Air Malta has been granted a temporary €52 million ($70.8 million) loan facility by the European Commission while it works on putting forward a restructuring plan.
The rescue aid is in line with European Union state aid rules because it is "limited in time and scope", says the EC.
"The Commission approved the measure temporarily, until it can take a position on the restructuring plan to be submitted by Malta within a maximum of six months," it adds.
Earlier this month, Maltese finance minister Tonio Fenech said the Government was intending to inject more than €100 million into Air Malta if it could secure permission for the funding from the EC.
Air Malta and the Maltese Government have been looking for ways to bolster the struggling carrier's finances since the beginning of this year.
Source: Air Transport Intelligence news