Former Air Malta chairmen, board members and both serving and retired politicians have been informed by the national airline's new leadership they would no longer be entitled t o free flights as of July 1.

The move, which comes in the wake of the top management's first face-to-face meeting with employees at the Dolmen Hotel yesterday evening, also applies to the chairman, Louis Farrugia, and the minister responsible for the airline Tonio Fenech.

The only exception will be Presidents and Prime Ministers, be they serving or retired.

The airline yesterday confirmed it will shed 511 workers and is to discuss voluntary retirement schemes with the trade unions. (see separate story)

In view of the airline's financial situation, the management says in a letter sent out yesterday that Air Malta would no longer be in a position to offer free flights. Tickets already issued would be honoured but no free tickets will be issued after July 1. The decision to review the issue of free flights was announced earlier this month. Staff will still benefit from discounted air fares and even these benefits may be reviewed.

Although the concessions had been in place for a long time, some since Air Malta's inception, different administrations extended them to politicians , politically-appointed directors and their immediate families.

The changes form part of an ambitious restructuring plan that aims to cut costs at the beleaguered airline by €30 million a year and increase revenue by an equivalent amount.