Air Malta did not have a smooth take off. Indeed, when the late prime minister Dom Mintoff decreed that this tiny island needed its own national airline, many mocked the idea saying birds of lead did not fly. Yet, Air Malta soared, even if with a good measure of help from the government.
Regrettably, the same politicians who propelled it forward, ruined it.
Along the years, governments burdened the company with workers it did not need just to curry favour with supporters and win votes. A series of events – most of them beyond the airline’s control – exacerbated the situation.
The sharp rise in oil prices, the economic crisis, exchange rate fluctuations and, subsequently, the advent of low-cost carriers brought Air Malta to the point of requiring a hefty financial injection by the government if it were to keep its planes above the clouds.
Some may say the competition by low-cost carriers was the straw that broke the camel’s back but, judging by the weekend news, that Air Malta broke even in the second quarter of this year after about a decade, indicates that is not the case. Low-cost carriers are still here and, thank God, for that because, otherwise, the tourism industry could suffer substantially.
What has gone is a considerable chunk of burdens the airline was heaped with, including surplus staff and contracts that do not appear to be very good value for money.
Of course, a swallow does not a summer make and it would be wrong, very wrong, for anybody to think that things are getting rosier just because the company broke even in one quarter.
We need to have more information but the accounts have not been published for some time. Sources who spoke to this newspaper said this did not happen not to influence negotiations on the sale of the airline. Is the situation so bad? If there are positive signs – as was the case in the second quarter – one should flaunt them to attract the interest of more potential buyers and also be able to raise the price.
However, the same sources also warned that the airline had “to fly below the radar of the European Commission and other stakeholders, walking a tightrope between appeasing suppliers and unions, and making the airline viable enough to attract investors”.
Appeasing suppliers and unions should not come in the equation and one hopes the new Tourism Minister and the new airline board have a different line of thinking. Some decisions may bode well, like the reinstatement of the Frankfurt route. The Malta Tourism Authority said it was pleased to see Air Malta “return to this major airport after a brief absence”. It does not seem it was as vociferous when it had been decided to drop the route.
In sharp contrast to what happened until just a few months ago, it is evident there is determination to take good stock of the situation and put the Air Malta house in order before luring interested investors. That is the right way to go about it.
It would also help if all stakeholders – including the public – are kept abreast of what is happening, of course, bearing in mind that certain sensitive information cannot simply be dished out.
The view from the cockpit must be clear to all.