Ivan Camilleri, Brussels
Air Malta restructuring gets first nod from Brussels
‘Nothing should be taken for granted’
Air Malta’s rescue plan has received its first nod from Brussels and will now be scrutinised by competitors and interested parties in the coming weeks.
European Commission sources said yesterday it had completed the preliminary assessment of the plan submitted last May.
“The Commission is satisfied with the plan and will now publish its preliminary decision to receive objections, if there are any,” the sources said.
The process, starting today and technically known as a formal investigation, will spell out the Commission’s opinion on the plan. It will invite all interested parties to submit their objections in writing, saying why Brussels should not allow the Maltese authorities to provide the ailing airline with state aid. This stage usually takes over a month and the Commission will then analyse the legality of any objections made and invite the Maltese authorities to make their final submissions.
It will only be when the process is concluded, expected at the end of April, that the Commission can make a final decision on whether to approve the state aid.
“Malta has made a lot of progress in trying to solve the Air Malta issue and we have had many technical meetings with the Maltese authorities over the past months,” a Commission official said.
“We have now reached the final stages and we are on schedule. However, the point when we would decide on whether to give the final go-ahead or not will only be reached at the end of this complicated process. Nothing should be taken for granted at this stage,” the official added.
According to the plan presented by the government, Maltese tax-payers will be forking out a substantial sum of money to save Air Malta, which has been in the red for the past few years, particularly due to rising fuel costs, lack of restructuring, mismanagement and increased competition.
Apart from the €52 million which have already been given to the company in November 2010 as rescue aid, a loan that will be converted into share capital, the government is also planning to inject about €78 million in fresh funds into the airline’s share capital.
The company will be selling almost all its property to the government, raising another €66 million.
If approved, the five-year restructuring plan aims at turning the company around to start making a profit by 2015. If this does not happen, the company will have to be closed down or sold. According to EU rules, state aid can only be given once.
The restructuring plan involves massive cuts in the operating costs of the company including the shedding of about 500 workers.
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Ross Lock
Jan 25th, 11:35
lets do some math's. Air Malta will receive 130 million euros in state aid so divide that by 200,000 tax payer's (this is not precise amount) = 650 euros yearly per tax payer, Thats 54 euros per month.
Would it not be best to sell Air Malta to the Maltese public only to raise the funds and we then (The Public) decide its future.
Peter Murray
Jan 25th, 12:14
Air Malta is already owned by US( THE PUBLIC)-so whats your point as to how we can turn things around?
Victor Vella
Jan 25th, 12:48
Air Malta was sold to the people as a public company during the labour government. People and staff at Air Malta bought shares and they were paid good dividends. Air Malta increased its equity and had it own aircraft. Today Air Malta has any aircraft but are leased. Today Air Malta is bankrupt under a Regime that have sent Air Malta to its chest struggling to take a breathe.
Victor Vella
Jan 25th, 10:18
All this trouble and the state of bankruptcy brought to Air Malta was intentionally done by the Gonzi Regime and his acolytes. Austin Gatt was the common denominator to take vengeance of the people working at Air Malta when he said that there is no need of the national airline once his regime brought the LCCs.
Then his descendent Tonio Fench instead of putting all the blame to his predecessors broke out in excuses such as the rise in fuel prices, mismanagement and lack of restructuring. These are all stupid and insipid excuses to hide behind a wall of incompetency, arrogance and PN political glut for power. When Air Malta was born by a labour government in 1974 fuel prices rose to 400% and kept rising with the creation of the OPEC cartel. Against all odds the company kept growing until the regime of Gonzi PN sold all its gold with peanuts and brought the company lying down on its chest. Another excuse is mismanagement. How can those puppets on a string of top management do their work properly when they were all the time manipulated by the PN marketing machine at tal-Pieta? Air Malta was rendered to a PN headquarters were top and middle management were chosen from tal-Pieta` place of shame. Another big lie is restructuring. In 2004 Air Malta knew the dire financial position and went for a turnaround to bring the company on its feet again. With that restructuring about 250 people left the company while those puppets who were at top management instead of taking an opportunity from that restructuring about 300 people were replaced with those employees who took the VRSs and left the company. Tonio Fenech instead of saying the truth brought these foreign English brains to hide the corruption, political glut, and his predecessor green vengeance and took everything on himself because now his regime is in panic because with Air Malta this nation is politically and economically is lost in wilderness. Tonio Fenech any employee at Air Malta is going to thank you for what you have done. People will speak-in few months time.
