The PN has put forward proposals through which the airline can be "re-capitalised" with €140 million, through local investment and through share options for the airline's employees.

The PN also recommends the creation of a training fund for employees.

PN MP Claudio Grech said that the PN's proposals were explained in a meeting with the sector's social partners, and workers' representatives. The PN positions are based on four principles, that Air Malta remain in local control, that the airline expands through local investment, that decisions be taken in the interest of the workers, and that there be a long-term plan that is not changed based on who is in government.

The MP presented the PN's plan which is divided into five steps. First, are proposals as to how employees should be treated with respect and dignity. The second deals with how the airline can reach the highest levels of efficiency in its operations. The strengthening of Air Malta capital with €140 million. Access to finance so that Air Malta can make the necessary investment in critical operational sections. The last step deals with government treating the airline fairly.

The MP said that he will propose that the plan be discussed with government.

PN MP Antoine Borg said that while low cost airlines are important, Malta has found itself in a position where airlines like RyanAir have become stronger than the national airline.

He said that Air Malta management must assure that the national airline is able to compete with low cost airlines.

Government reaction

In a statement, the government said that certain PN proposals were positive and it was already considering them but two points were unclear.

The first one was on how the recapitulation of the €140 million should be carried out according to EU regulations. What the government has been doing is attacking international investment without eliminating the local component.

The second point which is unclear is, whether the PN would speak about the local privatisation of the national airline where the government would lose majority shareholding. This will lead to workers losing the assurances they had been given by the government.

The government had reached the main restructuring objectives which the previous administration had agreed upon at EU level. Now the main focus is on a post-restructuring strategy which the previous administration never had.

Now the government is committed to start a dialogue with the workers and which he is doing regularly.  The government hopes that the workers will understand the effort that the company has to do in order to have a future and be commercial viability.

The government was always willing to discuss with the Opposition and a technical presentation was to be given to the Opposition.

There needs to be a national effort for such issues to be resolved once and for all.

The government had already managed to bring down Air Malta's €30 million losses to €4 million, it said.