Government 'committed to seeking solutions' for Air Malta

C Muscat

Jan 13th 2010, 22:47

Are there still the people in the head office who used to gladly stare at the ceiling and other people at the head office working for them? No Union ever made a difference so if the time has come for people to make some space for those who really work i think its about time they do as im sure its too late to start learning a job now after so many years of (dis) service.

Alex Brincat

Dec 26th 2009, 21:40

@ C Polidano.

True but the 787 (not to mention the other 737 variants that Airmalta could use) can be used for the Malta - UK, other norther routes, Dubai route and maybe open the option to new currently unexplored routes. The 787 could offer fuel flexibility as refuelling can be done less frequently at foreign airports. In addition it uses less fuel!!!

And who says that Airmalta could not start thinking to the possibility of operating a route to New York using a 787-8 or even a 787-3 variant.

Finally the 787 requires less maintenance in the long-run as it eliminates thousands of bolts that tie together otherwise pieces of fuselage. The 787 is truly a wonderful "piece" of aircraft, if you can call it that.

Maybe its time to change!

C.camilleri

Dec 26th 2009, 16:34

Malta being an island with an economy which depends heavily on the tourist industry needs and must have its own Airline.

Every other airline operates to Malta not for our sake but for their profits. Once there is no profit they do not care about our tourist industry they just stop operating. It happened before and it will happen again.

But with Air Malta its different. The airline stood there through thick and thin and that is why we should support it. Just for the record Air Malta never received any subsidies from the government.

Who was responsible for the financial problems it is facing is a totally different subject.

And please do not blame the workers cause they do not take the decisions, they just obey them.

Tony Berkeley

Dec 26th 2009, 11:20

Why does the arguement about Air Malta's balance sheet always centre on personalities, management, the workers and the competition. Air Malta should learn from the competition.... that is they are only in there because the business is yielding a profit. Should they make a loss (even inspite of the subsidies) they will be out of there like a flash. Each KM route should be evaluated on the profit it makes. Bums on seats that leave a profit. If the cost of flying a passenger anywhere is higher that the fare he/she pays, it not worth the trouble, and should be discontinued. Contracts with low cost airlines will come to an end and new conditions can be negotiated, in the mean time Air Malta should take ALL steps necessary to cut costs, increase yield and make a profit. The Government (not being able to subsidise KM) can spend money improving the island's facilities and advertising the island instead.

Miguel Micallaef

Dec 26th 2009, 10:42

"Thanks God for Air Malta."

You made my day :D

Would have thougt that was a phrase you'd never hear.

Ludwig Flask

Dec 26th 2009, 09:06

@ Mr L. Borg; the company I work with, on the first instance an employee fails to get the stringent results needed by the business, he gets sacked, no matter the many instances he has achieved in the past – and this is the only way a business can survive today!

In your case with all respect to your achievement or your role within Air Malta, (I'm referring to the senior management), understanding the effort put in developing new routes, and so on, its the end result which counts, and in this case it is a failure, “halli lill-haddiema tal-Airmalta bi kwiethom”, you couldn't put this better, this is the attitude the management has towards their working colleagues.

“the government is committed to identifying solutions to improve Air Malta’s difficult financial situation...”, I won't comment further, you have it black on white!

Leandro Borg

Dec 25th 2009, 12:05

@Ludwig Flask

Please substantiate your comment “ipappuha fuq flusi u flusek" as you seem very much informed on the subject (sic)! Please confirm with the statement of the Airmalta chairman below: "So does the development of new routes and investment in existing ones. We do all this without any subsidies, contrary to low cost airlines, which provide no long term commitment to the country whatsoever."
Qabel titkellem kun cert u tparlax fil-vojt siehbi u halli lill-haddiema tal-Airmalta bi kwiethom!!

Michael Spiteri

Dec 24th 2009, 20:23

Very different approach from the gov. to this serious problem than all the mouth we heard on the Dry Docks financial problems and it's workers. Happy Christmas to all!

