Air Malta says it is 'encouraged' by EU report

Air Malta said this evening that it was 'encouraged' by the EU report into its restructuring plan.

"It  is normal for assumptions and arguments made (in the plan) to be challenged in this manner," the airline said, adding that it is in the process of submitting further responses to the Commission.

The European Commission in a detailed report earlier today raised questions on some of the projections made in the Air Malta restructuring plan and the compensatory measures the airline has proposed to justify state aid (See story at http://www.timesofmalta.com/articles/view/20120221/local/eu-raises-doubts-on-air-malta-compensatory-measures-for-justify-state-aid.407869 )

The airline in its reaction explained that a number of initiatives mentioned by the EU  have already been put in place and it has already started to reduce its flight schedules in line with the restructuring plan.

"The airline’s management remains confident that the positions stated are realistic and represent attainable objectives which will place the airline on a secure footing. As communicated recently, the results for April-September 2011 illustrate that the airline is on the right path and that the
management is committed to pursuing a rigorous restructuring."

The airline explained that its set for generating ancillary revenues are already supported by positive results achieved over recent months. The company will also be launching several new initiatives in this area and it said it was confident that revenues would continue to grow steadily.

"Furthermore, our cost reduction programme is already underway. For example, benefits are already being realised as a result of the new organisational structures and the resulting reduction in headcount.

LIMITED NUMBER OF SLOTS RELEASED

The airline reiterated that it remains committed to its routes to
London Heathrow and Gatwick.

"During summer 2011 and as part of the restructuring plan, Air Malta has already released a limited number of slots in line with its commitment to reduce capacity as a compensatory measure. These slots did not have an exchange value and were therefore released. The airline has no intention to release or exchange any further slots to either London Heathrow or
Gatwick."

The airline said the Malta Tourism Authority was an important partner and senior management in both organisations have met regularly in recent months. Discussions have included both the airline’s network plans and capacity reductions, and the airline remains committed to an ongoing dialogue.