‘Airline will have to reflect look of Malta’
Video: Mark Zammit Cordina
Fresh from unveiling Air Malta’s new colours, CEO Peter Davies tells Kurt Sansone it is all about getting the perception right.
Air Malta has passed through a couple of tough years. Was this an appropriate time to be spending almost €2 million on a rebranding exercise?
They have been tough years. It is because of this that we have to change the image and the way we undertake our business, particularly by winning the hearts and minds of the 850 people who work for the company – €1.9 million works out at 23c per passenger over the life of the restructuring plan. It is my responsibility in delivering the restructuring plan to bring this company back to profitability. In the context of all the costs we have to make this a good investment.
You call this an investment but how would it be interpreted by workers who have been asked to make sacrifices?
They see this as a statement of pride. The workers are immensely proud of what they do on behalf of Air Malta and subsequently on behalf of the country. Like any human being we need to be rallied by something.
Whatever the symbol is, people are driven because it is a manifestation of what they believe in. Our responsibility is to create that environment where people can be proud with a refreshed brand that represents the true values of this country. You cannot run any company unless you have passionate people, motivated, focused and really want to do their best. If you don’t you will have a second-rate company.
Does this mean employees were not passionate about the brand? Were they de-motivated?
No, absolutely not. But we had to take motivation to even higher levels.
The Airline Pilots Association (ALPA) will not agree with these comments.
Most people like the logo and the brand identity. A lot of pilots do actually like the new brand. I distinguish ALPA from the rest of the pilot community. I have spoken to a number of pilots who expressed their keenness to see the new logo in place. At the end of the day we have to move this company forward. We are reducing our losses; we are improving the number of passengers and our yield. We are in a positive state of mind at the moment.
Is it money well-spent?
Every expense has to be done carefully otherwise you are not a good businessman and in the total package of what we are trying to achieve it is money very well-spent.
Air Malta CEO Peter Davies. Photo: Chris Sant FournierWhere does this rebranding exercise take Air Malta?
It is all about selling. I am the chief salesman if you like and I have to sell as many seats as possible with the help of some very good people. The brand is about marketing and advertising this airline and this country overseas. It is a basic business requirement to make sure that you promote your company in the best possible way. The psychology of how people buy things is very much affected by how they see and perceive the company and that is why it is vitally important that we get the perception right.
An investment presumes you are expecting a return.
You cannot be specific about the return. Lord Lever once famously said: “I know that half of my advertising is wasted, I just don’t know which half”. You are always going to have some wastage in advertising because some people are not going to see it but the main thrust of what we are trying to do is to promote the airline and demonstrate how proactive and pragmatic we are to attract people to this country.
Would you agree that the new colours look and feel like those of a low-cost airline?
We went through a lot of research to identify what people associate with this country and the two most iconic elements are the Maltese Cross and the luzzu boats. The colours are inspired by these elements. The colours are also shaded by traditional patterns used in the Mosta dome and lace work. Everything about that livery represents Malta and I do not accept the charge that this country is low cost.
But we are talking about the look and feel of an aircraft.
I think it is an elegant portrayal of your beautiful country.
Will ticket prices go down?
We inherited a pricing policy and structure that has been around for many years. We are in the process of changing our pricing policy and one aspect of that is to introduce more booking classes. If you wanted to buy a ticket for €70 but went on the website and the only ticket available cost €110, you will potentially feel cheated. We need to introduce more steps in between.
Over the next few weeks and months the prices will change. Another issue concerns people flying out of Malta where prices were higher than those for incoming flights. We deemed this to be grossly unfair and we made those adjustments. The prices people pay will come down.
How does Air Malta compare with other airlines in this aspect?
As a national airline Air Malta will have to reflect the look and feel of Malta. I do not think it is the right strategy to equate Air Malta with a low-cost airline. We have to be more profitable because otherwise we will not be around. We have to make adjustments by pushing down costs, become more efficient and reflect this through improved services and added value.
You were exploring charging for some in-flight services. What are these?
There is a great opportunity for the airline to sell Malta 100 per cent through the merchandise people will be encouraged to buy. Additionally, not everybody wants to eat the food airlines provide and we should be more flexible here with a reflection on the ticket price. We have to reflect the type of service people want to purchase.
But the moment you start charging for food and other services you will get the low-cost tag associated with the airline.
Everyone talks about low cost and hybrid and legacy carriers but...
How would you describe Air Malta?
It is a good honest airline that flies exceptionally safe and provides good service to people travelling to and from Malta. I will not pigeon-hole the airline. For me this is irrelevant.
On the same morning you unveiled Air Malta’s new image an Airbus leased to a Polish airline was returning to Malta after the company cancelled all its flights. What is the situation today?
OLT Express has not gone bankrupt but it stopped operating because it could not find a working relationship with its principle shareholder. I spoke to the CEO last Tuesday and the aircraft is back in Malta. It is being de-registered in Poland and re-registered in Malta. The aircraft is secure and safe and we got all technical records back. Our pilots have returned and we are looking how to sublease that aircraft as soon as possible. Some companies have shown interest.
According to the restructuring plan Air Malta has to have 10 aircraft. You now have an extra one. What happens next?
We have to manage the process.
The 10 pilots subcontracted to the Polish airline are now on your books. This obviously creates a problem.
They are back on our books and this creates an opportunity for us to redeploy them elsewhere. In the restructuring plan we agreed with ALPA on 110 pilots because we had one pilot too many. We have to manage the situation and are discussing the matter with ALPA.
What are the prospects of redeploying them with other airlines?
The airline industry is increasing rapidly around the world and I think there is an opportunity to redeploy them. We have 10 extra pilots and there is a level of anxiety among pilots, which I can understand and which we have to reduce.
For how long can you sustain this situation in view of a restructuring plan that has very strict deadlines and targets?
This is a blip but we have to manage blips every day so we are going through the process of adjusting our finances by seeing which projects can hold back to pay for the additional cost. I am confident we can do it but it is a nuisance.
