Ryanair Holdings is in the process of setting up a new airline in Malta, transferring its existing routes and fleet in the country to the new unit, dubbed Malta Air.

As part of the agreement, Ryanair will double its fleet in Malta to 10 aircraft, and add several new routes to the exiting 61 routes currently being flown to/from the island.

Additionally, Ryanair will establish a maintenance center and hangar in Malta.

Final talks with the Maltese government are wrapping up, with the government holding golden shares should the new airline be one day sold.

Rumors that the new venture would dispel Air Malta were dismissed by the government as the two carriers don't directly compete.