Despite the fact that the government is rumoured to be seeking ways and means of injecting more capital into the struggling national airline Air Malta, the European Commission has confirmed that no more state aid will be permitted.

It was recently reported that the government had restarted negotiations with the European Commission to get the go ahead to inject more funds into the beleaguered airline, as talks over a merger with Italian carrier Alitalia had floundered.

But European Commissioner for Competition Margrethe Vestager said in unequivocal terms this week that, “In view of the previous restructuring aid to Air Malta approved in 2012, the airline is currently not eligible to receive any further rescue or restructuring aid” – in line with the EU’s ‘one time, last time’ principle when it comes to state aid.

Cypriot Socialist MEP Costas Mavrides had recently cried foul over state aid being given to national airline Air Malta, and demanded answers from the European Commission over what he described as “illegal” plans for the Maltese government to absorb the airline’s debts and “secret subsidies” being given to Air Malta by the Malta Tourism Authority.

Commissioner Vestager, however, has dismissed the claims and insisted that, “There is currently no pending state aid case concerning Air Malta and the Commission is not aware of any concrete aid measure having been granted by the Maltese Government to this company.

“However, the Commission is monitoring the developments regarding Air Malta in order to safeguard compliance with the EU State aid rules.”

Mr Mavrides had noted that, “In 2012, the Commission concluded that the €130 million of aid granted to the state-owned airline Air Malta for its restructuring was in line with EU state aid rules.

“According to the Commission, the restructuring measures foreseen, which included a significant capacity reduction and the sale of assets, should ensure the airline’s long-term viability without continued state support, while avoiding undue distortions of competition.”

Mr Mavrides had also questioned why the Commission had not applied the same treatment in the case of Cyprus Airways when the company was driven to closure.

However, Commissioner Vestager insisted that, “The Commission assesses each state aid case on its own merits while applying the rules in an objective and non-discriminatory manner.

“In the case of Cyprus Airways, the Commission found that illegal and incompatible aid had been granted to the airline, including a breach of the one time, last time principle.

“As explained above, the same rules equally apply to Air Malta.”