Air Malta redundancies cost government more than €60 million

Government’s bill for the Air Malta severance packages announced last year cost more than €60 million, information tabled in parliament shows.

In January 2022, government announced it would create a voluntary employee transfer scheme in a bid to cut Air Malta’s workforce by half and save €15 million per year in wages as part of a restructuring exercise.

Finance Minister Clyde Caruana said 351 employees applied for the Early Retirement Scheme or Voluntary Redundancy Scheme. In total, €60,836,332 were handed out.

The sum of €40,000 was offered to those who had served up to five years; €80,000 to those who served 5-10 years; €120,000 for 10-15 years of service; €150,000 for 15-20 years of service; €180,000 for 20-25 years; €210,000 for 25-30; and €240,000 for those of over 30 years of service.

Air Malta staff aged 50 and over were eligible for an early retirement scheme if they had served 20 years and over, to be paid two-thirds of their total take-home pay, capped at a maximum €300,000.

The airline’s current complement of around 900 had to be reduced to around 420 with workers being offered alternative employment with government.

Air Malta chief David Curmi confirmed on Tuesday the national airline will be replaced by end of year after the European Commission rejected a government request to inject millions of euro into the company.

Curmi said that the 300 employees working at Air Malta will be laid off but will be able to apply for work in the new airline.