Pilots union says MIA charges ‘excessive’

 Malta’s airline pilots association has pointed its finger at Malta International Airport for levying excessive charges on Air Malta, and claimed that the national airline’s outsourced contracts must be looked into and addressed.

Captain Dominic Azzopardi, the president of the pilots union, said the restructuring plan that was being proposed for the airline concentrated on job cuts and was not looking into third-party obligations the airline had with other companies.

“Without Air Malta certain routes would be removed isolating Malta from its European compatriots. It is easy to turn around the airline into a profit making one, but not within these constraints,” Azzopardi said.

ALPA said there were still major issues in the draft restructuring plan proposed by Ernst & Young that have to be addressed, even though it wanted the plan to be implemented without further delay.

“ALPA wishes to convey its disapproval to the fact  that a handful of companies continue to make millions of euro at the expense of Air Malta and its survival,” the unions said, specifically pointing out the “excessive” chargesby Malta International Airport.

Even recently, Ryanair deputy chief executive Michael Cawley complained that MIA was levying “the highest charges in Europe” at €25 per passenger, but sources say this charge also includes fees paid for ground handling. MIA has disputed these claims, pointing out that the airport's average charge of €19.89 per departing passenger, is well within the European average. For example, Cyprus and Athens are 30% and 25% higher respectively.

ALPA said the charges were crippling Air Malta, and current contacts the airline had negotiated still needed to be addressed. “Carriage of cargo, in-flight catering, in-flight entertainment, aircraft cleaning, IT services, call centre and other services which have been outsourced in recent years need to be renegotiated,” ALPA said.

The call centre and IT services are claimed by government officials to have saved the airline further costs, but ALPA has contested this assertion.

“Air Malta can no longer afford to continue operating a service outside of its profit margins. The restructuring plan outlined by Ernst & Young concentrates on staff reduction as being a solution to the company’s problems.

“However ALPA does not feel this alone will ensure Air Malta’s future. The pilots union is not against redeployment of staff and in favour of exploiting the company’s last few assets to its maximum,” the union said referring to proposed cuts of 600 – nearly 50% of the airline’s staff complement.

ALPA made a note of pointing out it was not consulted in the selection or remuneration of the new chief executive Peter Davies, who will be paid €350,000 a year, and a €150,000 performance bonus.

“We still extend our support by cooperating with him to resolve Air Malta’s current situation in the shortest time possible. ALPA looks forward to the expeditious appointment of the new management team,” union president Dominic Azzopardi said.

The union also said it had already supported the restructuring plan that was carried out in 2004, which led to wage freezes across the board. “ALPA does not want history to repeat itself. The pilots’ union will endorse a carefully designed restructuring plan in the interests of Air Malta and not to a project which protects the interests of select individuals.

Former Air Malta chief executive Joe Cappello has come to an agreement with the airline that paid him an undisclosed amount in the form of a severance payment.

Cappello confirmed that he had terminated his relation with the national airline and will from next week take up the position of executive director at SMS Travel, where he will focus on the travel and tourism section of the company.

Cappello would not confirm details on the golden handshake. In December 2010 he was put on forced leave by the company after Ernst & Young’s consultants took over at Air Malta in a restructuring programme of the national airline.

Cappello, employed at Air Malta since 1976, was one of several casualties in the airline’s restructuring which is tied to a €50 million emergency loan.