The MHRA has expressed its concern over the “very slow” rate of progress in the restructuring process of Air Malta.

The Association said it has drawn attention to the fact that the government had originally announced a completion date for the first draft of the restructuring plan by December 2010.

“This would have allowed sufficient time for discussion between the various parties before approval is sought from the European Commission,” stated MHRA President George Micallef.

“In accordance with EU procedures, the government is committed with the Commission, not only to seek approval for the restructuring plan, but also to initiate its implementation by not later than May 16, 2011, which is just eight weeks away.”

Mr Micallef went on to say that “Malta is fast running out of time. The MHRA is concerned that in spite of the fact that the consultants were afforded two additional months to complete the restructuring plan, the Ministry for Finance felt the need to send this back to the consultants to ‘implement fundamental changes’.”

The Association stated that Malta has a lot to deal with, not least the turmoil in the North African region, particularly the prevailing escalation in Libya, the effects of which are already being felt in tourism. “The looming threat of further increases in the cost of fuel and the overall economic uncertainties within our main source markets, are just a few of the issues affecting Malta at present,” said Mr Micallef.

“However the challenge posed by Air Malta is such that, if we do not get this right, the results may be catastrophic.

“The hotels and restaurants industry represents the livelihoods of thousands of Maltese and a circa €1.5 billion in Maltese direct investments in tourism businesses, this in addition to the other economic activities that heavily depend on tourism,” he continued.