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Update 2: Air Malta's rebranding to cost €1.9 million

The total cost of Air Malta's rebranding will be €1.9 million, the airline's CEO Peter Davies said this morning.

Speaking during a business breakfast during which the airline launched its new logo and livery, he said he considered this to be an investment and not a cost. This figure includes painting of the new livery on the aircraft.

Mr Davies said the restructuring plan was on the way to be realised with costs being cut further in the first quarter of the current financial year.

The Airline Pilots' Association last Saturday urged its members to boycott the celebratory events surrounding the exercise saying the rebranding process with all its substantial costs was never mentioned in the Steering Committee

Asked about the pilots' reaction to the exercise, Mr Davies said he preferred to talk about ALPA rather than the body of pilots as a whole because there was a difference between the two.

Financially, he said, Air Malta was making headway and the majority of pilots were enthusiastic about this change.

"We hope to eventually win all their hearts and minds."

But in a statement issued in the afternoon, ALPA said that the "body of pilots" and ALPA were one and the same and this was confirmed in a secret vote last June when 94 per cent of pilots gave ALPA executive committee the mandate to take any action it deemed fit.

ALPA said all pilots wanted to see change. However, they also wanted to be consulted to help the company return to profitability as soon as possible.

Mr Davies explained that the rebranding expense had been included in the restructuring plan and it was required to motivate employees for the change the airline is going through.

Mr Davies said that first quarter results for the current financial year will soon be out but the airline was on track in achieving its target of reducing losses to €15 million.

"We are actually slightly ahead of budget," he said.

He said that when workers were first given details about the restructuring exercise in June last year, they were told that every €1 Air Malta earned cost it €1.25.

By the end of the financial year that closed in March, that cost had dropped to €1.14 and it was expected to go down further to €1.07 by the end of the current financial year.

The company expected to break even in 2014 and turn a profit in the following years, he said.

He did not want to comment about the controversy surrounding the purchase of the RJ Avroliners in the mid-90s which led to the company losing millions of euros.

Chairman Louis Farrugia described this day as a milestone but cautioned that the task ahead was still very tough.

"We must not underestimate the challenges ahead but I am optimistic."

Asked why the word 'Air' had been removed from the logo on the aircraft, Mr Farrugia said this allowed the word 'Malta' to be displayed much larger on the aircraft. This tied in with the philosophy that Air Malta was a destination aircraft. The company's name, however, was still Air Malta.

The rebranding exercise was conducted FutureBrand of London.

By November, the airline expects to have six aircraft decked with the new livery.

Prime Minister Lawrence Gonzi and Finance Minister Tonio Fenech were present for the launch.

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Eddy Privitera

Aug 1st 2012, 19:02

Stephen: in the 1970s Air Malta employed a lot more people and made PROFITS not LOSSES as it has made under PN governments !

Daniel Walker

Jul 31st 2012, 21:50

Actually there is AirMalta.com on the engines and the under carriage of the plane...

I think the banding exercise was carried out well and it is a big improvement, it brings more attention to Malta and as was said in the pree release it is obvious that this is an airline.

I agree with you that Air Malta needs to make changes, especially with costing but it seems that they are on track to lower their costs and their losses. I do think that they should have let the airline fold, as throwing good money after bad is never a good idea, but the money has been allocated and I think that we should all try to be more supportive so 138mil is not pissed away.

Peter Murray

Jul 31st 2012, 20:54

the future is clear as shown on the airplane -as there is no AIR in Malta

Stephen Lock

Jul 31st 2012, 22:17

@ Peter Murray. It states THE AIRLINE OF THE MALTESE ISLANDS. does QANTAS say its the Australian airline, No but every one knows it is. Does United say America, no but every one knows it is. It doesn't need AIR in it

Mikael Hellman

Jul 31st 2012, 18:20

But to be honest, we would all do better without it, giving the established airlines an opportunity to increase their services to Malta further.

Economy of scale will never be possible!

Imagine every city with a population +400.000 having their own airline! Right, you can not!!!


Peter Cagney

Jul 31st 2012, 21:12

Sounds like sour grapes for you Victor!

GL Calleja

Jul 31st 2012, 19:57

Apparently you haven't done much flying? Step outside the box, Mikael.

Mikael Hellman

Aug 1st 2012, 01:29

Mr Calleja,
I have done lots of flying and I do agree with you. We have the same opinion indeed!

Victor Vella

Aug 1st 2012, 11:33

All those values will be drained with the new airline Malta or the past Malta Aviation services. An old suit in a new livery.

E Schembri

Jul 31st 2012, 17:15

Well said!!

