Survival of Air Malta depends on restructuring, says MHRA
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“The business of running an airline has changed dramatically since 1974 when Air Malta was set up,” the Malta Hotels and Restaurants Association said today.
“The arrangements between national airlines operating under bi-lateral agreements whereby air fares were set to ensure that airlines made a profit has gone forever and will not return. EU rules allows any airline to fly to and from any airport within the Union and pricing of air fares is set according to market demands.”
The Association pointed out that “these realities have driven a number of legacy airlines, who failed to restructure, into bankruptcy. Air Malta has not been immune to these realities and it is only due to a massive efforts as well as a one-time cash infusion from the government that it is still flying today.”
MHRA said that it therefore cannot understand the logic behind the resistance for change which is essential for the survival of the airline by a considerable number of stakeholders, who will themselves be badly effected should this one time bail out fail to turn round the airline.
“MHRA fails to understand how cabin crew can take industrial action, that will drive the airline further into difficulties which in the end can mean the loss of their jobs if the airline fails.”
Unless change happens then the airline will not survive and the consequences of this demise will have a major impact on Malta’s tourism as well as the economy as a whole, stated the Association.
“Those that are responsible for this industrial action have to assume responsibility for the very serious consequences of their actions not only to the airline but to the wider economy, which will be hurt through the loss of the airline,” MHRA said.
MHRA concluded, “furthermore those that are taking action should show more respect to the shareholders of the airline, who are the Maltese people through their government, that has poured over €150 million to save their jobs. It is unacceptable that such action is taken by people whose jobs the country has saved at enormous costs.”


























