Air Malta employees updated on progress with unions

All Air Malta employees have been informed by CEO Peter Davies that the management is making good progress on concluding agreements with each of the unions involved in the process on key issues, including the voluntary redundancy schemes and the new organisation structure of the airline.

No agreement has yet been reached and discussions are ongoing.

In an internal communication issued to employees, Mr Davies explained that the discussions with the respective unions have continued and that he was envisaging that announcements could be made in the "next few weeks."

Mr Davies also updated the employees on progress being achieved as part of the restructuring process.

He explained that the airline is making good progress in a number of critical areas and that there are over 150 improvement projects to be implemented.

Some of these projects have already started and these include the negotiations of the MIA contract, the review of the catering contract, the negotiations with the airline's ICT provider, a number of initiatives to exploit the cargo segment, and reviewing of costs related to the ground handling aspect of the business.

The CEO added that the airline will be focusing – as a priority - on the improvement projects that will have the biggest impact on cost, productivity and revenue enhancement.

Mr Davies referred to the recent appointment of Philip Saunders as the airline's new chief commercial officer and explained that for the first time the Commercial Department will also incorporate cabin crew and ground services.

He announced that the management has just completed the planning of the schedules for winter 2011 – 2012 and summer 2012.

These will be published later on this month. This exercise is critical in providing the foundations for the restructuring plan and keenly anticipated by sales partners including tour operators and travel agents.

Air Malta has also appointed Nicholas Xuereb as the new chief financial officer. He will be handling the airline's financial management, corporate financing, revenue accounting and supporting the implementation of the restructuring plan.