From top: Tourism Minister, Edward Zammit Lewis, Opposition spokesman Tonio Fenech and the former CEO of Air Malta, Peter Davies.

Former finance minister Tonio Fenech had criticised then Air Malta CEO Peter Davies on a blog for working a four-day week and failing to answer e-mails, Tourism Minister Edward Zammit Lewis said in Parliament last night.

Mr Davies, who had an annual package of €500,000, used to fly to the UK on Fridays and return to Malta on Mondays, Mr Zammit Lewis said as he rebutted Mr Fenech’s defence of the ex-CEO.

Concluding the debate on the tourism vote for 2015, Dr Zammit Lewis said Mr Fenech’s defence of Mr Davies now sounded hollow.

Earlier in the debate, Mr Fenech said there were no Maltese nationals with similar experience to lead the airline’s restructuring process at the time.

He was not ashamed of hiring Mr Davies, who had a reputation and specialised experience, having been through two successful processes of airline restructuring.

Ostensibly the EU approved Air Malta’s restructuring plan only because under Mr Davies there was a management team capable of leading the changes. At the time Mr Fenech knew of no Maltese who could have done the job, he said.

The head-hunting had yielded two other contenders but they had demanded a premium, in view of the risk of failure and reputation, to the tune of €1 million and €700,000 respectively.

Mr Davies had accepted to stay within the region of his previous salaries, €470,000.

The airline’s restructuring had been on track under the previous government, as confirmed by former CEO Ray Fenech, who was appointed by Dr Zammit Lewis’s predecessor, Karmenu Vella.

Air Malta now had its third CEO under this legislature and the Opposition had the duty to express its concern.

He accused current chairwoman Maria Micallef of confusing the issues when she amalgamated restructuring and operational figures. Restructuring costs could not remain unchanged year after year – which meant that Air Malta’s losses had actually increased.

Unfortunately the government had not emulated its predecessor and had not involved the Opposition in its plans for Air Malta.

Dr Zammit Lewis said Ms Micallef, was three times as good as Mr Davies. Ms Micallef, who held an MBA from the Maastricht School of Management, had qualities that were essential for this position, especially in providing strategic direction to Air Malta, an integral part of the tourism sector.

Denying allegations carried by the PN weekly Il-Mument, that Air China was ready to “swallow up” Air Malta, he said the government had invested €1 million more on route development and was working with the Malta Tourism Authority to exploit the available funds.

Air Malta chairwoman Maria Micallef is three times as good as Peter Davies

He denied the government considered political beliefs when appointing people to the airline, mentioning a number who, he said, were surely not PL sympathisers. However, they had been kept, or been taken on, by the airline because the government believed in their capabilities.

Speaking on tourism in general, Dr Zammit Lewis said figures showed an increase of 6.8 per cent or 130,000 tourists over the previous year. This is particularly significant considering that 2013 was a good year.

Moody’s had described the sector as a mainstay of the economy and was projecting continued growth in the medium term.

This was also reflected in the general experience of hoteliers and retailers.

A total of €200,000 were being allocated to a foundation which would seek to improve the environment in tourist areas.

Some €700,000 in EU funds had been obtained for the restoration of the Sacra Infermeria. Public consultation on a new tourism policy would start in January so that the policy and strategic vision would be in place by March.

On Gozo, he said the government wanted to reduce that island’s dependency on day-trippers and increase destination tourism to the island through the construction of more hotels.

Opposition spokesman on tourism Robert Arrigo opened the debate, saying the government was heightening the people’s concern about the airline’s future by not giving any information on developments.

He warned that the government did not have any mandate to sell Air Malta or any of its operations.