Banks are awaiting the conclusions of the four collective agreements between Air Malta and the Unions before they could green light any new credit facilities needed by the airline, the Times of Malta is informed.

After two years of not publishing its audited accounts, Air Malta is today expected to hold its annual general meeting.

Civil aviation industry sources said the airline will be posting losses of €14 million by the end of the last financial year, ending in March 2017.

The results contrast sharply with pledges made by former Air Malta Minister Edward Zammit Lewis and chairman Maria Micallef who had said that the airline would break even by March 2017.

However, following a new business plan presented to the banks, based on the reversal of strategies adopted during Labour’s first term in office, the banks have told the airline that they will provide the necessary credit if trade unions agree to new collective agreements.

According to sources, Air Malta is negotiating collective agreements worth an increase of €16 million in its payroll over the next five years.