Opposition Leader Simon Busuttil warned this evening that, in selling a 49% stake of Air Malta to Alitalia, the government was practically relinquishing control of the airline. Dr Busuttil also questioned the choice of Alitalia, pointing out that the same airline is also going through restructuring.

Earlier, Tourism Minister Edward Zammit Lewis said the memorandum of understanding was just the beginning of a turnaround for Air Malta, which has been registering losses since 2003. He said he would remain in touch with the stakeholders, the employees and the public. Despite speculation in the media, most of the discussions still had to be held. Important discussions with the unions will take place, with the aim of concluding collective agreements.

Dr Zammit Lewis said the current administration had found a bankrupt Air Malta, which was lacking a strategic plan and a vision. The previous administration had swept its problems under the rug. Exorbitant sums were being paid on top management salaries and perks, as well as unneeded resources. The Labour government had promised to turn the situation around, whilst retaining control over the airline. Air Malta’s losses have been reduced greatly. This was no easy task, the minister said, thanking the current airline management and employees.

PN Leader Simon Busuttil said the Opposition Leader was reserving its position for now. “Our minds are open to being persuaded by the minister. This issue should not be politicised and there should be national consensus. But consensus has to be based on truth and reciprocal respect, not on statements, such as the ones you have just made, trying to give the impression that the sun started shining on Air Malta in March 2013.”

The Minister said Air Malta has registered losses since 2003, but did not say that the time it was led by Deputy Prime Minister Louis Grech.  “The Opposition will not accept certain statements that turn the truth upside down,” Dr Busuttil said.

“In principle we are not against strategic partnership but the announcement has raised several questions. We are not against, as long as certain conditions, which we consider to be red lines, are satisfied.”

Dr Busuttil complained that the Oppositon had not been consulted at all on the talks with Alitalia. He also said that, in selling a 49% stake, the government would practically be relinquishing control of the airline. “A technical and commercial partnership would have been better than just selling shares in the airline.”

He also questioned the increased connectivity claims. Would the routes decrease? Would the number of aircraft decrease?

Another question was the choice of airline. Why Alitalia? Noting that the Italian airline had had its fair share of problems, Dr Busuttil asked if Air Malta would go down with Alitalia if the latter ran into trouble.

“Let us not forget that Alitalia does not even have flights to Sicily. And you want to convince us that the same company will serve Malta well.”

He also asked whether the minister could guarantee that Air Malta’s workforce would not be reduced? “Employees are concerned and have every right to know how the story will end.” 

Independent MP Marlene Farrugia said the Maltese taxpayers had always helped to keep Air Malta afloat. The airline has recently announced that its losses have been reduced to €4 million in the current financial year. The NSO also published very positive tourism figures today. So how could the government justify selling such a large stake in Air Malta to Alitalia?

PN MP Robert Arrigo said Air Malta was making a loss of €4 million and carrying 2 million passengers per year. Could we possibly have not made up for these €2 per person and kept Air Malta as a Maltese company? PN Deputy Leader Beppe Fenech Adami asked the minister to state when the MoU was signed. 

Replying, Dr Zammit Lewis said the strategic partnership went far beyond the sale of shares. He also said that individuals who have been successful in restructuring airlines will take part in the negotiations.

Dr Zamit Lewis said Air Malta was not interested in being a feeder airline for Alitalia. But the fact that some southern parts of Italy were not fully serviced by Alitalia was an opportunity, for Air Malta can do some of that work. “But this does not mean that we have become a regional airline. We also want to increase our connectivity and route network.”

The Minister acknowledged that employees were concerned, but their worries did not start now.

Replying to questions on the ground handling department, Dr Zammit Lewis said Air Malta was looking at different options, including that of ground handling being separate from the airline.

Replying to Marlene Farrugia, he said it was romantic to state that the Maltese people have been investing in Air Malta but we have to see where the airline and the industry are heading.Replying to Mr Arrigo, the minister said what he was proposing was a containment scenario, not the future of Air Malta. If the airline is to expand, this is the way forward, he said.