The loss-making carrier will operate until 30 March 2024 when it will be replaced by a new national carrier, KM Malta Airlines.
The change comes after the European Commission refused to permit the Maltese government to fund a near €300 million bail-out of Air Malta - under European law, member states are forbidden to give cash injections to troubled government-owned airlines.
Instead, a partial privatisation will see the Malta government retain a majority share in the new company while seeking a strategic partner.
