Updated | ALPA to boycott Air Malta’s rebranding launch

Updated at 11:18am with Air Malta's reaction

Air Malta has accused the Executive Committee of the Union of "failing to rise above the canopy and look at the big picture".

It however added that it was "pleased to note that the same Executive is finally becoming more sensitive to the precarious financial situation of the Company".

Air Malta said it now expected ALPA to reconsider its demands made to the Company as part of its discussions.

"Its demands should be brought more in line with the situation currently at hand with a view to ensure that Air Malta returns to profitability and a more stable financial situation," the ariline said.

ALPA, the pilots' association, has refused to attend a business breakfast organised by Air Malta to launch its new brand.

Air Malta next Tuesday will be launching the new brand of the airline, dubbed 'The Flying Pride of Malta'.

The rebranding was carried out by international marketing and advertising agency FutureBrand, but Air Malta had never revealed the cost of this rebranding exercise.

ALPA said that the event was to celebrate the airline's rebranding and unveiling of its new livery.

"Invitations to this "once in a lifetime experience" "with plenty to drink and eat" have been issued to all Air Malta employees with another event planned the following day for all stake holders and business partners," ALPA's secretary Captain Chris Vella said.

"In the current financial situation ALPA feels that such expenses are highly inappropriate and these funds could have been put to better and more productive use. Given this scenario ALPA has instructed all it's members not to participate in this event."

The pilots said that they would be looking forward to attend such events "when the company returns to profitability and is in a better and more stable financial situation".

The association also reiterated that Air Malta had once again failed to consult and involve the pilots over the airline's restructuring process.

"The rebranding process with all it's substantial costs were never mentioned in the Steering Committee, and once again ALPA was not consulted or involved in this matter," Vella said.

The National airline registered a €30 million operating loss at the end of its financial year in March 2012, registering an improvement of €4.3 million over 2011.

Airline chairman Louis Farrugia said the year's performance was adversely affected by €21 million in total losses, namely incurred by increased fuel prices of €17 million and €4 million losses from the reduction in flight capacity.

As part of its restructuring programme, which was green-lit by the European Commission this year, Air Malta has had to reduce its flight capacity and route network by 10% in 2011 and another 10% this year.