Air Malta is planning to reduce its flying staff – mainly pilots and cabin crew – by at least 60 by the end of June to slash costs, as a plan submitted to Tourism Minister Edward Zammit Lewis shows.
According to the plan, prepared by the ailing carrier’s top management last summer, it is aiming to have 28 fewer pilots and 34 fewer cabin crew members as it strives to make ends meet.
The plan goes into details as to the number of jobs that have to be axed and the savings projected from such move.
It states that, in the case of cockpit staff – paid handsome salaries – a reduction of 16 captains and 12 first officers is needed to save the airline about €3 million a year.
The company is also aiming to save €1.2 million through axing 19 pursers and 15 air stewards.
No numbers are mentioned in relation to the ground staff jobs that the airline will be shedding.
However, the plan envisages that ground operations will be hived off and all employees transferred to a new government company.
The airline will then hire the services from the new company according to requirements. The complete privatisation of ground operations are not being excluded, according to the plan.
Following a threat of industrial action by the Union of Cabin Crew over an overdue collective agreement, Dr Zammit Lewis yesterday announced the setting up of another committee – also headed by President Emeritus George Abela – with the aim of concluding negotiations on outstanding collective agreements by the end of June.
In contrast with the government’s previous stand, Dr Zammit Lewis said voluntary redundancy schemes would be offered.
In 2014, he ruled out any further voluntary redundancy schemes at Air Malta and criticised the previous administration for offering them.
Asked whether the government had obtained EU approval for such schemes, as these may be considered state aid, Dr Zammit Lewis said the government was examining all financial options, “which include [it] being part of a possible strategic investment into the airline”.
He said the government would ensure that any action taken would be fully in line with EU state aid rules.
A spokesman for the Union of Cabin Crew said members were very optimistic, because for the first time, the government was promising voluntary redundancy schemes.
He said that during their meeting, Dr Zammit Lewis had not said how many jobs were on the line.
In January 2016, the government set up a similar committee – also headed by Dr Abela – to finalise collective agreements in view of the proposed merger with Alitalia. However, union sources said this committee had never got off the ground.
Earlier this year, after months of speculation, the government admitted that the talks aimed at selling a 49 per cent stake of the national airline to Alitalia had failed.
There had long been ominous indications about the negotiations, with Alitalia chairman Luca Cordero di Montezemolo publicly declaring at the very start that the Italian airline was not ready to invest a single euro in Air Malta. Still, the government opted to persists with the negotiations until a breakdown was officially announced.
The government says it is seeking another strategic partner, however civil aviation industry sources told this newspaper so far there were no ‘large’ airlines formally talking with the government.
ivan.camilleri@timesofmalta.com