The government is expected to launch a new airline that will replace Air Malta on Monday, The Times report.

The development comes at the end of years of discussions with the European Commission.

The changes to Air Malta will appear “almost seamless” for passengers, with no disruption to flight schedules, the retention of the same number of aircraft and with the airline name remaining unchanged, sources told the newspaper.

More details are to be given during a news conference by Finance Minister Clyde Caruana on Monday.

Discussions with the EU came to an end with Brussels rejecting the government’s request for State aid to be given to the ailing national airline.

Malta asked Brussels for permission to pump €290 million into the airline in a last-ditch attempt to save it, proposing a five-year State aid financing plan intended to help turn the company into a sustainable, profit-making enterprise.

The company will be called KM Malta Airlines plc, with changes expected to Air Malta’s aircraft livery.