Air Malta was “on track” to meet the restructuring plan targets but “it was not yet out of the woods”, according to Economy Minister Silvio Schembri who declined to divulge any figures.
According to the latest audited accounts, in the financial year which ended in March 2018, Air Malta registered a €1.2 million profit following almost 20 years of losses. However, the figure raised questions amid accusations of creative accounting.
Addressing a news conference at the national airline’s headquarters on Thursday, Mr Schembri said the restructuring plan was never meant to make Air Malta profitable overnight.
While insisting that the numbers were positive, he pointed out that the government’s vision is for the financial turnaround to take place by growth rather than downsizing the national carrier.
Given there are certain fixed costs regardless of the size of operations, it makes more sense recouping these them over a wider base by enlarging operations, he said. He added that improved workforce efficiency was having a positive financial impact.
Asked if the Air Malta board had been reconfirmed after offering its resignation in the wake of the change in government, the economy minister said the matter had not yet been decided. However, he said he did not foresee any problems.
Apart from introducing new routes, Air Malta last year said it was exploring the possibility of long-haul flights to destinations such as New York and India. Though he confirmed that feasibility studies were being carried out, Mr Schembri said it would be presumptuous of him to take a decision at such a stage.
Stagno Navarra's contract
Asked if the airline would be publishing the controversial contract of Labour television presenter Karl Stagno Navarra, the economy minister branded such a question as being “disrespectful” towards the company’s employees.
“Mr Stagno Navarra’s challenges are not those of Air Malta, as the latter as slightly tougher,” he said sarcastically.
“But we have no problem whatsoever to be transparent as we have always been,” he added.
A freedom of information request filed by Times of Malta for this contract has been refused by Air Malta, on grounds that Mr Stagno Navarra refused to disclose such information.