You are targeting losses of €15 million for the current financial year that ends in March 2013. It is an ambitious target considering the last year ended with €30 million in losses. Are you on target to achieve this?
Yes. The first quarter results are positive and we are just slightly ahead of budget in terms of revenue, costs and profitability. The second quarter also looks encouraging. Apart from the Polish aircraft incident we are on track. In every budget you have to build in contingencies and we hope we will not stretch these too much. Our fuel costs are also under control. Oil has gone down to $106 per barrel and we have hedged round about that price.
How visible is Air Malta’s website?
Not as visible as I would like it to be. There is a lot we need to do. We have changed the back-end booking engine to create more flexibility. It will be re-branded to make it look fresher, more exciting and functional. The internet is key to our future growth. The website is just one of many objects that is broken and needs to be fixed.
What relationship does management have with workers?
It is a very good relationship. We have opened up the communication channels and we have a lot of town hall meetings. The event we had in the car park on Monday night when we presented the new brand identity to employees was attended by over 400 people. We are communicating in a way that people have never seen before. I think communication is vital.
On Monday night there were a lot of people in tears. They were moved when they saw the film because they could see something exciting and dynamic happening to their airline. But they also came up to me and said this was the first time that staff were told something before the press found out about it. When people have tears in their eyes it shows passion and that is what we want to motivate. At the end of the day it is all about numbers but to get to those numbers you have to go through the hearts and minds of the people.
Are you confident the airline will start turning a profit?
Absolutely, otherwise I would not be doing it. I am not a liar or a cheat. I have done this in other airlines before. This is what I do. You need a fair wind and the right plans in place, a lot of support and encouragement. There will be issues, stones and boulders we will have to overcome but life is not a straight course.
Will you stay the full course?
Yes, absolutely.
Some argue Air Malta will have to be privatised at some stage. What is your take on this?
I am not in a position to say whether Air Malta should be privatised or not. All I can say from a business perspective is that we need to make sure that we generate sufficient cash so that the company can continue to grow. In that respect as my chairman said there can be an element of capital investment which can’t come from the government because of the nature of the 10-year restructuring plan.
There is an opportunity for Air Malta to do far more than what it does at the moment. My vision for this airline will be to fly to other destinations and not just going north. That will require investment. Does that come through working with another airline? Do other airlines have an interest in using Malta as a strategic point? Those opportunities do exist and we may need to look at them sometime in the future.
The restructuring plan meant Air Malta had to give up some routes. But does the plan allow Air Malta to increase its routes or shift unprofitable ones with new ones?
The restriction we have is that routes that operate within the EU are governed by what we said in the restructuring plan until such point as we break even. At that point the shackles are off and we can go back to the marketplace. The EU Commission wanted to make absolutely certain that as a result of state aid Air Malta was not in a privileged position.
A restructuring exercise carried out in 2004 gave the airline a lease of life. However, six years later in 2010 the airline had to ask the government for a rescue package that led to the discussions with the EU Commission on a new restructuring plan. What guarantee is there that Air Malta will not find itself in a similar situation some years down the line?
There are no guarantees in life. I was not here in 2004 so I cannot comment on what happened then. All I can say is that I am here today and effectively we have had to undertake open heart surgery without anaesthetic. This is the degree to which we had to make changes at Air Malta. We had to identify the problems and then prioritise them and proceed to start the rewiring and re-plumbing process. Hopefully, my 40 years experience in the field will help us get most of the decisions right. Going back to the EU Commission for help is not an option. We have to make sure this plan succeeds.
Do you feel that being a foreigner with a lucrative package makes people scrutinise your job even more?
Having lived here for over a year now – and I do live here contrary to public opinion – I don’t think the salary has anything to do with it. I am in a position of significant responsibility for an iconic airline. At the end of the day, if we can deliver an airline that is successful and which people can be proud of, then it is money well-invested.
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Joe Fenech
Aug 6th 2012, 15:08
Get rid of this bloke before her gives Airmalta the final blow!
Joseph Vassallo, (Bugibba)
Aug 6th 2012, 12:10
I just looked for a flight to London and the first price offered by Air Malta was €840 round trip. After looking elsewhere and finding a price of €146, inclusive of taxes (one way, which is what I wanted anyway), I returned to Air Malta dot com and found a new price of €540 again round trip because there was no obvious one-way option to tick.
At the third visit, I discovered that if I remove the return date from the pre-filled calendar box, a new window gives me the option to select a one-way ticket (which I did) and I obtained an quote of €229.95. This was still €84 or 58% more than the cheaper alternative but not as bad as the initial off-putting €840 price tag, where the first leg of my proposed journey was priced at nearly €600.
Whilst still wishing to support the national airline, the questions come begging... Is this really a way forward or is this price structure hoping to catch the unaware?
Joe Fenech
Aug 6th 2012, 15:20
As I said, the Maltese (whether living in Malta or abroad) are bearing the weight of the financial disasters that are Malta and Air Malta when foreigners travelling to a hotel in Malta get cheaper prices through package holidays!
Joe Fenech
Aug 6th 2012, 08:33
To use £2M on rebranding when the company is going bust; you need to be nuts !!!! Unfortunately the Maltese slave still looks up at the English despite that their country is in a mess!
Very unfortunately, the minister thinks that the Maltese are 'cwiec'. He obviously ignores the fact that so many of us have (and ran) successful businesses abroad. Give us a break.
Jonathan Deeley
Aug 6th 2012, 08:54
In what way is England "in a mess" Joe ? We are currently hosting a magnificent Olympic Games, standing third in the medal table, virtually everything works and runs on time, our health service is still the envy of the world, we have fantastic cities and beautiful countryside. Sixty million people live in the UK and millions more are trying to reach our shores !
Joe Fenech
Aug 6th 2012, 10:46
It seems that the real UK is not yours!
