News that Cyprus Airways has gone bust will only strengthen Malta’s resolve to take the difficult and necessary decisions to save the national airline, Air Malta chairwoman Maria Micallef said yesterday.

Ms Micallef was contacted after the European Commission’s decision on Friday to order the ailing Cypriot flag carrier to refund over €65 million it had received in State aid.

Under the €230 million restructuring programme agreed with Brussels in 2012, Air Malta must become commercially viable by next year as from then onwards State aid will no longer be an option.

Following an encouraging start, the airline’s five-year plan has suffered setbacks. Last year the airline failed to break even, prompting questions over its future.

This only strengthens our resolve to take the difficult and necessary decisions

Asked for a reaction on the possible implications of the drastic action taken by Brussels which effectively caused the Cypriot airline to collapse, Ms Micallef told The Sunday Times of Malta that this was another stark reminder of how the European Commission was monitoring restructuring plans.

“It is now clearer more than ever for all that we have to achieve our targets without fail,” the Air Malta chairwoman remarked.

“This only strengthens our resolve to take the difficult and necessary decisions to ensure a positive outcome for the country, the national airline and all its employees and partners,” she added.

European Competition Commissioner Margrethe Vestager said that Cyprus had provided no evidence that the airline faced “exceptional and unforeseeable” circumstances that would have justified additional State aid, following the 2007 rescue package.

She added that the airline had received large quantities of public money but that it was nevertheless unable to become viable without the continued support of the Cypriot government.