Air Malta’s future is on the agenda of talks the Tourism Minister is having in Beijing with the Chinese government, the Times of Malta has learnt.
Edward Zammit Lewis is heading a delegation in the Chinese capital where, sources told this newspaper, talks with the Chinese government were “open-ended” and “all options were being considered”.
A spokeswoman for the Tourism Minister confirmed that Dr Zammit Lewis and Air Malta chairwoman Maria Micallef were in Beijing discussing “collaboration concerning the national carrier”. She did not elaborate about the nature of the collaboration. “The minister is in China to follow up discussions on tourism and issues of collaboration concerning the national carrier.
“He is accompanied by Air Malta’s chairwoman and other advisers,” the spokeswoman said.
The sources told the Times of Malta the talks formed part of the government’s drive to find a solution to Air Malta’s problems before the restructuring plan ends in March next year. “The preferred option is to have some sort of alliance or strategic partner for Air Malta with the government keeping control,” the sources said.
Air Malta is in the last year of a five-year restructuring plan agreed with the European Commission following the receipt of more than €200 million in State aid to avoid collapse.
Last May, The Sunday Times of Malta reported that the company was involved in “privatisation” talks with Turkish Airlines, the fourth largest carrier in the world.
The government has never excluded the possibility that part of Air Malta is sold and the Chinese option has consistently made the rounds in aviation circles.
In an interview with The Sunday Times of Malta last June, Dr Zammit Lewis would neither deny nor confirm any names of the airlines the government was talking to.
He was non-committal when asked about the possibility of having Hainan Airways, a Chinese company, being roped in as a strategic partner.
There is commercial sensitivity... we are examining all options of cooperation
“There is commercial sensitivity... we are examining all options of cooperation,” he had said.
However, his description of which type of airline might be interested in investing in Air Malta – a carrier from a non-EU country with little or no reach inside Europe – further fuelled speculation that the government was looking to China.
Dr Zammit Lewis had also made it clear the government intended to retain absolute control of the national carrier because it was not just a strategic asset for tourism but also fulfilled certain social obligations.
The restructuring programme started in 2011 with the aim of returning the company to profitability by March 2016. At the end of 2013, then chairman Ray Fenech had reported substantial progress and said the company “was on track” to achieve its targets by the end of the plan.
However, the following year, the airliner slipped its target of reducing losses in a sustained manner.
The target was again not achieved in the last financial year. This has made it harder for Air Malta to reach its profitability target by the end of next March.
Last month, The Sunday Times of Malta reported that Ms Micallef told workers in a private meeting that employees had to do more sacrifices as the company could not fail.
It was also confirmed that the company had decided to reduce its aircraft fleet in line with seasonal requirements.