President attends start of Air Malta talks
Updated: Adds details on the two meetings held today
Talks on the future of Air Malta kicked off today with a meeting at San Anton between the government and the Opposition, presided by President George Abela. Finance Minister Tonio Fenech led the government delegation, while Joseph Muscat headed the Opposition.
The meeting was held at Noon and lasted some three hours.
Informed sources said the meeting was held on the initiative of the Finance Minister, who asked the President to chair it. The news that the meeting was held was announced by the Labour Party.
Dr Abela, as an industrial relations lawyer, had been involved as a mediator in another Air Malta restructuring exercise in 2004.
The meeting was followed, almost immediately after, by a 35-minute meeting between Mr Fenech, airline chairman Sonny Portelli and a GWU delegation led by General Secretary Tony Zarb.
As he emerged from the meeting, Mr Zarb said the meeting had focused on how the consultation process would be consulted, and the government did not present its proposals. A meeting with all the trade unions that represent the airline's workers will be held tomorrow.
The government is seeking EU approval to give financial help to the state carrier.
Informed sources told The Sunday Times yesterday that Air Malta could not survive unless it shed staff. Brussels would never permit state aid to subsidise unproductive jobs, the EU sources said.
Today's meeting marks the start of a series of meetings by Mr Fenech with the stakeholders, including the unions.
The GWU has insisted that the workers should not be blamed for the state the airline is in. It has also insisted that the workers were burdened with enough sacrifices in previous efforts to restructure the company.
The government has notified the European Commission of its intention to grant Air Malta urgent rescue aid which would then be followed by restructuring aid. Any aid has to be tied to a restructuring and downsizing programme agreed with the EU Commission.
The government is opting for the state aid route after the commission refused to accept a proposed €100 million injection into Air Malta’s shareholding capital.
The EU’s rules also stipulate that Air Malta can only benefit once from state aid – if the restructuring programme fails, no further aid from public coffers would be allowed, meaning the company could be wound up.
It is not known how many of its 1,300 staff members the airline will need to shed though sources said the government would be discussing this issue with the unions.
Within two months of state aid approval, the government will have to submit its restructuring plan. If the commission is not satisfied with the plan, it could pull the plug on the aid.
The restructuring programme is not expected to have an impact on Air Malta’s operations and schedules for the time being.
Sources close to the Finance Ministry expressed hope that all those concerned acknowledged Air Malta’s challenges and that unless the government can go to the commission with a viable restructuring programme, the country may risk losing its national carrier.
Despite a restructuring plan in 2004, Air Malta failed to prosper, amid major fuel hikes and competition from low-cost airlines. Losses this year are expected to exceed the €31 million deficit registered last year, with the company even reporting losses during summer, despite a record-breaking tourism year.
Popular Stories
Update 3: Woman found dead in car,...
Updated: Woman dies in car crash
Carm Mifsud Bonnici resigns after...
Part of Dwejra 'Azure window' collapses
The end of the bar that ‘never closed’
Bundy does not know whether to...
Updated - Jason Micallef demands...
This WAS the night - Kurt makes it...
'No need for early election if PM's...
In Discussion
Updated - Jason Micallef demands...
Gozo tunnel could take 5-7 years to...
CABS remote controlled aircraft shot...
Carm Mifsud Bonnici resigns after...
Joseph Calleja condemns portrayal of...
Updated: Labour would give...
CABS drone shot down
Second group of migrants arrives
Adrian Vassallo in scathing...
55 Comments
Post comment
Please sign in or create your Account to post comments.
kathryn schembri
Feb 17th 2011, 14:21
Listen Mary Ann Borg darling...there are not and never have been 100 employees per aircraft ignorance beyond belief.My husband often despatches aircraft like the KM 100 (that is to London luvvey) Alone yes alone with the problems it entails. By the way...if you must write in English it's "makes mistakes" dear not "does mistakes". Get your facts right about Air Malta before you write. Thanks so much!!
kathryn schembri
Feb 17th 2011, 14:12
C.Camilleri get your facts right before you contribute anywhere for your exclusive information there has been a wage freeze on the ordinary employee for several Years get it YEARS.
Management have I assume been rewarded for thier incompetence, Do not slur good workers with incorrect facts.
