Air Malta (Malta International) and Alitalia (AZA, Rome Fiumicino) have officially confirmed talks over the Italian carrier's proposed purchase of a 49% stake in the Maltese national airline have now ended with no agreement reached.
Alitalia signed a Memorandum of Understanding with the board of directors of Air Malta and the Maltese government in April 2016 wherein it pledged to complete a comprehensive due diligence of Air Malta with the intention of becoming a 49% shareholder. The assessment was due to have been completed by late July with a formal decision to have been taken shortly afterwards.
However, following weeks of speculation, an official statement said the two Mediterranean carriers have now mutually agreed that 'significant changes in the aviation scene' have not created the ideal conditions needed for such a tie-up.
"Both companies have, therefore, decided to focus on their own overcoming the unique challenges they each face but without the signing of a partnership [agreement]," it said.
Though the equity talks have fallen through, the two airlines will continue to cooperate through a recently concluded codesharing agreement.
Commenting on the announcement via social media, Maltese Tourism Minister, Edward Zammit Lewis, said despite Alitalia's withdrawal, Air Malta had attracted interest from other unspecified strategic partners.
