Survival of Air Malta depends on restructuring - MHRA

The Malta Hotels and Restaurants Association has reiterated the importance of Air Malta's ability to adapt to a changing market. 

In a press statement, the MHRA said that it could not understand the logic behind a resistance to the changes the company is undergoing, something it considers essential to Air Malta's survival.

"The business of running an airline has changed dramatically since 1974 when Air Malta was set up. EU rules allows any airline to fly to and from any airport within the Union and pricing of air fares is set according to market demands. These realities have driven a number of legacy airlines, who failed to restructure, into bankruptcy," the statement reads.

"Air Malta has not been immune to these realities and it is only due to a massive efforts as well as a one-time cash infusion from the government that it is still flying today."

The MHRA also questionned the decision by the Union of Cabin Crew (UCC) to take industrial action, something it says will ultimately result in job loss, should the airline fail.

The action followed Air Malta's decision to replace the economy class meal and the meal offered to cabin crew onboard its aircraft with a baguette and a small bottle of water, a move the UCC says breaches a condition of the collective agreement, which says that crew should be offered 'suitable meals'.

Air Malta’s management and UCC representatives met today to discuss outstanding issues. Representatives from both sides agreed to continue talks to determine the way forward. 

"Unless change happens then the airline will not survive and the consequences of this demise will have a major impact on Malta’s tourism as well as the economy as a whole," the statement reads.

"Those that are responsible for this industrial action have to assume responsibility for the very serious consequences of their actions not only to the airline but to the wider economy, which will be hurt through the loss of the airline.

"Furthermore those that are taking action should show more respect to the shareholders of the airline, who are the Maltese people through their government, that has poured over €150 million to save their jobs. It is unacceptable that such action is taken by people whose jobs the country has saved at enormous costs. "