Pule' Carmel
Nov 10th 2010, 20:09
Since Malta became independent, in my opinion the Maltese workforce from top to bottom never really prepared itself to face real competition, and seems to beg for subsides all the way. Our Education as a whole is still moving in virtual spaces of the past, and how we present real life to our students will reap the true managers and work attitudes in our future.
a.dalli
Nov 10th 2010, 19:42
@Mary Ann Borg.
The problem with Air Malta is that it was always mindfull of generating economic wealth for Malta - and of the ungratefull members of the MHRA. Air Malta had and still has specialists in their own field and know how to add up. ONLY IF THEY ARE ALLOWED TO WORK.
Victor Vella
Nov 10th 2010, 16:17
Air Malta employees are demotivated to the way the governnment and all stakeholders are holding their future of themselves and all their families. This farce has already happened in 2004. From this exercise Air Malta top management and the government through its directors are no more credible, let alone continue managing the company. There is no room for spending more money to people who did not know what happened six years ago and are dysfunctional to the study they are conducting because they are coming from a sector of the low cost area. Air Malta is a network airline and not simple threat customer as a number as the low cost airline treat their customers. So, for the interst of the workers and Air Malta the workers through their unions have to choose two directors on the board who are interested in the economic , entrepeneurship,, and social side of the organisation with no political interst and another one from the opposition side chosen on the same merits as those of the unions. These watchdogs will stop AM from being a political ball.
R.Camilleri
Nov 9th 2010, 11:32
Veru tal - biki tara kitba biex tinghalaq il-Linja Nazzjonali ta' l-Ajru 'Air Malta' wara daqstant saggrifficji li ghamlu ta'qabilna biex waqfuha u mill-ewwel kienu ghajruhom li huma ghasafar tac-comb. Issa veru gabuhom ghasafar tac-comb b'dan il-mismanagement u decizzjonijiet hziena li ttiehdu u hadd ma' nzamm 'Accountable'. Alla hares dawn in-nies kienu f'xi kumpanija privata. Mela ahna naffordjaw nahlu din ir-risorsa ta' nies mharrga biex isuqu l-ajruplani u crew iehor li tant investejna fihom. Jew tridu nghamlu bhal tad-Dockyard wara li ftaharna tant kemm huma kapaci meta bnew il-vapuri tal-Gozo Channel imbaghad tajnihom daqqa ta' sieq flok morna ingiebulhom ix-xoghol bhalma kienu jghamlu fiz-zmien ta' qabel. Ta'xhiex qed johduha l-paga minhu responsabbli u min qed imexxi fil-Gvern. Dan mhux kollu minn fuq it-taxxi tal-haddiem qed jithallsu. Ahjar naraw kif se' nsalvaw din l-azjendi b'Homework serju milli nwahhlu fil-haddiem li ilu jghamel sagrifficji zmien twil u ta' fuqhom jibqu jiehdu l-Allowances u x'ma nafx xhiex. Inkunu serji PLEASE u nibzu ghal li ghandna..
Adrian Grech Cumbo
Nov 9th 2010, 11:22
Reading some of the comments makes me totally disgusted. Airmalta has been the pioneer for our tourism , Airmalta was there for the sick , Airmalta was there for our economy. airmalta was there for the Hotels , but regretfully many within the tourism industry did not recognize this.
You find now many wanting to make statements as they try to be the salvation of our National carrier. Hands off air Malta and I just hope the injection is given to our Airline as its our National carrier , an airline that I used to support and will remain supporting it no matter what.
R.Camilleri
Nov 9th 2010, 12:04
Very good comments Mr.Adrian Grech. People like you Malta needs to see, telling the truth for all this mess.
Portelli James
Nov 9th 2010, 06:33
It is sickening to see what is essentially an economic issue being politicized whether by the main parties or their stooges through this an other commentary spaces.
AirMalta has its strengths and a role to play: it provides connectivity to most European cities (but so do most of the budget airlines now) and has served the Maltese economy well. I do not know about others but I use AirMalta on several of my European connections because I find it to be a reliable, no frills or bells, airline.
AirMalta also has its weakness; two of which are (a) government affiliation / ownership (a metaphoric millstone as witnessed by the fate of similarly owned entities throughout Europe) and (b) a high operating cost in part because of the large workforce and, perhaps, perks/benefits which may have been the norm until a decade ago but are not economically viable now.
