Thursday, 28th January 2010 - 14:08CET
Air Malta in €31m loss - state support under consideration
Sonny Portelli nominated chairman
The government has started talks with the European Commission on support for Air Malta within state aid rules after the airline made a loss of €31 million in its last financial year, Finance Minister Tonio Fenech said this afternoon.
He also confirmed that Sonny Portelli has been nominated as chairman of the airline and will serve as deputy chairman for the coming three months during the transitory period.
Current chairman Lawrence Zammit had asked not to be reappointed.
Speaking at a press conference, Mr Fenech said the airline made its €31 million loss in the financial year ending March 31, 2009 owing to high fuel prices and the weak Sterling.
Fuel alone cost Air Malta losses of €18 million, and, Mr Fenech said, losses would have reached €27 million had oil purchases not been hedged. Sterling's decline cost Air Malta further losses of €12.8 million since the biggest number of its passengers are British.
Mr Fenech said the current situation was raising questions on the company's financial sustainability and the government was looking into drawing up a restructuring plan for the company. It was also considering recapitalisation.
He said that projections for this year still showed losses, although they would not be as serious as last year's.
The airline would be seeking to further reduce its costs and improve its efficiency.
Mr Zammit said he was satisfied with his achievements in the past six years. He said the targets of the 2004 restructuring plan had been achieved.
Further restructuring was needed to make the company sustainable. The current situation, he said, was not anyone's fault.
However, ground handling costs in Malta were 40 per cent higher than abroad, and talks about this had started with the trade unions with the aim of changing work practices in order to raise efficiency.
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Comments
If Ryan Air is not subsidised then howcome does it negotiate prices as mentioned by yourself.? So AirMalta get more passengers to Malta yet pay more then Ryan at it's homebase too??.
AirMalta had been asking MIA long time before Ryan dreamt of Malta to make passengers walk to and from airport terminal, and always was denied such request. Ryan came and guess what, they were allowed to walk. They are also allocated certain parking bay to make apron walking possible. May I ask why such preferential treatment??.
Unrealistic fares are unfair competition, and such fares are only offered so as to meet pre promised passenger traffic, otherwise the said "subsidies" aren't given. Do you really believe that a 1 Euro fare is a realistic price?. At MIA a simple black coffee would cost more then that, yet people expect to fly 3000 NM with a Euro.
Mismanagement brought AirMalta to it's knees nothing more and nothing less. Who are they accountable too, and why little is done about it remains a mistery.
While you may be privy to some internal information that the rest of us do not know, you miss the point completely on 2 key issues: (a) Ryan Air is not subsidised by the government - that would be illegal in the EU. What is probably happening is that RyanAir promise a large volume of passengers at the negotiating table to get better airport prices from MIA. RyanAir manages to sell its seats and dispense with extra costs - all of the operations revolve around cost minimisation and NOT subsidies - this is well documented. (b) Instead of moaning on fuel prices, sterling losses etc, AirMalta should get its act together and look at customers: ie how to compete to get more customers and serving them profitably. The government and appointed management seem to be tackling gross inefficiencies but only as far as is politically possible. Don't think that another government would do better irrespective of their good intentions. Airmalta needs to be privatised and not funded by the people. If I were a shareholder in AM, I'd sell. Having said that AM offers reasonably good services but prices are a joke!
Again you are one of those who think you know it all, and yet you got it all wrong. Before you put your fingers to keyboard kindly try to check things out please.
Airline employees ( not only AirMalta) offer rebate travel to all its past and future employees and not free tickets. For example a so called free tickets to London (which are only two per year) would cost more then you pay with RyanAir, and is only subject to space on an aircraft. Then there are unlimited 90% fares which are based upon sector milage. Also staff pay the full fare Taxes and fuel surcharges whilst still holding a standby ticket.
Since you know so much on the aviation business, could you kindly enlighten me why Ryanair sells tickets at unrealist prices eg Euro 1.? I know the answer but I leave it up to you to enlighten us all. Ryan with Euro 1 manages to pay wages and buy Million dollar planes and make a profit too.
Yes Ryan is subsidised by our government for the cheap ticket you buy, whilst Airmalta isn't.
