The hotels and restaurants lobby has supported the announced downsizing of Air Malta’s "bloated" workforce but has urged the government to direct workers to the private sector rather than into public sector jobs.  

In a statement on Sunday, the Malta Hotels and Restaurants Association said it was in favour of the government’s plan to try and make the national airline a profitable enterprise.  

The government on Friday unveiled plans to slash Air Malta's workforce by half by summer as part of a major cost-cutting plan to save the struggling airline. 

The carrier’s 890-strong workforce will be cut to 420, with workers being offered alternative jobs with the government. 

The job-cutting plan is forecast to save €15 million a year.

Malta, the hotels association said, needs a national airline, but this must be a sustainable enterprise.  

One of the most important cost factors to achieve sustainability, the MHRA said, was getting Air Malta’s workforce to the right size. 

“It has been clear that the company had a bloated workforce. This bold decision is a substantial step in the right direction, although there will need to be other decisions taken to ensure Air Malta’s long-term future,” the association said.

MHRA said it supports the government in taking the necessary action to ensure that the restructuring process is carried out in the smoothest possible way. 

However, the government should consider ways of facilitating airline employees taking up jobs in the private sector.  

“The announced restructuring plan for Air Malta is a must and is set to be in the right direction. Lessons must be learnt, and past mistakes must not be repeated for the sake of the employees, the tourism sector, and the wider economy as a whole. It is imperative that Air Malta is saved.”.

Most of the job cuts, some 300, will come from ground handling operations, which will completely end while the remaining 110 will be administrative staff.

A Voluntary Employee Transfer Scheme will open on Monday to attempt to transfer the workers to other government departments. The first batch of 110 will be at their new place of work by March.

David Curmi, executive chairman of Air Malta, said the plan will "need more flexibility from airline employees", especially pilots and cabin crew and that work practices will need to change. 

New collective agreements are to be negotiated and will be concluded by the second quarter of this year.