It is not size or strength that guarantees survival (otherwise the T-Rex would still be around). It's adaptability (in this case economic adaptability) and relevance (i.e. to the consumer).
Only a radical, apolitical, back-to-basics approach can save AirMalta ... and I hope it does survive and thrive for our benefit.
C Muscat
Nov 9th 2010, 08:52
So according to Portelli James the government with all the powers to be-PN has full power of hire and fire the administration; a company that was never in the red and now is facing extinction should not shoulder any responsability.
This govenment has the power to do whatever he likes because he has 50%+. He can spend 70 million to 100million of taxpayers money for smart meters and do not give any information to the parliament and to us taxpayers.
And for you he has to shoulder nothing politically.
Can you deny that all the revenue from assets of the Airmalta sold/privatised went to the public coffer and did not stay with the company.
If our politics is only good for the PN when something is right and bad for some little mouse when something goes wrong than let the PN powers to be thrash on us.
Mary Ann Borg
Nov 9th 2010, 15:05
Air Malta was founded in 1974. Till 87 it made a profit - a good 13 years under labour. 1987 - 2008 - a good 21 years under PN, and Air Malta still registered profits. So what exactly is your point? If labour was so good to make KM profitable for 13 years what's your reply to the fact that PN made KM profitable for 21 years? Air Malta was not in the firing line all through the last 21 years. Air Malta is in the firing line now that it's making a loss. Last year the whole world, including the airline industry suffered losses so the loss of €31 was, or could have been somehow justifiable. But now Malta is recording a record tourist season, Air Malta is carrying more passengers and notwithstanding all this it's actually incurring heavier losses than in 2009 . This is what is not justifiable. It's useless looking at the past. The present is bad enough and if we don't change now the future will only be even worse. It doesn't take a rocket scientist to understand this. It;s now that there is trouble and it's now that we all need to find solutions.
Portelli James
Nov 9th 2010, 19:06
Well said Ms. Marie Ann Borg. Thank you for sharing my perspective.
Respectfully C. Muscat, the government - Labour or Nationalist (since the company ran well from inception until 2008; i.e. under both administrations) - should have privatised or floated the airline during that span. Again, with respect, the government does not have the power to 'do what he likes' in an open market. It is consumers not the government that dictate what a company makes. That sort of retro-logic is what drove all comicon economies to a grinding halt.
One either shapes up or shuts down ... it's call evolution and in economics it's at a much faster rate than Darwin's.
C.Cassar
Nov 9th 2010, 01:22
Il-hefty wage increase kienu dejjem ghal ta fuq , l-kbar fil-posizjoni, zghar fl-idejat, mela ghal haddiema, u dan jghodd mhux ghal-Airmalta biss imma ghal kullimkien, dejjem jaqla l-haddiem ,meta jkun hawn good business, kullhadd jippretendi xoghol kwazi b'xejn u meta jkun hawn l-maltemp ekonomiku( li fl-ahhar mill-ahhar dan ma giex wahdu, gabuh dawn il-kbar"zghar fl-idejat") jibdew jaraw il-haddiem bhal xkiel. grazzi
C. Muscat
Nov 9th 2010, 01:14
Kemm konna ahjar meta konna aghar. Illum kollox mar il-bahar. Issa jmiss l-Air Malta. Mela min tilef miljuni fit-tmexxija ta din il-linja qisu ma gara xejn. Mill-bejgh ta assi ta l-AirMalta; l-AirMalta ma hadet xejn. Min jaf jekk is- servizz li taghti lid-delegazzjonijiet tal-Gvern kemm qeghdin jithallsu u kemm qeghdin b lura???
Miskina Malta issa jmiss miskina l_AirMalta. komplu ghadduna biz-zmien. L-aqwa li min hu fuq jibqa jimtela.
Il-problema kbira hi li tul is-snin l-akbar priorita tal-gvern kienet li jghatti l-izbalji u min jizbalja jista jibqa jizbalja l-aqwa li man-nies jidher kollox sew.
Muscat Pat
Nov 8th 2010, 22:51
"il-Hmar iwahhal f'denbu" . PN Aviation experts and bloggers; who is the majority share holder of Air Malta? Who appointed one incompetent blue eyed CEO after an other during the last 20 years? Who was responsible for the purchasing of RJ.s and Azzurra Air? Are you surprised and not convinced? Look at the mountain of debt the PN saddled the country with, and you will then perhaps realise, that "il-huta minn rasha tintenn"!
