Air Malta’s management has been asked to draw up a restructuring plan for the beleaguered airline which outlines the number of employees it needs.
The plan, which has been requested by the European Commission, has to be finalised by May 15 and a first draft has to be submitted by January.
The order came from the steering committee tasked with overseeing the airline’s restructuring. It held its first meeting yesterday at the Finance Ministry, two weeks after the idea to form the committee was floated in talks between the government and the opposition chaired by President George Abela.
The two-hour meeting was attended by representatives of the government, the airline, the opposition and the four unions that represent Air Malta workers.
Speaking at the end of the “cordial” meeting, Finance Minister Tonio Fenech would not say what was discussed when asked whether the government had presented its restructuring proposals. Union officials and the Labour Party’s representative, former Air Malta chairman Louis Grech did not comment either.
Mr Fenech said the government’s consultant and aviation expert Robert Palmer has temporarily taken the airline’s commercial operation under his wing after the chief operating officer was put on long leave earlier this week.
A press release issued by the Department of Information in the afternoon said the committee’s terms of reference included discussing and agreeing on a restructuring plan agreeable to the EU.
The decision has to be taken within the timeframe set by Brussels and the committee will also oversee the implementation of the plan.
Air Malta’s management has been tasked with analysing the size of the airline’s fleet and which routes to keep. The company must also determine adequate staffing and skills levels.
The management has to draw up a plan to improve the company’s commercial operations through a strategic analysis of the markets in which the airline operates.
The statement said the committee will seek consensus and if this is not possible the government will shoulder responsibility to take the necessary decisions.
Last week Parliament approved a government loan of €52 million for the sinking airline after the Commission approved this emergency aid.
However, the cash injection has to be accompanied by a restructuring plan to make Air Malta viable. The airline lost some €30 million in the financial year ending March 2010 and is expected to register heftier losses in the current financial year.
In a statement, the GWU said some Air Malta employees had been given orders that went contrary to their work practices. The union said that unless there was prior agreement in talks between it and the management, workers should ignore the orders. It did not give further details.