Now with all means Go Ryan.
For example, why is there an airmalta rep in heathrow while Birmingham and Manchester functions only too well without one? Is it because it is conveniently located in London? How much is this staff costing the airline and at the end of the day for what? So that they can yell at you and shove you around?
Go Ryan air ... Airmalta is not worth the extra money to fund parrochialism
re All others:In my humble opinion, EU membership has thrown Air Malta in with the sharks when it is still saddled with an island mentality. Govt. uses the company as an employment agency at times employing people who should not be allowed within a mile of an airport. How can Air Malta compete with cutthroat companies like Ryanair who hire and fire at will (they don't even employ their own pilots), when Govt thinks it has a moral obligation to protect all jobs at all costs? EU membership does not allow this to go on indefinitely. Alitalia and Olympic Airways are cases in point.Employees are now expected to bear the brunt of past decisions that have cost the company millions! The country as a whole and the powers that be should decide once and for all, whether we are EU members in name only, or whether we still yearn to live by village club statutes which allow political patronage, shoddy leadership, sub standard work and unaccountability!
Under PN government: Sea Malta .......Busted and sold at a cheap price
AirMalta losses last six years with majority of assets sold.
etc etc etc.
Could you kindly enlighten me to whom shall I point my finger.????. To make you happy I point it towards GWU as this is the newest trend. Before it was Alfred Sant.
One simple question come to mind. "How come with all the publicity and drive force by the government visa the Euro, why did AirMalta continue dealing in STG.?
Rafel Sammut enlighten us and who is reponsible to make Airmalta profitable again as it did from it's second year of operation with the "Ghasafar tac-Comb", up to the day we replaced four work horses B737-200 with five smaller RJ 70's. It was from those British/ Maltese Government decision that AirMalta started it's downhill spiral. At first loss was maksed as top management started selling assets such as spare parts so as to balance the sheet and showing profits.
Secondly but most important of all, my only concern are the credentials of individuals appointed as Chairmans. My question to the minister responsible of AirMalta, "Does Mr Sammy Portelli know anything about the Airline business, and its operations and tomorrows strategies.?". If not, then my opinion is that Mr.Portelli is another political appointee, a small thankyou present for a past favour.!!.
Would you board a plane, where the Captain knows nothing regarding flying, but is sitting in the helm because he was a Captain in the "Dejma."? Help me god I'm wrong.
As far as I know Gonzi-Pn has no control over either of the two factors that caused Airmalta's losses, those being the weak sterling which was a result of the economic downturn in the UK and rising oil/fuel prices.
Therefore i would like to correct you for two things:
1) Any government could have been in power but this loss would have still taken place, so your wrong blaming it on Gonzi-Pn.
2) The "Milk cow" has not gone bust, this just shows how much you don't understand in business and/or finance.
Just because an organisation makes a loss it does not mean they've gone bust, if so then half of the worlds biggest organisations who made a loss in the last financial year, all due to the same reason, i.e. recession, would all be bust !?!?
Its easy to point fingers, BUT AT LEAST back up your opinion with some type of evidence or logic sense.
Thank you.
Original story ... They can work up to 13 hours, but the Union decided that they should only work 12. So no international regulations were broken, though the company had to foot the bill and cause disruption to hundreds of passengers.
I would be concerned if the pilots were tired, but seeing as they had no problem with the flight, then it would have been fine.
http://www.timesofmalta.com/articles/view/20090426/local/striking-air-malta-cabin-crew-could-face-dismissal
The statement of the price of oil and the weak sterling is simply not good enough. For example, the sterling has been weak for quite a long time now and one needs to know what has been done during this time to cut costs. Sorry, but when companies are overmanned (if this is so) then we all know what should be done. IT HAS HAPPENED TO MANY OF US without having been offered another job or early retirement schemes!!!!! We were just made redundant and thrown into the deep end. Why employees are not all equal is beyond many.
It is simply unjust.
OH....almost forgot....13 hours? thats almost a regular tour of duty for most KM employees!
Limits are much more complex than a flat 13 hours.Many factors come into it(like the time of day,rest periods etc etc). If you were flying back from a holiday would you like to be flown by an exhausted and tired crew?
