Air Malta denies mass lay-offs are part of airline's restructuring programme

The national airline has denied it will lay off 1,000 employees as part of the conditions floated for a restructuring programme in a bid to succour Air Malta, which is expected to post €50 million in losses.

“A substantial number of airlines in Europe have over the past years and months undergone similar restructuring processes to ensure long term sustainability in an ever increasing competitive aviation market,” the airline said in a statement.

The airline said speculations on its financial performance for the current financial year were “premature… particularly since the current financial year ends in March 2011.”

But even General Workers Union secretary-general Tony Zarb yesterday confirmed Air Malta’s losses, €17 million of which were registered in summer alone.

The airline is taking on a defensive stand since MaltaToday first reported the extent of its problems this week. “Air Malta would like to appeal for factual and prudent reporting in the media as speculative and wrong information – as has appeared in the media this week – could lead to wrong perceptions or misconceptions which could be commercially damaging to the airline.”

Formal discussions with the unions have already started and the airline will also be communicating directly with its employees to update them on the developments.

Air Malta would said a substantial number of airlines in Europe and around the world have been engaged in ongoing restructuring ever since the tragic events of September 11, 2001. “Air Malta is not immune to the challenges being faced by the aviation industry and has been carrying out a structured restructuring exercise since 2003. The airline points out that since 2003, it has managed to reduce its staff compliment by over 600 without resorting to dismissals.”

MORE: Finance Minister Tonio Fenech on Air Malta’s future