Claudio Grech: Collapse of Alitalia talks ‘relief’ to those with Air Malta at heart

Claudio Grech, the Opposition’s spokesman on Air Malta has criticised the government for its decision to enter into negotiations with Alitalia over a possible strategic partnership with Air Malta, insisting that the news that talks had ended was a relief to those who have the airline at heart.

Grech was speaking in parliament, following a ministerial statement by tourism minister Edward Zammit Lewis, updating parliament on the fact that talks with the Italian carrier have officially ended.

“The first thing that comes to mind is we told you so,” said Grech, adding that every stakeholder in Air Malta had voiced scepticism over the choice of Alitalia, given that the airline is also currently in financial difficulties.

He said that it was clear immediately clear that the decision was not the right one for Air Malta, especially since one of the highest officials in Alitalia had, only a few days after the signing of the agreement, said that Alitalia would not be investing one cent in Air Malta and that the deal would be a zero-risk deal for Alitalia.

Zammit Lewis on his part once again reiterated that the government will continue with its search for a strategic partner for Air Malta, because it believes that Air Malta cannot survive with investment alone. Moreover, he said that government’s decision to end talks was taken in the interests on the airline, its route network and the economy in general. 

The minister was critical of the opposition opposition who he said had not taken a number of important decisions in previous legislatures, and emphasised that a great deal had been achieved in the past three years.

“I am not saying that we have achieved our final goal, but everyone must appreciate that the company could not have kept going in the current climate,” he said.

He said that the majority of the objectives of the restructuring plan had been met in 2014 and 2015, adding that the current government had renegotiated a number of contracts, made alterations to the airline’s fleet and ended unprofitable routes in order to reduce the airline’s costs.

The minister was questioned by opposition MPs on a number of aspects relating to the airlines operations including how shortages in cashflow are being financed, whether the airline was currently using 6 or 8 aircraft, as well as what communication was taking place between the government and the European Commission.

Moreover, opposition MPs insisted once again that in the government should seeks local investment on Air Malta, and asked the minister when he would seriously consider this proposal. The minister insisted that this was still an option however his belief was that a strategic partner is essential at this point in time. 

On the Opposition not being consulted, Zammit Lewis said that in one year he had given three ministerial statements on Air Malta, yet the in previous legislature, the vast majority of parliamentary questions on Air Malta had received a reply stating that the information could not be divulged because it was commercially sensitive, irrespective of the nature of the question.

In his replies, the minister explained that while the majority of the objectives of the restricting plan had been met, there was still the issue of the airline’s commercial viability. He said that it was important to point out that the aviation industry, especially in Europe, was a very dynamic and competitive one. 

He said that there were cases were other airlines had started competing with Air Malta on routes that were profitable to it, as well as developments in Libya and Russia which have also negatively impacted the airline.

While he could not give more details on other airlines the government is in contact with, Zammit Lewis said he would continue to take decisions that made commercial sense for Air Malta and insisted that under no circumstance would the government give up control of the airline.