Anabel Gauci

Dec 24th 2009, 19:35

The Government and MTA must get their and the country's priorities right. We taxpayers are forking out millions of euros to foreign low cost airlines and alienating airlines who provide and have provided a sterling service to country and the local tourism industry throughout the years. These millions should be spent by the MTA and Air Malta in effective advertising overseas and not just ‘given’ to low cost airlines.

Look at the effects these subsidies are having on Air Malta and other important airlines like British Airways that just packed and left.

Low costs airline dip in and out of a market if and when their shareholder sees a return on investment. No one should mess around with subsidies - or market assistance as they call it - that's interference. This interference in the Market ultimately will skew it and this will backfire on us customers, hotels and all those who depend on tourism for their livelihood. So Government take care!

Ron Silvio

Dec 24th 2009, 19:20

@JOE FALZON

The Low cost airlines are getting state-aid, I suggest you make some research and you will find that airmalta had the possibility to apply for the routes (new routes that had no connection to MIA) ryan air and other low cost airlines have.

However airmalta did not apply for them, the reason no one knows, but everyone can guess.

c. camilleri

Dec 24th 2009, 18:42

In spite of Air Malta's difficult financial situation hefty increases were given to its staff.
Instead of doing as other airlines have done to put its books in order Air Malta find it convenient to turn to the Govt for help. With it's deficit always on the upward turn I cannot understand how Govt can continue with its policy of dishing out our money to help its public employees who continue to ask for more as if the world recession did not hit us. The day of reckoning will come soon as Greece has found out to it's cost.

b briffa

Dec 24th 2009, 18:05

@ F Farrugia - flights to Moscow are more costly.

renald williams

Dec 24th 2009, 17:28

To Mr Lawrence Zammit Chairman, Air Malta staff , supporters and customers; wishing you all sincere peace and health.
Well done; in appreciation for all the work done through Air Malta, both seen and unseen.
Thanks God for Air Malta.

C Polidano

Dec 24th 2009, 16:47

Alex Brincat: The 787 Dreamliner is a long-haul widebody suitable for intercontinental routes. Air Malta's A319s and A320s are as good as you can get for the sort of routes it flies and they are fairly new aircraft.

Franco Farrugia

Dec 24th 2009, 16:36

@ A Abela - If you are referring to the Malta-Brussels-Malta route, get back in here and give us where you got that info from. Tickets to and from Brussels using Air Malta are the priciest, the highest it has! And that's no joke!

Ludwig Flask

Dec 24th 2009, 15:55

“Government 'committed to seeking solutions' for Air Malta” - so what are the chairman, the CEO, the managers doing - “ipappuha fuq flusi u flusek”? ONE SOLUTION – Sell it, Sell it, Sell it...!

JOE FALZON

Dec 24th 2009, 14:55

@Ron Silvio

Did you know that the government can never give subsidies to its own airline even if it had to operates to underserved routes. This will be seen as state-aid. Air Malta does not get any subsidies on regional routes that has been operating for years for the sake of Maltese tourism.

michael Degiorgio

Dec 24th 2009, 14:25

so its been confirmed as to what i stated earlier about the number of employees who work with air malta by its chairman so please when reporting something in this nature state the right facts as people get the wrong idea on facts that are not correct thank you what the chairman wrote is the truth as i was one of the employees there for 31years so i have been through thick and thin with the company

Alex Brincat

Dec 24th 2009, 14:19

Just a quick suggestion. Would it make more economic sense to use fuel efficient aircraft in the future such as the Boeing 787 Dreamliner that is much lighter and uses less fuel? This would be an ideal aircraft for Airmalta's short to medium routes. Maybe Airmalta can start planning to go back to Boeing in the next three years and bank on a leased fleet of 787s.

Sorry Airbus! Just dreaming for fuel efficiency here.

Jason Spiteri

Dec 24th 2009, 13:34

The chairman defends his employees but as the (rather captive) consumers who actually pay for the company, it's clear that our satisfaction is the only 'solution' possible to keep this company alive. The airline and employees haven't always been admirable in this regard - for instance the dispute with the aircrew that left travellers for months without the Times newspaper (in spite of a very costly ticket paid) punished the wrong group - us. I can't feel any sympathy for employees who are so rash during a global crisis as to offend directly the same people they depend on to keep their jobs.