Who cares about the Olympics?! Sports and binging is the only think you can think of . Plus this was a political move: a sweet to wash down the credit crunch (credit crunches don't come around randomly, do they? They're planned!). Do you seriously think that London got the games because it has better sports and transports facilities/infrastructures than Paris? If you that's what you think, go and live there for a couple of years and see for yourself.
NHS envied? Y Do you think the Germans, the Swiss, the Norwegians and the French envy you?! Maybe Bangladesh and Romania do, but that's pretty much it!
As to the "more trying to reach you shores" : blame that on lousy policing, laws and immigration policies! If you're really in touch you might know that even the Poles are leaving. All you get are Bangladeshis, poor Indians and some rich Bedouins splashing billions whilst ruining the country!
By the way, I live in home counties but that's only because of family and I can confirm that after a life working round Europe, the UK is the worst country I've lived in.
Joe Fenech
Aug 6th 2012, 08:20
How on earth does an aircraft image attract tourists? That doesn't even cross the tourists' mind. I've taken hundreds (if not thousands) of aircrafts and I don't have a clue what the outside looked like!
John Benner
Sep 6th 2012, 18:32
Mr Fenech you hate the Brits , you hate the country , you hate the health system , you hate the foreigners in Britain , you hate its laws and its police , we all talk crap , and where do you live Britain , Air Malta have plenty of flights back home everyday of the week I think its time you got your boarding pass ready and pack your case , none of us will miss you , get back to Malta and get yourself a life , live again . Life is too short to be unhappy , and us Brits done want a miserable man like you in our midst , there are plenty of Maltese throughout the UK who are happy to be living amongst us in our terrible country and we love them for it even your PM seems to want to holiday here with us last week .Have a good trip .
Jonathan Deeley
Aug 6th 2012, 08:20
This morning I attempted to walk along the pavement in Amery Street, Sliema. Thanks to all the multitude of rubbish bags (most of which have been left outside all weekend) the only option is to walk in the road. Unfortunately this is one of the endearing images of Malta and no amount of paint sprayed on aircraft will raise the island's profile with discerning tourists until there is a major culture change.
Joe Fenech
Aug 6th 2012, 10:48
That's what Malta offers? So why are you there? Many people come to Malta to evade tax (I'm sure you're not one of them) and then complain!
Joe Fenech
Aug 6th 2012, 08:18
Peter Davies is a typical English chap - a lot of crap and fireworks but his ideas are naive and disconnected with reality. First of all, the rebranding image is tacky. The old Airmalta image was elegant. AIr Malta has been ruined by politicians which have imposed on it thousands of party friends in need of a job. This is a poisoned chalice but PD does not see it.
As to his 500, 000E untaxed cash - that is ridiculous. There are families living off 700E A MONTH !
Roderick Micallef
Aug 6th 2012, 07:58
' I do not think it is the right strategy to equate Air Malta with a low-cost airline. We have to be more profitable' this is what Mr. Davies said, I don't know whether he is trying to insinuate that low-cost airlines are not profitable. The truth is that RyanAir (a low cost airline) is the most profitable airline in Europe. Whilst I wish all the best for AirMalta in the future as I see it personally unless Airmalta offers 1.A good service 2.On time schedules 3.modern fleet and last but not least 4.good pricing. Well I can't see any good forseeable futures for Airmalta, changing the colour of the aircraft is only a cosmetic fix!
Joe Fenech
Aug 6th 2012, 08:21
Ryan Air also receive governmental subsidies!
stephen mifsud
Aug 6th 2012, 04:51
well i wish you very well Mr Davies and i know you are trying but one would think that a man in your position would lead by example buy doing what's right and adjust your pay scale to equal the rest of the Air Malta Staff and pilots etc etc now don't get me wrong i like your plan but what i am suggesting is to add you to that plan as well ... i hope i am on the right track here as our investment would be all a team effort and we can grow AIr Malta rebranding together ... i can go on and on but think you get my gist .
Mario Vassallo
Aug 6th 2012, 04:27
Whatever you say, sir, the image portrayed through the new livery is cheap, certainly not reflecting our culture.
Joe Grech
Aug 6th 2012, 02:10
What a load of humbug - and I'm being polite! The comments below from a bunch of amateurs carry much more truth and credibility than those of CEO Peter Davies and his naff taste in technicolour liveries. When he claims that Air Malta employees would support this 2 million euro expense, he should keep in mind that not all employees earn his extravagant salary.
Pule' Carmel
Aug 6th 2012, 01:55
In whatever appears before us, there is a degree of ELEGANCE and CHEAPNESS. I would suggest that a National Airline would select to have a high elegant look rather than a popular look. I fear that the new Airmalta look has lost its ELEGANCE to a lower degree. I would not rank it as cheap but it has lost its lustre.
I think the Maltese Cross was humiliated due losing two of its points and one point which follows the rudder hinge towards the fuselage loses much of its effect as in choosing a bigger cross, it has lost its magnificence, a royal magnificent look which history bestowed on it due to the manner it performed its duties in defending Malta.
That incomplete Maltese Cross on the rudder of the planes now look like an Arch De Triumph which has been hurt and lost its Triumphant look. But I guess Peter Davis would be insensitive to such issues in artistic contents, as he is no ROYAL looking for a National Elegance and Pride, but he is the chief salesman of an airline as he described himself trying to sell himself in any manner.
I remember the days of the British Music Halls in England which has some elegant artists and in the 50 and 60s the Music Halls in Britain were losing business to the television shows. Many British Music Halls CEOs decided to replace the Elegant British Lady singing and performing artists with ladies naked STRIP SHOWS to make the British Music halls more popular with the less elegant people looking for a cheap show. I am sorry Mr Peter Davis, but this is what I read in our new livery, and you have exchanged ELEGANCE to a cheaper show that may attract the less elegant customers. I am afraid to tell you that the British Music Halls still closed eventually even with cheap naked strip shows planned to increase popularity.
