The government and Air Malta yesterday insisted they will not be breaching EU State aid rules and the provisions of the airline’s restructuring plan with the direct sale of the Selmun Palace Hotel to the government.

The Selmun Palace Hotel is being acquired by the government. Photo: Darrin Zammit LupiThe Selmun Palace Hotel is being acquired by the government. Photo: Darrin Zammit Lupi

As part of its efforts to return to the black by 2015 under an agreement with the European Commission, the ailing airline must sell off some assets, including the hotel.

After failed attempts to sell the hotel on the open market, Air Malta has now agreed to sell it to the government to meet the deadline envisaged by the five-year plan.

Answering a parliamentary question on Monday, Tourism Minister Edward Zammit Lewis said a competitive process would be announced within the next few months, leading to the renewal of operations at the hotel.

Read more on Times of Malta.

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