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Update 2: Air Malta says it lost €2.5 million because of ALPA, union reacts

Air Malta said today it lost €2.5 million in revenue when ALPA, the airline pilots' association, blocked it from leasing an extra aircraft.

The company also accused ALPA of submitting requests in the collective agreement which amounted to more than €10 million over the period covered by the agreement.

ALPA also issued directives to its members after Air Malta agreed to attend a conciliation meeting with the director of employment and industrial relations and it initially expected the company to accommodate them so as not to pay income tax on part of their earnings, even though this was against the law, Air Malta said.

The company was reacting to an announcement by ALPA earlier today that it had registered an industrial dispute with Air Malta following the airline's decision to terminate negotiations and take a final stand on a collective agreement, now two years overdue, the airline said it was adamant not to allow the ALPA executive committee disrupt the restructuring process.

“The action being taken by ALPA is intended to disrupt the operation of the airline.  Air Malta is disappointed that ALPA fails to see the big picture and continues to focus on what is now its own narrow self-interests.

“Over the past few weeks every attempt has been made by the company to convince ALPA that the requests being made by the union were unsustainable and to the detriment of its members, the company and the country at large. 

“Air Malta, although not surprised by the attitude adopted by ALPA, is, however, shocked by the position adopted by the union that it has no qualms seeing the company go bankrupt if they are not given what they want. 

“To Air Malta’s management and the board of directors this is irresponsible and unprofessional behaviour and can’t be accepted.”

Air Malta said it made what it considered fair and responsible offers to ALPA. 

These took into consideration the state of the company and what was negotiated and agreed to with the other three unions representing Air Malta employees. 

“ALPA not only refused every offer but changed the goal posts at every meeting.  Each offer addressed issues related to what ALPA claims to be conditions that are inadequate in today’s circumstances,” Air Malta said.

ALPA DEMANDS CEO'S RESIGNATION

In a reaction, ALPA said  Air Malta has been leasing aircraft on a regular basis for many years.

"Both ALPA and its members have been instrumental in providing leasing opportunities for Air Malta on a number of occasions over the years. ALPA
continues and will continue to support Air Malta’s leasing efforts in the same way that ALPA has facilitated the employment of a number of Air Malta pilots to other airlines in order to reduce significantly the airline’s payroll burden. So as not to disrupt any leasing plans, ALPA has categorically stated that it will continue to honour its existing collective agreement, including those clauses concerning leasing.

"Any suggestion that ALPA is responsible for the sheer incompetence of Air Malta’s higher management in dealing with aircraft leasing is
shocking and dishonest. ALPA remains prepared to operate wet leases immediately, however it appears that the airline is actually unable to accept wet leases because of a lack of flight and cabin crew and as a result of restructuring restrictions by the European Union, which for some reason, to date remain unpublished.

"Air Malta’s management are trying to fool its shareholders and the Maltese public into believing that ALPA is asking for a ridiculous increase in pay. The facts are that ALPA had actually offered to take an increase only after some stability returns to the airline’s finances."

 ALPA said that was it was negotiating was 3% pa on the basic wage, in addition to arrears which were still being claimed and a slight increase in the overtime rate or points.

The union said that despite a focused drive by Air Malta’s management to push ALPA into taking industrial action, its members would continue to work according to their contractual obligations and would resist provocation by certain persons in Air Malta’s management as far as possible and until such a time that safety becomes a significant issue.

"The continued mismanagement of Air Malta should be a serious concern for Malta as a whole. It is already clear to those who are involved in the day to day operation of the airline that very little, if any progress has been achieved by the airline’s current management. Except in the area of redundancies which came at a high price. The rebranding Air Malta needs is the sort that sees the replacement of Air Malta’s existing CEO with a fresh brand of airline management," the pilots said.

In its announcement earlier today ALPA said that:

"Certain conditions in the expired collective agreement are inadequate in today's circumstances and therefore, ALPA is insisting that negotiations on a new collective agreement are resumed without any further delay," the union said.

"Until such an agreement is reached between ALPA and Air Malta, pilots have been instructed to continue abiding by their existing agreement."

The union said that no directives to pilots for strike action have been issued and it is not its intention to disrupt flight operations.

"ALPA however warns that crewing limitations in the current agreement are incompatible with certain recently introduced scheduling practices. A shortage of crew at any one time may therefore cause flight delays as has already occurred yesterday evening and may even lead to flight cancellations in the coming weeks."

 
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C. Bonnici

Aug 24th 2012, 13:56

B Cachia, I don't know the figures, but it's common sense that pilots should be paid well in par with their peers across Europe. If Air Malta is to employ the best, then it has to pay. But well, Air Malta management would want us to believe exactly what you wrote above. They should instead just issue a report with the details, on: (1) how they calculated current salaries for ALPA members, (2) where the two parties disagree. Of course ALPA should then respond with its own reports. That would be closer to reliable accountability.