Well that has worked quite successfully then, hasn't it . as a matter of fact it has.Unions managed to help AirMalta reduce its cost base and make it a leaner company. How? By improving flexibilty,improving work practices,reducing overtime and voluntary redunancy schemes. If AirMalta cant make a profit because of other factors its hardly the Unions fault now is it?
"or even the worldwide recession ... plus surely Air Malta could've expanded its services so it didn't rely on one country. Which is a management issue, and nothing to do with workers. but everyone knows you don't rely on one area.". you contradict yourself in one sentence. A worldwide recession means the whole world is in crisis and all markets are in decline. And where do you suggest AirMalta expand its services?The UK...it has...no luck there, Azzura?Pleeeaseee not again? And AirMalta curently has about 10 Intra European routes that perform very well(in a stable market).Always remember that AirMalta is an airline based in Malta(24sqm). How big it becomes is TOTALLY dependent on how big Malta comes.
"These unions have worked hand in hand with the company in trying to get out of the red."
Well that has worked quite successfully then, hasn't it
"think LOCAL recession, think Sterling. Result 31 million loss."
or even the worldwide recession ... plus surely Air Malta could've expanded its services so it didn't rely on one country. Which is a management issue, and nothing to do with workers. but everyone knows you don't rely on one area.
"The eu petty dictators do not want Airmalta to be profitable because their plan is to do away with all national airlines and have one federal eu airline."
lol ... really, you're getting carried away with your own silliness now.
"The aircrew were observing INTERNATIONAL REGULATIIONS "
I understand the regulations to be a maximum of 13hours, with airlines operating to 11 or 12 hours individually. The delayed plane would have meant that they worked 12hrs 3mins. Still within the International Regulations.
"As for eu bashing I shall NEVER forgive those who ROBBED me of my INDEPENDENCE AND FREEDOM "
that would be the Maltese public that voted yes in a democratic referrendum, then supported pro-EU parties at every election since then.
I think you do more for the pro-EU side than you think .... oh yeah, Death Penalty in Lisbon treaty, you've still to explain that one (though I suspect you'll say you have, maybe talk about a cat with curiosity, or just not reply when you get stuck for words)
it is very commendable that you write about KM Staff take home pay, but I would just like to comment that NOT ALL Staff are in this situation. Clerical staff know quite well that many High Level Staff are getting their Bonuses and all their perks and their free cars, transportation and the lot, while others (Captains and Engineers) have had their agreements in force for the last two years or so, and this at additional take-home pay, not like us other clerical staff who have been forced to freeze our pays for so long a time that we don't even know where we stand! I appreciate what you do for all the staff and am grateful for it, but I agree with someone who commented about the GWU's stand in this matter. No, Air Malta is not going down the drain because we staff are harming the Company, (remember that we are all employed and no one owns the Company) but because no one wants to do anything about it, and it is not the staff, I can assure you. Whatever political belief staff profess, they are all fantastic. I leave one and all to consider who?
While costs have been reduced, probably the real saver was the substantial number of staff who left the airline. Incredibloy, a recovery plan drawn up arround 2003 which had as one its baisic tenets the crazy assumption the price of oil will remain static or go down. down. Peak oil has been reached and even dips in price are always part of an upward rising curve!
In life, as well as at AirMalta, what really matters is tackling problems with a combined dose of intuition and logic. Evidently, certificates, qualifications and diplomas are not equivalent to taking the right decisions! No commercial entity can survive unless a holistic approach is taken, because no plan can ever be drawn up in isolation, ignoring the present state of the world and especially the future state of the world! Let us hope Airmalta indulges in less business planning and more lateral thinking!
Check which lines are profitable all year round and every year and keep them profitable. Scale back the rest. Of course, people will have to be fired - but if we sell Air Malta this will still happen. If you r not profitable - you r not!! Under the govt or private sector you have to perform. I am not saying that staff don't work - But there is wastage of people for sure. If you want profit, then aim for profit. If you want that we have hundreds employed, then keep it and lets face the bill.
But the basic knowledge would be to enhance the routes which profit and ditch the ones that dont and scale back the company to reflect the new size.