John Scerri
Jan 25th, 10:48
Dear Victor Vella your most detailed comments I have read with great attention ...each phrase triggered a question in my mind .....'where is the proof ?' ...Can you prove all you stated? .....in black and white.
Do you have documents to substanciate each and every detail of your comments?.. The public would very much appreciate it.
Victor Vella
Jan 25th, 11:26
Vote for LP in the coming election and perhaps there will be a trace of the proof of truth. But rest assured the only black on white is the letter send by Gonzi PN regime from tal-Pieta` marketing machine of evil oligarchy sent before the last general election saying employees at Air Malta that the restructuring plan was a success and gave guarantees that their job is now secure. A few months later Gonzi and Feneck went on a TV station because they have no decency and face those employees that they stole their votes and with a pistol to their heads told them that either take the VRSs and ERSs or the bullies close the company. How can I have the documents to substantiate each and every detail when Fenech send for the unions representing Air Malta employees at his office just only to read the documents and were not allowed to take notes? This is the democracy that this regime preach to hold to heart. For any detail go to Gonzi and Fenech and they will tell you all the details because they were coward enough not to let the truth comes to surface by sending all the documents to Brussels without giving any details to the public so that a person like you will appreciate where the public monies were squandered. These are the true facts and if you and the public will appreciate the truth and who was accountable for all the dirt, corruption and the bankruptcy of Air Malta only an LP in government will reveal the attention triggered in your mind.But I assure you that until that time everything will be filed in the bin of fire.
O Kassar
Jan 25th, 11:26
Mr Victor Vella, could you also inform readers of these blogs about your personal agenda, which is quite obvious in every partisan intervention you make nearly on each and every subject on this online paper? Or perhaps are you one of the new bright guys of the enlightened generation who thinks that they are the centre of the universe and everything goes around them?
Stop your nonsense once and for all as there is at stake the job of our brothers and sisters employed at AirMalta.
John Scerri
Jan 25th, 11:45
Dear Victor Vella ..I thank you for guiding me into finding all the documents needed...It will be wise for us public to contact all 6 MEPs in Brussels..4 MLP and 2 PN to find out where these documents are and ask them to make them public .
The public needs to know the truth.....the whole truth...and nothing but the truth...
Andrew schembri
Jan 25th, 12:01
Victor you always talk common sense when you speak about Air Malta. I think I don't have my usual log-in name by I am Joe Schembri's wife and I admire your guts and your courage to speak. This is a time of unbearable stress. Joe is in a terrible position due to 13 months break of service. No help no nothing. You are right in all you say. I wish you luck and keep writing!!
Peter Murray
Jan 25th, 10:17
If the plan has been tentatively approved by the EU then the exact number of Air Malta staff who must go-either jumping or being pushed -must be known.Yet still we are always confronted with this "ABOUT 500" figure ---how many is it exactly?
Peter Murray
Jan 25th, 10:14
Air Malta selling its property to the government -this is already the property of the government so this is merely another hidden form of a bail-out !Who are these potential "objectors" and "interested parties"-(other than the Air Malta staff getting the boot) to the restructuring plan?
Carl Debono
Jan 25th, 09:49
a very nice documentary on behind the scenes at ryanair!!
http://topdocumentaryfilms.com/ryanair-caught-napping/
Rocco Camilleri
Jan 25th, 09:44
It is very sad that all Maltese entities are being given back to foreigners as we have been in the sixties. All the hard working done by our past Governments is being thrown away. Shame for us to leave such things happening due to mismanagement and no Accountability whats so ever.
C Cassar
Jan 25th, 09:42
Ryan Air has had many "subsidies" from other European nations. For exmaple, their routes to Charleroi were subsidised by the local government.
J. Scicluna
Jan 25th, 09:21
I am ready to place money that the most vociferous against this plan will be Ryanair, who is taking the lion's share of the Maltese Government's Route Development Funds (read: subsidies) to the detriment of Air Malta.