Air Malta should be in "new shape" by the end of the summer season, chief executive Peter Davies tells The Sunday Times in an interview today.

Workers have to be shed, all contracts and freebies are being reviewed, and new sources of revenue need to be tapped if Air Malta is to continue flying, Mr Davies and new Air Malta chairman Louis Farrugia say in their first interview since their appointments.

It is not yet clear whether any early retirement schemes will be offered to employees facing redundancy, though the chairman said the option is "on the table". Even the figure of 600 employees cited for redundancy is not "finite", according to the newly-appointed CEO. Last Thursday, 58 workers from Air Malta subsidiary Selmun Palace Hotel were given their redundancy notices.

Pointing out that management will not wait for the European Commission's green light for the restructuring plan to be implemented, Mr Davies says the airline turnaround should start by the end of the summer period (October 28).

Though underlining the urgency of the situation – Mr Farrugia says the airline has to reduce some €30 million costs – both airline bosses insisted that decisions would be taken responsibly, and maintained Air Malta was still solvent so there was no cause for alarm.

While strongly dismissing claims that travellers were at risk by booking flights with Air Malta, Mr Davies says there is evidence to suggest prospective travellers are thinking about whether they should choose the national airline.

The airline will also be downsizing its fleet from 12 to 10 to reduce operational costs, Mr Davies confirms, a proposal which had been rejected by unions.

During the interview with Herman Grech, Mr Davies also answers questions about his high salary and his relations with staff and unions.

Watch excerpts of the interview by clicking the link above. Read the entire interview in today's edition of The Sunday Times.