16-Nov-2010 11:27 AM

EC temporarily authorises EUR52m rescue for Air Malta

European Commission accepted (15-Nov-2010) a request by the Maltese Government to provide Air Malta with temporary financial assistance to keep it operating while a rescue and restructuring plan is developed and agreed upon. The European Commission stated separately it had authorised an EUR52 million facility for Air Malta to tackle liquidity problems, in line with state-aid rules which limit the time and scope of assistance. The Commission approved the measure temporarily, until it can take a position on the restructuring plan to be submitted by Malta within maximum six months. The measures are expected to have a very limited impact  on other European Member States. [more]

European Commission: "The approval of the state support to Air Malta is only temporary to avoid a sudden disappearance of the airline which would lead to serious disturbances in the Maltese economy,"  Joaquín Almunia, Commission Vice-President in charge of competition policy. Source: European Commission, 15-Nov-2010.

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