PN on Air Malta: cancel debts, bring in local buyers, float airline on stock exchange

PN proposes taxpayers take on national airline’s liabilities before selling stakes to local businesses, workers, and public • Tourism Minister says government started looking at model proposed today by opposition 'months ago'

Shadow economy minister Claudio Grech
Shadow economy minister Claudio Grech

The Nationalist Party has proposed that Malta’s national airline Air Malta be floated on the stock market after its liabilities are absorbed by taxpayers, and introduces private institutional shareholders to prop up the ailing airline.

The proposals were made Wednesday by shadow minister for the economy Claudio Grech in the wake of reports that the Maltese government might not be pleased with talks for a 49% minority stake acquisition by Alitalia.

Under the PN’s plan, a first phase would be to issue Air Malta shares to private and institutional buyers that would limit individual shareholdings to not more than 10% of total shareholding.

A second phase would be issuing share options to Air Malta workers, and a third phase would be listing Air Malta on the stock exchange for the sale of shares to the public.

Grech said that Air Malta should still look for a strategic partner, but not through the transfer of shares or for strategic decision-making, but for access to maintenance services, integration of IT systems and back-office, or more advantageous fuel purchase options.

“The PN believes the best option for a sustainable future for Air Malta is to encourage local investment from companies, to ensure that any strategic decisions are taken by players who have the country’s economic at heart,” Grech said.

Concerns remain on Alitalia’s alleged plan to turn Air Malta direct routes, into feeder routes to other airports in the region, a move that would be considered deleterious to the national airline and its passengers.

Grech added that comments by Alitalia chairman Luca di Montezemolo, that an Air Malta investment would not cost a euro, fuelled worry about the talks.

The Minister for Tourism, who has in the past declared that the government was still open to the idea of opening up Air Malta’s shares to local investors, reiterated that the option was still on the table.

However, Edward Zammit Lewis set much in store in criticising the proposals floated by the Nationalist Party, arguing that the opposition was creating more confusion.

An original proposal of the PN was floating Air Malta on the stock exchange – a proposal that was shot down by consultants Camilleri Preziosi who argued that the dire financial situation of the airline made such a move illegal.

Grech however said that this could be done in two or three years’ time, when Air Malta’s financial situation has stabilized.

“It is evident that the opposition has no idea of how it can address Air Malta’s problems, which it itself had created,” the minister said, adding that the opposition “was not ready to meet the country’s challenges”.

Zammit Lewis reiterated that any option was still on the table: “There’s nothing new in what the opposition is proposing, especially since the government has been considering this option for months.”