Industrial action will push Air Malta to bankruptcy

Updated 7.30 p.m. - The Finance Ministry said this evening that the €52 million loan given to Air Malta earlier this year was close to being exhausted and further financial loss, caused by industrial action would push the company towards bankruptcy.

The ministry statement was issued after the airline's pilots this afternoon voted to authorise their union - ALPA - to call industrial action.

Separately, Air Malta said that any industrial action taken by the union representing pilots will cause serious damage to the restructuring plan and the airline's recovery.

In a statement, Air Malta said that the new management team had to be given the time and space to manage the difficult situation and the multifaceted problems it was facing.

"Industrial unrest at this time is irresponsible and can permanently damage the airline."

The airline's pilots this afternoon voted to authorise their union - ALPA - to call industrial action.

Air Malta appealed to ALPA and all other unions for common sense to prevail and allow management the time and space to restructure the airline for the benefit of employees and the country, especially the tourist industry.

It reassured customers that it was doing its utmost to avert any industrial action and offer a seamless service in the event of any disruptions.

FINANCE MINISTRY APPEAL

The Finance Ministry in a separate statement, said that industrial action at this critical juncture for Air Malta’s future was very dangerous and threatened the very existence of the company.

The €52 million loan approved to Air Malta by Parliament this year was close to being exhausted and further financial loss, caused by industrial action would push the company towards bankruptcy. This would mean that 1,300 jobs would be lost, besides significant economic and social repercussions on those businesses and families whose livelihood depended on the tourism industry, to which Air
Malta was a substantial contributor.

The Ministry appealed for responsibility at this crucial period of negotiations with the European Commission on the approval of a restructuring plan which aims to achieve a sustainable future for the company and for 800 viable places of work.

"The Pilots’ Association was represented at the meetings of the airline’s Restructuring Committee and is therefore fully aware that Air Malta’s future depends on the approval of this plan."

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