KM Malta Airlines Chief David Curmi Earns €260K

David Curmi, Executive Chairman of KM Malta Airlines, is receiving a salary of €260,000 per year—an amount significantly above typical public sector remuneration in Malta. This sum is reportedly five times higher than the official salary of Finance Minister Clyde Caruana, under whose portfolio the airline falls. The appointment, salary, and background of Mr. Curmi have raised substantial public interest, not only due to the generous financial package but also because of his past tenure at the now-defunct Air Malta and the surrounding circumstances of its closure.

Contract disclosure follows legal challenge by The Shift

The details of Curmi’s contract were only made public following a protracted legal effort by independent news platform The Shift. The Finance Ministry initially resisted a Freedom of Information (FOI) request to disclose the contract terms. However, the matter was ultimately decided in favour of transparency when the Data Protection Commissioner ruled that the public interest outweighed the government’s reluctance to release the information. The ruling emphasized the importance of accountability, particularly when public funds are involved in high-level appointments.

A €260,000 salary for managing a smaller airline

The contract in question was signed on 1 December 2023, just months before the official dissolution of Air Malta. According to the document, Curmi’s salary at KM Malta Airlines remained consistent with his earnings at Air Malta—€21,500 per month, equating to an annual gross salary of €258,000. While such figures may be standard for international airline executives, they stand out as unusually high within the Maltese public administration context.

Moreover, while Air Malta was a larger and longer-standing operation, KM Malta Airlines is a considerably smaller outfit, currently operating on a reduced scale. Nevertheless, the same executive compensation structure has been maintained, prompting renewed public debate about proportionality and justification.

A continued high salary despite a failed track record

David Curmi, now 66, had no previous experience in the aviation sector prior to his appointment as Executive Chairman of Air Malta in 2021. He was brought in to spearhead a restructuring plan that would satisfy the European Commission's strict requirements for granting fresh state aid to Air Malta, which had already been suffering from longstanding financial difficulties.

However, the restructuring effort led by Curmi ultimately did not succeed. The European Commission rejected the proposed plan, citing inadequacies in the approach and a lack of long-term viability. Meanwhile, the airline continued to accumulate losses under his leadership, reportedly in the tens of millions of euros. These events ultimately led the government to shut down Air Malta entirely and launch a new publicly owned carrier under the name KM Malta Airlines.

Despite these setbacks, Curmi remained in his executive role, seamlessly transitioning from Air Malta to KM Malta Airlines under virtually identical remuneration terms. The main difference is that while his previous salary was covered directly by the Finance Ministry—since Air Malta could not afford to pay him—his current salary is paid directly by the new airline.

Government injects €440 million to establish new airline

The Maltese government allocated a substantial €440 million from state coffers to set up KM Malta Airlines. This figure includes coverage for past losses incurred by Air Malta, as well as severance payments for redundant staff and transitional costs related to rebranding and re-establishing routes.

Part of this funding went toward payouts for former Air Malta employees, many of whom were either laid off or redeployed within the public sector. In many cases, these former employees were offered new, permanent public service roles, prompting criticism over the sustainability of such practices and potential political patronage.

KM Malta Airlines begins operations on symbolic date

KM Malta Airlines commenced its operations on 31 March 2024, aligning with Freedom Day, a national observance marking the departure of British military forces from Malta. Despite the symbolic timing, the airline’s first months of operations have reportedly been less than promising.

While the company has yet to publish its first set of audited annual accounts, insider sources cited by The Shift suggest that the airline ended its initial year deep in the red. Operational progress is said to be limited, with a modest route network and underwhelming passenger load factors. These early performance indicators have raised questions about the viability of the government’s strategy and whether sufficient due diligence was conducted prior to launching the new airline.

Public criticism over executive pay and transparency

Public discourse around Curmi’s contract and the performance of KM Malta Airlines has largely centered on two key concerns: transparency and proportionality. Critics argue that a public company backed by hundreds of millions of euros in taxpayer funds should be held to higher standards of accountability, especially when appointing individuals with controversial records.

Moreover, the persistence of high executive salaries, even amid company underperformance, has become a flashpoint in wider debates about public sector ethics and financial stewardship. While defenders of Curmi’s appointment cite the need for continuity and expertise in managing a complex sector, others question whether merit or political patronage played a more decisive role in the appointment.

