Tourism Minister Edward Zammit Lewis said this evening while delivering a ministerial statement in Parliament that government is committed to keep looking for a strategic partner for Air Malta.

Through such a partner, he explained, "Air Malta would find an extensive route network, better logistics etc."

He said that there is already interest from other airlines, but said he would not reveal more today due to "commercial sensitivity."

Government stopped discussions with Alitalia in the interest of Air Malta's interests, the interest of tourism in Malta, the route networks and the economic interests in general, he said.

The minister explained that there were also external factors which affected Alitalia which were out of government's control.

"In 2013 we found a company without a clear vision. We found an Air Malta in debt without a strategic plan, and with an EU restructuring plan. We found a management structure whose aim was to implement a five year plan when in fact were hired for three years.  The previous administration was sweeping the problems under the carpet and there was no plan to bring the airline back on its feet. There were millions spent on consultancies etc which we didn't need. In such a competitive sector this was not acceptable".

He said that this government gives value to the strategic importance of the airline. "We work to ensure it strengthens and expands in a regional context". 

"This government was clear, with regard to the Alitalia talks, that we would agree where we agree, and that Air Malta must remain as a brand and that government retain control."

He mentioned a number of decisions which were taken over recent years with regard to Air Malta, such as the rationalisation of the fleet, decisions regarding routes etc.

He said that management is looking at commercial decisions, and said that the tourism sector has not been affected by the changes that had to be done.

The minister said that he does not just want Air Malta to break even, but wants to look further ahead and create an effective commercial model. "I am convinced that together with stakeholders, including the opposition, we can reach this ambitious goal."

PN MP Claudio Grech expressed the opposition's disappointment at the minister using half his time speaking to criticise the Opposition, rather than to speak about what government is doing.

He criticised the choice of Alitalia in the first place. "A few days after the MOU was signed, the highest Alitalia official said that Alitalia would have zero risk and that it would cost them no investment".

"Everyone who works in Air Malta today, and those who worked before did all they can for the airline."

He said that the PN will continue to be constructive and contribute towards a solution for Air Malta. Government, he said, only held one meeting with the PN on Air Malta last June, and not a single meeting occurred since then. He said that he was only officially informed about the deal breakdown just a few minutes before it was made officially public.

He asked what the budget forecast for Air Malta is, what the net current liabilities, what was the result of the restructuring plan, whether it is true the airline is only operating with six aircraft, how the leasing from other airlines is impacting the brand, whether the minister can confirm that Air Malta is not having new €2 million terminal charges, can government tell us if it is ready to consider the PN's proposal for Air Malta, to look for local investment.

A number of PN MPs asked a number of questions, and made a number of statements including that confidentiality regarding who Air Malta is speaking with is an insult to transparency, and whether government will bankrupt the airline considering the minister previously said that government wants to see Air Malta reborn. The minister was also criticised for the partisan discourse in his ministerial statement tonight, and that he has not consulted with the opposition on Air Malta since last June.

The minister, in response said that what he said in his statement was factual. He also said that he gave a lot of information regarding Air Malta, rather than hiding behind the veil of confidentiality, as certain PN MPs alluded to.

The minister said that the net liabilities remained stable. He said that the majority of the restructuring goals and aims have been met, however the question of commercial viability remains, and this is the goal needed.

He said that the European Commission is kept informed as to what is going on. He said that the airline's losses through the restructuring plan went down.

The minister argued that the aviation sector is ever changing, and while the majority of restructuring goals were met in 2014 and 2015, which was important, competition increased, and other airlines entered into strategic routes for Air Malta. "Through the EU's open skies policy, which is a very good policy as it allows Malta to attract more airlines, the competition for Air Malta did increase".

The minister also said that the Libya question also affected the airline, to the tune of around €10 million. "There was a profitable route that could have kept high rates that was lost. There was also the situation in Russia where certain frequencies were lost."

Turning to terminal charges,  he said there are EU regulations which are regulated by Euro-control, and said that Air Malta, when compared to other airlines not stationed in Malta, are being discriminated against when it comes to fees. We are working on it but it is an EU regulation that has a direct implication as to how things are done.

The minister said that government will continue reducing overheads.

The minister said that government never excluded the idea of local investors, but there also needs to be a strategic partner that gives access to IT systems, a larger route network etc. "We will look at local investment, but not look at local investment on its own."

He stressed that government control on the airline is of the utmost important.