On the day the Government announced a new board for the national airline, Tourism Minister Karmenu Vella said Air Malta would be posting a €25 million loss for 2012 – “€10 million more than the impression given recently”.

The new board will be chaired by a leading entrepreneur, Ray Fenech of Tumas Group, and will have another, Joe Gasan, as one its members.

Last week CEO Peter Davies had said in an interview that the company would be posting an operating loss of €15 million for the year ending in March. This was compared to the €55 million projected operating loss in the adjusted budget of two years ago.

I would like to correct the impression given that the company will be posting a loss of €15 million

Pressed by The Times on whether the Government was satisfied with the progress achieved so far in the restructuring of Air Malta, Minister Vella was non-committal.

“I would like to correct the impression given that the company will be posting a loss of €15 million. That is only an operational loss and on top of that some €10 million have to be added, pushing up the annual loss to €25 million,” he said.

Mr Vella yesterday inaugurated Amitex, the annual travel fair organised by Air Malta, where he publicly thanked outgoing chairman Louis Farrugia for his work towards the company.

Asked about reports that the Government would not be keeping Mr Davies on, he dismissed them as “just rumours”.

However, he refused to state whether the Government was satisfied with the CEO’s performance or to confirm that Mr Davies wouldremain in his role.

“That is a decision still to be taken by the new board,” Mr Vella emphasised.

Mr Davies’s appointment three years ago was controversial. The Labour Party, then in opposition, and the General Workers Union had criticised the choice and the €500,000 salary he enjoyed.

The Nationalist administration was also harshly criticised for employing a “foreigner” in the post and not a Maltese citizen.

Yesterday, in his last official speech as chairman, Mr Farrugia – who before the election had already declared his intention to retire – said the airline was half-way through its restructuring process.

It had managed to make significant progress, reducing its spending and raising its revenue, while the Government had pumped €230m into the company, including €128m in share capital.

He thanked all those involved, including the workers who had believed in the product despite the sacrifices that had to be made.

He said lot of progress had been made and his board had managed to instil a new culture in the airline.

But the company was not yet out of the woods and “more difficult decisions have to be taken”.

He called the coming months a crucial time for Air Malta’s future. This was the last chance for Air Malta to survive and it must get it right.

He also warned that the era of political and external pressure on the way the company was led was over as the airline needed to be steered on a purely commercial basis.

Interference, he said, was one of the reasons for the airline’s problems.

Back in 2010 the Nationalist government had to intervene directly to raise €52 million for the company as it was facing commercial collapse.

Following tough negotiations with the European Commission, a €250 million restructuring programme was agreed with the aim being to bring the company back to profitability by the end of 2015.

Failing this, the company will either have to fold or be privatised.

Apart from Mr Fenech and Mr Gasan on the new board, the Government has also appointed Norman Spiteri, Eric Fenech Pace, Karen Bugeja, Joseph Borg, Chris Grech and George Micallef as directors.

Meanwhile, to celebrate the 20th edition of the Amitex travel fair, Air Malta will be giving 25 per cent off all its scheduled flights for travel between October 15 and December 15, 2013.

The travel fair is being held at the MFCC grounds in Ta’ Qali until Sunday.

With every entry ticket purchased, visitors are given a 25 per cent discount promotional code, which should beused at the time of booking through www.airmalta.com.

Amitex provides Air Malta an opportunity to reaffirm its commitment towards the local travel trade and the local travelling public.

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