Updated - Adds terms of reference

The steering committee set up to oversee the restructuring of Air Malta held its first meeting this morning.

Finance Minister Tonio Fenech said those present had agreed on the committee's terms of reference.

He said it had also been agreed that there would be no public comment on the proposals for the airline discussed by the committee.

The two-hour meeting was attended by representatives of the government, the airline, the Opposition and the four unions which represent Air Malta workers.

Mr Fenech said a preliminary action plan has to be presented to the EU by the end of January and the plan has to be finalised by May.

When asked on the role in the airline of consultant Robert Palmer, Mr Fenech said the board of directors was taking stock of the company's management structure and Mr Palmer had taken over the responsibilities of the former chief operating officer, who is now on long leave. He said that Mr Palmer's role was of a temporary nature.

TERMS OF REFERENCE

In a statement issued by the DOI, the committee said its terms of reference were:

To ensure that a restructuring plan to restore viability to Air Malta was presented on time and was acceptable to the European Commission; To discuss and agree on this plan; and To follow its implementation.

The committee said the company is to present proposals for the restructuring plan which would include:

An analysis of the size of the airline in terms of fleet and routes; A cost-cutting plan in order to restore Air Malta operations to levels which fulfill its mission and make it competitive; A commercial operations plan including proposals to improve revenue, a strategic review of the markets and the models which the airline should follow; and Determination of staff and skills levels on the basis of the agreed size of the company.

While the committee would seek consensus, should there be disagreement, the governemnt would assume responsibility for the decisions which would need to be taken.

GWU ISSUES DIRECTIVE

Meanwhile, the GWU in a statement said it had been informed that workers in some sections of Air Malta were being given orders which, it said, did not conform with the way how work was normally carried out in these sections.

The union said it was making it clear that unless there was prior agreement in talks between it and the management, such orders should be ignored and workers should continue doing what they normally did.

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