It is never easy - but what is? Having us pay for mis-management?
Air Malta was exposed to these pressures and importantly, Sterling's decline was an added impact because of the airline’s and Malta’s dependence on Britain.
As one of the drivers, or at least facilitators, of Malta’s tourism, Air Malta is interwoven in the fabric of the Maltese economy. What hurts Air Malta is likely to hurt Malta and it is definitely not in the country’s interests to allow the collapse of Air Malta. Failure will hurt the country and could lead to the disintegration of the Maltese economy.
The airline and country are facing real danger – other national airlines, some of high standing, collapsed in recent years notably, Swissair and Sabena – and this could happen to Air Malta. Whether or not one agrees with the politics of the Government, it is crucial that the Maltese rally in support of Malta’s appeal to the EU.
Thanks for your explanation but those decision shurley made things worse for Air Malta.Air Malta lost a lot of cargo capacity by acquiring the RJ70s.Yes I agree with you that they where wrongly used.The idea was also to starts shedule flights from major europen Airports to London City Airport as at that time that was the only Turbine Aircraft to land there.Air Malta could not longer carry flight to London Heathrow with the Boeing 737-200 becouse of noise polution but they could have bought the 737-500 it could have done the same job as the 737-200 but with more modern engines and avionics,that was another reason why the Rjs where bought.Now a days as far as I know Air Malta got ride of all its RJs.Once again I dont think its the Unions whom made things worse for Air Malta but whom manged the company.Let's hope that Air Malta wil be abel to fly out of the danger zone.
The sterling's decline also dealt the airline a heavy blow, costing a further €12.8 million, but, perhaps, the biggest loss-maker was the fact that, in a bid to help Maltese tourism industry, the company increased its flights at a time when tourism was doing badly.
Now Shut up.
since 2004 have had a reduction in their take home pay…
since 2004 have had their reduced take home pay still frozen…
since 2004 have had to work average 4.5 extra hours weekly…
to get the same frozen reduced take home pay…
peace and health to all Maltese
The RJ70 decision was not effectively an Air Malta decision. In those days there were 3 factors which led to this decision 1) Malta was bargaining and negotiating entry with EU, 2) The UK had EU presidency and 3) British Aerospace was a company about to close shedding workers and creating a National crisis in the UK. The foreign secretary had come to Malta for a meeting on EU negotiating matters. Shortly after the decision to buy 4 RJ70s was made (saving British Aerospace thus Air Malta now owned 50% of the world's fleet of RJ70).
Malta was in good light with the UK on EU entry.
RJ70s were used and abused on routes not suitable for that aircraft and it became an anathema. Azzurra took over the unwanted aircraft and went belly up for as well other reasons.
The only difference today if Air Malta did not have the RJ70s is that it would have some extra cash to cushion this recession. Still the Profit and Loss would have been affected as it is today and with the same difference in profit and loss.
Zgur li IL-KAGUN ta dan KOLLU, gej min investimenti HZIENA u ZBALJATI HAFNA li saru fix-xiri ta l-ajruplani RJ70`s, u nvestimenti bazwijja ohra fl-Italja, ecc... ecc.... ecc...
GHARUKAZA.......!!!
1. Revamp the reservations system. If need be go back to the old reservations system, where the airline operated its own...if need be scrap the whole 'call-centre' system...Try to make a booking thru the call centre...and you are faced with incompetent res staff, who do not have any entrepreneurship or airline experience. My personal expereince is horrendous. Be aware that there are many other ways of how people book their airline tickets.....
2.. Revamp the website.... Try booking on line and at some point you would end up having to log-in again becasue there would be no 'go-back' option. It should be called 'user-frightening'.
I wish the management and airline staff the best of luck.
Correct me if I am wrong, but I have not heard anything from our friend Tony Zarb and co. Lying low as usual Tony? Bad luck we are not under LP rule, else you would have suggested a marriage!
Nothing personal but you balmed the Union and you forgot to blame the biggest part of all this mass.Who bought the RJ70s?(Thy cost Air Malta bunch of money everyday to be stored in UK just beacouse they where USLESS Planes) Who bought the stake in Azzura Air?I dont think it was the Union who did so.The ground handling faces the day to day running no matter what conditions are,while others where sitting on a chair in an office thinking how to make more money for there pockets.We payed astronomic prices to travel with Air Malta and know wea re going to be asked(If the EU can grant it) to rescue Air Malta..........someone have questions to answear
The Government never pumped any money into airmalta.
