Industry, hoteliers in appeal against Air Malta pilots’ strike threat

The Chamber of Commerce has joined the hotels and restaurants’ lobby in appealing for an end to threats by Air Malta pilots of grounding aircraft.

The Chamber said ALPA’s threats were ill-timed, disproportionate and “most irresponsible”. “They must not be short-sighted and resort to the negotiating table in an effort to unblock the situation through reason rather than destruction.”

Earlier, the Malta Hotels and Restaurants Association said a strike by Air Malta pilots, scheduled for the 16 July, will put the national airline the employment of thousands in the tourism industry at risk.

“The MHRA is extremely concerned about the threat of industrial action by the Association of the Air Malta pilots (ALPA) which can have devastating results during what is considered to be a peak period for the tourism industry. The threat itself creates uncertainty amongst potential customers, who will think twice before booking with Air Malta,” MHRA president George Micallef.

The Chamber blamed “political motivation” for prevailing over the economic logic in running Air Malta. But while it said ALPA was justified in pointing his out, the union was being "irresponsible by threatening a strike that will paralyse access in and out of the country and at the height of the tourism season. This could place hundreds of jobs at risk throughout the entire economy – in sectors which are intrinsically linked to tourism.  Further jobs could be lost in manufacturing, retail and financial intermediation - not to mention tourism and the airline itself."

ALPA is insisting that before dismissing any pilots, Air Malta must make substantial savings by renegotiating contracts, particularly with Malta International Airport. “The time has come and we are telling government that enough is enough, and unless drastic changes are made to the way things work at Air Malta, we are all going to lose,” Azzopardi said.

Air Malta aims to cut its current workforce by 511, including 57 pilots from a compliment of 149. The pilots are also to march to Castille in Valletta on 15 July, and will be joined by the members of the cabin crew union who expressed support. Reports a few days ago said a strike could take place on 16 July.

But the MHRA said that a strike by pilots would also hurt a number of Maltese who have booked their trips and planned holidays with Air Malta. “Surely this is not what the union of pilots aspires for. Industrial action in the prevailing circumstances carries a huge responsibility and as such should not be taken lightly. The MHRA appeals to ALPA to reconsider its position and to pursue its claims through constructive discussions,” Micallef said.

The MHRA also laid blame for the airline’s current state of affairs at the feet of “politicians who over the years interfered and took decisions for Air Malta where and when they shouldn't and did not when they should have. Ultimately government will have to shoulder the responsibility for Air Malta.”

But it also warned that the International Air Transport Association’s (IATA) chief had issued a stern warning back in 2008 that some airlines will have to fold up if structural changes are not carried out immediately.

“The IATA has asked governments to take speedy steps to enable the industry to weather the ‘perfect storm’ of high costs and falling demand,” Micallef said.

With major legacy and other airlines struggling with bankruptcy, and some airlines bailed out under very stiff restructuring processes, Air Malta seemed unfazed during the past decade. Malta’s cash flow came to a crunch late last year, government declared that Air Malta’s time for an overhaul had come and injected €52 million to bail out the national carrier.

The airline is now undergoing a serious restructuring plan to be submitted to the EU Commission. “Not even now do we have a full picture, and we are fed bits and pieces through unofficial sources.  The communication process was poor since day one, and some of the decisions taken by Air Malta were at times erratic, like that taken last October to cut 38,000 seats from the UK, only to reinstate most of them three months later,” Micallef said.

Lack of interaction

Micallef also blasted the lack of interaction with main tourism players such as the Malta Tourism Authority (MTA). “Important decisions taken by the national carrier are at times learnt from third parties. The MTA is mainly responsible for marketing Malta but MTA is practically unaware of decisions taken by Air Malta and much less of its plans.”

Micallef said this situation should improve wit the appointment of former MTA chairman Louis Farrugia as the airline’s new chairman. “[He] is best positioned to appreciate the frustration and the risks involved by the lack of communication between the two organisations.”

The Chamber of Commerce also said it had not been invited to participate in any related discussions on Air Malta.

“We need to give the new management some breathing space, but we are all waiting anxiously to be told what will happen. On the forefront there are the 1,300 Air Malta staff, and thousands more employed with the tourism industry… millions of euros of investment at risk, and more millions in taxes and VAT which government will lose if there is a downturn in tourism,” Micallef warned.

“The stakes are very high. We need to work together to see how best we can put Air Malta back on its feet in the shortest time possible.”