Air Malta (KM, Malta International) management are in regular contact with their counterparts at Turkish Airlines (TK, Istanbul Airport) over a possible strategic partnership the Times of Malta has reported.

Company sources who spoke to the publication said talks revolved around the privatization of the airline which is currently in the process of being restructured as part of a European Commission-sanctioned government bailout of EUR130 million extended in 2010.

“The discussions are focused on a strategic partnership with Turkish Airlines, who are seeking to expand further,” the sources said. “The government is currently leaving all its options open and is not excluding anything. Discussions range from a strategic partnership to full takeover of Air Malta.”

Last year, chairwoman Maria Micallef said the company would have to consider its market position post-restructuring adding that at its current size, Air Malta would never be able to achieve the economies of scale needed for long-term sustainability beyond 2016.

Currently, the Maltese national carrier operates five A319-100s and six A320-200s on flights to forty destinations in eighteen countries scattered throughout western and eastern Europe as well as North Africa (excluding Libya).