The European Commission’s decision on the restructuring of Air Malta is expected by the summer and CEO Peter Davies said this evening that he was confident the feedback would be positive.
Speaking during the opening of the Amitex Fair at the MFCC in Ta’ Qali this evening, he said:
“The risk of failure and repercussions on an island nation like Malta, thriving on tourism were too great to address without a robust, feasible plan able to withstand the thorough review of the European Commission.
“By summer we expect to receive the decision from the European Commission. We have worked very hard to deliver and meet the Commission's expectations and targets and we are confident of a positive feedback and that our efforts will return the airline to profitability.”
Mr Davies said that the 150 weekly flights to and from 30 destinations this summer were in line with the restructuring plan which necessitated a reduction in capacity.
This plan, he said, was on track and moving positively forward through a seamless transition without disruptions in operations.
Chairman Louis Farrugia said that in spite of catering for 30,000 fewer passengers, Air Malta had, in the past financial year which ended in March, registered gains in total income and income per passenger.
He noted that this was achieved at the beginning of a restructuring process and summer would be fundamental for the company.
This was because it was important to transmit the message that restructuring was going on as planned.
Finance Minister Tonio Fenech said the government and Air Malta were in the process of submitting reactions to the objections to the Air Malta restructuring plan which the European Commission had received. "We are confident of a positive outcome," the minister said, and Air Malta had started implementing the restructuring plan.
In the eleven months to February (one month short of the end of the financial year) the airline had increased its revenue by €3 million and reduced its spending by a further €3 million despite higher fuel costs. These were encouraging results which would held the commission reach a positive decision for the airline.
Held at the Malta Fairs and Conventions Centre in Ta’ Qali, the fair is a hive of activity on anything related to travel, with many operators offering special prices. The fair is open until 10 p.m. today, from 6 to 10.30 p.m. tomorrow and on Saturday and from 10 a.m. to 1 p.m. and 3 to 9 p.m. on Sunday.