Considering all the sacrifices that have been made by both employees and the Maltese tax payer, this looks like a waste of money, considering that this alone will not boost sales or popularity.

Just another joke from the useless management who are good a presentations and photo-shoots!

HENRY FENECH AZZOPARDI

Jul 31st 2012, 20:59

I am sure you do not realy mean what you are saying. If you do than you do not know what sub companies and work force connected to the aviation company will be effected.
It is too much of a hussle to explain but even at the expence of the economy Air Malta will remain flying.

Stephen Grech

Jul 31st 2012, 18:29

Pilots job is to fly an aircraft safely all over the globe. To do this one should be mentally focus on the job, knowing that everybody is pulling the rope in one direction , ie to save the company.

When such responsible body sees otherwise, there should be no hiding behind the bush.

However your "who cares" comment seems your low esteem towards the Maltese pilots!!

Louis Risso

Aug 1st 2012, 08:05

Air Malta was never the company to give cheap flight and other deals. It was never it's structure and these cut cost airlines one day they will go down, monies have to come from somewhere, whether it is cuts in maintanance costs, staff etc........

Luke Formosa

Jul 31st 2012, 17:54

Wrong comparison. Ryanair is a low-cost airline, which runs on a completely different business model. The flights are cheap, so they make most of their profit through extras like baggage allowance, cost of in flight meals, hotel accomodation and so on.

Air Malta is not a low-cost airline. You can't expect it to compare on price. You pay more but you get many of the extras included in the price (generous luggage allowance, in-flight meals, landing at more central airports instead of ones on the outskirts of town like ryanair) and so on. So for holidays, Ryanair is perfect. For business trips, the Air Malta model is more suitable.

H. Meilak

Jul 31st 2012, 18:45

@Luke Formosa. I'm going toTurin soon and Ryanair will take me to Torino Caselle.....because it doesn't have permission to land at Piazza XVIII Dicembre in front of my hotel. Torino Caselle is one of numerous central airports where Ryanair lands.

Charles Micallef

Aug 1st 2012, 08:56

Angelo Vassallo,

I will take your advice, but please explain to the bloggers why you did not propose to do the same with the present administration who have ruled Air Malta for 23 yrs out of the 25 yrs they have been in power? The answers should be given "NOW" and "NOT IF AND WHEN" that is unless some HAVE something seriously to hide! like gross negligence or serious mismanagement of a public company / funds!

James Dewar

Jul 31st 2012, 19:44

Likewise and will probably continue to do so on grounds of cost. Perhaps the 1.9 million euro would have been better spent subsidising airfares and attracting new or retrieving former customers!

H. Galea (NRK)

Aug 1st 2012, 08:55

Am in perfect agreement with you .... what is it ?

John Borg

Jul 31st 2012, 14:17

Sewwa taghmal. Ivvota lil Joseph u lil Michelle u jkollok gvern li jdahhlek gol-hajt. L-ewwel haga li jrid jaghmel Joseph hu jsib 50 miljun biex itihom liura lil tal VAT fuq il-karozzi.. miljun ewro fil-gimgha dawk siehbi! Imbaghad irid isib balla miljuni ohra ghax se jrahhas id dawl u l-ilma. Minn fejn se jghibhom tghid? minghand xi cwiec maltin li se jhallsu hafna iktar taxxi, ghax ma nahsibx li sab il-lampa ta aladin!

Anthony Scicluna

Jul 31st 2012, 15:21

Better leave marketing to the marketers. Rebranding usually boosts sales and increases returning customers. So stop shooting down everything that people are trying to do

fred sammut

Jul 31st 2012, 15:16

agree 100%

Jonathan Saliba

Jul 31st 2012, 14:48

All airlines have lousy meals. You're being served warm food while sitting in a chair several thousand feet in the air while travelling at huge speeds. That's good enough for me.

Jeffrey Mallia

Jul 31st 2012, 16:40

So you choose your holiday destination according to how the planes are painted ? I wont visit Italy ,UK and Germany no more.....their fleet is soooooo dull !! Hallina Gouder

victor bonello

Jul 31st 2012, 16:01

.. I tend to agree with you, it looks lovely, especially the red engines..( see my comment above).. who were the artifices of this job? was it an in house job or was it by tender for private advertising agents? who won the tender? does the 1.9 millon cover the painting of all Air malta aircraft?

cesco di luigi

Jul 31st 2012, 16:42

And may I add..the website is more vital than the colours of the planes

Manuel Briffa

Jul 31st 2012, 12:51

My, my... always negative...negative...you must lead a horrible life Mr Brincat.

Marco Galea

Jul 31st 2012, 13:26

^^ FAIL!