Lino Busuttil

Aug 24th 2012, 17:18

Even the CEO should consider reducing his 500000 euros salary with the same reasoning. Do you suggest reducing their package cause it's already below industry standards? By the way this is what management wants with the counter proposals.

Lino Busuttil

Aug 24th 2012, 16:42

I think it's been splashed on the media several times during many disputes to raise antagonism just like yours towards pilots. So I suggest you just click on search. In the mean time why not study your guts out to become one.

M. Cachia

Aug 24th 2012, 16:40

An Airmalta Captain gets at least 35% less than a Ryanair Captain - both based in Malta!

Do you get it!

M

Lino Busuttil

Aug 24th 2012, 17:00

Surely all this ultruism was not done by the year old management who up to now promised a turn around but till today they have nothing to show except same old losses and a lot of procrastination in revenue augmentation projects.
This is a matter of accountability and of who really needs most the long term viability of the airline. Management has always been the temporary visitors to this airline all,they stay is for 3 years and no one will hold them accontable whateverb the results! However the remaining workforce including pilots are the ones who need to save guard a truly successful plan for their long term future.
Are the CEO et al are provoking this trouble to find a reason for their lack of progress after more than a year at the helm? Otherwise why all this washing of dirty linen in public after such a pompous rebranding exercise!.

M. Cachia

Aug 24th 2012, 16:43

You pay peanuts and you get monkeys!

Your idea does not work in this kind of business!

Lino Busuttil

Aug 24th 2012, 17:10

Yes bring them on :) You should know that in the nineties their presence were one reason why Local pilots got a bit of a decent salary because the foreigners were being paid double the maltese counterparts for the same job in the same company! These are not some pool boys doing summer jobs, sunny weather is not enough for people in this responsible job to do the job for peanuts. Airline are not government departments. Look at the CEO he is paid 10 times our prime minister who is running the whole country!

Wilfred Camilleri

Aug 23rd 2012, 21:31

Dream on! If Air Malta went bankrupt, hundreds of people will be out of work and many companies who conduct business with Air Malta will see their bottom line crash. The whole economy will lose. That means that there will be no extra cash to pay for reduced utility rates. Your voodoo economics are laughable!

C. Bonnici

Aug 24th 2012, 02:01

Il-ahwa, now I call such strategy: Genius! So you suggest that Malta would end up with no national airline, just to reduce our electricity and water bills. And then? We have more showers and watch more TV?

James Fenech

Aug 24th 2012, 06:38

Probably the millions the goverment pays Low Cost Airlines will go much further towards your electricity bills. After all most of them just rip you off as soon as you have any luggage.

Air Malta says AL:PA make Air Malta lose 2.5 million whilst Air Malta itself is spending almost that amount to "rebrand" paint their planes

Tony Borg

Aug 24th 2012, 08:07

I am not a KM employee but would not like the idea of loosing KM for a foreign airline to please some local big shot who is now investing in airport operations pleasing the higher.

Who can assure you that you will get cheaper service rates?? Keep hoping!

Julian Borg

Aug 24th 2012, 08:33

You dont seem to understand that we cannot subsidise W&E bills.....besides I dont want my taxes propping up someone who can afford to waste W&E. How very short sighted!!

JOE ZAHRA

Aug 23rd 2012, 20:22

Reminds me of the dark days in England when Thatcher was in charge and we all know what happened to thatcher. She was voted out for 15 years

Mary Ann Borg

Aug 23rd 2012, 23:36

15 years is not that bad Joe Zahra. Lejber here has been 25 years out in the cold here, so Mintoff and KMB must have been much worse than Thatcher.

John Vella

Aug 23rd 2012, 19:21

This is news to me.....Flying at night makes an airline less safe.....

Gable Porter

Aug 23rd 2012, 19:26

I read your previous statements below, and i will refrain from commenting about them but it seems you don't read thoroughly.

The issue is:
Fying at night, sleeping at 1000am then working again at 2200 is not the aim of the game.

Do you understand now?

Safety? Tiredness?

Yes?

Franco Attard Trevisan

Aug 23rd 2012, 20:15

what about the 'so as not to pay income tax on part of their earnings, even though this was against the law' part?? is that also for safety reasons??

Wilfred Camilleri

Aug 23rd 2012, 21:33

@ John Vella - What? Flying at night makes an airline less safe? Where did you get this gem from?

A Galea

Aug 23rd 2012, 22:44

@Franco Attard Trevisan

The money the company is talking about, is living expenses when be abroad. All airlines do it, they give cash in hand. Like any other company does when sending it's employees abroad for training.

