The private sector should be involved in running Air Malta with the government maintaining a “strategic interest” in the national carrier that should remain Maltese-owned, the Malta Hotels and Restaurants Association suggested.
It stressed that the airline’s survival was essential for the island’s tourism industry and economy and suggested it was time to consider a new business model, such as the Bank of Valletta one.
When contacted, a spokesman said the government should take note of the MHRA’s suggestions.
“The financial stability of the airline is a priority for the government,” he said.
An Air Malta spokesman refused to comment.
The financial stability of the airline is a priority
The MHRA said it believed the national air carrier should remain fully Maltese-owned but the private sector should be involved in its running.
“The BOV model is one that can be emulated for Air Malta, whereby the absolute majority of shareholding will be floated to the Maltese general public and the government retaining a strategic substantial share.
“In the meantime, global and/or regional strategic marketing alliances must be strengthened to develop more effective processes and expand into new markets,” the association said.
Despite the ongoing restructuring programme, Air Malta had not managed to overcome the challenge of profit generation, it said.
The government and all stakeholders were to consider all avenues to support the company to continue flying to and from critical routes, so it could maintain its market share.
“Over time, a lot has been said about Air Malta needing to operate on commercial lines and many agree about this. However, this process should not override the significance of retaining the airline’s market share which stands close to 50 per cent,” the MHRA noted.
Air Malta ran into financial trouble four years ago when the government had to issue an emergency loan of €52 million to keep it flying.
The EU accepted such State aid on condition the airline was restructured.
Under the terms of the five-year restructuring plan, agreed in 2012, the government was allowed to give the company financial assistance to the tune of €160 million as long as the airline cut its workforce, reduced its route network and became profitable.
Over the past months, Prime Minister Joseph Muscat said he had plans for Air Malta.
Last month, he ruled out immediate plans to sell part of the government’s shareholding.
He insisted the national carrier’s restructuring agreement with the EU had to be seen through in its entirety.