Eyebrows were raised when Air Malta employees were told in a memo last week that management was discussing “a comprehensive restructuring plan” with unions, raising questions about a previous plan drawn up by Ernst and Young.

But Air Malta has now clarified that what chief executive Peter Davies meant in the memo was the drawing up of “an implementation plan”.

“As a result, it should not be interpreted in isolation or as separate to the plan submitted to the European Commission,” a spokesman for the airline said.

Government-appointed consultants Ernst and Young had drawn up a restructuring plan for Air Malta, which was eventually submitted to the European Commission for approval.

Details of the restructuring plan have been kept secret and the only information to date was revealed by The Sunday Times when it leaked details of a draft of the Ernst and Young report.

According to the unions represented at Air Malta, the plan cost the country €3.3 million, a sum that has not been denied by the government, and so when employees received a memo last week from Mr Davies telling them management was discussing a restructuring plan it caused a stir.

Columnist and economist Lino Spiteri also questioned what he described as “an astonishing statement”, given that Ernst and Young had been appointed to draw up an expensive restructuring plan.

Mr Spiteri asked: “Does the CEO’s statement mean that Ernst and Young’s expensive plan was effectively scrapped and that a new comprehensive one is to be developed afresh?”

Air Malta now says the “management implementation plan” being developed with unions “is an extension of the restructuring plan and creates a delivery framework”.

Asked what management was discussing with unions, the company spokesman said talks were held in confidence.

“The management is in ongoing discussions with all the unions representing airline staff on the details and is also keeping its employees informed directly through regular staff updates. Our negotiations and briefings with unions and all other stakeholders are held in confidence and the airline will comment further at the appropriate time,” the spokesman said.

ksansone@timesofmalta.com