Air Malta chairman and CEO David Curmi is earning €21,500 a month for his work at the struggling national airline, which has shed hundreds of workers in an attempt to remain a going concern.

News of Curmi's lucrative contract sparked PN calls for a parliamentary investigation into Finance Minister Clyde Caruana for having "lied to parliament". 

The minister insisted he had done no such thing. 

Curmi was engaged to lead Air Malta in January 2021.

One year into his three-year term, the government announced a massive restructuring effort in what Finance Minister Clyde Caruana dubbed a “last chance” for the airline to stave off bankruptcy.

As part of that restructuring effort, the airline slashed its workforce by half, hived off baggage and ground handling services and dropped many of its unprofitable routes.

The airline spent more than €60 million in severance packages to get hundreds of workers off its books. Others were redeployed to other jobs within the public sector. 

It would appear that the drive for austerity does not stretch across the airline, however.

According to an employment contract published by The Shift News on Tuesday, airline boss Curmi will pocket €774,000 plus €3,870 in VAT over the duration of his three-year deal, which ends next January.

Curmi has been hired as a consultant and is billing the finance ministry €21,500 every month for his services, the contract reveals. He is not subject to any minimum work period, fixed hours or work schedule.

The contract includes a declaration stating that Curmi’s Air Malta income “is expected to constitute less than 75% of his income over a period of one year.”

Curmi's €21,500-a-month salary is higher than that paid to the CEOs of several other state-led entities.

The CEO of the Malta Financial Services Authority, for instance, earns roughly €14,500 a month while the CEO of the Foundation for Medical Services makes €13,500 monthly. 

Despite the massive restructuring effort kickstarted under Curmi’s watch, Air Malta looks set to run out of steam: earlier this year, Curmi confirmed that work was under way to set up a new national airline that will be able to start with a clean slate, free of debts.

Curmi estimated that the new airline would be up and running by the end of 2023, and pledged a “seamless transition” between Air Malta and the new, as-yet unnamed airline.  

Details about the executive chairman’s lucrative contract raises questions about information tabled in parliament by minister Caruana last June.

Replying to a parliamentary question by PN MP Paula Mifsud Bonnici, Caruana presented a list of board members within various entities under his ministerial purview, including their respective salaries.

Curmi was listed as Air Malta’s executive chairperson and the document stated that he received “no remuneration”.

PN demands probe into Clyde Caruana

The PN demanded a parliamentary standards probe into Clyde Caruana. Photo: Chris Sant Fournier

The Nationalist Party pounced on news of Curmi’s contract, saying it proved the minister had lied to parliament and calling on the parliament’s standards commissioner to investigate him.

“Clyde Caruana should be there to safeguard public finances and ensure people’s money is used suitably. Clyde Caruana lied to parliament about public funds used to pay heads of state entities, who he appointed directly. This puts into question every statement Clyde Caruana has made about his role and responsibilities,” PN MPs Ivan Bartolo, Jerome Caruana Cilia and Robert Cutajar said.

“He was caught lying about this. He cannot be believed about other things,” they said.

Independent election candidate Arnold Cassola also asked the Standards Commissioner to investigate. 

Caruana: Curmi not paid as a board member

The minister reacted by sending a letter to the House Speaker, insisting he had not misled parliament. 

"The parliamentary question was linked to honoraria paid," he said. "Mr Curmi, who serves as Executive Chairman of Air Malta, receives no honoraria as a board member. Mr Curmi is paid to lead the company." 

The PQ reply provided to parliament in June 2023.

The parliamentary question asked was phrased as follows: "Can the minister say who are the members currently serving on every board and entity that full under his ministry, including chairpersons and secretaries? Can he list the remuneration of each person on each board or respective entity?"