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Karl Stagno-Navarra
A preliminary meeting between unions and Air Malta’s top management – intended to determine the next step ahead to salvage the national airline from further financial losses – is scheduled for tomorrow.
The unions have not yet replied to government as to what they will be seeking during the negotiations – already described as fragile – and whether they are seeking a renewal of the existing collective agreement or will agree to a second rescue plan.
Speaking to MaltaToday, Air Malta chairman Lawrence Zammit explained that the company will do its best to let unions understand that the only way forward is to agree to a second rescue plan.
“If both sides could ensure more efficiency and most of all more flexibility, then we can turn the boat around and do much better than we already did with the first rescue plan that has in some way controlled the financial losses,” he said.
While explaining that government has formally called for all unions representing Air Malta employees to start discussions towards a renewed “rescue plan” intended to ensure economic viability of the company without subsidies, Lawrence Zammit reiterated what was said in parliament a week ago by Investments and IT Minister Austin Gatt, who was blunt to state that the choice of a second rescue plan was the only one in which “government could guarantee no lay-offs”.
He insisted that should the unions insist on renewing current collective agreements rather than a rescue plan, “then the regime would be totally different,” and cannot give any guarantee on employment.
Air Malta has tough challenges ahead, particularly revenue management and the dramatic impact the increase in oil prices has had on its operations.
This year alone, Air Malta’s fuel bill has increased by Lm6 million over last year, and this has increased the expenditure to a total of Lm12 million, notwithstanding an efficient hedging policy that has been in place for the last 20 years.
Lawrence Zammit explained that the tough competition Air Malta is facing, is making the airline vulnerable to losses that must be addressed immediately.
ksnavarra@mediatoday.com.mt
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