Charlie Zahra

Jul 31st 2012, 19:15

Mr Manuel , Remember what PN use to say about Air Malta Ghasafar tac-comb are they anymore, I think you are the one who is negative, and thank PL for the creation of Air Malta which PN ruined.

Manuel Briffa

Jul 31st 2012, 12:57

No it hasn't mister Sammut, it's hardly even out yet, for heaven's sake. And what you thought doesn't necessarily count, does it?

Marco Galea

Jul 31st 2012, 13:27

yeah smart would eb good for some 20 years ago ... we are living in a society where smart is funny, cool is the syle!

Daniel Walker

Jul 31st 2012, 13:41

@ C. Sammut
They just launched the new livery so I would assume it did not have any impact at this point in time. I really like the new branding, to me it stands out much better than the old branding and I am sure people will take notice of the planes when they are sitting at international terminals.

The media is also very good and well produced. I am sure this will be cut down and used in advertising campaigns across Europe and it will get people interested in travelling to Malta.

Nice work Air Malta!

James Dewar

Jul 31st 2012, 14:29

My humble answers to your above questions: Probably not. Probably none. Probably not. I agree wholeheartedly re the former colours!

Claire Busuttil

Jul 31st 2012, 13:28

maybe proper management an help!

James Dewar

Jul 31st 2012, 14:31

Anthony, I like your psychological approach! You may well be correct!

Victor Vella

Jul 31st 2012, 13:31

It is. From national airline to charter airline. Note the name Malta. Where is the Air? Perhaps Davies & Co will be pertinent to tell us the ROI for this useless investment of 1.9M euros. Unbelievable. A company strapped of cash forking 1.9M euros just to paint the tail of 8 aircraft. And the taxpayer has to pay for a re-branding that has never been branded.

Joe Busuttil

Jul 31st 2012, 13:36

Yep. Just impression. I have always used Air Malta,but lately they have been overdoing it a bit as regards fees.Three months ago I got a quote for travelling to Gatwick during August from AM which was close to 200E dearer than that from Easyjet. Better time of departure ,too,but no meals.( You can take your own food on the plane.) Only one solution for you (,shall I start calling you Malta now?) be more moderate in your fares.

James Dewar

Jul 31st 2012, 14:33

Though I was reading my own post!! Agreed! Sadly it is indeed only an impresssion as fares are still too high for the common holiday traveller!

HENRY FENECH AZZOPARDI

Jul 31st 2012, 12:01

Although I agree to some of your comments I fail to understand some of them such as:

!. Without mrentioning the names of the chairmen I cannot single out anyone chairman as being in any \government position.

2. I agree but it is very difficult to point fingers at any particular person because in politics you tend to involve others who would have given the goahead without the consent of the chairman.

3. Halving the losses is a great achievement. This shows that the restructuring is giving dividends and in due course if the losses will continue to be halfed, profits will soon show in the very near future. Afterall the losses were made over a number of years and these have to be made good in the coming number of years.

4. I totally agree with you, as a matter of fact I did say that the best part of the Airline making profits was when there were PIA executives under the chairman of Albert Mizzi before this same Chairman then allowed politics to infiltrate the running of the airline.

5. I agree again on this point but my friend il qawl jghid li kappell ma jmerix lil iehor, and both political parties have their share of contribution in the downfall of AIR MALTA.

Let us hope for the good of the country that lessons have been taken and politics will be distanced from the company since the only way forward in the very difficult airline market is to control the expenditure, limit the labour cost to its bare minimum, do away with past fringes to anyone whether past staff ministers etc. and indulge in professional routes that service the country and at the same time gives proitable results.

If the airline is forced to operate a route at a loss to help the Maltese economy than the Government has to financially conpensate the Natioal Carrier accordingly.

ANTHONY PAVIA

Jul 31st 2012, 12:01

You are completely justified to ask these questions and many more besides. Don't hold your breath waiting for any answer though.

However I like this new livery. I believe it to project a young, happy, colourful, fresh image. Let's hope it doesn't stop here.

Mario Scicluna

Jul 31st 2012, 12:50

Proset Sur Micallef! Accountability ZERO.

Mario Scicluna

Jul 31st 2012, 14:18

@HENRY FENECH AZZOPARDI
Today, 12:01

'' both political parties have their share of contribution in the downfall of AIR MALTA.''

How wrong you are!! Since AirMalta's inception during the 70's up to the infamous '80's, our national airline generated profit EVERY YEAR , it's history of facts, undeniable. It is TOTALLY the PN's fault through mismanagement, bad decisions(RJ's) that led to it's spiral downfall and dire grave present situation.

