Pilots’ boss refutes Air Malta profit claims

Air Malta pilots' union president Dominic Azzopardi refuted the airline's claims of having registered a €400,000 operational profit. He also said that the airline's claims of undertaking cost cutting measures were "nothing but a farce".

In October, Air Malta had announced an operational profit of €400,000 for the first half of the year. The last time the airline recorded a profit was four years ago. In the same period last year, Air Malta had registered an €8 million loss.

The combative pilots' chief told MaltaToday that in reality, "Air Malta registered a €6 million loss and did not make a profit as the company claimed". He explained that the profits were registered by a small part of the company, however Air Malta as a whole made a €6 million loss.

In a statement issued on Saturday, Air Malta said that ALPA, the union representing the airline's pilots, was unable to work constructively with the airline's management and opposed anything that disturbed the status quo.

Air Malta added that barely three months after signing a new collective agreement, ALPA registered an industrial dispute over the state of the training facilities situated in Air Malta's new offices.

The airline said that ALPA are claiming that the new training facilities situated in Air Malta's new offices are not up to standard and are objecting to the use of a new briefing room which was "currently being refurbished as part of an overall exercise intended to reduce costs significantly".

However, Azzopardi said that Air Malta allocated an underground office with no ventilation at the new Sky Parks Business Centre. "We have informed Air Malta that we have no intention of holding out training in the offices they gave us. While the management has taken up the best offices on the upper floors, they have dumped us underground. We have requested a ventilation report and have no intention of moving in."

In its statement, Air Malta said it was challenging the ALPA executive committee's claims and invited the union to provide proof to support its claims.

ALPA are also objecting to the allocation of a small briefing room for pilots and cabin crew at the Malta International Airport. Azzopardi said that the pilots can do without the briefing room and documentation and briefing could be held on board the aircraft as happens when the Air Malta crew is briefed in foreign airports.

"It's a waste of money. Air Malta is only insisting on using the office at MIA because the airline is in fact being run by MIA and the airline's management is in cahoots with the airport management," Azzopardi said. 

According to Air Malta, the dispute arose soon after the company inaugurated its new head office at the Sky Parks Business Centre. Azzopardi said that despite claims of undertaking cost cutting measures, the airline is paying Sky Parks more then €500 per square metre annually. 

The company pointed out that it cannot understand the motivations behind ALPA's actions especially since in the past months certain members of this committee embarked on a campaign stating that not enough was being done by the company to reduce costs.

"Yet, when concrete action is taken, ALPA is the first one to object to any changes

being done," Air Malta added.

Yet, the pilots' boss said that Air Malta was "incapable of cost cutting" claiming that the foreign managers being brought over by Air Malta were "lost" and asking pilots and other airline employees what they should do.

Noting that Air Malta CEO Peter Davies was running the company remotely, since the British national is busy running personal business interests in the UK, Azzopardi said that if the airline had any real will to become profitable it should revise its cargo tariffs.

"If Air Malta had to increase its cargo tariffs it would more then make up for its current losses. While cargo handling agents charge €60 per/kg the airline takes €1 per/kg. If Air Malta had to increase its cargo charges it would rake in millions," Azzopardi said.

He added that the cargo sector was growing and Air Malta was renting out a plane every week to operate extra flights to carry cargo. Azzopardi explained that with the increase in online shopping the demand for cargo is expected to keep growing and it only makes sense to increase its profitability from cargo.