Almost two-thirds of Air Malta workers apply to leave the airline

Air Malta says that from 824 eligible employees, 571 have applied to leave the airline as part of the voluntary employee transfer scheme

Air Malta has received 571 applications from workers for the voluntary employee transfer scheme
Air Malta has received 571 applications from workers for the voluntary employee transfer scheme

Air Malta has received 571 applications from workers to be transferred onto the government’s books as part of the airline’s restructuring process, the company said.

On 14 January, government announced it would create a voluntary employee transfer scheme in a bid to cut Air Malta’s workforce by half and save €15 million per year in wages as part of a restructuring exercise.

The scheme would see Air Malta workers being employed by the government in grades commensurate with their current income.

In a statement on Monday, the airline said it received 571 applications from 824 eligible employees when the scheme closed on 11 February. The amount of applications received is more than government’s original target to halve the workforce.

The scheme was open to all employees of the company apart from pilots.

“The rightsizing of the airline was one of eight cost improvement opportunities identified by the airline and the external strategic consultants appointed by the shareholder. The rightsizing of the airline was assessed on a function-by-function basis and aligned to the extent and scale of its planned operations and to other comparable airlines,” Air Malta said.

The airline is in dire financial difficulties, made worse during the pandemic. Government sought permission from Brussels to be able to provide State aid, however, it decided to move ahead with cost cutting measures even though the European Commission has yet to pronounce itself.

The restructuring plan announced last month also includes a commitment to negotiate new collective agreements that include more worker flexibility to allow the airline to fly between different airports that do not include Malta. These collective agreements have to be concluded by June.

Finance Minister Clyde Caruana had said the cost-cutting plan that will see the airline ridding itself of ground handling operations, was independent of the amount of state aid the European Commission will allow.

Restructuring intends to give the airline “a fighting chance” to survive with redundancies expected to be completed by the first half of this year, Caruana said.