Air Malta upbeat on talks with Brussels

A delay of four months for a final decision on Air Malta’s multi-million-euro restructuring plan “came as no surprise” to the airline, which said it was positive that talks were moving ahead.

The Times yesterday reported EU sources saying that a final decision on the proposed restructuring was not expected before the end of March. The airline said it was working on the implementation of the restructuring plan.

It said that in parallel with the discussions at EU level, Air Malta had embarked on an implementation plan that would see it restructuring its operations and spearhead over 165 projects that spanned areas related to cargo, finance, corporate and financial restructuring, contracts management, ground handling, human resources, IT and revenue enhancement.

It said it had also moved forward in its discussions with the unions “to change restrictive work practices and right-size the airline”.

The ultimate aim of the plan is to increase the airline’s revenue by €30 million and cut costs by a similar amount.

The restructuring plans are an attempt to win European Commission approval for a €52 million loan it received from the government and turn the airline around.

Just over a week ago, the majority of workers represented by the General Workers’ Union and the union of cabin crew voted in favour of a rescue package proposed by the company to shed half of its 1,300-strong workforce. This included early and voluntary retirement schemes.