Kurt Sansone
Air Malta turns focus on staff, fleet numbers
‘Decision to be taken within time-frame set by Brussels’
Air Malta’s management has been asked to draw up a restructuring plan for the beleaguered airline which outlines the number of employees it needs.
The plan, which has been requested by the European Commission, has to be finalised by May 15 and a first draft has to be submitted by January.
The order came from the steering committee tasked with overseeing the airline’s restructuring. It held its first meeting yesterday at the Finance Ministry, two weeks after the idea to form the committee was floated in talks between the government and the opposition chaired by President George Abela.
The two-hour meeting was attended by representatives of the government, the airline, the opposition and the four unions that represent Air Malta workers.
Speaking at the end of the “cordial” meeting, Finance Minister Tonio Fenech would not say what was discussed when asked whether the government had presented its restructuring proposals. Union officials and the Labour Party’s representative, former Air Malta chairman Louis Grech did not comment either.
Mr Fenech said the government’s consultant and aviation expert Robert Palmer has temporarily taken the airline’s commercial operation under his wing after the chief operating officer was put on long leave earlier this week.
A press release issued by the Department of Information in the afternoon said the committee’s terms of reference included discussing and agreeing on a restructuring plan agreeable to the EU.
The decision has to be taken within the timeframe set by Brussels and the committee will also oversee the implementation of the plan.
Air Malta’s management has been tasked with analysing the size of the airline’s fleet and which routes to keep. The company must also determine adequate staffing and skills levels.
The management has to draw up a plan to improve the company’s commercial operations through a strategic analysis of the markets in which the airline operates.
The statement said the committee will seek consensus and if this is not possible the government will shoulder responsibility to take the necessary decisions.
Last week Parliament approved a government loan of €52 million for the sinking airline after the Commission approved this emergency aid.
However, the cash injection has to be accompanied by a restructuring plan to make Air Malta viable. The airline lost some €30 million in the financial year ending March 2010 and is expected to register heftier losses in the current financial year.
In a statement, the GWU said some Air Malta employees had been given orders that went contrary to their work practices. The union said that unless there was prior agreement in talks between it and the management, workers should ignore the orders. It did not give further details.
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carmelportelli
Nov 28th 2010, 08:43
Poor Malta Drydocks workers, they were the black sheep to many so it was closed down. Now we have Enemalta and Air Malta both are over staffed and losing money at a fast rate one is going to being restructured why not the other. it should have been restructured before tariffs were increased. I
JOHN CASSAR
Nov 27th 2010, 20:51
Will another legacy of the past bite the dust? All parties including management, unions and the staff must acknowledge the world is very different today. From the outside looking in, everything must be analysed to bring cost savings. Accountability must be with every person who is paid by Air Malta including contractors. If the task is not done correctly, then the right to service Air Malta should be lost, regardless of contracts. Does Air Malta need to keep all its staff on the books? Why not contract the work out to a specialist company like other airlines?
Charles J. Buttigieg
Nov 27th 2010, 18:47
When JN Tabone took over as Chairman of Air Malta he promoted all managers to Senior Managers leaving me and three others out. A few months later all the Senior Managers were promoted to Heads and two more new grades were created - Group Head and deputy Group Head to accommodate a number of blue eyed boys. A few years after JN Tabone’s tenure of office expired Air Malta terminated the designation of all Heads, Group Heads and Dep.Group Heads; however, they were all allowed to enjoy the same salaries and perks while employed in inferior positions. At that juncture Air Malta created a new grade, General Manager to replace the Group Heads while promoting a new lot of blue eyed boys and girls. With all this happening and they are trying to convince us that the financial downfall was caused by the workers?
Joe Zammit
Nov 28th 2010, 13:58
It seems that most of those writing comments on this blog either do not have any idea of what is going on at Airmalta or else are biased and their only intention is to criticize the GWU and workers, most probably they do not know any better. I wish to point out that the instructions the GWU has issued are within its rights as a workers representative in the EU. The Union instructed the employees that before accepting any instructions from the management stating that this is due to the restructuring plan they shall first assure themselves this was agreed between the unions and the management.The reason for this is that till today the discussions on the restructuring plan have not yet started. But it seems that there is a segment of management who is going through the stage of panic and are issuing instructions which sometimes may cause more damage to the situation, this is to justify their position and with the excuse of the restructuring plan. So before bombarding the column with comments which can only aggravate the situation please make sure that you know the actual facts and not be biased against workers and their representatives.