I say let this company fight as a private business should (and not get rescued through taxpayers' money) and if the free market says it's too inefficient to survive, then so be it.

Tony Berkeley

Dec 24th 2009, 13:30

As long as Air Malta continues to be politically interfered with, it will make a loss. The Airline (even though its the Flag Carrier) needs to operate in a financially feasable way. Its success can only be measured by its balance sheet, not by how many destinations it flies to, or how many aircraft it operates, or the frequency to certain cities. Why did BA stop running to Malta, inspite of good passenger loads ? The reason is yield per passenger, how much profit does each route make. If a route does not make a profit, it should be given 3months to do so, or be chopped. It is often believed in Malta that showing the flag all over the place, is a degree of success - ara kemm ahna kbar, u Kapaci !! No if a route don't make a profit chop it off, let other airlines and budget carriers bring the tourists. The will continue to do so as long as the Island remains an attractive destination..... and its in the local community to make it so... but thats another story in itself.

Ron Silvio

Dec 24th 2009, 13:29

@JOE FALZON (2 hours, 14 minutes ago)
""The low cost supporters always forget that the pricing offered by the low cost airlines is being heavily subsidied by the Maltese government"--Airmalta could have applied for the routes but it didn't--.. "With these new routes just launched by easyjet we will know see cross-subsidisation being employed by the LCCs. This is certainly not an equal level playing field for Air Malta".The new routes announced by easyjet are not going to be subsidized by the government, so it is a level playing field.
Having said all this, i have booked a flight in march with airmalta which is cheaper than easyjet. Thus i am double happy! Competition is good and thats the main thing.

dennis mackie

Dec 24th 2009, 12:47

Perhaps you might send some planes to the US. there is a lot of interest in Malta over here like via madrid.

Jesmond Micallef

Dec 24th 2009, 12:43

May first and foremost may I wish all Air Malta employees a Happy Christmas and a Prosperous New Year.

Not the subject matter here, but I would like to make people aware about what languages are available on the Air Malta website. My mother language, Maltese, is missing !!!! I find this very offensive.

Eric Gahn

Dec 24th 2009, 12:21

Hmmmmm. Let me think......I know! Let's sell it for €100 and say we made a good deal. That is all PN is good for these days.

JAFarrugia

Dec 24th 2009, 12:05

@Robert azzopardi
Who works in Brussels!!!!, government workers, MEPS, etc, etc , i hardly think this bunch cannot afford it, Meps have special fares on the KM route. so quit moaning.
Every other carrier does the same thing to prime destinations, try getting a flight to or from London city airport. Same thing applies for Tripoli.
Cant afford the fare dont go.

D Vella

Dec 24th 2009, 12:04

Should AirMalta follow the low cost carriers by leaving passengers stranded whenever it deems that it's not worth it to operate the flight? Which other airline is ready to operate non-profitable routes to service the Maltese tourism industry? AirMalta empolyees have had a wage freeze for these last seven years and its absolutely not true that employees were paid Lm900 monthly! Who said this must provide us with the payslips or else come to work during the nights, on public holidays, weekends and the hot summer days to see how it feels! And most of the employees in this blue eyed mecca are still represented by one particular union!! Strange, is'nt' it.

Mario De Bono

Dec 24th 2009, 11:53

I cannot agree more with Mr Laurence's Zammit's statement. Airmalta is the businessman's lifeline. Its Malta's only committed limk with the outside world. Its our enabler insofar as it helps us open my mind. I have always sighed a sigh of relief when i arrive on board after a long gruelling trip. Its part of home. And its ours to commit as we see fit. Even if we make losses, we need airmalta and its staff, as much as we need bread. Our tourism industry cannot live without it. The LCC's are good to have, and they are surely taking a chunk out of Airmalta's business, but thats to be expected. Airmalta has to become lean and mean. An example of good service is what i get from a certain Joseph at the Flypass team. He is the epitome of service and Airmalta shoud be proud of him. Its better a thousand like him, than the top heavy managerial structure that there is in Airmalta!