David Treble
Nov 8th 2010, 22:37
Dear M'Louise Schembri. Re your suggestion for running Air Malta. Alitalia are not a very good choice they were in a worse state than Air Malta and had to be bailed out with EU help and who would trust the Greeks.?
Also please read history Pan-am does not exist it when out of business many years ago.
If Air Malta is saved it will only survive if the government has no involvement.
Peter Grech
Nov 8th 2010, 21:02
Air Malta staff are currently up in arms as it transpires that the Air Malta general managers recently had an increase in their gross pay of over Euro 1000 monthly ie more than Euro 12000 yearly. This is over and above the yearly performance bonus of over Euro 8000.
The other staff has been on a wage freeze as of 2003 more than 7 years.. It is a case that there was not even some bread crumbs left for the normal staff.
Can the independent media please delve on this and also the unions that are worth their salt?
Gerard Cassar
Nov 8th 2010, 20:27
The P.N. were against the D'Yard workers and succeeded to close it. They have mismanagd Air Malta because it was headed by party-men who ruined it and the P.N. government has used Air-Malta to win an election and will try it againThe government wories are only superficial. The President has smelt something so he was accepted to lead the discussions. For the P.N. the fault is that Air Malta was set up by the Malta Labour Party and have not forgotten that its planes are made of lead. 25 years in government have created difficulties to the airline instead of making it viable.
M Bellizi
Nov 8th 2010, 20:04
I suggest that the Govenment should adopt the Enemalta model to Airmalta. This means that fares should triple and force all Maltese to use only Airmalta. Then we can balance the books....it is very easy.
M.Bezzina
Nov 8th 2010, 20:24
u il prezzijiet iridu jkunu bhall tar ryanair biex insifru mal AirMalta!!il bqija seats vojta jkollha!!
John Manduca
Nov 8th 2010, 23:07
@Bezzina
Biex l-Airmalta toffri l-istess prezzijiet tar ryanair il- gvern irid jissussidjha bhar ryanair u mhux kull ma jghatiha huwa biss haddiema zejda nazzjonalisti ( min dahhal xi sittax il-pilota dan l-ahhar xhur meta il-flotta ma kibritx u il- maggoranza taghhom tghathom it training kollu l-Airmalta?),u managment bla idejat (l-unika kwalifika li ghandhom hi li huma nazzjonalisti). Infakkrek ukoll li l-Airmalta trid bilfors fuq ordni tal gvern tghamel rottot li ma jghamlux flus, basta ingibu it turisti lejn pajjizna u xi nghidu ghall dawk il- flights bil LM15 ta qabel l- elezzjoni biex ingibu lin nies jivvutaw? Qatt thallset taghhom dawn il-flights? Min kien responsabbli ghax xiri ta ajruplani li kullhadd kien qed iwaqqaf mlil-flotta, l-RJ70s u min kien responsabbli ghat tberbieq ta madwar LM55 miljun fl-investiment fl-Azzurra Air? Fejn huma Joe Tabone u Eddie Fenech Adami li kienu responsabbli ghall kumpanija dak iz-zmien. Infakkrek ukol li is sussidju fuq ir-rottot skond il-ligi ta l-EU ma jistax jinghata iktar minn tlett snin, irrid nara il- prezzijiet tar ryanair meta is sussidju jispicca.
W Spencer
Nov 8th 2010, 23:19
Although you are only joking of course, you can imagine what the end result would be when all other EU travellers boycott AirMalta, in favour of THEIR own airlines. Goodbye AirMalta !!
M'Louise Schembri
Nov 8th 2010, 19:32
Close down the airline for good before it becomes an other drydocks.Let the ones who know how to run an airline business do the job for us.British Airways or Alitalia or AirFrance or Iberia.It could be Olympic or Swiss or may be PAN AM.
Godfrey Grima
Nov 9th 2010, 00:03
Have you read aloud what you wrote above?
