Air Malta employees’ early retirement schemes discussed with Brussels

Early retirement schemes are being drawn up for Air Malta employees as the company braces itself to shed workers, according to Finance Minister Tonio Fenech.

During a meeting with European Competition Commissioner Joa­quin Almunia, Mr Fenech said yesterday the restructuring plan for the airline would be forwarded to the Commission in the coming weeks.

There were ongoing discussions with the stakeholders, in particular trade unions, he said.

Commission guidelines required that the restructuring plan included the divestment of loss-making activities and this meant the number of employees would have to be cut, the government said.

In an interview with The Sunday Times, Mr Fenech said Air Malta would have to shed about 600 employees to become viable. Some €70 million were needed to turn the losses into a “sufficient” profit, he said. At the meeting, Mr Almunia also informed Mr Fenech he intended to conclude the investigation into state aid in the modification of boilers at the Delimara power station in the coming weeks.

Another case discussed were planned embellishment works for Qawra, Buġibba and St Paul’s Bay and the possibility that part of the project, in particular a pro­po­sed aquarium, would benefit from state aid. The Commission has given the green light for this project and works are expected to start in the coming weeks.