View Full Version : Air Malta in deep financial trouble

13th Apr 2004, 20:20
Air Malta waits for union response to cost-cutting plans
David Kaminski-Morrow (08Apr04, 12:32 GMT, 259 words)

Malta’s Government has submitted cost-cutting proposals – including a pay freeze – to the four unions representing Air Malta employees in a bid to improve the airline’s weak financial position.

It has given the four unions – representing pilots, engineers, cabin crew and general workers – until 16 April to respond to the proposals which centre on a cash injection from the Government, a reduction in costs and a plan to increase the airline’s revenue.

While Air Malta is reluctant to reveal details of the proposals, the General Workers’ Union (GWU) says the Government and the airline are putting forward dozens of individual measures to counter what the union describes as a “serious financial position” at the carrier.

The airline spokesman declines to give further information about the plan but says that it is possible that a “moratorium on salaries” could be imposed as part of the agreement.

It is unclear whether the proposal now under consideration specifically includes a controversial recommendation for a six-year wage freeze – a measure which has drawn strong opposition from unions concerned about the impact on salaries.

The restructuring plan also includes measures to change shift systems, abolition of a number of allowances and an increase in the working week.

“There’s been a pact proposed and passed to the unions,” says a spokesman for Air Malta. “They have until 16 April to give feedback on an agreement.”

Malta is a popular tourist destination and Air Malta could face increased pressure from the opening of its air transport market to competition once Malta joins the European Union in May

Source: Air Transport Intelligence news

....one has to say as well that airmalta had a 50% share in AZZURRA air which went bust some months ago. Azzurra operated four RJ 70s and three RJ 85s which are now grounded in exeter, they also operated two A320`s whic I beleive that they are 'hidden' from creditors and stored in Monastir Tunisia. One of the B737-700 was seen in Rome fumicino and another one was seen in Berlin Tegel airport. One last note, good luck to the AirMAlta employees.

13th Apr 2004, 20:52
Although the ATI report is factual, your footnotes and subject leave much to be desired. The AzzurraAir A320s were not hidden from creditors but simply reclaimed by the lessor and have now found new leases elsewhere.

One cannot but admit that these are difficult times for the industry, even at a turn-point where we are seeing a gradual recovery, yet, I can assure you that the financial woes of Air Malta are of a much lesser magnitude than those I read about on PPRUNE about some UK charter companies.

Obviously, Air Malta Management has a short-term interest in saying that the losses are big to have greater leverage on the employees, while outsiders in direct competition will do anything to discredit a solid airline, which has been in unsubsidised operation for the last 30 years.

No comment
13th Apr 2004, 21:06
Airfoil404, slightly besides the point but I would be VERY careful of cutting and pasting ATI stories onto Pprune.

Moses Mashomba
13th Apr 2004, 23:02
W.r.t....the financial woes of Air Malta are of a much lesser magnitude than those I read about on PPRUNE about some UK charter companies.Can somebody please remind us about how much subsidy Air Malta receives by way of 'State Aid' from the Maltese government ?!

Hostie from Hell
15th Apr 2004, 18:26
Interview with Air Malta CEO, Times of Malta 15th April 04 (http://www.timesofmalta.com/core2/headlines.php?section=news&date=20040415)

As I recall, Air Malta is not only the flag carrier, but the largest single employer on the islands.