Air Malta voluntary retirement schemes will be launched in the next few days after three agreements were signed yesterday between the airline, the government and two unions.

I am happy that during the discussions I saw a genuine desire by all unions to work together to turnaround the airline

The media was not invited for the signing agreement and the deal was announced in two separate statements issued by the Department of Information and the company.

Air Malta signed two restructuring agreements with the General Workers’ Union and the Association of Airline Engineers, covering the working conditions of the nearly 900 employees represented by these two unions.

The agreements also cover the voluntary and early retirement schemes that will be launched in the coming days. The statements did not give details of the schemes.

The schemes are part of the airline’s drive to reduce its workforce by some 500 employees in a bid to make the company financially viable after receiving €52 million in emergency money from the government last year. Air Malta chief executive Peter Davies was quoted saying the schemes will be remain open for four weeks.

Mr Davies said the agreements represented “a milestone” for Air Malta because they provided a comprehensive review of the airline’s operations.

The agreements follow detailed and lengthy negotiations between the airline and the unions, covering new work practices, a revision of duties and responsibilities, roster changes, increased efficiencies and a reduction in staff levels. “I am happy to note that during the discussions I saw a genuine desire by all unions to work together to turnaround the airline,” Mr Davies said, noting that more work still had to be done.

The government and GWU also signed a separate agreement that gives some redundant employees the opportunity to apply for alternative jobs in the public sector.

The DOI statement quoted Finance Minister Tonio Fenech saying the agreements should serve to put the company back on a sure footing.

“The agreements ensure flexibility that is necessary to make the company viable and sustainable,” Mr Fenech said.

The government has still to receive the European Commision’s go-ahead for the restructuring plan that was submitted earlier this year but the company has already started implementing some of the changes. On Sunday, Air Malta chairman Louis Farrugia said the airline was expected to register a loss of €37 million this year, the same as last year, adding the results were encouraging because fuel costs had increased by €12 million.

The airline employs some 1,200 workers.