These hypocrites are only twisting the truth.

Like the truth that is was an Air Malta pilot who found a lease and safe guarded at least 24 pilot jobs, earning the company a good sum. They don't say anything about it though.

Jay Oatmon

Aug 23rd 2012, 22:55

Almost all airlines fly at night - it is impossible to fly to the far east without flying at night - flying at night is normal. All airline pilots are expected fly to international regulations - and these have 'safety buffers'.
Air Malta pilots have an easy time of it because they do not fly really long distances - so this safety issue is just a smokescreen (are the pilots like the magistrates with an easy life and they don't want to be disturbed by working as hard as other airline pilots?).

Of course any flight anywhere any time is a risk, so is driving your car.

C Cassar

Aug 23rd 2012, 23:02

@Gable Porter:
That's the most stupid statement I've read on here. Pilots abide by FAA regulations and have strict control over the hours they are in the air. Also, Air Malta does NOT operate 24hrs a day since they don't operate any long haul flights. You need to educate yourself on the very basics of airline operations.

John Vella

Aug 23rd 2012, 19:19

@Silvio.... And since when do two wrongs make a right?

I Bugeja

Aug 23rd 2012, 20:23

@John Vella... they don't


But since the airline wants heads to roll, these should start from those who made 100's of millions worth of mistake not those that are seeking 10m agreement!

After all... who did the mistake. I am sure someone who is close to the ministry and who is elected in every board of the country.

C Sant

Aug 23rd 2012, 20:27

It is leasing of airmalta planes to the airlines, so it is money gained not lost!

Gable Porter

Aug 23rd 2012, 19:13

Hi Jay,

Read my comments above. The issue is not about money at all it seems.

Its deeper than that.

Franco Attard Trevisan

Aug 23rd 2012, 18:44

then what?? who will fly the planes?? Pilots know they can find another job any time...

P. Zammit

Aug 23rd 2012, 19:01

@Franco Attard Trevisan.... Then why don't they leave ?

T Mifsud

Aug 23rd 2012, 19:21

John Attard, I agree. But as I know from people in Air Malta, they are always going to work on time and never late. Apparently the question is that they are following the agreement to the letter. The Air Malta threw the stone on its foot because it has now eliminated flexibility

A. Mifsud

Aug 23rd 2012, 21:28

@ P. Zammit

Leave??? They won't!!

They won't find any other airline in Europe who will pay them as much + perks.

stephen debono

Aug 23rd 2012, 18:39

The airline is already bankrupt thanks to past bad decisions that nationalist governments took in the past years, decisions that the maltese pilots were always against .

GL Calleja

Aug 23rd 2012, 17:22

You don't fly much do you?

GL Calleja

Aug 23rd 2012, 17:21

That is why the government has no business of owning and running an airline. This is a very different case because Mr Azzoppardi is an employee of the airline and he knows the rules. If you want to argue the point. He was traveling on what we call a pass or reduced rate afforded to him and his family by the airline. He was Not traveling on official business, not that it would have mattered. Mr Azzoppardi or the flight captain overstepped their boundaries and they must face the music that follows. Captain Azzoppardi should be thinking about resigning from President of Alpa. It is the right thing to do.

GL Calleja

Aug 23rd 2012, 16:42

I think the only winners in all this are Mr Davies and his Merry Men, who no matter what the outcome is they will be laughing all the way to the bank at the Maltese Tax Payers expense. Bunch of CWIEC? Are you listening Tonio Fenech?

David Hill

Aug 23rd 2012, 16:24

I wonder if Ariva do Airlines?

Franco Attard Trevisan

Aug 23rd 2012, 18:48

@ David Hili

I sure do hope they don't.... well over a thousand accidents in a year or so... NO THANK YOU!

mark borg

Aug 24th 2012, 07:28

e iva ...kif jista jkun pajjiz li jidependi fuq it turizmu jorbot fuq low cost ???? u jhekk dawn jidecidu li jwaqfu il kuntratt ?? min se jgibhom min certu postijiet lit turisti u nies ??? mela ma nkunx pappagalli pls .

Joseph M Scicluna

Aug 23rd 2012, 16:02

..............a very important passenger you mean ??

A Camilleri

Aug 23rd 2012, 16:24

A privileged passenger and his privileged family and his privileged friends ......that's not you or me!!!

GL Calleja

Aug 23rd 2012, 16:32

Mr Vella get real. There is a big difference between delaying a flight for a full paying passenger and delaying a flight for a non paying employee and his family for a half hour. Any airline employee can explain why that is a no no. That captain crossed the line and that is all there is to it. Nobody is above the law.

