I have already discussed the fact that you can now redeem KMiles on Lufthansa flights.
However, it is important to remember that as part of Air Malta’s de facto (i.e. unofficial) membership of the Miles & More collective, you can both:
– Earn and redeem KMiles with Lufthansa AND
– Earn (and redeem*) Miles & More points with Air Malta.
As a result, I would always advise any Malta-based or bound traveller to be a member of both frequent flyer programmes, and the general rule is that you should collect KMiles on Air Malta flights, and Miles & More points on Lufthansa flights.
*I should note that it’s currently far from clear to me how you do redeem your Miles & More points with Air Malta, but it’s apparently the case. I will be looking into this one and updating shortly.