As it is improbable for Air Malta to meet its financial viability target by the end of the restructuring plan in March, the government is under pressure to find a suitable strategic partner in time to enable the airline to remain in business.

Even though Air Malta is expected to break even by 2017, the way forward is for the airline to have a strategic partner. This will help ensure the best possible chances for its continued existence in a market that is becoming increasingly competitive, particularly in the wake of the gradual but steady incursion in its business from low-cost airlines.

Of the airlines mentioned so far as possible contenders, Etihad, the national airline of the United Arab Emirates, appears to be closest to clinch a deal. Air Malta and the government are also known to have had talks with Chinese and Turkishcarriers but with Etihad having already been involved in rescuing other airlines, such as Alitalia, it appears it has become the favourite candidate.

Prime Minister Joseph Muscat brought the issue over the need for a strategic partner for the airline back into the limelight when he said that a decision over the carrier’s future was expected to be taken within weeks.It is not known yet what financial stake the new partner will have in Air Malta but it has been made clear that the government will remain the majority shareholder.

There appears to be general consensus that this will be the best solution. A national carrier is not just a matter of prestige but a valuable asset in the island’s infrastructural set-up.

However, it stands to reason that no potential stakeholder is likely toget involved in its operations unless it is satisfied that a partnership will yield good dividends.

As in the case of other State-owned enterprises that were closed or sold off, Air Malta’s history too is overshadowed by moves and decisions that weighed down its commercial prospects. Successive administrations shared part of the blame for this when, for political reasons, they overloaded the airline with staff it did not need.

Commercial viability will depend on the adoption of the best possible commercial practices. This means that if the airline is to stand on its feet and become profitable, certain decisions may have to be taken to make it more competitive.

According to latest reports, the new partner is expected to have a significant say in the airline’s management and day-to-day operations. There will be need for greater flexibility in attitudes at every level of the workforce.

The unions representing the employees have a point in complaining about the fact that they have been left completely in the dark as to what is happening. They have a job to do and, in the circumstances, their concerns are understandable.

While the government and the airline’s management are right in expecting flexibility in attitudes they, on their part, are expected to deal with the workforce fairly when mapping out the future of the airline. The Tourism Minister remarked at one point that they were “aiming for the employees to be presented with more opportunities”.

It remains to be seen what this means exactly but, on the face of it, it is a positive indication.

As it happens, this new development coincides with an announcement by Malta International Airport that it plans a massive expansion of the airport. If all goes according to plan, the outlook for aviation appears positive, a good start for the New Year.

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