Dora Smith

Aug 23rd 2012, 16:25

The Government should be responsible to take responsibility on the sorry state airmalta has found itself following irresponsible decisions taken by the same irresponsible politically appointed persons.

jason cassar

Aug 23rd 2012, 15:47

ax tfaqqa subajk u ssib il pilots eh ??

victor caruana

Aug 23rd 2012, 15:52

Who is Gonzi?

Does he enjoy any legitimacy now, given his fractured government and total loss of credibility?

Gonzi, go home and let other more competent carry on with the work by starting to pick the left overs you will leave behind.

Paul Borg

Aug 23rd 2012, 15:58

Yeay and bring in China air or samalia air...they should do for your taste ha ?

Joseph M Scicluna

Aug 23rd 2012, 16:05

Come on, be reasonable. Air Malta employees are breadwinners like other workers. Let's hope that a solution be found for the benefit of our own country.

mark borg

Aug 24th 2012, 07:12

haha ha very soon the employees of airmalta would for part of the ones that will be getting rid of your gonzi...so michael enjoy riding the gravy train while it lasts (6 months max)

Joe Vella

Aug 23rd 2012, 15:53

Victor, that is part of the cost to remain in Business. Any airline cannot remain static and from time to time need to re-brand itself, Period. The Airline industry today is not the same as it was in the '7o's and the '8o's; it is more competitive today and there are new players today -- low cost Airlines. Also the cost of OIl is over the $100.. per barrel and not around $20.00 or less.

Victor Vella

Aug 23rd 2012, 15:56

How can you take seriously a person who is supposed to be a responsible person putting his own interest before that of the company he works with, and jeopardizing the position of his friend.Is this the way that your party wants to run Malta if God forbid you win the elections?

Mr Andrew Camilleri

Aug 23rd 2012, 15:24

I think you have got it wrong and are determined to undermine ALPA's president. It seems that now it is Ok for delays caused by Air Malta's lack of providing the right amount of cabin crew - as happened last night. Any comments George on this situation, i.e. delays caused by lack of cabin crew as decided by Air Malta?
You know, this witch hunt against mr Azzopardi is so typical of GonziPN - remember what you did to Harry Vassallo, Cyrus Engerer, Astrid Vella and so many others who GonziPn decided to punish?

Mariano Scerri

Aug 23rd 2012, 16:46

Sure Mr Camilleri - you're not the one to talk about character assassination!! And just because you're one of the Labour elves continuously posting anti-PN posts, doesn't make what Domenic Azzopardi did justifiable!

Grow up and stop spitting what you're fed - call a spade a spade!

Amante Reale

Aug 23rd 2012, 16:01

What does Labour have to do with this case?

T Mifsud

Aug 23rd 2012, 15:09

I wonder how Mintoff would have taken your advice on a GWU general strike

H. Galea (NRK)

Aug 23rd 2012, 15:24

Very well put Mr Bonnici - stop this monkey business, the Country cannot afford this sabotage-like action - get the foreigners in and invite the brave 'locals' to go fishing !
What kind of seriousness is this ? to choose to inconvenience a whole planeload of passangers for a whole half hour or so, just to accomodate His Majesty Mr so & so & family ! Kemm ahna sbieh ... min jaf jarana !!!

T Mifsud

Aug 23rd 2012, 15:07

...probably the other way round Mr Borg!

Mr Andrew Camilleri

Aug 23rd 2012, 15:25

I do not think so - but then, on the other hand if Air Malta wants to play dirty, why cannot ALPA do the same?

H. Galea (NRK)

Aug 23rd 2012, 15:57

Was the pilot Dominic Azzopardi suspended on the spot on arrival ? If not, who was responsible for failing to take this indicated step ?

J jones

Aug 23rd 2012, 17:33

Suspend a passenger!! Good one.

T Mifsud

Aug 23rd 2012, 15:07

...because otherwise it would lose all the precious slots such as Heathrow, Gatwick, Rome worth many many millions each.

E Schembri

Aug 23rd 2012, 15:29

That should have been done last year before our useless government spent €100 million of Maltese taxes to bail out AM. To add insult to injury, we were informed that €1million went on new uniforms and €2million on a graffiti paint job, as if any of these will boost AM sales.

I guess we never learn, and this is what you get when the government uses public funds to look pretty with voters. One thing for sure, it lost my vote.

I expect the government to make better use of my hard earned taxes such as fixing some of the road infrastructure and more police enforcement.

A Spiteri

Aug 23rd 2012, 15:39

Because a new airline requires HUNDREDS of millions to be set up.

vincent Lia

Aug 23rd 2012, 15:50

The government is being left with only one choice and that is to get rid of Air Malta alltogether. Air Malta cannot be kept running with people that hold other people at ransom. Do the same as Margaret Thatcher did to the coal miners.

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