Can we have an explanation when he says that he is loosing money at Ground Handling and loads of promotions have just been issued there even to illeterate people?
The reason is that GWU members will not have a collective agreement and will continue with their 7 year wage freeze and still counting. Qumu minn hemm tal- PLaburista u start defending the Air Malta workers on this issue.
I can speak for the one i am member of(UCC) and others i come into direct contact with(ALPA and Engineering). These unions have worked hand in hand with the company in trying to get out of the red.Results from an administration point of view have been achieved.AirMalta is now a much leaner company,with a significantly lower cost base.But financially things are bad.very bad. but if u honestly think that this is all down to greedy unions then youve really got the wrong end of the stick. these wage increases cost the company a fraction of that 31million loss! And if a flight has to be delayed(not cancelled) because the EU you love so much regulates that 14 hour flight in the middle of the night is the maximum a person could fly,penalising both AirMalta and the crew thousands of euro if you go over that limit, would you fly back?Think Sept 11,think quadrupling oil prices, think GLOBAL recession,
Others have already answered your post.
As for diminishing Fenech Adami's and Gonzi's achievements, they have done and are doing it themselves without having anyone else to do it for them. I and others only point to the facts and the facts condemn them.
No Scullion. It has everything to do with the eu. It was the eu that forced the government to force AirMalta to shed its other operations. The eu petty dictators do not want Airmalta to be profitable because their plan is to do away with all national airlines and have one federal eu airline.
The aircrew were observing INTERNATIONAL REGULATIIONS Scullion. Aren't workers supposed to obey International Regulations? What about the mismanagement by those appointed by the pn government? Why is it always the workers and the unions to blame? Yes Scullion, as a faithful eu servant you show your hatred for the workers and the unions like your masters.
As for eu bashing I shall NEVER forgive those who ROBBED me of my INDEPENDENCE AND FREEDOM through their treachery and deceit and shall continue to fight to get back my and Malta's INDEPENDENCE AND FREEDOM back. I SHALL NEVER FORGIVE THEM scullion. NEVER.
And as I always say, I am Galea not scullion.
Yet again its bash the EU in your anti-EU drive.
Have you considered that the fact Air Malta doesn't make a profit is because the Unions hold it to ransom always demanding more pay and less work. Wasn't it last year that the company had to cancel a flight from Moscow because the cabin crew claimed they would arrive 3 mins over their time, even though this was still within safety limits.
This has nothing to do with the EU, but everything to do with the Unions who, quite frankly, are making a mockery out of the original concept of what a union should be - standing up for workers rights, ensuring a decent pay/hours. Not any of this 'we demand more money or we'll strike' nonsense.
"ground handling costs in Malta were 40 per cent higher than abroad" -- need we say more about how the Unions control Air Malta for their own benefit rather than the country.
It is said that when battles are lost they change the generals not the soldiers so now Air Malta will have a new general soon.
Sonny Portelli is a good sport, I’ve known him since the 70s, he’s a good work horse, efficient and by en large has what it takes to be a good leader. Aided by Joe Cappello, the airline’s CEO, Sonny should prove to be the required element which Air Malta didn’t have during the last years.
I wish Sonny Portelli, Joe Cappello, and the Management and staff a successful future. Flimkien kollox possibli. lol
The British Sterling seems to have got our own national airline by the ........ !!!!
How interesting !!! People of Malta, British Airways has lately merged with Iberia, right. This ammalgamation has made it the worlds third biggest airline. How nice, it seems that the big powerfull and priviledged want to remain big, powerfull, priviledged and off course proud !!!!
Is it not about time that thorough reconsideration be given to those who do not want to be part of the Eurozone !!! Britain is not a large country but it seems that British economic entities, such as BRITISH BANKS, for example, are indeed powerfull enough to decide Air Malta's future. !!!!
