Talks between Air Malta and the Airline Pilots' Association on a new collective agreement continued yesterday amid hopes that a deal can be struck in a few days' time, possibly by year's end.

The pilots and the airline have been holding marathon talks in a bid to strike a deal on a number of points listed in a 151-page collective agreement. Alpa president James Fenech said "things looked good for both of us", adding that the reason why the talks were fruitful was because both parties were now looking at the issues from each other's point of view.

"Obviously, these talks involve a great deal of give and take from both sides but we are putting ourselves in each other's shoes and looking at the issue being discussed holistically and as something that would work for the both of us. We are not after money but after policies that work for both," Mr Fenech said when contacted.

He said they discussed certain proposals that did not cost a lot of money but would improve the general working conditions of Air Malta's pilots. Asked to give examples, Mr Fenech said the two sides discussed the allowance for pilots working on Christmas Day and New Year's Day, which would cost the airline Lm500 a year.

Asked whether the talks will continue into the New Year, Mr Fenech said that about two-thirds of the collective agreement has been covered and agreed upon. He was hoping they would strike a deal by the end of the year.

A spokesman for Air Malta said both sides were now moving closer to an agreement, which should be reached over the coming days.

The pilots complain of low salaries and poor working conditions. Last week they authorised Alpa to call a strike if the talks remained deadlocked.

The airline has described the pilots' claims as "unreasonable" and "unsustainable", especially in view of Air Malta's financial situation. It said the pilots were already among the highest paid on the island, with an average gross annual salary of between Lm15,600 and Lm27,800 (€36,338.23 and €64,756.58).

Things began moving again after the pilots made a new offer, lowering their overall pay rise claims for the next 29 months from Lm3 million to Lm2 million. However, they still threatened to strike if no headway was made in the talks.

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