Tourism Minister Edward Zammit Lewis was cautious when asked if it was true that Air Malta was in talks with Etihad Airways. “I have always been cautious and did not even react to the speculation in the papers. My position remains the same: We are speaking to strategic partners and we are looking forward to signing a memorandum of understanding, which would be the first step before we go into technical aspects, such as the network, the workforce and how the strategic partnership will work out.
Times of Malta reported last week that Air Malta and Etihad were about to sign an imminent strategic partnership deal. Prime Minister Joseph Muscat later said no talks had been concluded and no agreement had been signed so far. Any agreement would not be final but serve as a base for further negotiations.
The PM said any agreement with either the players that are being mentioned or other players in the field will be public. There also has to be full consultation with the stakeholders, the workers and the unions.
The search for a strategic partner is ongoing and progress is being made, Dr Muscat said.
Etihad completely denied reports linking it with a possible equity stake in Air Malta. “Etihad Airways reiterates there is no foundation, nor substance, in such stories that have been circulating for several months,” the national airline of the United Arab Emirates said.
Minister Zammit Lewis said he had ‘’not reacted to these claims because I have the interests of Air Malta and its workers at heart. Nothing has changed, in the sense that the Air Malta brand will be retained and the government will retain its majority shareholding.
"When an MoU is signed we will announce it and all that will be agreed upon will eventually be put up for public scrutiny. Transparency is very important.”
Dr Zammit Lewis said he was holding back from giving more details because he did not want to prejudice the ongoing sensitive talks.
It has also been speculated that, a strategic partnership would bring with it another round of restructuring, possibly including a reduction in the airline’s workforce. Asked if Air Malta workers had anything to fear, the minister said: ‘’We will certainly look after the workers. That is why negotiations take time. I have already said that Air Malta’s current business model, despite the reduction in costs and overheads, is not viable. The business model will have to be changed anyway but in the meantime we are searching for a strategic partner to give Air Malta, a small airline, more relevance. ‘’
According to news reports back in November, Etihad had asked Air Malta for information on its workforce and wage bill.
President Emeritus George Abela had been appointed as a mediator between Air Malta and the unions ahead of the link-up with a strategic partner.
A few days ago Dr Abela told The Malta Independent that only one meeting between the unions and the management was held but this did not mean that nothing was being done. Dr Abela said he was working with the management and was also looking into the various collective agreements. A lot of preparatory work was being done so that, when a strategic partnership agreement was signed, proper talks between the unions and the management could be held.