Following the lengthy negotiations for the renewal of the collective agreement, Air Malta and ALPA – the union representing Air Malta pilots – have been unable to reach an agreement. As a consequence of the deadlock that has resulted, Air Malta has informed ALPA that it considers the two sides to be in dispute. The airline has invoked the provisions of the current collective agreement which provide for Compulsory Private Conciliation.

In a press release issued last night, Air Malta said these discussions have been aimed to focus on both the financial and non-financial working conditions of pilots, however, the major stumbling block in negotiations remained the salary package.

Air Malta said its pilots, who enjoy one of the highest paid jobs in Malta, currently command an average annual gross salary of an Lm15,616 for First Officers and Lm27,834 for Captains. The Company has presented ALPA with its latest substantially increased financial package which includes a minimum salary of Lm21,000 and a maximum salary of Lm44,000 for pilots. This has not been accepted by ALPA.

Air Malta said the union has requested an increase in a pilot’s salary by an average of Lm21,500 over and above their current salary. Air Malta believes that ALPA’s financial requests are unreasonable and go beyond the Company’s capacity to absorb the high costs in the current circumstances and are unsustainable.

Air Malta believes that to continue comparing current local pilot wages, who are substantial by local standards, with those offered by other Asian, Middle Eastern or European carriers is a pointless exercise. One has also to compare the standard of living in these countries, operations and schedules of these airlines and tax regimes used in other countries.

With regards to the leave issue, according to the company’s records, pilots averaged two cumulative vacation leave during the peak summer months which every employee is entitled to during a calendar year. Air Malta will be giving approximately 80 per cent of the current year’s leave by the end of the current leave year, namely March 2008.

This situation has been brought about due to this winter’s additional work Air Malta secured in leasing out two of its aircrafts to Etihad in Abu Dhabi.

Air Malta said it once again calls on ALPA to be reasonable in its talks with the airline on the new collective agreement. The pilot’s Union financial package requests seriously endanger the financial viability of the airline at a time when the airline is on the right track to achieve this viability.