JAFarrugia

Dec 24th 2009, 11:46

@Tony Morris.
You can fly to london for 88 euros, mtl38, how cheap do you want to go, thats pretty damn good for a 2600miles round trip, on a safe and good airline that looks after its pax.

a abela

Dec 24th 2009, 11:30

@ R Azzopardi

Besides revenues, costs to operate the flight exist!!

Robert Azzopardi

Dec 24th 2009, 11:10

@Franco Farrugia totally agree but with human prices
@a abela I hardly see how the evening Brussels flight is operating at a loss considering the exorbitant prices charged for this particular flight, let's face it, one could almost call this route as airmalta's cash cow, and has nobody ever questioned why the only way to get to and from Brussels is with Airmalta? giving it complete monopoly on the route. I'm sorry as much as I would not like to see airmalta go down and 2000 people loosing their jobs I also have the consumer in mind. Does 500 EUR one way ticket sound fair to you?

Gianni Xuereb

Dec 24th 2009, 11:01

I think St. Luke's hospital was understuffed, not overstuffed.

7 years ago AirMalta was still employing new stuff giving Lm 900 a month jobs for people without a university degree. Doing what ? Not even a university lecturer earned that much at that time.

I have nothing against the airline per se. In fact I fly with that Airline frequently. I think it is overstuffed and many people were recruited there politically. HSBC and Go started early retirement schemes to prevent from ending up in such situation. But how can AirMalta do this if the government is happy that it makes a BIG loss as long as it doesn't even shed ONE employee. The situation has become untenable, but the government is more worried about losing votes than the long term sustainabiliy of the company.

As long as we have people like J Farrugia boasting that the airline has not reduced its workforce when other airlines have done so wisely, the end result will be catastrophic. For the sake of Malta's future, for the sake of AirMalta, please take action NOW.

JOE FALZON

Dec 24th 2009, 11:00

The low cost supporters always forget that the pricing offered by the low cost airlines is being heavily subsidied by the Maltese government.. With these new routes just launched by easyjet we will know see cross-subsidisation being employed by the LCCs. This is certainly not an equal level playing field for Air Malta. I am sure that if the government had to give the same hefly amounts to Air Malta, the airline will be able to reduce further its prices. I always check air malta before finalising my travel plans and always end up buying the airline seat from them. If there pricing was not right they would not have achieved one million ticket sales over the internet in just two years.

R.BORG

Dec 24th 2009, 10:54

@ J Farrugia
Huma nies bhalek li jaghmlu l-aktar hsara bit-tpacpic tieghek bla ma taf il-fatti! Semmejt lil GWU u l-unions l-ohra ma semmejthomx meta dawn ghadhom kemm hadu agreement b'ziediet xierqa u l-agreement mal-GWU ghadu lanqas biss hu kokluz ghax issa mid-dehra ghax wasalu l-haddiema membri ta din l-union issa hemm il-problemi biex ituhom bhalma ha haddiehor! Semmejt li l-AirMalta nvazata b'nies tal-MLP, meta l-PM ilu fil-gvern 20 sena u xebghu jdahhlu nies minn taghhom, sa ftit xhur ilu dahlu 6 minn nies fil-Head Office meta hawn din il-krizi! Niskanta minn meta l'hawn nies bhalek saret tahraqhom qalbhom ghal AirMalta ghax niftakar nies il-kwalita tieghek jghajjruha bl-ghasafar tac-comb u jheggu n-nies biex ma jtirux maghha!
X'ipokrezija!!!! Halluna bi kwietna u titkellmux fejn ma tafux x'qed jigri u ghamlulna pjacir ghax taghmlu aktar hsara milli gid...sakemm ma tiehdux gost bil-hsara!!!!

mario gelle

Dec 24th 2009, 10:19

I say this-- The goverment is committed to dismantle AirMalta. that is what he did with all other entities and that is what he will do with it. He will first start a war with the unions and then confirm it bankrupt. then some angel will fall from the sky and the goverment will offer it to him on a golden plate. Like some minister said some time ago, I am ready to bet on it.