The ones that screamed 'Ghasafar tac-Comb' were solely responsable, and Austin Gatt should apologize to the people for solemly swearing and projecting that by 2007 or 2008 if I'm not mistaken, the company should turn to profits, knowing quite well it was a mammoth task.

Charles Micallef

Jul 31st 2012, 14:51

Henry Fenech Azzopardi, please be assure that I will keep on asking questions about the downfall of this airline which again was once the envy of other airlines till my last breath, as I am one of those who hates abuse and especially coming from the ones who we elect to lead us by example!

Are you aware who started the freebies for the politicians and their families and can you name another national airline who gave their politicians free seats?

Are you aware how many of Air Malta's employees at all levels that were given positions simply because of the political allegiance?

Are you aware that every single member of the management team who pointed out serious misgivings in the Airline was moved on to ensure that they keep their mouth shut!

Are you aware that senior members of the management were abusing the tendering process and awarding themselves various lucrative contracts to supply the same airline?

And do you think that all this is being brought to the attentions of the people who we elected to ensure that all is done in a fair and meticulous manner?

HENRY FENECH AZZOPARDI

Jul 31st 2012, 20:53

Charles Micallef,
It is impossible to keep an argument with you because we see things from different perspectives. My argument is that Air Malta has been the milking cow of both political parties and unless you accept this principle we can never bridge the gap.
When I referred to High ranking individuals given other government appointments I thjought you were referring to the ex chairmen and that is why I said I do not recollect anyone of them holding a government position.

It is unsless trying to give the National Carrier a new look or pumping subsidies and at the same time drain it with all kinds of political favours.

Even when the airline was running at a profit it was still loaded with unwarranted labour force that drained the company dry over the years.

My main contention is that for the good of the National Airline all kinds of politics has to be distanced from the carrier.

If you do not agree on this simple argument than we are on different wavelenghts.

With regards to past mismanagment I could never belive that anybody will ever be made accountable for any actions. Another saying is that he who lives in glass houses should never throw stones. Unfortunately we have to suffer for such blunders.

J Farrugia

Jul 31st 2012, 11:39

BA dropped the different tails many years ago Mr McCarthy.

William Attard McCarthy

Jul 31st 2012, 12:08

Hi Mr. Farrugia...yes , I know... but I loved the concept.

Manuel Briffa

Jul 31st 2012, 13:00

Sigh...read the report again.

Simon Robinson

Jul 31st 2012, 13:17

Read the article: 'FutureBrand of London'

James Grech

Jul 31st 2012, 11:10

Well said

C Cassar

Jul 31st 2012, 12:47

Rubbish. The whole point of a rebranding for a business that was failing is that you DON't want any reminder of the past.

The new livery is excellent, fresh and vibrant. Well done.

Manuel Briffa

Jul 31st 2012, 13:01

It's to do with the humidity Stephen

Tonio Farrugia

Jul 31st 2012, 10:39

tend to agree... it looks very much low cost!

A M Bonello

Jul 31st 2012, 10:50

Well it should be low cost as after all every airline next to Air Malta is too!

Michel Ellul

Jul 31st 2012, 10:50

I share your thought....

Mr Mike Farrugia

Jul 31st 2012, 10:50

Passengers do not book flights that match their shoes or handbags. The idea is to give Malta more prominance, thus the big MALTA on the side. As a result, air Malta and to some extent even competing airlines, will hopefully bring in more passengers.

yani ellul

Jul 31st 2012, 11:02

@Mr.Mike Farrugia.... very much so.... however, branding of the national airline (please note National) to look like a low cost airline, in my humbe opinion, might give the impression that the country/destination is low cost... and in all honesty, i am not sure if that is the tourist segment we mainly want to attract.Again, i do not work in the tourism sector, but its just my perception. also, again in my opinion, why shouldn't we give the national airline a bit more of an elegant look... ?? i personally like it... something on the lines of etihad.... it works for me....

C Cassar

Jul 31st 2012, 12:46

@yani ellul: It's actually the opposite that the new airline should be attracting - business customers. That's where the money is, not in cheap tourist seats. Leave those for the low service airlines to fight over but Air Malta/Malta has the only service providing business class seating on many routes. This should be the focus, where there are very high margins.

C Cassar

Jul 31st 2012, 12:43

Air Malta flight I was on yesterday was completely full, including business class. So, their fares must be ok.

James Dewar

Jul 31st 2012, 14:47

@ C Cassar:Not from Scotland my friend! We always used Air Malta ( I see it's not even called that now!) but for the past few trips have used budget airlines where the price difference is substantial and the service is perfectly acceptable.

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