Those involved in the thorny restructuring process at Air Malta certainly have their work cut out for them in finding the ways and means of standing the struggling airline back on its proverbial feet from living on a wing and a prayer as it is at the moment.
But, it could reasonably be argued, the formulation of the rescue and restructuring plan is the easy part – a case of implementing business expertise and a cold hard exercise in accounting. Far more difficult will be the political decisions that will need to accompany the plan, and merging the business, political and social considerations into something that will convince the European Commission that the airline could somehow be brought back to profitability by the middle of next year.
The government is walking a very fine line here indeed. The issue is so heavily politicised that the government will be damned if it restructures – since that would undoubtedly require the taking of some very controversial decisions such as controversial job cuts – and damned if it doesn’t – since a failure to act, and act quickly, could very well mean the downfall of the airline, and the possibility of the loss of far more jobs than could be contemplated through even the most painful of restructuring exercises.
The European Commission will give its approval or lack thereof to the plan and the linked €52 million government loan facility by mid-May. But in its assessment it will not contemplate the political fallout and other such considerations. It will rather put the company and its restructuring plan under the microscope in terms of a private enterprise. The question it asks is whether a private investor, not a government, would seriously consider the loan being requested.
Should the decision be in the negative, the road ahead for the national airline will be most uncertain and the fallout in all its forms could be colossal. As such, given the complexity of the issue and the associated risks, it is completely understandable that the submission of the final has been delayed as is being reported today.
The survival of Air Malta is fundamental to the country and large swathes of its economy. Such things simply cannot be rushed into.
A worthy challenge risen to
Round about this time last year we had commended President George Abela for the challenge he laid at the Maltese people’s feet when he made the surprise announcement that the Istrina annual fund-raising event would no longer be offering the prospect of prizes in return for donations.
The people rose to that occasion in December 2009 and did so again this year, with over €2.3 million having been collected – equalling last year’s record and once again exceeding the Lm1 million threshold that had eluded past editions which had held the added allure of prizes.
The risk of the new format was a calculated one, but it was one that has paid off well - not only in monetary terms but also in terms of bringing the nation together in the true spirit of solidarity and charity.
As President Abela had remarked about the risky axing of prizes in the lead up to L-Istrina 2009, “It was not an easy decision and we looked into the risks, but I am convinced that people will prove that they believe in the real value of solidarity and generosity without needing to be awarded a prize in return.”
The decision, despite the risks to the Malta Community Chest Fund, which the President heads and which since 2001 has been the beneficiary of half the funds raised every year, was commendable and sent out a strong message and one that is most befitting of the Office of the President: that the event is about charity and solidarity with those less fortunate and not about prize-giving frenzies of past editions.
Those who donated this year once again rose to the challenge despite the threat that the recession may still bite, all the talk of today’s cost of living and the uncertainty about the future - and they did so in good stead and did the nation proud in the process.
But, on the other hand, there were also a good many people who used this and last year’s L-Istrina records as supposed proof that the nation’s individual coffers are far from dried up and that people are relatively well off.
This is the same argument used whenever a share IPO or a bond issue is sold out, forgetting that the main purchasers are institutional investors, or when they see restaurants are still full.
Such arguments are rather simplistic. There is a good deal of recorded poverty out there and much poverty is hidden under the radar. Apart from the obvious cases, many readers will no doubt know of a family that is always well-dressed, prim and proper but which lives in hovel conditions and struggles to put food on the table. Yes, strange behaviour but pride is a funny thing. One should not be led astray or pull the wool over one’s own eyes by using such arguments that the problem of poverty does not exist.
This year again, enough people have not fallen victim to such arguments and have opened their hearts and wallets to those less fortunate. May this be the case next year and in the years to come.