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Air Malta restructuring plan flawed with 'serious errors' – Labour
Opposition Leader Joseph Muscat expressed disappointment at the way things were happening inside Air Malta and its restructuring plans.
He said the plan was based on "wrong assumptions and totally incorrect fundamentals".
"There are certain mistakes which have not been necessarily committed by the Ernst & Young consultants," Muscat said. "Without revealing any sensitive commercial information there are mistakes in headline figures. Government knew of these mistakes and has realised its mistakes, which is why the plan is being re-drawn."
Muscat pointed out the plan had not taken into consideration a trend where Air Malta was losing routes that eventually were taken by low cost air lines and turned into profitable routes.
He said Labour would still form part of the steering committee even though its members were being bound by a confidentiality agreement.
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It is obvious that the mistakes committed by all administrations whether they be blue or red are to be paid for out of tax payers money. It is indeed sadder that all the politicians who had a finger in poisoning this golden goose are not brought to account as this together with a couple of other government companies were the election victims in having to accept unnecessary workers.
I feel that the people employed in Air Malta had it good while it lasted and the time has come for everyone who works there to thank goodness for as long as it did. Now sacrifices are to be made. sadly the politicians will not bear the brunt of it as they end up patting each other on the back saying how good they are at saving it.
Government sold the airport to a foreign company and the attractive part of it was charging Air Malta high rates for the use. Milking it drier and drier. To add insult to injury the low cost airlines land in the same airport like Air Malta and probably pay less. Something which is unavoidable given there is only one airport and the size of the country.
Besides the work force which is obviously overmanned there are so many perks which have to be trimmed for all concerned.
A few examples come to mind like why do cabin crew and pilots have to be driven to and from work in this spit of land? We have all gone abroad and seen crew/pilots getting on the bus or wherever and going home. Why the expense? Surely they will not be too tired to drive a few more minutes...
Why does every person who has ever been employed with AirMalta benefit from free flights and ridiculously cheap flights for them and their families?
Why do politicians even after they have long left their office still get free/cheap flights for them and their families?
Why does anyone in the upper circle of the civil service fly club/first class?
I think its time to stop trying to milk the gravy train to the last drop as that last drop is going to poison this company.
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dear chikku,
for a start, let's go through what the company is being made to pay so that fat cats become fatter. how about taking a look at MIA charges, Sita charges, aircraft cleaning charges, catering charges for a start ? can E & Y quantify the millions Airmalta is paying, and on the other hand, what is the current commercial rates that a normal company should be paying ?
By doing so, they will do a better job than the fiasco they are presenting clalled a restructuring plan!
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Commented on by Joe Busittil,
If the Govt.is requesting "fundamental changes to the plan drawn up by Ernt and Young" then why was the firm employed to find a solution to the woes of Air Malta ,in the first place? Looks like another lot of tax payers" money down the drain,a common thing now under Gonzi PN.
Totally agree Mr Busittil could not have worded it better myself .
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It's easy to criticise from the sidelines. The fact remains that Air Malta is loosing money - and lots of it - and we are no longer allowed to throw tax payers money at such companies operating in the private sector (thank God).
So what do you propose to do Mr. Muscat?
