I fly Air Malta quite frequently and believe that this investment is needed to bring the airline to the forefront of operators to the island. AM is constantly under pressure from Ryanair and easyJet who are making inroads into AM's services.
Many people believe that the locosts are cheaper but that isn't necessarily so. I costed AM versus easyJet for my last trip (I flatly refuse to even think about Ryanair) and found that the AM fare, with 23kg baggage allowance and two cabin items, in my case a full camera bag and laptop computer bag was cheaper than easyJet with their £27 charge per bag and minimal size one piece of cabin baggage.
Factor in the fact that you get a meal, free soft drinks, reserved seating 24 hrs before flight time, print your own boarding passes, better UK to Malta flight departure times etc. and the choice really is a no-brainer.
(BIG TIP.....if you do travel with the locosts, especially Ryanair....use a cabin bag of the approved dimensions and carry a tape measure with you. The cheeky bastards have measuring devices that are smaller than the allowance and they try to con you that your cabin bag is too big and must be paid for. Some check in staff try to say that the measurement is from the outside of the tubes forming the measuring device which is utter rubbish. The tape measure can then be used to blow that plan out of the water.)
If it 'ain't broken........ Don't try to mend it !