I believe the Maltese Cross on the Airmalta Planes should be revised and respected and honoured to have all the eight points showing. I am not sure that the eight points on our cross describe the auberges or the nationalities that defended Malta during the great siege. I am not that patriotic ,but to lose two and three points on that rudder is to humiliate the nations who defended Malta and whom we now need to come to Malta as tourists. Those missing point on that Rudder has devalued the meaning of our Cross.
Please Mr Davis, review what I said and revise your British Music Hall Mentality in using the strip show mentality. Please go for ELEGANCE and a good product. In the long run people want a good product and not a cheap show which ensured the closure of all British Music Halls. Ours is a NATIONAL airline and not just a side show. I hope Mr Davis, that you appreciate STYLE rather than selling something through cheap advertising scenarios, which are not so financially cheap either when I think of it. I demand all eight points of our Maltese cross will be shown on those Rudders.
Joe Fenech
Aug 6th 2012, 13:34
Dr Pulé...you're a real expert. Nothing more to add! But you're probably be considered a 'cuc Malti' by the genius minister!
ALFRED QUINTANO
Aug 6th 2012, 00:00
Air Malta is taking on the role of nation-brand manager of the Maltese Islands (I prefer ‘the Islands of Malta’). It is not its role. Other sectors will not follow and in fact MTA (ergo Tourism Malta) is openly against the unilateral step taken by Air Malta. Let alone other sectors such as Finance Malta, Malta Enterprise, E-Gaming, etc. Therefore there is no synergy to be gained as would be the case in going for the soft power of Nation Brand Malta first. Davies’ last sentence gives it all away. He refers to Air Malta as an ‘iconic airline’, in which case there was no need to re-brand :-)
Joe Fenech
Aug 5th 2012, 23:57
We have got into a situation where the Maltese people are the ones to bear the weight of Malta's and Airmalta's financial disaster. Many foreigners buy package tours which cost peanuts, but people like me who have property or family in Malta and do not require a hotel and services, find themselves paying an arm and a leg for a lousy ticket ! We are being hijacked by our own country because they know that we have to visit family and that we don't have any other choice (low cost flights are not an option ! ) .
Joe Fenech
Aug 5th 2012, 23:51
The situation is unresolvable. How on earth can one expect Airmalta to function when the two parties that have ruined Malta have loaded it with their own people? In these last 4 years 20,000 people have been employed! It makes no sense when one have an ailing company!
Joseph Caruana
Aug 5th 2012, 23:25
At this point I find it difficult to equate Airmalta with Arriva. Airmalta is a beggar. Arriva is a daylight robber. One can have sue the Airline but can't do the same with Arriva, in regards to bad service , unless there is a class action, and the whole country subscribes.
But it will definitely wont be in the remote future but, sooner than anyone believes, this Airline will be cash stricken, and the forecast on profits will vanish.
Why do I say this?, It is because what we are seeing today, is a sad story repeating itself, from the days of the British Airways, which itself never managed to make that extra buck to break even.
So if you want to have a look in that crystal ball. look at the BA story, and multiply its ending by a hundred time worse , and a hundred times , quicker.
Raymond Sacco
Aug 5th 2012, 22:44
‘Airline will have to reflect look of Malta’
AirMalta has been doing exactly that, before you came and changed it into a local low cost airline Mr.Davies.
James Dewar
Aug 5th 2012, 21:38
Methinks there are parallels here with the Arriva shambles which is not yet fully resolved and may yet slip further into negativity if the deteriorating state of some of the vehicles is any form of indicator. All in all not the best use of the money at this time and despite the bull....t from Mr Davies, justifying or quantifying any financial benefit of the exercise either now or in the future will be an absolute impossibility. My guess would be that there will be absolutely no financial gain as a direct consequence of this re-branding which lowers the tone and image of what was seen as a prestige national airline to the level of budget or tour operator status.
Sam Torp
Aug 5th 2012, 20:45
We are in the process of changing our pricing policy and one aspect of that is to introduce more booking classes;
Mr Davies; this can be done overnight. How long have you been in this role?
2) "My vision for this airline will be to fly to other destinations and not just going north" . Please inform www.visitmalta.com, Our national tourism board to add Arabic to the "NEW" website to reflect on your vision.
Norman George
Aug 5th 2012, 19:32
'I am not a liar or a cheat' says PD, we'll see about that Mr. Davies, your honeymoon is over and you are almost humpy thru your term, let us give you till the end of the year and then we will check and see if you are a liar and/or a cheat over what you have promised.
Dominic Azzopardi
Aug 5th 2012, 19:11
It's not the paintwork but the long safety track record and price structure that gives an airline its popularity . This combined with the availability factor. After all Airmalta had never been critisized for it's previous elegant and timeless logo. There were other priorities to be tackled .
mark borg
Aug 5th 2012, 22:08
spot on !
stephen koludrovic
Aug 5th 2012, 18:23
Maybe we could have bought the licence from Disney and put on a Mickey mouse figure on the tail.
That might sell some tickets.
GL Calleja
Aug 5th 2012, 18:54
Now there is a brilliant idea....hehehe..just kidding
C. Sammut
Aug 5th 2012, 17:34
Frankly even if the look is fresh and liked, the first thing that came to mind is 'tutti frutti'!!
Mr Clayton Mangion
Aug 5th 2012, 23:33
Good one !
mark borg
Aug 5th 2012, 17:21
Airline will have to reflect look of Malta’
It already does mr.Davies....... bunkrupt after 25 yrs of Pn govts.
C Busuttil
Aug 5th 2012, 16:48
Ok next time have a Tower crane painted on the aircraft because that's what Malta is now, an island of Tower cranes with the excuse of development
Charles DeMicoli
Aug 5th 2012, 16:39
The original livery is elegant, classy and timeless. The new livery looks frivolous, shallow and temporary.
The new colors are what airlines put up temporarily for sales campaigns, and will get old very fast. What a waste of our money, money probably going to the pockets of friends of friends at the expense of people's livelihoods. Peter Davies and his cronies must be laughing all the way to bank - he's no cuc! By the way, where in Malta do you spend your weekends, Peter?
