Air Malta will be retaining all of its cabin crew after an agreement was reached between the airline and the union representing these workers, Economy Minister Silvio Schembri announced on Wednesday.

Negotiations between the Union of Cabin Crew and the airline have been ongoing for a number of weeks. The airline had warned that it would be reducing the cabin crew complement from 333 to 49 unless the union agreed to pay cuts.

Schembri welcomed the agreement "in favour of work conditions that will help the airline become more sustainable."

The negotiations were lengthy and difficult, he said, but workers were in the end willing to make some sacrifices and, as a result, all cabin crew will be retained.

"As a result of their sacrifice, the company can operate in a more competitive manner," Schembri said, thanking the workers for doing their part in saving the airline.

Schembri said Air Malta now looks to reach an agreement with the pilots' union. He urged ALPA to cooperate so that the airline's operational expenses can be decreased.

The government, he said, will continue providing assistance, but the company must become more efficient so that it can be helped further as permitted by the European Commission.

Air Malta had warned that up to 80% of pilots could be sacked if they did not accept a hefty pay cut.