5.10 pm Updated with GWU reaction
Air Malta is planning to hive off some of its non-core operations to become more efficient and cut operational costs, the Times of Malta is informed.
Senior government officials involved in ongoing negotiations with Alitalia and Etihad on the purchase of a 49 per cent stake in the national airline told this newspaper the engineering department and the ground-handling operations had been earmarked as the first areas to be hived off once the deal was done. However, other areas were not being excluded and were also in discussion.
“For the moment, we are speaking about the engineering and ground-handling services, which can be easily farmed out,” the sources said.
“There are other areas that can be taken over by the private sector or through a different model which can offer other avenues for Air Malta to continue to become leaner and lower its costs.”
There are other areas that can be taken over by the private sector or through a different model
The sources made it clear that, despite outsourcing the engineering and ground-handling departments, no full-time employees would lose their jobs. The plan is for all employees in these sections to be transferred to a government entity, similar to what happened to former Enemalta employees.
The idea is that Air Malta will hire engineering and ground handling services either fromthe private sector or from its former employees.
“Through this model, the company will not need to keep a 24/7 engineering and ground handling operation independently of seasonality and the volume of work. The carrier will be able to ‘hire-on-demand’ according to specific requirements,” the sources said.
Industry sources pointed out that such a model was already being used successfully by various low-cost airlines.
Asked to confirm whether the government’s plans for Air Malta included the hiving off of the engineering and ground handling services, a spokeswoman for Tourism Minister Edward Zammit Lewis replied: “Alitalia’s decision regarding the due diligence process is expected in June or July. At that point, if a decision to proceed is taken, a business plan will be prepared, including all the relevant details.
“The government is committed to communicating all milestones once completed and will announce news regarding the new business plan once the talks arrive to that stage.”
The Times of Malta is informed that, last week, two high-ranking officials – an Australian and a Briton – were at Air Malta discussing the possible strategic partnership on behalf of Alitalia and Etihad. More officials are expected at the national airline’s head office this week.
The government is committed to communicating all milestones once completed and will announce news regarding the new business plan once the talks arrive to that stage
Prime Minster Joseph Muscat clearly indicated last December that Air Malta would follow the Enemalta model.
Dr Muscat said that, as had happened with Enemalta, fresh foreign investment would be ploughed into Air Malta while ensuring that the airline remained Maltese, the workers retained their jobs, the company continued to be sustainable and tourism would still benefit.
Alitalia chairman Luca Cordero de Montezemolo said last week Alitalia could make good use of Air Malta as it would give the Italian carrier “good connections with Sicily”. He said Alitalia would invest “not even a euro in Air Malta” and that the deal negotiated was a “zero-risk” deal for the Italian airline.
'Employees must be protected' - GWU
Reacting to the Times of Malta story, the General Workers' Union said that it knew nothing of plans to hive off any part of the national carrier.
It however reiterated its position that employees' jobs were an absolute priority, and that it would not be accepting any workers ending up unemployed.
"The government and Air Malta have always indicated that until now nothing has been decided except the fact that jobs are guaranteed," the GWU said.