Think about it People of Malta. Air Malta Plc is seeking Government financial support !!! The Government should intervene here, as other European governments did with their own economic entities.
Airline fares are step up fares, and work on sort of different fare classes, once a class is full it moves to the next, that is why it gets higher. It is not that you book months before to get it cheaper, it depends on the number of bookings du to this system. At least that is how I recall that it works.
Regarding low cost airlines, I am still sceptic and will always fly air Malta, although to say the truth I had a bad one in Milan ( 9 hrs delay, no refreshments, airport practically empty etc...) in September 2008 and customer care basically were making fun of me for complaining.
"should be tackled by the management and not by unions who dont have the company's interest at heart"
You are talking from your behind! It is the Unions who have the company most at heart since it is their members' only source of income. Management come and go, they play musical chairs even around government entities. The workers stay at the company at the mercy of management's good judgement. When the management gets it wrong they vent at times to the unions.
Hope you understand who needs the company most between management and workers!
How is it possible that Malta will reduce it's deficit to 3% by the end of next year with all these huge losses and with the €55 given to bus owners????
Can somebody please explain it to me cos i'm not very financially minded.
at with all due respect, are these politically appointed chairmen always travelling on taxis and club class really aware of what today's independent travellers look for, that is accessibility and low fares for short breaks?
Airmalta made a profit for 20 years under the labour government because Air Malta was the only choice for us Maltese citizens and we were charged 600 euros for a flight to London at a time where wages were a fraction of today. What kind of profit was that???Dak kien sussidju bil-pulit ghal Airmalta!!!
Galea, you need to try harder. You are trying to diminish Fenech Adami's and Gonzi's achievements but your arguments are lame possibly due to your hardcore loyalty to the labour government of the Mintoff and KMB era and your undying hatred towards the European Union.
well said.. prosit
@ Charles Vella - when you say that you had a Landing ACCIDENT in Gatwick last summer, you may want to re-phrase as the term ACCIDENT in aviation lexicon is far more serious than perhaps a discontinued landing manuevere, which itself is considered as part of every appraoch & landing.
Firstly I think you are very mistaken. Mr. Zammit did all he could in his power to hide the mistakes of the previous chairmen unfortunately as you might know yourself dealing with the government is not easy especially when you have unions who always want to create havoc. I would also get my fact right and think properly why Mr. Zammit resigned from chairman. He has been since 1987 as mentioned before chairman of various government entities that needed big help and he has always managed to sort out many of the problems they had. So if I were you I would apologize for you incorrect statement. I am glad to hear that the government is actually considering financial aid as it has always kicked its own National Airline in the face and never gave them any aid what so ever but give subsidies to all low cost airlines that come to Malta. That is why Ryanair operate at such low prices. Also Ryanair use the same staff at check-in to clean the planes and as cabin crew hence operating costs are low. Plus their staff is paid a very basic pay.
Can we know how much AirMalta is paying for the services it receives in foreign airports? How much is AirMalta, for example, paying Alitalia at Heathrow for handling passengers?
Is anybody responsible to check any miscommunications between AirMalta and other airlines? When I missed an AirMalta connecting flight at Heathrow because of bad weather, British Airways informed me that the late AirMalta flight on the same day was full, and that I needed to take the next day’s flight. I did not believe British Airways that a second AirMalta flight on the same day was full. After I checked with contacts in Malta and several journeys between Terminals 4 and 5, I finally boarded the late AirMalta flight - and there were a dozen empty seats or more! Before I boarded I was forewarned that there might not be any food for me and for another passenger who was in a similar position. If the flight was fully booked, there should have been food for everybody! Something was wrong somewhere, and probably more than just one thing.
Running an airline is not easy, but there are a number of matters that need improvement.
Please note that under the regim of Laurence Zammit, a wage freeze was imposed on all ground staff for the last 7 years. THANK YOU . This action did not effect the cockpit crew, the cabin crew and the engineering people, as these all have had a collective agreement with an increase in their pay. With this the Gwu was aware and did nothing. Apart before Mr Zammit left Airmalta, durning the last 2 weeks not less than 30 call for applications (promotions) were issued. Finally I wish to thank Mr Zammit for the new practices he have imposed to be practiced by his appointed chief officers . The way they treat the employees is really .........!!.
