Lower costs in Malta drove SR Technics out of Dublin
Brussels to help 850 redundant Irish workers
The European Commission has approved €7.5 million from its Globalisation Adjustment Fund to help 850 Irish workers made redundant a few months ago by aircraft maintenance company SR Technics following its relocation to Malta.
According to the Commission, the company’s decision was driven by the effect of the global economic recession on the aircraft maintenance sector and the lower costs Malta offers in this sector when compared to Ireland.
“The fall in air transport activity following the financial and economic crisis placed an enormous cost strain on airlines and, subsequently, reduced the volume of maintenance, repair and overhaul (MRO) activities worldwide. This put enormous pressure on companies operating in the aircraft maintenance sector, such as SR Technics,” the Commission said.
The move by SR Technics had been harshly criticised by the Irish authorities particularly as it resulted in the dismissal of over 1,000 employees in the Dublin region. Many Irish politicians, particularly MEPs, also tried to imply that Malta employed some underhanded techniques, such as state aid, to lure the company. Both the EU Executive and the government dismissed such claims.
Regional Policy Commissioner Johannes Hanh had assured MEPs no funds were granted to SR Technics by the Maltese authorities.
In Malta, SR Technics is expected to focus on the maintenance of commercial aircraft and will initially use an existing hangar at Luqa airport before leasing its own facilities. Major low-cost airline EasyJet will be the company’s biggest client, with its 157 aircraft being serviced here.
The company is projected to employ 350 people by 2014.