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Updated: Pilots' strike will put company, its workforce and jobs of thousands of others at risk - MHRA

Adds statement by Chamber of Commerce, Enterprise and Industry

A strike by Air Malta pilots will put the company, the airline's entire workforce and the employment of thousands in the tourism industry at risk, the Malta Hotels and Restaurants Association said.

In a statement this morning, the MHRA said it was extremely concerned about the threat of industrial action by the Association of the Air Malta Pilots as this could have devastating results during what is considered to be a peak period for the tourism industry.

"The threat itself creates uncertainty amongst potential customers, who will think twice before booking with Air Malta."

The MHRA said:

"Industrial action in the prevailing circumstances carries a huge responsibility and as such should not be taken lightly.

"The MHRA appeals to ALPA to reconsider its position and to pursue its claims through constructive discussions."

The association said the Air Malta process had now reached a very important juncture which called for all stakeholders to work collectively with the government in an effort to place Air the airline on a solid footing, even though the government kept most of the stakeholders in the dark about the restructuring process.

"A lot has been said about Air Malta's current state of affairs and blame goes to the politicians who over the years interfered and took decisions for Air Malta where and when they shouldn't and did not when they should have.

"Ultimately Government will have to shoulder the responsibility for Air Malta. That Air Malta is in the state it is in today is also due to other compounding factors. But we cannot undo the past and we now need to look forward."

The MHRA said that given the strategic importance of Air Malta to tourism, the airline had to, not just survive, but also maintain seat capacity at levels similar to those it registered to date.

"We also need to ensure that parallel efforts are in place to at least retain the overall seat capacity needed to sustain the industry.

"Short of this, tourism will shrink, hotels will be constrained to cut back and others to close down, and so will other businesses that depend on this industry, whilst jobs will be lost."

The MHRA said that millions of euros of investment were at risk, and more millions of euros in taxes and VAT would be lost by the government if there was a downturn in tourism.

"One cannot underestimate the impact that a downturn will have on the whole nation's finances.

"The stakes are very high, and we need to work together to see how best we can put Air Malta back on its feet in the shortest time possible," the MHRA said.

CHAMBER SHARES MHRA'S CONCERN

The Malta Chamber of Commerce, Enterprise and Industry said it shared the MHRA’s grave concern regarding the possible devastating effects of the irresponsible industrial action.

“It is most unfortunate that, throughout the years, political motivation has often prevailed over economic logic in the running of Air Malta.

“This resulted in accumulated losses that have brought the airline to an unsustainable point.

“Whilst ALPA is justified in pointing this out, it is being most irresponsible by threatening a strike that will paralyse access in and out of the country and at the height of the tourism season.

“This could place hundreds of jobs at risk throughout the entire economy - in sectors which are intrinsically linked to tourism.

“Further jobs could be lost in manufacturing, retail and financial intermediation - not to mention tourism and the airline itself,” the Chamber said.

It said that ALPA’s declared action was ill-timed and disproportionate.

“Therefore, it is deemed most irresponsible because the risks it poses on the entire country are far too large. 

“Air Malta’s pilots must defend their position but act in a manner that allows the airline to survive.  They must not be short-sighted and resort to the negotiating table in an effort to unblock the situation through reason rather than destruction,” the Chamber said.

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Lino Busuttil

Jul 6th 2011, 23:12

you are just repeating the Miniter statements Don't you have any grasp of the situation, such as the fact that Air Malta is ALREADY BANKRUPT? Even the Minister knows that if they go ahead with any plan without changing all the contracts, even if they get rid of all the pilots and workers they will still be bankrupt, may be only just stay afloat till an early election, with directors at MIA and at other companies milking Air Malta till its last breath. This is UNACCEPTABLE not only for ALPA but for any citizen that is still got some decency of putting politics behind proper analisys! The time is now not tomorrow , since noone had the decency to stop the abuse. CANCEL ALL CONTRACTS AND RENEGOTIATE NEW ONES NOW! Choose between Tourism with a long term viable airline and between STATUS QUO and sustaining unscrupulous fat leeches who are never satisfied.

Mark Cams

Jul 6th 2011, 17:17

I though that there was a restructuring plan which was sent to the EU.and that thelaoffs are part of it. Maybe I was mistaken.

Are they asking for the airline to maintian their jobs even if this will be detrimental to the airline's survival?

i hope that no one is hating the pilots nor the other employees for protecting their jobs. But we need to be realsitic and accept fact that drastic action needs to be taken now before its too late. We are being told taht laying off workers is one of the painful measures which have to be taken before the whole airline is lost and a greater number of jobs both within the airline and the tourism industry are put at risk.


Of course its very easy for me and others who do not work at Air Malta to be patriotic and cool headed but I ask again what are the long term viable alternatives?

What's has been done is now done and cannot be changed. Hopefully the peoiple who were responsible are not in a position to do harm again.

Stephen Grech

Jul 6th 2011, 19:38

What's has been done is now done and cannot be changed. Hopefully the people who were responsible are not in a position to do harm again.

