Former Air Malta chief lands deal for airline’s UK subsidiary

Air Malta has announced that it has concluded an agreement with the SMS Group of Companies for the sale of its UK-based tour operator subsidiary, Holiday Malta.

The SMS Group, whose executive director is former Air Malta chief executive Joe Capello, is a leader in tourism, shipping and cruise liner operations.

Air Malta said the transaction followed a rigorous process of competitive bidding and remains subject to the necessary regulatory approval and finalisation of this sale is anticipated shortly.

"Air Malta is looking forward to work closely with SMS and Holiday Malta to continue to promote the Maltese Islands as a preferred holiday destination that reflects the colourful, uniqueness and diverse characteristics of the islands. Holiday Malta will remain committed to the Maltese Islands as the leading Malta specialist tour operator from the UK," the airline said.

Air Malta CEO Peter Davies said the airline was delivering on its performance measures set forth in the approved EU Restructuring Plan.

"The aim of this transaction is two-fold, to divest ourselves from non-core operations and concentrate specifically on the airline operations and to continue to raise funds and contribute ourselves to the restructuring process.

"This is in line with the EU Commission's requirements that for every euro the airline received in assistance in the form of state aid, it has to raise an equal amount from the airline's own contribution."