E. Azzopardi
Aug 5th 2012, 16:34
So what was Air Malta doing all these years since its inception? Not reflecting the "look of Malta"?!!
Irrespective of how old you are, you always learn because I did not know this!! And above all we need a Non Maltese to tell us this.
Stephen Lock
Aug 5th 2012, 16:22
one has to wonder how Air Malta ever go in to this state as its clear from all the comments on this page, that you all have the answers and solutions. There must be CEO around the world of global companies quaking in there shoes to think of the talent and expertise that most have on this island ?????
The phrase " Jack of all trades but master of none " springs to mind.
Also before anyone comments on my British surname i am in fact Maltese born and bred.
cesco di luigi
Aug 5th 2012, 18:39
go back to your history books to the time when airmalta was first launched in the seventies Mr Lock and you will have the answer
GL Calleja
Aug 5th 2012, 18:59
Are you bragging or complaining?
Stephen Lock
Aug 5th 2012, 21:07
i already know the answer. After all it was a Maltese Chairman who removed the trip agreement with the RJ's. It was a Maltese Director would asked a Maltese Judge to cancel the investigation in to it. It was a Maltese board who restricted the airline in 2004. Mt point is we clearly can manage an Air Line. How can a micro state of 400,000 population have an Airline of 12 aircraft when its not even a Hub. Regardless of where your PN or LP they both messed up as it used Air Malta as a ticket to power.
The Best thing for Air Malta and its work force would be to privatise it and then no one has a say apart from the share holders.
cesco di luigi
Aug 5th 2012, 16:15
My comment is the following: for the Maltse people the airline did not need any rebranding whatsoever. The maltese people ALREADY KNOW what Malta's all about! What it needed was a pricing structure and destination schedule that enticed Maltese people to use Air malta as opposed to any other airline>
As regards foreign clients that is those coming to Malta it is all questionable. But I have my reservations as to whether it is proven that a tourist visits a country because of the branding of an airline. As regards the no tender award for the whole exercise as far as I know this is contrary to EU rules, and may eventually be challenged. Even so, it is NOT good business practice to award without at least getting qouations/ideas from others, but then on the other hand if it not ones own money....
mark johnson
Aug 5th 2012, 15:58
The main thing that springs to my mind is don't relieve yourself down my back and then tell me its raining.
Tonna Paul
Aug 5th 2012, 15:37
1. Quote 1 Mr. Davies “Every expense has to be done carefully otherwise you are not a good businessman and in the total package of what we are trying to achieve it is money very well-spent”
Quote 2 Mr. Davies “ We went through a lot of research to identify what people associate with this country and the two most iconic elements are the Maltese Cross and the luzzu boats”
Are we aware that this new brand image we have managed tempered around with the core identity of the Eight Point Cross.???????????
How come Airmalta accepted this new brand identity.?????
It is a shame on the Chairman, CEO and Management of Airmalta to have authroised this so called International Marketing company, by tempering with Maltese core identity “ The Eight pointed Cross”.on the tail of the aircraft!!!!!!
Is this the "lot of research" that Airmalta went through ???
Have we ever seen Multinational brands that have their brands at heart, let marketing companies mess with around with their core identity?? And we pay them 2 million from our pockets!!
The Eight Pointed cross is unqiue and should have never been tempered.
I ask Mr. Davies “Is this well spent spent ”
2. According to Mr. Davies the pay back period for the re branding of Airmalta will take us approx 7 years. Assuming that Airmalta will carry 1.2 million tourist every year.
If we accept the fact that the rebranding needs to have a pay back period( which is not the fact) , then I ask your readers to assess and decide if this is a reasonable and sensible business decision. I ask Mr. Davies “ If the 1.9 million were your money would you have invested them for a pay back period of 7 years????”
3. Quote 3: Mr. Davies “The psychology of how people buy things is very much affected by how they see and perceive the company and that is why it is vitally important that we get the perception right”.
I ask Mr. Davies to share openly the results of the focus groups (Locals and foreigners), so that we can understand clearly the results.
We have conducted our own Focus group with our overseas business partners and we beg to differ. The results are contrary to what Mr. Davies is quoting. If a client is given the option to view only the tail, the chosen colour schemes give a connotation of a low cost south African/Exotic destination airline. Now we need to understand how this brand identity will be applied to the communication mediums, especially social media.
How can the Government tolerate this and How come the opposition is staying quite!!
AirMalta is our bread and butter, for our economy. Stand up and let's stop this waste of money!!!
GL Calleja
Aug 5th 2012, 17:38
I agree with you 100%. But the Maltese public seems to be ignoring all this and so is Mr Davies and so is Mr Farrugia and the Government. No more pride left. The Maltese Cross is 8 pointed and yet Air Malta chose to only show six. Why? Who is the bird brain that came up with this idea? Give us back our Maltese Cross Mr Davies.
Paul Caruana
Aug 5th 2012, 15:13
Absolutely no sense of identity!
What is the official logo of Air Malta? Why are the new branding colours not reflected across its website?
Where is consistency in the branding? Nice marketing LOL!
Why have 2 million been spent on a company overseas, when the branding could have been sourced to local companies? There certainly are local branding companies who are not only capable of producing that, but even better!
Not to mention that the video seems to have been produced for a school project!
Joseph Micallef
Aug 5th 2012, 15:45
Exactly Paul... not even consistency in the slogan... pride of malta? reliable? true colours? I mean, decided on a slogan... even the enormous word MALTA.. what's this experimentation with the change of name of the national carrier? Are they copying what British airways did in the 80's & 90's by removing the word airways and left the word BRITISH only? resulting in a disaster for the company and they had to revert back to the original name. Even the 2-3 minute advert on TVM, it highlights the luzzi, the mosta dome, the fields and 95% of the advert tackles these non-sense things leaving just Air Malta or now Malta... for the last few seconds.. come on... did these people watch how other airlines like Turkish Airlines, Emirates, Korean Air are doing things?