Roger Borg
Nov 9th 2010, 01:52
Ms Schembri, where were you a couple of years ago, when Alitalia went bankrupt and Berlusconi's government organized a bridging loan for the airline? Or haven't you heard about British Airways' troubles, with falling revenues and increasing costs? Or how it sought to join Iberia and Virgin Atlantic? Do you know that Air France had to join KLM, that Olympic went bankrupt and was then privitized? Same for Swiss Air: it filed for administration and then was taken over by Lufthansa.
Air Malta was handsomely profitable for a very long time, with Maltese people managing it. Or Albert Mizzi doesn't know how to run a business, now? Think before you speak, Ms Schembri.
l gatt
Nov 9th 2010, 05:05
typical nationalist mentality
R.Camilleri
Nov 9th 2010, 08:34
Ms. M'Louis Schembri do you really confirm what you said. Does Malta can get away without a National Airline who always carried its work correctly, but the mismanagement brought it to this state. Are we in a position to lose those pilots and other related workers after so much sagrifices and investment which Malta never had before. The trouble is that instead of helping to cure the situation we are inserting obstructions in it's wheels. How it comes that the government helps the Low Cost Air lines competing our airline and Air Malta none. What about if we do hedging of the fuel oil when it is running high or may be ask the Maltese people who really love Malta's Air Line invest in it to help her out of this mess. It is very important that the Government do the homework well before presenting anything to the EU as other countries do, say Poland when it came to Drydocks and others.
Joseph Buhagar
Nov 8th 2010, 19:21
Its a state of fact that first of all this losses are not a mistake of the employees but most off all results of bad policy decisions and miss manegment and bad decision making coming from the top.Also there is a big political contribute through all this failure by placing their wrong and unqualified and uncapable political positions (ghal Ta gewwa). The workers has been under wage freeże for 6 years now till 2004 but promotions to certain people have been going on all the time. The workers that mostly have been doing the most sucrifices where especially the GWU members because they have been without an agreement since 2003 while other unions memebers all have concluded their agreements years ago and had benefit from increase in their wages while the GWU members are still with nothing .So its it clear that the GWU is not in this case the cause of any wrong working practice etc...
carmel debono
Nov 8th 2010, 18:38
Is this yet another dry docks myth? What I cannot understand is how our national airline is running in the red when air fare charges are by far higher than competitive airlines yet low cost airlines make a profit. I recently booked a flight to Edinburgh with Ryanair for £110 when I was quoted by Airmalta for the same dates euro335. My guess is that while the Indians run the airline for peanuts, the cowboys at the top take the biggest stake.
SSpiteri
Nov 8th 2010, 21:09
Is it possible that there are people like Mr. Debono who still haven't heard that it's through the government (read 'our taxes') subsidies that LCCs make profits. Try removing the subsidies and you will see LCC stopping operation immediately. Please, get your facts right before you post.
R.Camilleri
Nov 8th 2010, 18:21
Ma' tahsbhux li kieku Malta baqet tghamel il-Hedging tal-Fuel kienet tiffranka flus bhal ma' kien jghamel il-Gvern tal-Labour qabel. Dan zgur kien inaqqas hafna mit-telf li ghamlet l-Air Malta fil-fuel u anke l-Ene Malta kien jaqblila. Wara kollox dan kien jigwadanjah il-pajjiz. Dan setgha jsir ghax l-affarijiet kif kienu u jidhru li se jergu ikunu wiehed setgha jinduna. Ma' noqghodux nistennew il-bajtra taqa f'halqna ghax hadd ma'jahsillek wiccek biex tkun ahjar minnhu. Ma' nahsibx li ghandna bzonn xi konsulenti ghal haga bhal din. Fejn mar iz-zejt li kontu tghidu li wasaltu li sibuh. Il-pajjiz jehtieglu ftit serjeta u 'Accountability' ghax il-bqija noddsu fid-dejn se'nibqu, jekk mhux mal-Maltin stess jew mal-barranin, xorta dejn jibqa. Id-differenza taf x'tista tkun li l-barrani ma' jislifniehx.
Alfred Cassar
Nov 8th 2010, 22:20
Ma tistax tilghab hekk bi flus il-poplu. Il-hedging huwa gambling, qisek qed tixtri x-shares, tista taghmel kemxa flus sew u tista titlef flusek kollha jew kwazi. Darba tista tigik tajba imma darba ohra tista tigik hazin hafna.
