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Tourism Minister remains highly cautious on Air Malta's restructuring process
While ‘no’ investor was interested in national airline’s stakes, Tourism Minister retains ‘too early to say’ stand on success of restructuring process.
16 November 2013, 12:00am
Miriam Dalli
Miriam Dalli
2 min read
It was too early to determine whether the five-year restructuring process of Air Malta would result in a successful operative Air Malta, ending its years without losses.
Tourism Minister Karmenu Vella was clear: nothing could be ruled out until 2016 was over.
Addressing parliament, Vella once again refused to categorically rule out the possibility of privatising the national airline in the future, insisting that in actual fact plans to privatise Air Malta went back as far as 1994. Then Air Malta chairman Joe Tabone had suggested such a possibility to then finance minister George Bonello Dupuis. Last year, former Air Malta chairman Louis Farrugia told an MHRA meeting that the airline could only expand through private capital injections.
Vella rubbished suggestions by Nationalist MP Robert Arrigo that Air China was interested in purchasing shares within Air Malta. Arrigo also said that an investor had obtained a Maltese passport.
"As far as I know there was no investor who obtained a Maltese passport. We simply cannot say what could happen because the restructuring process stretches into 2016," he said.
"The Opposition has just urged us to keep Air Malta 'Maltese'. Were we the ones who brought on board a foreign management?"
Vella insisted that the government's decision not to interfere with the restructuring process was a "conscious decision not to take decision in the management's name".
Air Malta's financial results of its second year in its EC-mandated restructuring process, show a halving of operating losses from €30 million to €13.7 million in March 2013, and registering an operating profit of €6.3 million in the first six months of the current financial year.
"But these figures are about its second year... there are three more years to. Can someone tell me today what's going to happen in 2016? By March 2013, Air Malta was on track. We are now worrying about what will happen by March 2014. Because doing well during one year is not a guarantee for the future."
Vella put much effort in delivering the message that the restructuring process had been agreed by a Nationalist government and the European Commission.
"In no way do we want, or can, change the programme. But if we cannot change the restructuring process it's because it is bound by the agreement. And we retained the same team. This year the government passed on €40 million to Air Malta and next year we will pass on €15 million. We have retained our part of the deal. Now we expect results from the restructuring plan."
Vella added that the financial estimates for 2012 had been marked by cost-cutting.
Miriam Dalli joined MaltaToday.com.mt in 2010 becoming assistant editor f...
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They can seemingly foresee the price of gas in 10 years time, oops I mean 5 years now. They should be able to see what is going to happen in 3 years time surely.
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Hamlets to become Local Councils" D. Agius. Se ndumu nghidu hmerijiet? Li kieku kont jien innehihom kollha. Xi progress sar bil-holqien tal-Local Councils? Meta kienu dipartimenti kienu jimxu ahjar; ibda mill-indafa. U anqas korruzzjoni. Li hu zgur hu li 69 kunsill ghal Malta hjuma hafna u jekk ma ghandiex il-guts li nnehhuhom, ghandu jkollna l-kuragg li nnaqqsuhom u naghmluhom aktar jaghmlu ftit sens. Ikun ahjar ghal kulhadd; inkluz ghall-ekonomija tal-Pajjiz. U mela nkomplu nziedu billi naghmlu l-hamalets local counsils!!
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All this money, 40million/15million ,our money, is being squandered – Air Malta only operates ten aircraft, no other airline with such a small narrow body fleet is self handled (Ryanair have 300 aircraft and they are not self handled anywhere!!). The staff would have had a better chance if these very expensive services were sourced.Currently, some staff are being made to work extra overtime to replace others that were shed off, part timers being employed, even some holding other full time jobs. Some even in places that are not required such as cargo. One really wonders what is happening; now they are calling in old staff that left years ago, there are calls for promotions or maybe……. the election is getting closer and we have to appease someone.It will be interesting to know how many part timers are employed and how much overtime is being paid.!
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"The Opposition has just urged us to keep Air Malta 'Maltese'. Were we the ones who brought on board a foreign management?" What a cheeky and irrational remark,Karmenu.The opposition also urged you not to sell our nationality and our Livelihood to any rogue with a lot of money and yet you are going ahead with that plan. Any Government and or any Drug Cartel, any member of El Qaeda, any African rich Nation, China, Russia, North Korea, Iran, any Mafioso Godfather, any underground person can buy a Maltese passport for the right price? Investing in Air Malta by any country or another Major Carrier is not much of an option but a must. The Tax Payer cannot keep investing money in a losing carrier. If you wait until 2016, it might be too late. I say privatize Air Malta and sell to Maltese investors before it loses it's value.
