Air Malta will need a private cash injection if it wants to grow and expand, the airline’s former CEO Peter Davies has told The Sunday Times of Malta.

Air Malta was achieving the desired financial results until he stepped down last March and had even reported a small profit for the first six months of the third financial year, Mr Davies said.

We were moving on

Tasked by the previous administration to oversee the company’s restructuring process, Mr Davies said he wanted to put the record straight because he was surprised by recent “unfair” declarations made by Air Malta chairwoman Maria Micallef.

However, he said he did not intend to enter into any issue with Ms Micallef or the government.

Ms Micallef – who was appointed last July after serving on Air Malta’s board since May 2013 – admitted last week the airline had veered off its five-year restructuring plan and instead of breaking even by the end of the current financial year, it will make a loss of €16 million.

Blaming increased competition in summer and loss of revenue from suspended Libyan routes, Ms Micallef expressed “shock” there was no handover before Mr Davies left and that there was no proper management structure.

‘The board was aware of all that happened’

Announcing the company results last year, then chairman Ray Fenech confirmed the airline was on track until the first six months of the financial year.

“Until I left we were heading in the right direction. There were still tough decisions to be taken, but we were moving on,” Mr Davies said yesterday.

Rejecting suggestions there was no proper handover, the former CEO said when Mr Giordimaina was appointed designate CEO by the present board at the end of 2013, he had briefed him.

“He [Mr Giordimaina] attended all my management meetings and on many occasions I offered him to go into all the details, even though he didn’t take the offer.”

Asked if he was suggesting that Mr Giordimaina refused to take advice, Mr Davies replied: “I would say he wasn’t forthcoming in his questions.”

However, he added that both Mr Giordimaina and the board of directors, including Ms Micallef, knew everything that was taking place in the company.

Though unaware of the latest financial figures, Mr Davies said there is no reason why the airline should not manage to reach its restructuring targets.

He said it still has hard-working employees and a good Maltese tourism market performance should make the plan achievable.

Mr Davies stressed that the government is fully aware the airline needs further cash to grow.

“I had fully supported then chairman Louis Farrugia when he said that privatisation or a strategic partner would be an important and crucial step for the airline.”

So far, the government has kept mum over the possibility of partial or full privatisation of the airline.

The former CEO said despite the change in administration, the government kept to restructuring plan commitments envisaged by the agreement with the EU.

Air Malta is mid-way through its restructuring plan and is expected to turn a profit by the end of 2015.

It will not be able to receive more State aid after the plan is over.

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