The Maltese government has set in motion its restructuring plan for Air Malta (KM, Malta International) with the announcement that the carrier's Ground Handling operations are to be hived off into a separate state-owned enterprise.

In a statement, the administration said the move had come after an agreement with the General Workers’ Union was reached and signed this week. Under the deal, workers in affected sections, which include Ground Handling Service Operations, Ground Equipment Maintenance, and Cargo Operations, will be transferred to the new company which will then provide services to Air Malta and other airlines.

The yet-to-be-named firm will feature a new business plan in order to generate further growth, investment in new equipment, and generate new business.

As such, Air Malta's bottom line is expected to benefit significantly from the unbundling process given it will be able to focus on its core operations - flights - while purchasing services according to demand.