michael Degiorgio

Dec 24th 2009, 10:17

in your report you say just under 2000 are employed with air malta i can say that is not the right figure as the company had various schemes to bring it s work force down well below the figure that you are stating as comparing it with the drydocks air malta has never had even 1 cent in aid from any government past or present

Robert Zammit

Dec 24th 2009, 10:13

Air Malta have been looking fortoo long at percentages rather than filling up seats. People at the Top never leared that percetages are not banked but money is and that the bottom line counts. They need to review their pricing and makes use of internet better to sell seats, yes even at the cost of just selling a seat at cost + 1 euro. Many times I've been on so many flights from france and italy where I and friends have paid through the nose for a seat and then find the flight with just 20/40 passengers ! If need be flog the seats , they will make less losses and the tourism sector and Malta in general will make more money !
But again all this will fall on deaf ears, some people who have been at the top at air malta will never learn, or rather they just don't want to !

lawrence zammit

Dec 24th 2009, 10:13

I feel the need to make a comment on the article below and the comments that have appeared about Air Malta in the past. I thank the Minister for his trust and i guarantee him and the employees my continued total commitment to the airline.
The article contains an incorrect statement. Air Malta used to employ just under 2000 people seven years ago. Today it employs less than 1400 persons. This is just an indication of the efforts that have been made to make the airline sustainable. There are a number of employees that have not had a salary increase since 2003.
The cost cutting exercise that was embarked on in 2003 continues relentessly. So does the development of new routes and investment in existing ones. We do all this without any subsidies, contrary to low cost airlines, which provide no long term commitment to the country whatsoever.
Government and the directors and management of the company are committed to find solutions for the airline during these turbulent times. Speculative statements triggered by some personal interests and that have appeared in the media and the blogs only harm the airline.
Lawrence Zammit, Chairman, Air Malta plc

joe borg

Dec 24th 2009, 10:12

This article does not reflect the truth of the typical state of our National Airline, are the official accounts open to public scrutiny? Why still no fuel supply liberization after 5 years in the EU? AirMalta always buys its jet fuel tax free, & for many years charged exorbant ticket pricing! Like most politically appointed Boards / Chairmans thye have all demonstrated how incompetent & unqualified to run such a complex company, have failed to keep harmony among various professionals particularly Engineers & Pilots, Specialized managers ecc....The Government's responsibly first, is to except the HARD FACTS that they have at least 500 employees over there who have sucked on the company for many years thus created their own business in the process! Unfortunately AirMalta does not value competent honest people, who can really contribute wisely & exploit these human resources to the max! Recently one of the most senior Maltese Chief Pilot resigned at the height of his career, & so did many seasoned flight crew who went to abroad with major Airlines, particularly Emirates, it clearly denotes a hugh management problem still persists!!! Basically some have retired on the job, but nobody is accountable to address the problem!

M. Fenech

Dec 24th 2009, 10:01

Well, with more LCC penetrating the already limited market space, the cake is no longer 100% AirMalta. Easyjet, without making any noise, unlike Ryanair, managed to secure a strong base in Malta (thanks to SR Technics) and utilising its fleet based in Malta for maintenance to open new routes or compete for established ones, like AirMalta/Alitalia for Rome. I envisage that Alitalia will suffer more than AirMalta, since its market is mostly inbound. Easyjet, if they find the right slots on this route, will make things worse for both carriers.
AirMalta is a strong carrier, but in my opinion, it needs to establish further the code-sharing agreements with established carriers like LH. This means, that KM will extend its schedule considerably, because LH will be carrying passengers obo KM and KM fleet could be utilised for other routes. The same for established routes, like Paris, customers will be able to fly via Frankfurt and on a daily basis, whilst KM will reduce its schedule and operate on "financially sound" routes. Globalisation has brought major airlines to co-operate together in order to maximise aircraft load factor. Cannot understand why KM has not yet taken advantage of this scenario, esp. with LH?

b briffa

Dec 24th 2009, 10:01

What blue eyed mecca? Do you mean red eyed? The hundreds of employees employed in the 1980's are still there.

mike farrugia

Dec 24th 2009, 09:58

@ Gianni Xuereb
May I add EneMalta, Public works and St. Luke's hospital with your list.

