The Shift News have reported that the government established advanced plans to dissolve Air Malta later this year.
The plans are to transfer its few remaining profitable assets to a new airline, in a move similar to what occurred with Alitalia in Italy.
All of Air Malta’s workforce will be rendered redundant, with the drawing up of new contracts based on current market conditions also in talks as the new government-owner airline will be established.
A Plan B has been secretly drawn up to be implemented as all indications from Brussels point to a failure in ongoing state aid negotiations by the government to approve a new €290 million ‘rescue package’ for the airline.
Prime Minister Robert Abela and Finance Minister Clyde Caruana have already approved a plan which was set to be implemented once negotiations on state aid fail. This aims to set up a new national airline at the end of October and, simultaneously, declare Air Malta’s dissolution.
All Air Malta staff still on the register will be given redundancy notices, with some of them given the opportunity to apply for a new job with the new airline. The contacts to be offered will be completely redrawn, with many of the benefits currently enjoyed by staff no longer remaining applicable.
Customers who made bookings beyond the day of dissolution will either have refunds sent or will be offered the chance to travel with the new airline. Not all routes served by Air Malta will be continuing as the new airline will have to show that it is a completely separate economic operator and not a successor to get an EU approval.
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