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Air Malta | Government asks parliament to approve emergency loan to save airline
Finance Minister Tonio Fenech last night moved a bill for Parliament to approve an emergency loan to Air Malta in a bid to salvage the airline from what has been defined as “short-term liquidity problems.”
12 November 2010, 12:00am
Karl Stagno-Navarra
Karl Stagno-Navarra
1 min read
Last Wednesday, MaltaToday revealed that Air Malta losses for 2010 are expected to hit €50 million as its financial year will end in March 2011. Losses on the airline’s summer routes are expected to reach €12 million.
The bill “to regulate the raising of loans for the purpose of entering into relending agreements with Air Malta” is expected to be published in the Government Gazzette in the coming days.
The bill is necessary as government will be borrowing money that has not been catered for in the Budget for 2011.
While the amount to be loaned to Air Malta has so far not been disclosed by government, nor if the amount will cover all the losses incurred for 2011.
The unprecedented losses for 2011 are equivalent to the €52 million wage bill at Air Malta, and talks between government, Opposition and trade unions are intended to find viable solutions towards the eventual shedding of workers.
While MaltaToday revealed on Wednesday that 1,000 workers are expected to be axed from Air Malta for it to be sustainable, GWU boss Tony Zarb yesterday told workers that they are not to be blamed for the airline’s difficulties.
Speaking to MaltaToday, workers expressed their concern at the situation, and revealed that for their salaries to be paid last October, the airline had to sell-off and hire back an Airbus engine.
Talks are meanwhile underway between government and the European Commission in a bid to allow the loan to Air Malta under State Aid rules, after a request for a capital injection of €100 million was rejected by Brussels.
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Do not worry too much people about everything crumbling around us, look how kind our illustrious pm is, building a beautiful fountain for all of us to enjoy. Be happy for soon we are going to have a new parliament with a big bust of gonzi on top of the roof forever looking for future world recessions.Be joyful for the future looks rosy amidst the rainbow colored sut spitting out in every direction from the power station.Be cheerful for we are living in this lucky country where money is no problem, we can even disregard $10,000 000 here or there.Be grateful for our government spends thousands of dollars throwing parties for us every time it starts a new project. Be smart and enjoy what little we have now for tomorrow it will be all gone.
Alfred Galea •
WHAT did this incompetent bozo know and WHEN did he know it?? Surely this didn't happened in the last three months?? Where are the par idejn sodi?? Where is the "recession didn't hit us coz your govt. was looking out for you" bullshit now??
NOW he wants to consult and bring in the opposition to help him out of this mess??
Tony, you're incompetent, resign...iddahhaqx nies bik izjed. Imnalla ma mortx ma KM biex tara l-Arsenal bozo.
Michael Gauci •
Too few aircraft to justify such a huge workforce, pure and simple.
Micheal Bonanno •
All those down below that are insinuating that the PL has got a finger in the pie (ie. AirMalta's financial failure) should keep in mind, that during the Labour's legislatures, Air Malta was always making a profit. It is under the PN legislatures that Air Malta went into the red! Always blaming Labour when Labour hasn't been in government for nearly 25 years less 22 months!
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What would the 100 million euros do ?
Pay for all the losses from this year and last?
What happens next ?
Is the government prepared to keep pumping 100 million euros ecery two years?
From this 100 million euros, how much would be going towards consultants, accountants, lawyers and negotiators?
Has anyone figured this out and what the total bill for severance pay and other pensions obligations would fall on the tax payers?
What private investment or airline would be interested in this mess?
HALLIENA MINISTRU?
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All parastatal companies under the PN have been mismanaged and ended up making losses. How can anyone again trust the PN with Malta's government?
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''short-term liquidity problems'' Mr. Minister, or did you mean ''perpetual liquidity problems''. Is this the fault of the workers? No way. PL/PN's chosen few have been milking Air Malta dry for my years as if there is no to-morrow. Than after hearing so much in the budget that so many just causes cannot be helped because there is no extra cash available, no it seems that this money will come from somewhere. This means only one thing, that many other budget promises for 2011 will remain unfulfilled. Not unless we find oil or some 'hidden & camouflaged' taxes are introduced mid-term. Mur oqghod isimaw il-budget.
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@employee
Well tell us ... we are all ears. I know if a number of PN con-man involved with Airmalta such as Joe Fenech Conti and what was MEP Louis Grech from PL drawing from AirMalta?
Well i guess - the chickens are finally coming home to roost. And thank GOD that recenssion has not hit US! In fact Gonzi is right - this is not the recession - this is massive corruption and fraud that is finally catching up to us.
Go ahead and talk about how we should be proud of Airmalta and Airmalta is an asset - when those same people have treated AirMalta as their bitch for so long? All the while we paid excessive fees each time we boarded a plane to prop up this corruption for so long.
The victims are those employees who are not some canvassor drawing a salary on the airline while working for some minister or a PN/PL criminal defrauding the company - and the victims is every passenger that has ever used this airline and paid for this corruption.
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by the way, 22000 euros GROSS
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for those who think that emplyees are earning megabucks. i am a Manager with Airmalta. After 25 years, i just about earn 22,000, and that only when you throw in the government bonuses, and the only perk i have as an executive- 150 euros telephone allowance PER ANNUM. Of course, there are those who earn 40K,60K and even 80K +, but i can assure all that 85% of the workforce can only dream of such wages. Want to guess who are the privileged 15% ?
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1000 ruh?
Liema professur hadem din is-somma?
X'formula intuzat sabiex inharget ic-cifra?
