The Maltese government has held talks with Hainan Airlines (HU, Haikou) over the Chinese carrier's possible acquisition of a stake in the country's loss-making national carrier Air Malta (KM, Malta). Malta also held talks with Turkish Airlines (TK, Istanbul Atatürk) management in May to sound them out over their own possible purchase of a stake in the airline.
In its report, local paper Il-Mument claims Malta's Minister for Tourism, Edward Zammit Lewis, and Minister of Foreign Affairs, George Vella, have already held high-level talks with Hainan Airlines management. In March, a delegation was in Valletta ostensibly to discuss the launch of flights between China and Malta though it is now believed the talks also touched on the sale of the airline.
The bid, which reportedly has Beijing's blessing, will likely be for a minority shareholding in the carrier given existing European Union laws which cap foreign ownership of local carriers at 49%.
Currently in the process of being restructured as part of a EUR130 million EU-sanctioned government bailout, Air Malta had expected to break even this year though new projections indicate it will likely register yet another annual loss.