Or that Air Malta cut many of its routes, such as Stansted, Glasgow and many others?
Rather than advertise the route properly to increase its viability, it seems Air Malta has decided to just not operate any more. How will that philosophy increase business?
Maybe it is me, but I think that Air Malta has given up before it even tries - and sorry, your marketing is not proving effective. I am sure more can be done.
If there is no choice, people are going to use other air lines - and why not?
why, because if the operator decides to pull out and operate the fleet elsewhere, we will be stranded.
We will be at the mercy of the few remaining airlines that decides to use our airport for refuelling.
Remember Balkar Airlines, when they stopped over at luqa for refuelling and opened the New York route for us, now they shifted operations elsewhere and bye bye the Malta stop over en route to New York.
I think that the government is sensible enough to look at the perspective this type of privatisation will bring, total isolation and at the mercy of others.
and what will happen to us?
The Unions have every interest for the company to prosper because if not their members will suffer. It's what management or rather mismanagement like when the unsuitable aircraft were bought in spite of all advice to the contrary that puts companies and their employees in danger.
Karl Abela Yes Karl, Airmalta always made a profit under PL administrations but it has gone to the dogs under pn governments and pn-appointed managements like what happened in all companies that had pn-appointed managements.
PM Camilleri Privatization only means shedding workers, increasing prices and a shoddy service.
Alfred Demicoli You are right. The government handed out aid to cheapo airlines instead of Airmalta.
Indeed as more people mention, lower your prices and everybody will fly Air Malta.
Last year to fly to Dusseldorf booking with Air Malta was double the price as was booking with Lufthansa.Surprise was that it concerns the same flight(airplane), probably everybody booked with Lufthansa. Just before take-off no seat were offered with Lufthanse while Airmalta was still offering last minute at even higher prices.
So be happy with more sales and a profit as no sales and a loss!!!!
Air Malta made profits for at least 20 years in a row (1976-1996), and from 1998 till some of the following years. It was only from 2003 onwards, that Air Malta started consistently making losses !!!
Please try to get your facts right.
Do you know the difference between an airline and and airport operator ? Air Malta is the airline while MIA are the airport operators. The ywere the ones who obtained a permit for the extension of premises & made improvements to runways etc.
@ Karl Abela
Yes Air Malta did make profits and the Government of Malta benefited from all the profits. Air Malta is surely not the old Dockyard.
It took them 2 months to deal with it and barely any communication at all ...
Now to add insult to injury my tax money is going to fund some more unproductive jobs!
Now that the haydays are over, we are expected to fork out millions to subsidize what should have been a viable and profiable airline. Now that the damage has been uncovered, it is the nation who is to be made accountable. Nobody brings ex air malta chairmen into the limelight and scruitinize them for spending millions in Turb-prop engines which were left to deteriorate into scrap metal as long as they mad ehefty commisions out of everything.
I thought that Air Malta already has state aid some three or four years ago when it was said that it was a turnaround. It wan't. The taxpayers cannot keep on having their money being given to entities which are not producing. Then privitise the national airline!!!
hallas gahan!
Air Malta got the action all right. It was when the government, owner and administrator of Airmalta, chose to subsidise foreign airlines that were making hunderds of millions in profit, instead of helping Air Malta.
Now it is only fair that the government assists Air Malta in this time of need.
Mr Zammit did all he could, but was helpless.
Idiot Air Malta doesn’t own the runway and didn’t get any permit for new offices, that’s MIA another company.
Give me us break
Air Malta got the action all right. It was when the government, owner and administrator of Airmalta, chose to subsidise foreign airlines that were making hunderds of millions in profit, instead of helping Air Malta.
Now it is only fair that the government assists Air Malta in this time of need.
Mr Zammit did all he could, but was helpless.
Or is this another Dry Docks saga with Joe Public investing his/her taxes with a return of even more losses?
Hallina. Who wants a good listener and nothing else? AIR MALTA WANTED ACTION, EFFICIENCY, GOOD MANAGEMENT AND VISION. And it did not get it under Mr Zammit. No wonder he ''asked'' not to be re-appointed. well........wasted years !!