Air Malta has announced the re-organisation of its senior management structure. The changes, aimed to enable the airline to move to its second phase of development, were announced last week to staff though an internal memo by the airline’s Chief Executive Peter Davies.
In his message the airline’s CEO said that Air Malta has been through a momentous time as for the first time since it commenced operations in 1974 it undertook a major overhaul. He said that the restructuring process, managed in a relatively short period of time, started showing results and everyone's efforts are now beginning to bear fruit. “Whilst we have achieved some significant milestones we are still not out of the woods. Much has still to be improved as we continue the vital path of profitability without which we cannot survive,” said Mr Davies.
To date Air Malta’s organisational structure has reflected the first phase of its turnaround - the creation of a company that is focussed on delivering profits and to secure an improved balance and cash flow. Now the airline needs to move to the next phase to enable its business prosperity and that requires a change in Air Malta’s senior management structure. Mr Davies announced that the airline is now ready to enter into its second phase of its development and move forward towards the goal of self sufficiency and profitability.
“We need to consolidate the gains we have achieved and begin to map out our future. A future that will be determined as much by our capacity for change as it will be for our intellect in developing the right strategy for the airline. That has a bearing not just for us as professional airline employees but for the country. We must get it right”, commented the airline’s Chief Executive.
“We must begin to understand and plan our longer term future. We need to have a vision, a strategy that takes this airline forward, forward beyond that which is currently envisaged in restructuring plan, beyond 2016. Those strategies are now being developed and these will be built upon the strength of what we have achieved and what we need to achieve in the coming two years. It will guide our network, our relationships, our partners, our fleet; critical phases of building the airline”, emphasised Mr Davies.
Mr Davies announced that the airline is entering a critical period of fine tuning through the intellectual application of Business Process Reengineering (BPR). He said that Air Malta needs to improve its efficiency and take advantage of new technology. This is not only required since customers are expecting more but also since the airline now needs to make a profit.
To enable and facilitate this new focus as from 1st March Air Malta will operate through five main organisational business streams. Commercial Under the direction of Chief Commercial Officer Philip Saunders, the airline has registered a substantial increase in seat load factor and yield - vital elements to achieve Air Malta’s revenue generation targets. Air Malta has also successfully launched its new brand and the new website will be open for business in the coming few weeks. Many other Marketing activities, designed to increase awareness of the brand and strengthen the public’s perception of the airline both in Malta and overseas, have been launched. Others will follow. These activities have been initiated so that Air Malta can support the Malta Tourism Authority and the country's important tourist industry more effectively.
Going forward Philip and his team will continue to improve the revenue across all areas of the company business which also includes cargo as well as spearheading Air Malta’s new on board customer experience. This is imperative if the airline wants to achieve its goal of becoming the world’s leading destination airline. Going forward Air Malta needs to further support its team of cabin crew who will continue to be proud, professional and honoured to represent their country as true Ambassadors of Malta. Philip and his team are leading this important project.
Operations
The second stream will concentrate on the pure operational elements of the organisation; processes that facilitate safety, efficiency and focus on despatch and reliability. The airline’s engineering division has always been a great asset to Air Malta and further responsibilities were added to Chief Engineer Silvio Falzon that include ground operations and passenger handling. By bringing all operational dependencies within one department Air Malta will be in a better position to focus on the core operational opportunities. Elements of the airline’s Operations Control Function will also come under Silvio's direction. He will now be the airline’s Chief Operations Officer.
Business Services
The third stream is Business Services. Air Malta depends upon support from Finance, Information Technology and Human Resources – services which have an internal customer and are so vital to a world class management. Nick Xuereb will be assuming responsibility for these functions as well continuing to be Air Malta’s Chief Financial Officer. This change concentrates those skills necessary to provide the right environment for effective control over the way in which Air Malta handles its relationships with staff, suppliers and other key external stakeholders such as the banks.
Flight Operations
The fourth stream will concentrate on Flight Operations. Air Malta flies a safe and reliable airline, but it can never become complacent. Soon, the airline will be introducing the concept of a Safety Management System (SMS) which forms part of an overall European Commission initiative designed to encompass all aspect of airline safety. This will not only include flight operations and engineering but will also affect every single person in the airline industry including Air Malta. This requirement needs focus and direction and is dependent upon the right talent being able to interpret the requirements of the SMS into everyday processes for Air Malta.
Captain Mark Micallef Eynaud will continue in his Chief Officer Flight Operations role but will have the added responsibility of the SMS. Furthermore, he will assume responsibility of Occupational Health and Safety.
Programme Management
The fifth stream centres on the Programme Management Office. Since its introduction this office has been managed by Air Malta’s external consultants, Catalise. That contract, and their specific work is nearing its end and the full responsibility now needs to be transferred fully to Air Malta’s management team. The office has and will continue to provide a crucial difference to the success of the airline. The first phase of this department’s life was to create the improved Restructuring Plan for the approval by the European Commission as well as to establish the framework, work groups and work flows necessary to begin the changes in the airline. That expertise did not exist in the company and Catalise have done a great job in providing that. The next phase needs to take that impetus and concept forward and continue changing and facilitating the way in which Air Malta carries out its business. All elements and processes which the airline follows everyday needs to be continuously analysed, assessed and possibly changed for the better. This requires dedicated resources and intellect that can crucially interweave all the dependencies Air Malta has as a company. Joshua Zammit will head this stream as Chief Officer Programme Management that now includes a team of local project management professionals.
“The first phase is complete; this second phase is about strengthening our efforts. It is not only about staying on course but also about aiming to build upon our successes and facilitating our next objective - that of securing a stable and secure future for Air Malta through becoming profitable and creating a sustainable, exciting, achievable plan”, concluded Air Malta’s Chief Executive.