Air Malta ‘relieves’ Operations Officer from his post as E&Y to dictate Air Malta’s fate

The Canadian executive reportedly left his office in yesterday afternoon following a meeting with Air Malta Chairman Sonny Portelli and Ceo Joe Capello.

Formerly of Star Alliance, Brock Freisen was engaged with Air Malta in 2006 and still had a year and a half to go on his present contract. It remains unknown what agreement has been reached with Freisen for him to terminate his post.

Former EasyJet executive Robert Palmer has been appointed Operations Manager instead and has already started work. He was brought into the company as an associate of Ernst & Young.

The news comes as Air Malta’s fate has been entirely left into the hands of corporate restructuring experts from UK’s Ernst & Young, and government is reportedly set to immediately pass on the recommendations to the Steering Committee that will start meeting on Friday for immediate implementation.

The restructuring plan - which is tied to the €50 million emergency loan which was approved by parliament last week - is being compiled by Ernst & Young experts Alan Hudson and Robert Palmer, who are both former executives at EasyJet and British Midlands International (BMI).

Contacted in London yesterday, Alan Hudson insisted on a ‘no comment’ while he referred our questions to Air Malta’s public relations office.

Informed sources told MaltaToday that the fact that government is leaving it entirely into the hands of Ernst & Young to compile the restructuring plan, “reveals the extent of the seriousness of the situation.”

Ernst & Young did not want to comment nor on whether the national airline can make a turnaround, and if it could, at what cost.

Questions related to the planned layoffs remained unanswered by government and Ernst & Young, while unions have remained in the dark over the future plans for the airline.

All four unions at the airline – representative of the pilots, engineers, cabin crew and the General Workers Union – are reportedly engaged in informal talks and are discussing a possible “common front” during the talks, while a third party is also reported to be prepared to be brought into the talks that will see government, Air Malta’s top guns and the unions at the same table.

It remains unknown when Ernst & Young will finalise the restructuring report for government, and unions have already expressed concern at the timing of the talks.

With one meeting every Friday, time is of the essence for the trade unions to know about the envisaged layoffs at the airline, given that it is soon the festive season and apart from the workers’ anxiety, there will be a stall in the talks.

As the talks kick-off next Friday, management at Air Malta has been stripped off all authority in approval of any expenditure or overtime.

All requests for expenditure, including petty purchases at the company must all be forwarded to the Chairman’s office who in turn would consult with the Ernst & Young executives for approval.