hard hit when the conflict started last February.

Mr Formosa said the company had not laid off any of its more than 100 workers, however, through government assistance, it deferred a number of tax payments to mitigate the effect on its cash flow.

The company utilised this period to obtain international certification that allows it to carry out innovative engineering and design changes on large and small aircraft.

It also invested in new workshops and offices at its hangar in the Safi Aviation Park.

Mr Fenech said that more than 70 companies had approached Malta Enterprise for assistance when the Libya crisis erupted.

Through a scheme under the Vat Act, he said, companies had their dues automatically postponed to release the pressure on an already strained cash flow.

He congratulated Medavia for using this period to train its staff and to aid humanitarian efforts.