'Government considering alternative offer for Air Malta' - report

After talks with Alitalia break down, government is reportedly in talks with Banayoti Holdings over purchase of Air Malta shares, the Sunday Times of Malta reported

The government is being reported to be considering an alternative bid for a 49.9% stake in Air Malta
The government is being reported to be considering an alternative bid for a 49.9% stake in Air Malta

Just days after the government's talks with Alitalia over the sale of Air Malta shares reportedly broke down, an alternative offer has been submitted for the minority shareholding in the country's national airline.

On Sunday, the Sunday Times of Malta reported that Banayoti Holdings, a private business empire based in the UK and Canada, has submitted a formal offer for a 49.9% stake in Air Malta. Banayoti Holdings is controlled by Ed Banayoti, the former husband of Princess Aisha of Jordan. The companies Facebook page states that the company is "looking to continue acquiring mid, and large size companies, and currently looking for such acquisitions in Europe."

"We can confirm that talks with the Office of the Prime Minister and other senior government officials are ongoing and that we have submitted a formal offer for the minority shareholding in Air Malta, currently for sale ... We are now awaiting an official response from the government, as it seems that they are still talking to Alitalia,” a spokesman for Banayoti Holdings told the newspaper.

According to the report, the company intends to increase the size of Air Malta's fleet of aircraft and has met with unions in a bid to allay fears that the airline's employees will lose their job.

The governemnt has denied reports that talks with Alitalia have fallen through, with tourism minister Edward Zammit Lewis insisting that talks are "still ongoing". The government's rebuttal was made after MaltaToday reported that Etihad - which owns 49% of Alitalia - decided against investing in Malta's national airline as it is dithering over its involvement in the Italian airline, which is reported to be losing €500,000 a day.

Etihad is questioning the utility of investing money in Air Malta, which has its own financial problems in addition to being in a position where the Maltese government is reluctant to carry out further restructuring before the 2018 general election.

Italian newspaper Il Giornale, today also reported that the deal had ‘collapsed’.

Earlier this year, Alitalia signed a Memorandum of Understanding with the Maltese government over the possible acquisition of 49% of Air Malta by the Italian airline, with the target date for an agreement being set for the end of August 2016. However, Prime Minister Joseph Muscat has publicly warned that no agreement will be signed if the deal does not benefit the Air Malta.