And what about a retro aircraft? Why don't we have just ONE aircraft being painted in the old, AIR MALTA origins way back to its creation time?
SHAME, SHAME and SHAME on the top management of Air Malta.
Edward Camilleri
Aug 5th 2012, 15:00
Airmalta & the government should stop squandering money collected through our taxes!
GL Calleja
Aug 5th 2012, 14:53
"If you wanted to buy a ticket for €70 but went on the website and the only ticket available cost €110, you will potentially feel cheated." That is the way I feel when I go on the web to purchase a ticket from MLA to LHR. CHEATED. I guess there is nothing the Maltese people can do to change the colours of the new aircraft and I don't think people will fly Air Malta because of the new colours. People will fly Air Malta because it is safe, lower fares, convenience, good service, better meals and because sometimes we don't have a choice. Mr Davies is doing what he has to do, and that is to blow a lot of hot air to go along with the new livery. I can overlook the new colours because Mr Davies and the go along Mr Farrugia have already made up their minds. I do object to the way they are displaying the Maltese Cross on the tail of the aircraft. Look at the two pictures above and you can see the difference. The new Maltese Cross logo seems to be missing something, but I guess Mr Davies missed that point. No disrespect, but you have to be Maltese to understand the difference. Please put the old logo back on the tail of the Air Malta aircraft. Don't forget, Mr Davies and his Merry men are working with the Maltese Tax Payer's money, so to them, money is no object. In all fairness, we should give Mr Davies a chance and hopefully the Maltese Tax Payer can get their bail money back. If it does not work out, then the Maltese Tax Payer will be subject to lose 200,000,000 Million euros. That is the chance Finance Minister Tonio Fenech is willing to take with our money..
Nikos Diak
Aug 5th 2012, 14:53
Can the CEO kindly explain on what basis Air Malta recently introduced this 10 euros "online charge" when buying a ticket online? I was under the impression that companies should motivate customers to purchase online. Is there really any point spending money on advertising when you use these sort of practices? I say stop this online charge and spend less on advertising...
GL Calleja
Aug 5th 2012, 15:57
Mr Diak doing away with that "10 euros online charge" would have been my first priority. But then what do I know? One would loose 10 euros but gains 100 customers.
cesco di luigi
Aug 5th 2012, 16:17
Nice one Kikos. I agree. This is enough to put me off airmalta. Who cares about branding when one is being skinned alive!
Joe Fenech
Aug 5th 2012, 14:13
"Elegant ortrayal of your beautiful country"
You mean "a conceptual image of a once beautiful country turned into a dump by visonless governments" !
Spare us the crap!!
j brincat
Aug 5th 2012, 15:08
Eeeqqq..... remember that he is paid €500,000 (half a million a year) and if I'm not mistaken it is also income tax free. I stand to be correct on this one.
What is the average wage amongst of those fabulous 20,000 newly engaged employees in the last 4 years?
And there you have your answer!
With a salary like that I think I would even venture to say that I have seen a blue pig flying past my rusty window!
Who wouldn't
(jb)
mark johnson
Aug 5th 2012, 15:24
Pure bollocks! A characterless rock that without the people living on it would be useless.
Joe Fenech
Aug 5th 2012, 23:17
J brincat
Can't agree more!
And why on earth has one employed 20, 000 employees????
Jonathan Deeley
Aug 5th 2012, 13:55
I seriously question the wisdom of spending so much money on rebranding especially given the parlous state of this airline's finances. At the point of an airplane's departure from an airport who really cares what colour paint is used on the exterior; once in the air the plane's image is immaterial; once it has landed at its destination the only people who see it are the ground crew or people who have already booked air tickets.
Air Malta will only succeed when it matches the service quality provided by competitor airlines such as easyjet.
GL Calleja
Aug 5th 2012, 16:06
Mr Deeley, It is nice to provide the employees with incentive, but employees fly for free. May I remind Mr Davies and Mr Farrugia that it is the Maltese TAX PAYER and the passengers that are paying the bill.The wages for them and their employees come strictly from the passenger they serve. Making the employee proud of their airline is fine and dandy, but what about making the passenger proud to fly on Air Malta? Or is it Malta now?
cesco di luigi
Aug 5th 2012, 16:18
AGREE 100 %. Just my very thoughts.
Joseph Cardona
Aug 5th 2012, 13:33
Nice and, maybe, somewhat attractive changing into a new garb. The old livery won't wear out so soon as Air Malta has had a very praiseworthy aviation history since its inception thanks to competent maintenance staff and efficient pilots. Spending money on a new look at such a time in Air Malta's financial trouble is not a wise investment. This is similar to gutting millions on a Piano Valletta entrance, a roofless national theatre Greek style, and a hen coop parliament outlook.
Pule' Carmel
Aug 5th 2012, 13:32
"‘Airline will have to reflect look of Malta’"
Not as a permanent building site I hope!
Mr Stephen Borg
Aug 5th 2012, 14:03
Well said.
m busuttil
Aug 5th 2012, 13:20
mr davies, may I ask why now travelling club class we are not given the warm face cloth when we board and before we land only with the meal we are given a sealed wet wipe, also why cannot we have a choice of three dishes, like chicken , beef or fish, or we are we always severed overcooked salmon or chicken, or chicken or overcooked beef, and may I know since when has that horrible fluffy stuff suppose to be butter? we used to be served maltese cheeselet and maltese galletti oh my oh my our fares have gone sky high to keep you happy and we have gone to the dogs with our service and meals
John Cole Smith
Aug 5th 2012, 13:19
‘Airline will have to reflect look of Malta’???????,
is that Ground Zero, as they call it?
I am very skeptical, that with this film of paint on these planes from a bankrupt company, anything will happen.
Will this guy at the end of it, when all fails, return any of his Mega Salary to the Country?, or will he just blame it on the Situation in Europe?
Well, he wouldn't be the first.
