Air Malta cuts costs on outstations

The streamlining of Air Malta's outstations, which is part of the airline's bid to reduce costs, has saved it nearly Lm500,000 over the past year, chief operating officer Joe Cappello said.

The review of outstations was an integral part of the rescue plan agreement signed with the four unions last year. The restructuring of outstations is expected to yield Lm1.35 million in cost savings over three years.

Air Malta has now closed its outstation offices in Egypt and Morocco and is being represented there by general sales agents. The Air Malta Dutch and Belgian offices have been amalgamated under one management responsible for the whole Benelux area and which is now based in Brussels.

The office in Milan is being closed down and all the activities are being transferred to the airline's Rome offices while the Zurich office will be manned by local staff and will be managed from head office.

Maltese staff based in the London, Paris and Frankfurt offices have been reduced.

Air Malta has also closed down its London Heathrow Terminal 4 office.

Instead, KLM, which provides Air Malta with handling services at this airport, has undertaken general supervision and operational coordination.

Heathrow will retain the services of a station manager to ensure service delivery and quality levels.