Christopher Pollard

Dec 24th 2009, 09:52

"Blue eyed Mekka" - translation needed please!

Tony Morris

Dec 24th 2009, 09:49

When Air Malta wake up the the reality of the present economic situation and begin to charge reasonable air fares instead of the present inflated ones they may begin to win back some of the people who used to fly with them.

paul mallia

Dec 24th 2009, 09:46

Before Mr.Public starts commenting on the situation of Air Malta, one must be thinking of commenting on a very educated line of thought. Air Malta never in its history had been a burden on the tax-payer. It always bore its losses, and when (in the past) there were profits, it gave its fair share of taxes to the Government. During all times in its existence, be it PN or MLP times, it was very diligent in its matters and with all due respect its staff have always taken their responsibilities with due care and attention. Where there were hiccups these were handled in-house and action was duly taken, and where there were credits these were acknowledged. As an old-time employee holding thirty five years service with the Company I feel agrieved that NOW, that all has been exposed, the general public starts to comment!!! What about Air Malta's social conscience and its loyalty to one and all? So please, Mr. Public, do take care when commenting as you will be hitting loyal employees as well in the meantime!

Michelle Pirotta

Dec 24th 2009, 09:44

@Gianni
But what did the Tarzna contribue to the Maltese economy ?

However- AirMalta is a different case.
It has brought to Malta hundreds of thousands of tourists last year.
As a national carrier, it is still operating certain routes that are not profitable, BUT are critical for Maltese/foreign investors/business people that need frequent connections that generate income/jobs for the Maltese economy
For example Air Malta has 12 planes. Last year it was operating 11 to/from Malta and another plane elsewhere, in a profitable route (not sure if it was UK-Italy). To aid the tourist/economic situation in Malta that route was scrapped and the 12th plane started to operate to/from Malta too..probably at less of a profit, but carrying out a supporting act to our jobs, economy ..lifelihood.

J Farrugia

Dec 24th 2009, 09:35

@ Ganni Xuereb - irringrazzja 'l Alla li l-AirMalta ilha dawn is-snin kollha, b'servizz stupend u maintenance mill-aqwa u qatt ma kellha disgrazzji. Minflok xi ssib, nies bhalek li taghmlu l-hsara kemm tifilhu lil din l-azjenda. L-ewwel il-GWU b'talbiet kbar ghal zidiet fil-pagi kull meta tara sold qliegh, u nghiduha kif inhi l-Air Malta hija nvazata b'nies tal-MLP, pero' xorta wahda illum l-Airmalta hija wahda mill-kumpaniji li ma tat ebda sensja meta tqis li linji tal-ajru ikbar minnha taw eluf ta' sensji.

a abela

Dec 24th 2009, 09:34

From info available, the evening flight may be operating at a loss, let alone introducing a morning one.

RGAuci

Dec 24th 2009, 09:31

AirMalta should reduce staff, employ competent individuals to tackle ticket pricing and therefore be more competitive. It should follow the low cost model as close as possible

Kevin Zammit

Dec 24th 2009, 09:27

Interesting. I am a frequent flier (practically on a weekly basis). I used to prefer airmalta over budget airlines because I felt they treat people like human beings instead of sheep and arguably some patriotic sense. But I have on more han one occasion experienced treatment that I do not feel I do deserve. In fact I have a complaint logged with them and even logging that complaint proved to be cumbersome and somewhat insensitive.

If airmalta keeps behaving like another budget airline then I do not see any reason why I should remain loyal to them.

Gianni Xuereb

Dec 24th 2009, 09:21

The airline is in dire straits because all the blue eyed mekka is employed there most of the time staring at the wall. Labour gave us Tarzna. PN gave us Air Malta. 25 million loss in one year is no joke.

Franco Farrugia

Dec 24th 2009, 09:16

May I suggest that Air Malta somehow adds a morning flight to Brussels a few times a week.

N.Azzopardi

Dec 24th 2009, 09:14

Hope we are not heading for another Malta Drydocks scenario ???????????