Prime Minister Robert Abela will be remembered as the prime minister who bankrupted Air Malta and destroyed Dom Mintoff’s vision for the airline, Opposition leader Bernard Grech said in Parliament on Monday.

He was speaking during a debate following a statement by Robert Abela on government plans to close down Air Malta in March and replace it with a new airline.

Grech said that while the prime minister was trying to pin the blame for the failure of Air Malta on former PN governments, the truth was that in 2013 the airline’s CEO wrote that Air Malta was on course for financial recovery. Even three years ago, minister Silvio Schembri claimed the airline was on track to meet its restructuring plan targets. And now the government had said it was being closed down.

The truth was that the former PN government had successfully negotiated a recovery plan for the airline with the EU, but the current government lacked the credibility to do the same and Air Malta was therefore being grounded, Grech said.

“The government is trying to make this out as being a ‘historic’ and ‘proud’ moment, but what are they proud of? Proud to have bankrupted the airline? Proud to have kept its workers in the dark about their jobs and their future?” Grech asked. 

PM blames former PN governments for Air Malta’s failures

In a statement earlier, Prime Minister Robert Abela went over key points he had earlier given in his press conference. He also blamed former Nationalist governments for Air Malta’s failures. Among them, he said, were the controversial purchase of four Avroliners which were completely unsuited for the airline and another decision in 2007/8 on early retirement schemes which would cost current taxpayers €90m.

He said the present government had managed to negotiate a favourable, lasting agreement with the European Union which would ensure that Malta, unlike some countries, would continue to have a state-owned airline and it would retain the number of aircraft it has at present.

The Commission had wanted the fleet to be reduced but Malta successfully argued that Air Malta needed eight aircraft. It also managed to ensure that the new schedule was such that the airline continued to operate to its most important destinations. 

Various Nationalist MPs raised a number of questions on whether current workers who joined the new airline would retain their current pay and seniority and whether collective agreements would be carried over. Questions were also asked about how ticket refunds would be given for those who booked Air Malta flights after next March and whether they were being guaranteed seats by the new airline. 

The prime minister was also asked how much debt it would assume from Air Malta apart from the recapitalisation costs of €350 million. He was also asked what the government wants of plans for Air Malta to link up with a strategic partner. Would it be cash or knowhow? For how long was the new airline bound to have eight aircraft? How would its board be composed? Should the airline be partially privatised or reach a partnership, who would take the strategic decisions? Were agreements reached on early retirement reached so far in bad faith, given that the workers were told that Air Malta would stay on? 

Replying, the prime minister said Air Malta's debts were not high and would be settled. He said the new national airline, would continue to service social needs like Air Malta, including ferrying sick patients.

Government showing 'pride' in the end of Air Malta

Adrian Delia, shadow minister for transport, said it was “surreal” that the so-called socialist government was ‘proud’ of the death of the national airline and had actually picked March 31, 'freedom day' as the birthday of the new airline.

He asked for how long was the new airline bound to have eight aircraft. How would the new airline's board be composed? Should the airline be partially privatised or reach a partnership, who would take the strategic decisions?

He also asked whether agreements reached so far with Air Malta workers on early retirement schemes should be considered as being in bad faith, given that the workers were told at the time that Air Malta would stay on. 

Delia observed that since the government was saying it had successfully reached agreement with the EU, that meant that it had wanted Air Malta to fail.

It also meant, he said, that the government had no credibility to form the new airline.  

Tourism minister Clayton Bartolo said the timing of the setting up of the new airline was such as not to affect tourism. He said the new national airline would focus on stability, not only for consumers but also operators.

“We need to remove all doubts that this airline will not do well or that our tourism will not continue to grow.”

The 17 destinations which the new airline would operate to were important European cities and the frequency of the flights would increase. Plans were in hand to start flights to Copenhagen, which showed that the authorities were tapping the Scandinavian tourism market too. 

The debate continues on Tuesday.