L-aghar haga li nistghu naghmlu bl-Air Malta hi li ndahhlu l-politika partiggjana. Gvern, oppozizzjoni u Unions ghandhom jinghaqdu biex jippruvaw isibu s-soluzzjonijiet li jistghu jsalvaw il-linja tal-ajru. Mhux facli zzomm linja tal-ajru nazzjonali ghal pajjiz zghir bhal taghna. Ic-cirkostanzi nbidlu hafna f'dawn l-ahhar 20 sena u din irridu naccettawha.
Silvio Valletta
Nov 8th 2010, 18:00
Business and Politics should never mix. every company with malta in its name is doomed. I would have preferred to save Airmalta with the money given to drydocks and its workers. Im sure red warning lights were on for Airmalta 3 years ago.
Paul Borg
Nov 8th 2010, 16:55
Air Malta is the lifeline of this Island nation. The Island cannot survive without affordable access to and from here. Therefor one has to take into consideration that every passenger or cargo brought to this Island is valued at much more than just the air fare. Only cyprus is in a similar position and still it is supported "commercially" by Greece and Turkey. So I guess it is a unique situation and has to be treated as one by the EU commission.
john Alford
Nov 8th 2010, 19:16
I am Maltese and proud of it.Why should Malta be treated as UNIQUE? Sabena airlines had to close (Belgium), so did Swiss Air. Alitalia nearly went down the drain till they shed a lot of the workforce. Why should the EU subsidise a lame duck. The only way to survive is cut the excess workforce and free trips for staff and MP's. And if the Maltese people want to save their National Airline as they keep saying, then do not use the cheap airlines,full stop. Why should the taxpayers of France, Germany and the UK pay to keep Air Malta going. Lufthansa had to merge, so did KLM and British Airways. Enough is enough, otherwise its going to be like the dockyards. The EU cannot keep carrying Lame Ducks.
J Farrugia
Nov 8th 2010, 16:21
The GWU should be aware that intransigence never pays. A look at the Phoenicia case is enough to put the shivers into the union leadership's spine. There is the bread and butter of the employees who will be most hit and not the GWU officials whose job is guaranteed. The national interest as well as the workers' interest should be at the heart of the consultation and subsequent restructuring. And the ramp cannot jeopardize and ignore their mates' livelhood in this restructuring. If we want airmalta to survive the storm..
Oliver bondin
Nov 8th 2010, 23:21
tipprovax twaqqa il-gebla fuq saqajn haddiehor, ghax ghandek habta tghamilha, il-GWU ma ghandiex tort fil falliment ta l-Airmalta, jekk hemm il-haddiema zejda il-gvern tieghek qabel l- elezzjoni dahhalhom u mhux il-GWU. U min bazwar il-finanzi tal kumpanija bix xiri ta l-RJ`s u l-Azzurra Air? Insejthom dawn?
ganni ellul
Nov 8th 2010, 16:16
Don't let it become another drydocks please.
Joe E Galea
Nov 9th 2010, 07:16
Have you ever gave a penny of thought that Drydocks was left to fail on purpose? Do you think that Drydocks was really unviable? I don't think so.
Joseph Calleja
Nov 8th 2010, 16:15
In order for Air Malta to survive:
Separate and cut all ties with the government.
Stop using Air Malta as a hiring tool pre elections and stop inducing and hiring help through politics. This practice has been going on for too long and has to be a definite stop.
Air Malta must be run by capable and experienced airline personnel and not by Party Affiliates, Cut the politics. The government is very capable of running the country but knows nothing about running an airline, that is why Air Malta should be privatized.
The unions have to act responsibly and guide their members wisely and diligently..
Management have to treat the employees with respect and their employees and the unions have to do the same towards management. Have pride in your airline.
Cut the perks that go to employees and to government.
This is a matter of life or death of Air Malta. It is better to have a little of something than a lot of nothing.
Chris Frendo
Nov 8th 2010, 16:03
Air Malta is doomed unless they lower their prices. A random search on Air Malta' booking portal would show the huge discrepancy in ticket cost. A return flight to Frankfurt or Stuttgart with Lufthansa in February cost 98€ and 170€ respectively. The same routes with Air Malta cost between 220€-312€ depending on the dates. And we're not even mentioning Ryanair and Easyjet which cost a fraction of the price, and which are the first option for many who do not care about the frills.