GL Calleja
Aug 5th 2012, 14:59
Maybe The Times or any other media could run a survey asking the people if from now on they will fly "Malta" because of the new colours?????
Michael Scicluna
Aug 5th 2012, 13:18
'Airline will have to reflect look of Malta’ CEO Peter Davies says, with Red beacuse it's in the Red? To add to reflect Malta can it be served Traditional Food from Maltese Maltese Culinary Choice and most of all Traditional Maltese Bread, especially if the passengers are going to have pay for the food. Happy flying
Joseph Micallef
Aug 5th 2012, 13:11
Albert Mizzi, a pro-PN in whom the God of Malta, Dom Mintoff had absolute faith, created Air Malta from nothing, brought up Air Malta and made Air Malta a concrete pillar for the Maltese economy and an envy for other, much bigger airlines and he had less than one tenth of your salary Mr Davies!
GL Calleja
Aug 5th 2012, 14:20
Mr Micallef don't be obsurd. When Dom Mintoff created Air Malta, he did what other countries were doing at the time because airlines were making money and to be honest Air Malta did not have the competition it has now. The only competition was British Airways and Alitalia and BA left soon after..So Air Malta enjoyed the route monopoly for a long time. You sound like the PM who ran a race all by himself and won the race.
Joseph Micallef
Aug 5th 2012, 15:08
GL Calleja...
In those times, it was unthinkable that we were able to have our own national flag carrier... the PNists in those times used to ridicule what the Dom Mintoff (again I repeat, he is and still is the God of Malta) has come up... by referring to them as "Ghasafar tac-comb" and many PNists used to boycott them by using other carriers!
Alfred Cassar
Aug 5th 2012, 23:08
They belonged to the same Arch. One got the OBE the other owned the country. That was in a different era.
Raymond Sacco
Aug 5th 2012, 23:13
Mr.GL Calleja:
In it's early days, AirMalta had British Airways (which did not leave soon after), Alitalia, Luthansa, Swiss Air, KLM, and AirFrance as competitors, but Dom Mintoff chose to give the advantages to our national airlines. Today, AirMalta has only Ryanair and EasyJet as competitors (as Lufthansa has become a strategic partner) but the present administration chose to cede the assistance to these foreign low cost airlines!
Robert Agius
Aug 5th 2012, 12:49
Impoverished, concrete jungle?
Alan Kay
Aug 5th 2012, 12:46
Air Malta airside is as good as any. The service landside is lamentable - especially Flypass which is supposedly designed for the frequent flyers the airline needs.
It does not reply to e mails - I still await their direct reply from mid June.
A letter direct to the CEO is not ackowledged let alone addressed.
Air malta is being slimmed down in terms of its debt to be sold to one of its sharers - it will be part of Lufthansa or Emirates one day and be the better for it.
Mr Victor Borg
Aug 5th 2012, 12:44
The rebranding is an attempt to turn Air Malta into a funky, boutique airline. Prices won't ever be as cheap as the low-cost airlines, but there will be passengers who would prefer to pay the something-extra for travelling in better style and comfort. In this regard, I see Air Malta heading the same direction of an airline I did a lot of work for in Asia - Bangkok Airways (www.bangkokair.com) - and as it worked for Bangkok Airways, it should also work for Air Malta. It won't be easy; it's a very tough environment, and the toughest thing of all is that since Air Malta can only win over a small percentage of travellers (the masses and hordes, including myself, will continue to flock to the low-cost airlines), the greatest limitation is that the catchment area is small (Malta's population is small, the traffic through Malta on air travel is tiny). But it's a valiant attempt, and the management is hoping that national pride will win the airline more Maltese customers, and it has started with the right steps...
www.victorborg.com
John Cole Smith
Aug 5th 2012, 13:24
Pride vs The Real Value of Money.
When your money is worth nothing and you can go to your local bank, and present them with an exchange voucher depicting units of pride, and they will gladly cash it, then yes this scheme will work.
More down to Earth, it won't.
Eddy Privitera
Aug 5th 2012, 12:40
If this rebranding exercise does not have the desired result, will Mr. Davies resign ????
Anthony Scicluna
Aug 5th 2012, 13:11
I suggest that if that happens we can have you instead. You seem to have all the answers about business. One wonders how you are not yet hailed as the Maltese Richard Branson. Unless you post your comments from your private Caribbean island
Eddy Privitera
Aug 5th 2012, 15:15
Il-verita twegga kulltant, hux , Sur Scicluna ???!
Anthony Scicluna
Aug 5th 2012, 16:18
Yes, the truth hurts. That is why you never have any good answer for the real points I raise. You merely complain without offering true solutions
Jo Camm
Aug 5th 2012, 16:55
We will only know that after the next election.
Mr ALBERT LEONE GANADO
Aug 5th 2012, 12:29
Interesting logo with luzzu and cross as the CEO commented. All that is missing is a few bajtar tax-xewk and the sun and we could say that the inspiration for this logo is the much maligned arma tal-reppublika of Dom vintage.
Lawrence Fenech
Aug 5th 2012, 12:13
If Malta is a carnival like the colours of Airmalta Davies has hit the nail on the head. Another foreigner is doing what he likes with the maltese assets, it reminds me of the mess Piano made of Valletta.
Joseph Mifsud
Aug 5th 2012, 11:50
It's a good idea to have the National Arline look Maltese, it was the manegment that bought the RJ's and Azzurra that doesn't look Maltese.
Mr Damian Agius
Aug 5th 2012, 11:46
I think this continual issue with his pay is ridiculous, what do you expect, that a CEO for a large company has an average salary? If it isn't worth his while he will go somewhere else, then we will be stuck with sub-par individuals.
If he doesn't perform then take his bonuses away and fire him but it is naive to think that an individual who can demand a certain salary will work for considerably less - especially if he hasn't failed yet.
Maybe we should take up some posters' opinions (in a previous article) to get rid of the management. Then the company can run around in circles all uncoordinated like a headless chicken - Victory for the Worker...