Legal implications and reputational risks for the government

The case of KM Malta Airlines and Curmi’s remuneration package carries wider legal and reputational implications for the Maltese government. The reluctance to release contractual details, followed by legal pressure and eventual disclosure, has contributed to a perception of secrecy and possible mismanagement.

While no formal allegations of wrongdoing have been made against Mr. Curmi, the surrounding circumstances—particularly the failure of Air Malta’s restructuring and the immediate reappointment to a new but related entity—pose reputational risks for both the government and its handling of state-owned enterprises.

In light of past legal correspondence between this publication and the subjects involved, care has been taken to present verified facts based on public documents and officially obtained records. The aim remains to inform public debate on matters of governance and financial accountability, without infringing on individual reputations or violating legal obligations.

Broader concerns about governance and public enterprise reform

The Curmi case is emblematic of broader structural issues in Malta’s public enterprise landscape. State-owned entities frequently suffer from political interference, a lack of performance-based accountability, and opaque financial practices. This incident adds to a growing list of concerns raised by civil society organizations and independent media about the need for reform in the management of public assets.

As KM Malta Airlines attempts to establish itself in a competitive regional market, the sustainability of its leadership model and operational approach will remain under scrutiny. With large sums of taxpayer money invested and considerable public interest at stake, the coming years will likely determine whether this new chapter in Malta’s aviation history will mark a turnaround—or simply a continuation of past failures under a different name.

Conclusion

The case of David Curmi’s €260,000 annual salary at KM Malta Airlines serves as a focal point for wider concerns surrounding governance, transparency, and accountability in Malta’s public sector. Despite leading Air Malta through a failed restructuring process that ultimately resulted in the airline's closure, Curmi was retained in a similar executive role at the newly formed national carrier—without a reduction in remuneration or an apparent reassessment of qualifications.

While government officials may argue that retaining leadership continuity was essential during a transitional phase, the decision to maintain such a high level of compensation—especially in the absence of demonstrable results—has drawn criticism from the public and watchdog entities. The delayed release of Curmi’s contract, only made possible through legal intervention, has further contributed to perceptions of opacity and eroded trust in public administration.

The challenges now facing KM Malta Airlines are not solely financial. The airline must also overcome the burden of public skepticism and prove that it can break from the troubled legacy of its predecessor. This will require not only sound financial planning and operational efficiency but also a commitment to transparent governance and merit-based appointments.

As the airline prepares to release its first financial accounts and develop its long-term business strategy, it must answer a critical question: can it justify the significant public investment and the confidence placed in its leadership? For KM Malta Airlines to succeed, the government must ensure that the mistakes of the past are not simply repackaged under a new name but are actively addressed through genuine reform and accountability.

FAQs

What is David Curmi's annual salary at KM Malta Airlines?
David Curmi is paid €260,000 annually, equivalent to €21,500 per month.

Was the public informed of David Curmi’s contract from the beginning?
No, the contract was only released after a successful Freedom of Information request and legal ruling by the Data Protection Commissioner.

Why was David Curmi’s salary paid by the Finance Ministry during his Air Malta tenure?
Air Malta was financially insolvent at the time, and could not afford to pay his salary directly, so the Finance Ministry covered it.

What led to the closure of Air Malta?
Air Malta was closed after its restructuring plan, led by Curmi, failed to receive approval from the European Commission, and the airline continued to incur heavy losses.

Is KM Malta Airlines a continuation of Air Malta?
While it is a separate legal entity, KM Malta Airlines effectively replaces Air Malta and inherited many of its staff and routes.

How much money did the Maltese government invest in the new airline?
The government allocated €440 million to establish KM Malta Airlines and cover past losses.

Has KM Malta Airlines released its first financial report?
No, as of now, the airline has not published its first set of audited accounts.

What experience did David Curmi have in the airline industry before his appointment?
Curmi had no previous professional experience in the aviation sector before being appointed Executive Chairman of Air Malta in 2021.

What was the public reaction to Curmi’s continued appointment?
There has been criticism over the decision, particularly due to his high salary and the failure of the restructuring plan at Air Malta.

Has the new airline shown signs of financial improvement?
According to reports, KM Malta Airlines ended its first year significantly in the red, with limited operational progress so far.