Well done, great argument!!!.

Dear M Cams,
Who screwed our airline, the top people responsible for this fiasco got alternate high positions (of course) by their previous employer ie Dr Tonio Fenech. That's called ACCOUNTABILITY or what?

Yet KM is still forking out Millions for the contracts they signed.

Why weren't these addressed in 2004. BTW we are in 2011 and in deep s...t.

Great, now blame it on the pilots who want this situation rectified immediately.

Ms G Schembri

Jul 7th 2011, 03:05

The employees should not pay for the bad decisions made by persons, who are now enjoying the fruit of their mistakes. At least these people should be held accountable and pay for their mistakes, even by given back what they took from AirMalta.

Mr B. Fenech

Jul 6th 2011, 15:50

& in doing so, we will also take down the countries improvements with it?? Are you mad?? the company has too many employees, people have to go. It isn't by choice, its by force.

Jon Vercellono

Jul 6th 2011, 15:59

What is the difference between Mr. Joseph Cauchi Senior (JC) and the Minister for Transport? Any answers? Well, they're both entirely devoid of facts to base their arguments on; out of touch with the reality experienced by a normal Maltese citizen; and incredibly arrogant. Please come prepared to defend your argument; you haven't a clue what the pilots are striking over - except what your heroes tell you to believe.

Lino Busuttil

Jul 6th 2011, 23:17

you think loosing 52% of the tourism market will not effect MHRA, wow you should be advising Tonio on National economics!

Mr Emanuel Curmi

Jul 6th 2011, 14:32

Air Malta has evolved into a dinosaur and blaming low cost carriers, the MHRA, exploding oil prices etc etc is not going to change that.
There are enough fossils out there like Swissair & Olympic Airways while the list of similar endangered species like Alitalia, Cyprus Airways is also not lacking.
This problem has been on the agenda for years and years and either nothing has been done or a succession of management have proved themselves helpless of how to even start.
At least the present minister has declared himself a fool in airline matters so at least that is a start.

Mr edward ciantar

Jul 6th 2011, 14:37

I ask, how many routes were imposed on KM to open to accomodate MHRA and in the end suffered financial consequencies? Nice, really nice.

Poor staff, now.

Mr R. Zammit

Jul 6th 2011, 15:34

Emanuel Curmi, I do not blame LCCs BUT I do blame the government's blatant subsidies to them (besides MIA also giving them further subsidies).

Do you all realise what we are talking about? Let me try and be as simple as possible without getting too technical.

The government is dishing out €12.5 MILLION per annum exclusively to LCCs that are direct competitors to Air Malta.

LCCs thus give cheaper tickets, so not only is Air Malta not getting its share of the subsidy, but it has to lower its prices in response, to keep getting passengers. Thus, whilst carrying a similar number of passengers in 2006 vs 2010, Air Malta's revenue went down €20 million.

This means the company was €20million poorer in just ONE year, even though it did the same job. This has been going on for 5 years now. Yes OF COURSE I see this as a direct result of the government playing Father Christmas to LCCs, after giving in to two whole years of MHRA/GRTU (and the rest of the "Low Cost at all Cost Brigade" - remember them?) insistence.

Just to put things in even more perspective; IATA has announced that this year, airlines globally will average just 0.5% profit. (Usually its not much more, about 2% - even the bank gives better margins!).

Now Air Malta had a turnover of €249 million in 2009. IF the company was 'fuq ir-rubini", on IATA's profit forecast, we could have expected a modest profit of €1.24 million last year.

Now can you believe that our government and Air Malta's own main shareholder is giving away exactly 10 times Air Malta's 'at best' potential profit to its direct competitors? Can you believe this? I really cannot get over it! Anybody without blinkers cannot fail to see this reality, and how it will effect (read bankrupt) even the most healthy company.



And this is just ONE of the points the pilots are making.

Stephen Grech

Jul 6th 2011, 16:32

Mr.Zammit,
Not only did the Government act as Father Christmas with LCC, but also imposed AirMalta to keep on operating loss making routes carrying 7 people out of Malta and returning back with 15 passengers.

With all the statistics, why didn't MHRA comment on such routes.???

Mr edward ciantar

Jul 6th 2011, 14:34

This.

Let's see if any of the enlightened take you on Lino.

D Dalli

Jul 6th 2011, 14:48

I am sorry to hear that you lost your job and you are right. Why should you be happy that you lost your job and another five people kept theirs ? On the other hand maybe your job was one of the 'government of the time' job favour for votes ! Unfortunately everyone has to be realistic about this situation....including all the people who got jobs at Airmalta because someone knows someone who knows some minister which will arrange for him or her to work at Airmalta for....................THE NUMBER 1 ON THE BALLOT PAPER !!!!!!!!!!!!!!!

Mr edward ciantar

Jul 6th 2011, 14:32

....good show again Renald.

Any comments are superfluous by the enlightened.

Jon Vercellono

Jul 6th 2011, 13:54

Thanks for that word from Castille.

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