Air Malta’s suppliers ‘have to pull their weight’
Plane works at SR Technics at the Malta International Airport. Photo: Jason Borg
Finance Minister Tonio Fenech yesterday shrugged off the advice given by Ryanair to fire the consultants working to save Air Malta, the national airline.
“I don’t think we need to take Ryanair’s advice to run Air Malta,” Mr Fenech said, adding he did not feel he should have to respond to each comment the low-cost carrier’s representatives made.
Ryanair deputy CEO Michael Cawley recently accused Ernst & Young of unfairly blaming Air Malta’s troubles on low-cost carriers, adding that the government should fire them and should not pay a fee “for that rubbish”. Mr Cawley said Ryanair did not compete with Air Malta and operated on completely different routes, bringing new tourists to the island.
Mr Fenech said Air Malta had a multitude of problems but it was “a fact” that Maltese tourists who used to fly with Air Malta were now “displaced” to Ryanair because it offered cheaper holidays.
“We did not need Ernst & Young to tell us this. These are facts.”
However, Mr Fenech also conceded that Malta depended on low-cost carriers to continue seeing growth in tourism.
“We need to achieve a balance,” he said, adding that Ryanair’s proposals for expansion had to be evaluated in this context to ensure no further blows were dealt to Air Malta.
Pressured to ask whether he had faith in Ernst & Young, Mr Fenech dodged the question by saying he had faith in the restructuring committee which is engaged in numerous discussions and will begin negotiating with the European Commission in the coming days.
“At the end of the day, this is not a plan for Ernst & Young but a plan for Air Malta.”
It has been claimed that exorbitant charges by Malta International Airport are crippling Air Malta and that other airlines are able to compete despite the charges because they qualify for assistance schemes when they open new routes.
Asked about MIA fees, Mr Fenech speaking at SR Technics said all suppliers of Air Malta had to pull their weight to ensure the long-term viability of the national airline.
“Part of the plan is to negotiate with all suppliers that offer services to Air Malta to ensure everything is done efficiently and cost-effectively.”
He added that the impact of the Air Malta restructuring exercise on the country’s deficit depended on whether the Commission qualified the expenditure as an investment or as state aid. If it was seen as state aid, Mr Fenech said, this would have to be registered as a government expense which would in turn affect the deficit.
“So it’s too early at this stage to say how it will affect the deficit.”
Mr Fenech was speaking toThe Times after a press confer-ence to mark the third year of this legislature, where he gave an account of his ministry’s achievements.
He said the country had faced a series of extraordinary challenges but emerged with a sense of stability and competitiveness, keeping unemployment as low as possible and remaining attractive to investors.
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Mr Anthony Pace Gouder
Jun 30th 2011, 12:17
It would be interesting to know from the Hon.Minister how many hundreds ,rather thousands of Low-Cost Airline 'in-coming' PASSENGERS, patronized at least the SELMUN PALACE Hotel in the last four Years !
Would it be possible for LC Airlines to Set up Package Tours in Solidarity with firstly. Selmun Palace Hotel and hence Air Malta .
Considering the LOUSY POLITICAL climate around the MEDITERRANEAN , we should be flourishing from more Tourists .
F.BUGELLI
Apr 6th 2011, 14:26
COULD THE HON.MP TONIO FENECH ENLIGHTEN US,AIR MALTA WORKERS, IN TELLING US WHO THE AIR MALTA SUPPLIERS ARE.AS FAR AS WE AIRMALTA WORKERS KNOW, WE ARE THE FINANCIAL SUPPLIERS TO M.I.A/ENEMALTA/HOTELS/CARHIRE FIRMS/TAXI DRIVERS ETC ETC.
Victor Vella
Apr 6th 2011, 14:18
`Mr Fenech said Air Malta had a multitude of problems but it was “a fact” that Maltese tourists who used to fly with Air Malta were now “displaced” to Ryanair because it offered cheaper holidays“We did not need Ernst & Young to tell us this. These are facts.”
Al last Fenech comes to his senses. Well Done! The multitude of problems were created by the PN administation during the past 20+ years. AM`s employees knows what these problems are because they have to carry the burden. It is partly true that some AM customers swithched to low cost but returned back to AM because they deserve something better while travelling by air. Antonius don`t continue to show the false image of your gross hypocresy and don`t continue to live in ignorance to the detriment of yourself and the people who voted for you. If you did know of the problems, why you spent from AM`employees sweat more than 10million € in consultancies fees such as to E&Y?. Now, that you admitted in front of everybody, you knew of the problems your government is to take all the responsibility and that E&Y were only a shield to hide your hypocresy.
George Abdilla
Apr 6th 2011, 11:32
What do you expect MR Fenech?
Should we
MGalea
Apr 6th 2011, 11:27
Ifhem, biex kull sena qed tmur min taht bil-kbir, u dejjem jinbidlu t-top management, nahseb daqxejn ta ' parir minghandhom mhux ha tghamel xi hsara.... x'tahseb sur minsitru? Jew taf bizzejjed biex taqla l-airmalta mit-tajn li qedha fih diga? Illuminani hekk jghogbok.
Peter Murray
Apr 6th 2011, 10:07
It is precisely because of this know-it-all arrogant attitude of Minister Fenech that Air Malta is in the mess it is in today in cavalierly and disdainfully disregarding the advice of a highly successful and profitable company such as Ryanair.Whose advice precisely are we taking ?As it is evident we cannot provide or implement a robust or concise strategy to get Air Malta out of the mess it is in and why is it taking such an inordinate amount of time to deliver anything practical or tangible in any event?
Charlie Borg
Apr 6th 2011, 09:36
What an arrogant Minister. Facts prove the opposite, it seems. And that the Government needs the advice of anyone regarding Air Malta - look at the way it has been used and abused, and now left to rot. After so many years of successive Nationalist governments, Mr Fenech, whose fault is it that Air Malta is in dire straits? So, yes, you need just about anyone's advice on how to run Air Malta.
A very arrogant yob of a Minister. Needs to come down a peg or two. Hopefully, the next general election will do that.
J.Bonnici
Apr 6th 2011, 09:23
Now we all know who the 'cuc' Malti actually was.
Please choose the reason of your report below: