Government-hired consultant left Air Malta for Monarch Airlines

Robert Palmer was brought to Malta in 2010 by the finance ministry after engaging audit and consulting firm Ernst & Young to draft a report on Air Malta's restructuring.

Then, the airline said Palmer had accepted to oversee the commercial operations. "Palmer is working hand in hand with Ernst & Young on the Air Malta restructuring project in his capacity as consultant", Air Malta had told MaltaToday in a reply to questions sent in November 2010.

Many within the airline had questioned Palmer's consultancy role, after he had practically taken over the entire operations department which was previously run by chief operating officer, Brock Friesen - Air Malta's then 'number two' - who had been relieved from his duties.

Friesen left Air Malta soon after a meeting with Palmer, when managers were ordered to report directly to the British 'consultant'.

In 1999, Palmer joined easyJet as financial planning manager and, in 2002, became group financial controller and oversaw the financial decision to acquire 120 aircraft and the integration of Go Fly in 2002/3.

Palmer was also a director of a number of easyJet's subsidiaries, including its joint venture ground handling company. In 2007, he joined British Midland International as chief financial officer, where he implemented a number of structural business changes including cost reduction measures and cash optimisation and working capital management.

At Monarch Airlines, Palmer will be taking over as group finance director, and the airline has said that he worked "with Monarch in a consulting capacity since September 2011".

The company said that is also plans to appoint two new non-executive directors, and that it is in "advanced discussions" with candidates, also reportedly from Air Malta.

Under the new structure, the board of Monarch Holdings Limited will comprise of executive chairman Iain Rawlinson and Palmer, and the two new non-executive director appointments.

The changes at Monarch follow the departure of Conrad Clifford, former chief executive last year, who was in the role for less than a year.

Commenting to the media in London last Thursday, Monarch's executive chairman said that his airline was  "making good progress to date in implementing our turnaround plan and we are starting to see the benefits of our work in driving revenue, better asset utilisation and cost reductions coming through in results".

"We continue well on our path to improved financial performance, and we are keen to maintain consistency and stability in the top team as we deliver our current year results. We are making no changes in the senior management of the divisions, and we are streamlining Group functions to provide a lean and efficient structure," he added.

Meanwhile, Air Malta is continuing with its intensive restructuring programme.  Chief executive Peter Davies told MaltaToday, that the airline is close to announcing further improvements to its financials, while remaining "optimistic" of Brussels's approval of government's restructuring plan.

Davies said that two of the areas critical for the airline's survival are organisational development, a systematic process of implementing effective organisational change and the rightsizing of the airline.

Over 500 employees have applied for the voluntarily early retirement schemes and employees are being released through a staggered and coordinated plan, depending on the individuals' role and section.

"This process, which started last December is ongoing, and will continue until the end of this year. The absolute majority of these employees (444) will be released by end of next June. To date, 240 employees have already been released," Davies confirmed.

This outbound plan is moving in parallel with other organisational development projects including the internal selection process to fill vacancies in the new structure and external recruitment.

Over 1,000 applications were received from employees for the 161 new positions in the new organisational structure, which has now been finalised.