Airline pilots to challenge MIA’s monopoly

In comments to MaltaToday, the union’s president Dominic Azzopardi questioned the legality of the contract which grants MIA exclusivity over the airport up to a radius of five kilometres: a situation which precludes the possibility of opening a second terminal serviced by the same runway, as ALPA had controversially suggested last year.

Azzopardi argues that the exclusivity enjoyed by MIA rules out any fair competition in the aviation sector, resulting in a situation of complete monopoly which runs counter to European law.

“There cannot be a monopoly without a regulatory board. This is a very basic principle of the European Union, which demands a level playing field for all operators,” Azzopardi said.

Azzopardi confirmed his union is currently taking legal advice through its international partners, European Cockpit Association (ECA).

“That’s the direction we are currently heading,” he said when asked if ALPA planned to refer the matter to the Commission.

ALPA is also threatening industrial action which would ground all Air Malta flights for a full day on July 15, unless MIA zeroes all charges currently levied to the national carrier.

For the past year, the union has consistently been complaining about what it terms unfair charges imposed on Air Malta by MIA, which – coupled with government subsidies offered to low-cost carriers on underserved routes – render the airline unable to compete on a level laying field.

Last April, Azzopardi told this newspaper that Air Malta pays a hefty charge for every kilo of cargo loaded out of Malta, rental of airport offices, use of staff car park and even a levy for every litre of fuel uplifted out of Malta.

Azzopardi has also accused Malta International Airport of “sucking the Maltese tourism sector dry” in comments to MaltaToday, saying that through these charges ands fees the airport received more than €150 million from Air Malta.

And yet, details of the report by Ernst & Young, the international auditors tasked with drawing up a restructuring plan for Air Malta, suggest that the emphasis of the restructuring will be on cost-cutting and downsizing – without any mention of revisiting the disadvantageous contracts entered into by the government to the detriment of Air Malta.

“Is it correct that the government has given exclusivity to MIA considering no special rates are offered to its main operator? Is it correct that whilst Air Malta employs new management at substantial cost most of the old management who ran the failed company restructuring which took place in 2004 are still there?” Azzopardi said.

In an angry outburst on One TV’s Inkontri, hosted by former Tourism Minister Joe Grima, Dominic Azzopardi yesterday hinted darkly at what he described as ‘klikek’ (‘networks’) who were protected by the establishment at the expense of workers during the restructuring process.

However a spokesman for Finance Minister Tonio Fenech told this newspaper that revision of these agreements has not been ruled out in the restructuring plan.

“The report being referred to, as clarified by Air Malta yesterday, is not the final version presented to the European Commission,“ the ministry official said yesterday. “However, the Minister has already stressed that all contracts are up for review. Ultimately, Government’s objective is to see Air Malta return to viability.”