All of Air Malta should remain in public hands – GWU

GWU General Secretary Tony Zarb was reacting to statements made in the Sunday Independent by economist and political commentator Alfred Mifsud who expressed doubts on whether government or the restructuring committee would be able to bring back national Air Malta from the brink.

“If, as it was reported, Air Malta made losses even during the peak summer tourist season then the restructuring required is truly deep and raises grave doubt in my mind whether the government, steering committee, management or whoever is involved can deliver true change in the time available,” Mifsud had remarked.

The statements come right in the middle of a company-wide restructuring process that, according to Finance Minister Tonio Fenech, “will leave no stone unturned.” Government and trade unions have agreed to the setting up of a steering committee that will oversee the needed restructuring.

An emergency rescue loan by the Maltese government of €52 million has already been approved by the EU, on condition that the government presents a full-scale restructuring plan within six months that will bring the carrier back to full sustainability.

Only last week, Air Malta Chief Operations Officer Brock Freisen was put on forced leave on the eve of the steering committee’s first meeting. No reasons have been forthcoming for his dismissal to date. However, his post has been immediately filled by government-imported consultant Robert Palmer who is also compiling the restructuring plan for the airline.

Meanwhile, Palmer, together with Air Malta Chairman Sonny Portelli, has ha a series of meetings with senior managers at the airline while also assuring staff that “jobs will not be lost at the airline.”

Contacted by MaltaToday, Zarb affirmed that “on our side, we will do all possible to reach the targets set before us.” Remarking that while the GWU could not comment on proposals that are not yet in hand, he said the results of the company’s past performance are public knowledge. “We know where we need to get.”

“The situation is not a happy one, obviously, so we would prefer to know what will be proposed in terms of a restructuring plan as soon as possible – even if only to alleviate the concerns of the company’s workers,” Zarb said.

Asked about the GWU’s vision for the national airline’s future, Zarb maintained that whatever the cost, Air Malta “should remain firmly in the hands of the public.”

He urged government to delve into the company’s history and past performance and “see exactly who it was who took the bad decisions, and hold them accountable for those ruinous decisions.”

If those management mistakes were avoided or even curtailed, “today Air Malta wouldn’t find itself forced to borrow €52 to survive,” Zarb said.

Airline Pilots Association President Domenic Azzopardi disagreed with Mifsud’s statements however, affirming that he is “confident that the company can be turned around.”

However he conceded that this depends on the government’s willingness “to make the necessary changes” – even at the cost of displeasing some of those involved with the national carrier.

Azzopardi urged government and the restructuring committee to look particularly towards the existing agreements and contracts Air Malta has with the Malta International Airport, with Enemalta, and with catering companies, as a means to cut-existing “considerable” costs.

He also urged government to consider revising and updating “big software contacts” Air Malta has with software companies for programmes and systems it makes use of.

Azzopardi underscored the need for commitment on government’s side and a willingness to establish a sense of accountability and discipline on all levels within the company – “especially with regards to expenditure and waste of resources.”

Regular management reviews, as is found in many other companies, Azzopardi said, would ensure that under-performing management would be removed in a timely manner. “The company cannot to have the wrong person occupying critical management positions,” Azzopardi cautioned.

Vice-president of the Association of Airline Engineers (AAE) Adrian Rizzo declined to comment, saying only that “we have decided not to make any public comment at the time being as we are still in the very early stages of negotiations and we feel that any comment right now would be inopportune.”

David Sargent, president of the Union of Cabin Crew (UCC), was unavailable for comment.