Air Malta positive on EU restructuring plan discussions

Air Malta said today it was positive that the discussions with the European Commission are moving ahead, after the Commission delayed its final decision on Air Malta’s restructuring plan.

The Times reported today that the EC was urging the airline to move faster on implementing the restructuring of the airline.

“The EU’s decision to delay by at least four months the final decision on the restructuring plan comes as no surprise to us and was expected," Air Malta’s Chief Executive Peter Davies said. “This plan, presented to the EU last May, together with the interim financing solutions proposed, will allow Air Malta to maintain and where possible accelerate the restructuring of the airline. This decision is in line with our implementation plan that is intrinsically tied to the restructuring plan
presented to the EU.”

Over the last few months, in parallel to the discussions with the EU, Air Malta has embarked on an implementation plan that will see the airline restructure its operations and spearhead over 165 distinct projects that span areas related to cargo, finance, corporate and financial restructuring, contracts management, ground handling, human resources, information technology and revenue enhancement. It has also moved forward in its discussions with the unions to change restrictive
work practices and right-size the airline. The ultimate aim of the plan is to increase the airline’s revenue by €30 million and decrease costs by a similar amount.

Air Malta will have to pay back a €53 million loan from the Maltese government this year, as well as another €20 million advanced to it in this year's Budget as part of the conditions for its restructuring under EU laws.

Last week, airline employees with the General Workers Union accepted the voluntary retirement plans for the airline's downsize from 1,300 employees to 700.