Air Malta increasing passengers, revenue

Air Malta is consistently increasing its number of passengers on a weekly basis, sources close to Air Malta have confirmed. The sources said that since a major restructuring exercise was launched earlier this year, the national airline has consistently managed to increase its passengers as well as its revenue. However, the company was still working hard to further cut costs.

The sources also said that despite various reports over the past months, including claims by the Airline Pilots' Association that a number of Air Malta pilots were to step down over the restructuring exercise being carried out at the national airline, no captains have left their job.

Similarly, despite various reports that some pilots intended to resign as they sought better positions abroad, the company has not received any resignations.

The sources confirmed that one pilot who had submitted his resignation has now decided to withdraw it.

A few months ago the Air Malta Group posted losses of Lm25.8 million for the financial year ending July 31, 2003. Air Malta is making losses of some Lm8.8 million a year on its core business.

In May Air Malta and four trade unions agreed on a collective agreement after weeks of haggling. In the agreement, expected to lead to savings of some Lm1.3 million a year, the pilots agreed to give away an average of 15,000 free flying hours. The national airline employs 153 pilots in all.

Company chairman Lawrence Zammit had told a press conference that prospects for the current financial year were more or less the same. Concrete results of the rescue plan, designed to reduce operating costs, would start to appear in the year after that, he had said.

This year, the group led by Mr Zammit embarked on radical changes in the workings of the airline, which included an agreement reached last May between Air Malta and the four unions representing its employees.

The four-year agreement, which provided for a three-year moratorium on increments, among other measures, was designed to help the company get back on its feet by cutting costs.

Other measures designed to save Lm400,000 in administrative expenses including the abolition of allowances for senior management and directors' remuneration.

Another Lm500,000 in savings was expected from a reduction in the cost of in-flight services through a radical overhaul. Savings of Lm1.35 million were envisaged from a reorganisation and restructuring process of outstations and better use of IT.