Prime Minister Joseph Muscat yesterday ruled out any immediate plan to sell part of the government’s shareholding in Air Malta.
He insisted the national carrier’s restructuring agreement with the EU had to be seen through in its entirety when it expires next year.
Dr Muscat was asked about the issue after he compared Air Malta’s future fortunes with those of Enemalta when addressing party supporters in Naxxar on Tuesday. Some interpreted his comments as an indication that the airline would be partly sold to a Chinese company.
We see Air Malta turning around and being a contributor to the economy
But Dr Muscat put paid to the speculation: “Part-privatisation is not in our plans for the time being.”
He clarified that the comparison he used referred to the fact that Enemalta was no longer an albatross around the economy’s neck after a deal was reached with a Chinese energy company to invest in the corporation.
“We see Air Malta turning around and being a contributor to the economy as we did with Enemalta. To do so, the airline has to expand its operations,” Dr Muscat said, adding Air Malta could become a regional operator.
No plans for a sale
Under the terms of a restructuring plan that was agreed with the European Union in 2012 the government was allowed to give the company financial aid to the tune of €160 million as long as the airline cut its workforce, reduced its route network and became profitable.
The plan expires in 2015, by which time the air carrier should be turning a profit.
Air Malta ran into financial trouble four years ago when the government had to issue an emergency loan for €52 million to keep it afloat.
The EU accepted the State aid on condition that the airline was restructured.
The airline celebrated its 40th year of operations last month.
kurtsansone@timesofmalta.com