An attempt by Air Malta for a second rescue plan has been stalled after the four unions involved expressed reservations.

Airline chairman Lawrence Zammit said yesterday Air Malta would now attempt to have talks with the unions individually with a view to reaching separate collective agreements.

Mr Zammit is still hopeful, however, that the airline can be saved. "If that were not the case, I would have resigned. The law obliges me to look at the sustainability of the company."

Last December, Air Malta's chairman and management met representatives of the unions and presented them with proposals the airline felt were necessary for its long-term commercial viability while safeguarding jobs. The company sought to enter into a two-year agreement with the unions so that the airline's financial turnaround, on which substantial progress has already been made, would be achieved and sustained.

The unions - the General Workers' Union, the Association of Airline Engineers, the Airline Pilots Association and the Union of Cabin Crew - were due to submit their reactions to the proposals by mid-January.

Sources said yesterday the unions met last month to discuss the proposals.

The cabin crew union and pilots association, however, expressed a preference to negotiate a collective agreement rather than start discussions on a second rescue plan.

The engineers association said it did not agree with the plan but was willing to discuss improving productivity and cost-cutting measures.

The GWU, on the other hand, wanted to know what burden the government and the airline were prepared to bear before embarking on negotiations.

The current rescue plan expires in July.

When asked how low-cost airlines were affecting Air Malta, Mr Zammit said increased competition had cut prices but the airline still intended to maintain its level of service.