Mary Ann Borg
Nov 8th 2010, 15:58
Is the airline hugely overburdened by its workforce salaries? Yes
Have both parties compounded the equatioin with unnecessary employment? Yes
Has it been a mistake to buy the RJ's many years ago? Yes
Has the industry gone through dramatic changes with the advent of LCCs? Yes
Has the government done well to allow LCCs to operate to/from Malta? Yes
Has the fuel cost increased only to our airline and not to others? No
Is it right for the airline to expect taxpayers' money when its workforce doesn't want to downsize to enable it to become profitable? No
Do we really need to have over 100 employees for each aircraft when other airlines need an average 25? Certainly not.
Lets move forward and sort this problem out but digging trenches and expecting nothing will change and things will just right themselves out is not an option.
I have earlier written that the way forward is to have a 5-jet airline run on commercial lines which will guarantee Malta's prime routes. The other aircraft should be either sold, leased or used in a Maltese LCC with money injected by some ME country or local businessmen. If others can do so can we!
M Micallef
Nov 8th 2010, 19:14
Dear Ms. Borg, Do any of you have any idea of the unit cost if the airline downsizes to 5 aircraft? Have you have any idea of the economic benefits that the LCC you always mention get with large fleets? Do you honestly think that with a 5 aircraft fleet you will find companies which will service the airline at a cost per seat comparable to the big carriers? Do you know what happens if one aircraft is grounded like being hit by a baggage truck or diverts because of bad weather? Even an Airline like Qantas are finding very hard because their A380s are grounded. Don't you realise that airlines are getting bigger through mergers and aircraft unit size is increasing too? Can you find any airline with 150 seat average size fleet comprising of your magic number? Air Malta has a revenue problem, other airlines are filling fleets with hundreds of identical aircraft on identical routes within the EU and beyond and churning profit. Something is very wrong somewhere, and it is not as simple as you want us to believe. regards,
Mary Ann Borg
Nov 8th 2010, 22:38
Fair enough Mr M Muscat. So where do the problems lie? Could you kindly explain? Not sure if you read my earlier post where I tried to find all the reasons why we are in this present situation. If you reckon that the airline is overburdened with its workforce then just say it. If you think the problem also lies somewhere else I'd be very happy to discuss, argue, agree, disagree etc.
Just now I'm listening to Super 1s programme on Air Malta and Tony Zarb is insisting that Air Malta should stay exactly as it is. This is not good news because leaving KM as it is is just sheer stupidity and will only lead to another closure, much like the drydocks. Air Malta's or the governments mistakes in buying the RJ's is acqua passata, and not by a bit either. Since the end of the RJ's debacle Air Malta has made many years of profitability. The 4 avrooliners arrived in 97 and 98 and didn't last long directly with the airline.
And hearing Maire Louise Cutajar referring to aircraft in Maltese as 'ARJUPLAN' doesn't augur well for the future of our airline and tourist industry!
Klaus Pedersen
Nov 9th 2010, 08:40
Hear hear Ms. Borg. Very well put.
M Micallef
Nov 9th 2010, 10:10
Dear Ms. Borg,
It's Micallef not Muscat, see everyone makes mistakes. The problems at Air Malta are so diverse and widespread that it will take more than staff reduction to solve the problems. You are under a very wrong illusion that by reducing the fleet to greengrocer size, KM can remain afloat against hypermarkets. The issue here is that airlines run on razor sharp margins and every opportunity to loose money must be eliminated. Unfortunately the country culture of non-accountability does not augur well.
You may think that reducing the fleet to an unsustainable level and outsourcing everything under the sky, hey presto, problem solved let's move on.
You didn't answer any of my questions therefore I reserve judgement but it is very easy as an outsider to talk. Seeing that the RJs are water under the bridge and then the way an MP calls Aircraft in Maltese is an indicator of performance, I will desist to comment further on such contorted reasoning.
regards,
P.S. What makes you think I am Mr.?
Mary Ann Borg
Nov 9th 2010, 14:50
Dear M Micallef. I didn't know everyone does mistakes, I thought it was only me! You may wish to desist from continuing with this discussion, it's a free country and everyone has rights. Much like I have my rights to assess that while you make it sound like my suggestion to a solution is childish while you refrain from specifying where the problem lies. Again, if we are going to look back it will serve nobody any good. The way forward is to focus on bringing the airline back to the black. Your only resistance seems to be the fact that my suggestion includes both workforce and aircraft reduction. Am I to understand that you are in favour of actually increasing the fleet? Why should we do this when we both know that in winter we hire aircraft out to South America, send pilots to Libya etc and you want to remain with the same-size fleet or possibly even making it bigger to compete with 'hypermarket' airlines? Can't you see we can't even chew a 12-jet fleet with all the competition and changes happening daily in the airline industry? It's no good shooting down all suggestion without putting forward yours.
Mark Abela
Nov 8th 2010, 15:54
I really think airmalta is an asset for the country. The problem is that as it is, it is not sustainable. To be successful airmalta must somehow compete with the prices offered by low cost airlines. I find this somewhat sad because (I speak at least for myself here) when you are coming back home, no low cost airline can replace that sense of 'familiar face in a strange place' which airmalta offers. Unfortunately however, low cost airlines are so much cheaper that these days it really isn't worth it flying airmalta economically. Airmalta has to offer something more for their price, or reduce it accordingly. I would hate to see it go.
Ray Buhagiar
Nov 8th 2010, 19:17
Air Malta offers a guarantee that it will never leave its clients stranded
Mary Ann Borg
Nov 8th 2010, 15:45
Off to a good start then. It clearly shows there is a strong will to have level-headed discussions. Lino Spiteri's article today was a very excellent piece of writing and continues to show there is an all-round desire to save Air Malta but not to have a lame, money-sucking enterprise to move ahead as if things have not changed.
To start off, the insistance by the GWU that the workers should not pay the price for the airline's failure is immature. It's the extra workforce that is making the airline fail one quarter after the other. They are the ones who should not be employed by the company but enough of this and hopefully common-sense will prevail in the end. The end should be a leaner but profitable national airline that the whole nation cannot do without. And leaner in all sectors, leaner in number of aircraft, leaner in number of workforce, leaner in offering services that no airline should provide unless at a normal price etc. The figures published by KM and which feature in Kurt Sansone's write-up today speak for themselves. We are in the same sitution as the drydocks. The more passengers carried the higher the losses.
mario gellel
Nov 8th 2010, 15:45
OUR PRIORITY IS ''JOBS'', (Dr.GONZI)
GHAL TAL QALBA, IMMA SUR GONZI.
B.Storace
Nov 8th 2010, 15:43
What a pity that our National Airline has been reduced to such a sorry state. BUT where there's a will there's a way and it can only be forward. I am sure that directors, managers and senior staff, similar to the MEPA situation are receiving salaries and benefits which are way above the National average and could be trimmed down to a reasonable amount. Perks, like reduced fares for family members should be shelved or be done away with, cars got rid of and shed those workers who are close to retirement by offering early retirement. Cut down on the fancy trimmings which accompany in-flight meals such as cardboard packaging for a sandwich and do away with free drinks. It's amazing how little savings amount in the long run. Streamline the workforce and the working hours avoiding overlapping of services etc, etc. It can be done...It has to be done and sometimes with no holds barred.
Joe Grech
Nov 8th 2010, 15:43
What a pity our national carrier, the once strong Air Malta, is in danger of being wound up - or rather SOLD - as many other national entities have been SOLD to outsiders!
Surely successive administrations realised over the years the way things were going. Yet no real effective corrective measures were put into force. Money, and more money, was in fact spent on very bad deals. And more and more employees kept being taken on - despite the financial problems!
Only NOW are the jackals shedding a tear or two over the sorry state Air Malta is in. But surely it is not the employees's fault that the Airline is in this sorry state. Ministers as well as the Airline's Management have a lot to answer to!
c. camilleri
Nov 8th 2010, 15:35
In spite of its loses, Government acceded to the unions' demand of hefty wage increases. Was thin in consonance with the precarious condition of the Airline?
Do companies in financial difficulties give increases to their workers?. The mind boggles.
Albert Scerri
Nov 8th 2010, 20:37
"hefty wage increases" !!?? What hefty wage increases ? I work as a clerk with Airmalta and I have NOT had ANY wage increase for years and years except for the COLA given to ALL workers in Malta.