.
a.dalli
Nov 27th 2010, 18:10
Deloitte & Touche proposed that airlines should include slots as assets on their balance sheets, enabling them to be used as security against borrowings. In its analysis Deloitte valued a peak-time Heathrow slot at around £25-30 million.
Has Air Malta done so, and what is it worth?
G. Grech
Nov 27th 2010, 16:57
maybe 71 captains (listed as having the highest wage on the island) are a bit on the high side to fly 8 aircraft.
Did AirMalta expect to make profit ?!?
a.dalli
Nov 27th 2010, 15:58
Can the government allow a tax waiver on Jet-A1 fuel - obviously some guru will have to decide if this benefits the tourism industry in totem. By so doing the Airline will be given a breathing space and help to consolidate - in turn if airfares required to be increased, will only do so by a smaller percentage. In return destination Malta will remain affordable, benefiting all; - the Government, the Employees, the MHRA and other tourism related ancillary businesses. Let common sense prevail – a good majority of staff members working for Air Malta are good minded and loyal employees.
c. camilleri
Nov 27th 2010, 15:43
The GWU never learns and continue to play the political game at the expense of the workers. She continues to interfere into management business by curtailing Management's authority to put workers were needed.. Old work practices has to go if any enterprise is to survive in this harsh competitive world.. By the attitude of the GWU it seems that Air Malta has no future and will go down the Drydocks, Sea Malta, Phoenicia, Interprint's ways.
R.Camilleri
Nov 27th 2010, 14:26
Is the government going to find new jobs for those workers who are going to face the required redundancy. These people which includes management I should suppose are the ones, or if not partly of those who were employed before the election. The government should have already known that there are hefty surplus workers with Air Malta as he had already employed a consultant with a great salary to guide him in the restructuring and bring Air Malta on its feet. But the reality of this was very different, the same as for Drydocks.
patrick zammit
Nov 27th 2010, 14:12
AZ
I agee with you that "a change in culture" is needed. How can Air Malta justify those increases in the present scenario? Did the "unions" you mentioned agree with such increases?
My comments however, were directed aginst those who whilst pontificating about the need for austerit measures, see themselves as being excluded from such!
patrick zammit
Nov 27th 2010, 10:31
Air Malta employees had to agree on a wage freeze some 6 yrs ago but some of its top officials get a E1,000 per month increase on top of a E7,000 performance bonus.
Cabinet members get an increase of E600 per week whilst the commoner gets a slap in the face of E1.16.
Unelected EU officials get a 3.7 pay increase (which for top officials means an increase of E9,000 annually) at the same time that these same officials force govts to enforce austerity measures.
Some pigs are more equal than others!
C Cassar
Nov 27th 2010, 11:49
Yep, it's a tough old life having a job isn't it?
a.dalli
Nov 27th 2010, 11:57
and can fly too
A. Zahra
Nov 27th 2010, 12:27
A few weeks ago I flew Airmalta from an airport in Italy. Being disabled, I had to ask for airport assistance - a wheelchair and lifter to the plane's door -. At Bologna I was looked after by one airport employee and the lifter's driver. In Malta I was met by 4 persons. the lifter's driver, an assistant driver, and two persons to look after me in the airport provided wheelchair. The contrast with Bologna was strident. Both in the condition of the vehicles, their cleanliness, and in the number of personnel deployed. Unless there is a change in culture including manning levels, Airmalta is destined to go the way of the dockyards, Alitalia etc. It is up to the unions to decide which way it is to go.
R. Saliba
Nov 27th 2010, 12:52
C Cassar... two wrongs make a right? Whatever your situation, Zammit's spot on, deal with it.
C. Farrugia
Nov 27th 2010, 10:24
So here goes the GWU doing its best to turn Air Malta into another Sea Malta or another Malta Drydocks or another Interprint. They never learn. Work practices have to change and quick...The GWU should not put its nose into management.....This is what drowned the 3 companies above, lack of flexibility of the staff as demanded by the GWU.
Anthony Farrugia
Nov 27th 2010, 15:47
It seems that the Hotel Phoenicia debacle has not yet registered with the GWU !