Dublin (TAN): Irish airline group Ryanair Holdings will acquire Maltese startup carrier Malta Air with plans to grow its business in the island nation.
With the acquisition, Ryanair, which claims to currently serve three million passengers in Malta, expects to expand its reach to non-European Union markets as well.
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Ryanair Chief Executive Officer Michael O’Leary said: “Ryanair is pleased to welcome Malta Air to the Ryanair Group of airlines which now includes Buzz (Poland), Lauda (Austria), Malta Air, and Ryanair (Ireland).”
“Malta Air will proudly fly the Maltese name and flag to over 60 destinations across Europe and North Africa as we look to grow our Maltese based fleet, routes, traffic and jobs over the next three years,” he continued.
The purchase is scheduled to be completed by the end of this month. Following the buyout, Ryanair will shift six Malta based aircraft, worth over USD600 million, onto the Maltese register.
O’Leary added: “Ryanair appreciates the expertise of the Maltese Civil Aviation Directorate (CAD) in licencing Malta Air to operate the B737 aircraft and we look forward to working closely with the Maltese authorities over the coming years as we hope to add over 50 more aircraft to the Maltese register.”
After the acquisition, Ryanair will also increase its Malta-based fleet to ten aircraft within three years and create over 350 jobs, brand its Malta-based fleet in Malta Air colours for Summer 2020, and move 200 Malta-based crew to local contracts.
The airline will transfer Ryanair aircraft from France, Italy and Germany onto the Malta AOC so that the crew can pay their income taxes locally in France, Italy and Germany instead of Ireland. In Ireland, the crew would be required to pay income taxes under Ryanair’s Irish AOC.
“The relationship between Ryanair and Malta has evolved into a successful collaboration. We welcome Ryanair’s commitment to operate and grow a fully fledged Malta-based airline which will contribute in a large way to the country’s development,” said Konrad Mizzi, Malta Minister for Tourism.
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“Ryanair’s continued partnership with the Malta Tourism Authority will help drive forward the vision of Prime Minister Muscat and Minister Mizzi to grow year round connections to all corners of Europe which will support increased tourism, business and jobs in Malta,” O’Leary said.
Although Malta Air is based in Malta, it is different from the country’s flagship airline Air Malta.
