Air Malta has categorically denies claims that it was planning to dismiss 1,000 employees.

In a statement, the airline confirmed that leading international consultants from Ernst & Young were engaged to draw up a restructuring plan to ensure its long term viability.

It said that a substantial number of airlines in Europe have over the past years and months undergone similar restructuring processes and Ernst & Young were instrumental in assisting other industries, including airlines, in similar circumstances to embark on the road of long term viability.

The airline also pointed out that speculations on its financial performance for the current financial year were premature, particularly since the current financial year ended in March.

Formal discussions with the unions, it said, had already started and the airline would also be communicating directly with its employees to update them on developments.

Air Malta said that a substantial number of airlines in Europe and around the world had been engaged in ongoing restructuring ever since September 11, 2001.

Air Malta was not immune to the challenges being faced by the aviation industry and had been carrying out a structured restructuring exercise since 2003.

Since then, it reduced its staff compliment by over 600 without resorting to dismissals.

Air Malta appealed “for factual and prudent reporting” in the media saying that speculative and wrong information could lead to wrong perceptions or misconceptions which could be commercially damaging to the airline.