I am sorry but I think we have a massive problem in this country, if there is something broken we want to tear the whole proverbial house down instead of fixing it. Bad management decisions, oh no we don't fix the management we destroy it, some banks failed, lets not fix the governing regulations, lets lynch them all...
Finally, I know that most will disagree but I am sorry, I believe that people deserve salaries which depend on their position; I did not spend all those years studying to get paid the same salary as everyone else at my place of work, like I don't expect my superiors to have the same salary as I do. We are always going on about the rights of the little guy, but what about the rights of those who work hard, take on responsibilities, work for that promotion, have problems shoved in their face, is it fair that such individuals have to suffer to increase the salaries of those with less responsibility?
And before we all blame the government, we are all entitled to leach off the excessive welfare which this country offers - I never hear anyone whining about the introduction of a new social service, but we grumble about taxes, well something has to pay for all this. I too grumble about taxes but then I am not up in arms when the retirement age is raised.
Raymond Sacco
Aug 5th 2012, 22:55
Mr. Agius, are you talking about those very well paid bankers who put the world's economy in a mess and still got their bonuses after all?
Henry Mifsud
Aug 5th 2012, 11:39
I'm all for re-branding where and when needed. But it seems that there is a widespread misconception that by simply changing the logo (or in this case the livery on the planes) one is re-branding. As if we never learn from our own mistakes; everyone seems to have forgotten the big blunder MTA did a few years ago when it tried and failed miserably to brand Malta. Fact remains that we as a nation keep on looking at foreign "experts" as if they can perform miracles. Then when they fail, they simply leave our shores for greener pastures leaving behind a big dent in our finances. The pity thing is that everything is heavily politicised here and unless one sides with the government of the day, one is left in oblivion irrespective how "expert" he or she is. Rest assured that given the same package Mr. Davies managed to negotiate for himself, I am more than certain that a Maltese national could be found to do the job, if not better. But our PM and more so our Minister of Finance seem to think otherwise.
Quo Vadis Malta?
cesco di luigi
Aug 5th 2012, 16:22
Spot on Henry. Pure unadulterated truth.
Philip Mamo
Aug 5th 2012, 11:33
I believe that it would have been much better to invest in more aircrafts and turn it into a low cost airline company. Rebrandning means nothing nowadays as when one travels checks on various sites for a cheaper flight and counts his euros and cents well before travelling with that particular airlines, Mr, Davies.
Anthony Scicluna
Aug 5th 2012, 12:16
Mr Mamo
It is not possible to do so - the business model is entirely different. The only way that could be done would be liquidate airmalta and start a new organisation from scratch with completely different people, business processes and a business model. Read up on the business models of budget airlines to see how this is done. Contrast to national carrier models. Then rethink your position. Rebranding is a clever anticipation because it should create value in existing users.
Philip Mamo
Aug 5th 2012, 12:54
Mr. Scicluna,
It is interesting to know that the Spanish airlines iberia some months ago, after having encountered a series of fiancial difficulties had created a subsidiary low cost for short and medium-haul flights in it's strategic decision made by the management team of the company
Anthony Scicluna
Aug 5th 2012, 18:34
Mr Mamo
The success of that spin off would depend on who is manning the new company. Research shows that generally if you want to have a company do a business redesign (like the one you suggest) you need to keep the old and the new completely separate.
Is http://www.bbc.co.uk/news/business-17496003 what you are talking about?
j brincat
Aug 5th 2012, 11:28
"They have been tough years. It is because of this that we have to change the image and the way we undertake our business, particularly by winning the hearts and minds of the 850 people who work for the company – €1.9 million works out at 23c per passenger over the life of the restructuring plan"
What Mr Davies was perhaps not told was that GonziPN, on the eve of the last election, had given Air Malta employees a written assurance that they would NOT be laid off!
And really how appropriate was spending €2 million when Air Malta is still reeling and it does not appear that is yet out of the woods!
Mind you the new brand is for my tastes too gaudy. But then it's a matter of personal taste!
(jb)
Mark Jones
Aug 5th 2012, 12:00
...and what you're not telling us, Mr Brincat, is that on the eve of a previous election, the Labour Party created a load of spurious jobs in order to buy a few more votes.
Jon Vercellono
Aug 5th 2012, 12:03
2 million is not that expensive for a rebranding of this magnitude.
Henry Mifsud
Aug 5th 2012, 14:02
@ Jon V. That is precisely the point. Underspending in such an exercise is futile. Either one goes the whole way or none at all.
Edmond Micallef
Aug 5th 2012, 10:49
That's what they all say.
It could be money better invested if Mr Davies was given a financial package very similar to us mortal souls which, I would presume, would still give him ample incentives to perform a good job.
After all, in he past his post was occupied successfully by officials who were paid much less and still gave very positive results.
J. Debono
Aug 5th 2012, 11:30
"After all, in he past his post was occupied successfully by officials who were paid much less and still gave very positive results."
I beg to differ. Those people who were paid much less - bankrupted AirMalta, and we the taxpayers forked out millions every year to keep AitMalta afloat.
If paying a very lucrative salary (app. 1/2 a million Euro) will make AirMalta profitable, they will be as Mr. Davies said, money well spent. As then the 'lucrative' salary will be payed from AirMalta not the tapayers.
Another point, if Mr. Davies was given a financial package similar to us mortal souls, he would have simply refused. Pay peanuts - you get monkeys.
For a top position in any big company (employing hundreds of employees), hundred thousands of Euro is the normal pay.
Mr Kevin Zammit
Aug 5th 2012, 12:21
@J Debono
I agree with what you say.
What worries me is that so far this government has managed to still get monkeys even when it did not pay with peanuts.
Tony Mangion
Aug 5th 2012, 12:31
In all this confusion, about wasted money or otherwise, Albert Mizzi comes formost into my mind!!!. with Mr Grech in my second thought, where both of them as Air Malta's Chairmen, did very well.
Please choose the reason of your report below: