The uncertainty surrounding Air Malta’s future is weighing in heavily on various entities that are directly or indirectly related to the company, and the prolonged period of time required for certain decisions to be communicated seem to be harming the airline more than ever.

Perhaps the warnings were, after all, always there to be seen during the past years. Admittedly, the attempts made and the measures undertaken were, with hindsight, far too feeble to effectively turn around the fortunes of the national airline. Throughout this same period of time significant increases in the price of oil had a severe impact on the operational costs of the airline and a shift towards low cost travel meant that potential travellers opted for new destinations offered by low cost carriers. Regrettably, Air Malta never quite managed to compete with low cost carriers and at face value it does not appear that the company ever considered venturing towards new destinations to potentially tap into new revenue streams.

The airline is now at a crucial stage of its operations and its survival depends on the restructuring plan which was submitted to the European Commission for approval a few weeks ago. In real terms, the airline was cash strapped in the second half of last year and required a loan from government to continue flying its aircraft. In the meantime, however, the situation on the ground seems to be on the verge of disintegrating as employees anxiously await news of their future following the declaration that the company will have to reduce its employees by half. This is a very unfortunate situation for employees but from a business point of view it has to be considered as either the airline is found beyond salvage and declared bankrupt and as a consequence all employees are made redundant, or work practices are streamlined to save the company.

As a matter of saving costs, conflicting messages are being sent out by the airline. With so many properties owned by the company large enough to accommodate a meeting, the company’s management paradoxically decided to hold an employee meeting in a hotel and potentially incurring a cost. Irrespective of whether the cost is minimal, the message is that the company has money to spend on trivial matters. If that cost is considered as insignificant, the €2 million (or €3 million, depending on who you listen to) cost incurred to commission Ernst and Young to draft the restructuring report can only be perceived negatively. Air Malta can either be considered as a company that is on the brink of collapse or financially capable of commissioning a report worth millions.

Saving Air Malta should be the main aim on the national agenda and the priority for all the parties involved in the process. The uncertainty that is surrounding Air Malta is also negatively affecting the tourism industry as the matter is slowly going into a vicious circle. Should certain decisions be prolonged further it could be difficult to reverse the irreparable damage that could potentially tarnish the industry’s international reputation.