It took Air Malta more than two years to decide to stop providing hot meals to economy class passengers and serve them a so-called baguette instead, Times of Malta has learnt.

The ‘baguette deal’, which will see the national carrier save about €8 million over the next two years, has strings attached: a compromise had to be struck with the caterers – Sky Gourmet Ltd – extending their contract by a further five years, to 2021, an airline spokesman has confirmed.

The new food service was introduced at the start of the New Year and falls in line with the restructuring programme agreed to with the European Commission whereby Air Malta had to increase in-flight revenue, particularly through paid catering services.

In the circumstances, there was nothing one could do and the contract could not be stopped

A joint venture between James Caterers, Seabank Hotel and an Austrian company, Sky Gourmet Ltd was originally given a 10-year contract, until 2016, to provide all catering services to Air Malta.

Sources close to the airline said that in 2012, Air Malta had given notice to Sky Gourmet, which was receiving €7.5 million a year, that it was about to end the contract prematurely. The caterers objected and took the matter to court, which the following year, ordered the carrier not to end the contract.

“In the circumstances, there was nothing one could do and the contract could not be stopped,” the sources added.

“Sky Gourmet wanted compensation and the airline was forced to reach a compromise. This took some time, which meant Air Malta was unable to implement earlier this important aspect of the restructuring programme,” the sources said.

Asked whether the airline had to pay compensation to Sky Gourmet in view of the baguette deal, a spokesman said it had not. However, he noted that the contract with Sky Gourmet had to be extended by five years.

“Air Malta did not pay any more money to Sky Gourmet for this new arrangement but, on the contrary, saved €4 million annually. This was a requirement of the restructuring programme but the previous management teams had not managed to implement it, “the spokesman said.

He said: “The complexity of the [catering] contract and the fact that it was set to expire in 2016 left Air Malta in a weak negotiating position and it was thanks to the board and Sky Gourmet that a compromise could be reached and a new deal agreed to.”

The new contract has advantages because now “Air Malta can sell items on board its aircraft, something that was previously not possible”, he added.

Air Malta said it was still not satisfied with the quality of the sandwich being served on its flights and noted that it was monitoring the situation to improve the service. Product consistency seems to be the main issue, though Air Malta said the situation was improving and measures were being taken to improve matters “on a daily basis”.

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