The Malta Independent 10 May 2024, Friday
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TMIS Editorial - New leadership at Air Malta: a breath of fresh air

Sunday, 31 January 2021, 12:07 Last update: about 4 years ago

After a decade or so of constant leadership changes, the national airline might have finally found the ideal candidate for the job.

The airline’s new Executive Chairman, David Curmi, was interviewed on this week’s edition of Indepth. He outlined his vision for the airline which, unlike the plans outlined by some of his predecessors is more down to earth, realistic and perhaps more attainable.

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Curmi does not mince his words. He is determined to run the airline just like a successful business should be run – in a profitable way. Now, this could mean that hard and painful decisions will have to be taken, but at least the airline is now being led by someone who says it like it is, rather than by people who talk about grandiose plans that never materialise.

When asked if Air Malta has too many people on its payroll, Curmi did not hesitate to admit that the airline could possibly operate with fewer people. Air Malta will seek to become even more efficient, he said, and some operations might be outsourced.

This statement might not go down well with some people, as it could lead to a loss of jobs at the airline, but if it is the real truth then it needs to be said and done.

It is clear that the airline is still going through a difficult period. While Air Malta seemed to have begun a turnaround over the past couple of years, the unexpected pandemic put paid to those efforts and has effectively all but grounded the company and its planes.

Curmi also did not mince his words when asked how badly the company needs state aid. Air Malta will, in fact be making a second more detailed request to the European Commission to give financial assistance. He says, however, that, in the longer term, he does not want the airline to be dependent on external aid or on its main shareholder – the government. It has to be self-sufficient.

Every single unit of Air Malta has to be profitable, he said, explaining that if this is not the case, the plan won’t work.

The company is also aiming to change its operational model. There are no illusions of grandeur, no unattainable goals. It will focus on its core markets, rather than try to bring in new destinations that are not viable.

It will also, when the situation permits, regain its foothold in North Africa, particularly in troubled Libya, where there is a vacuum in air travel. The airline would certainly benefit from such a route, which will be beneficial not only for Maltese businesses with operations in Libya but also for other Mediterranean companies that do business in the North African state.

The idea of introducing long-haul routes such as direct flights from Malta to New York is no longer being considered. It does not make sense at this point in time and would cost the airline money it does not have. This is the right approach. Anything that is not commercially viable should not even be considered at this stage.

Similarly, the idea of finding a strategic partner has been shelved. As Curmi puts it, Air Malta first needs to get its own house in order before reaching outwards. In any case, other airlines around the world are going through the same troubles and the company should use its efforts elsewhere, and not waste its time on futile endeavours.

In certain sectors, the best option is to have a technocrat leading, ideally someone coming from that same sector. This is true of the health sector. The fact that the health minister is a doctor means that the person at the helm takes decisions through a clinical approach (at least when that decision is not overturned by higher up because it is too unpopular).

The case of Air Malta, however, might be different. While the airline has been dogged by several industrial disputes and huge losses and has often been used by the political class to repay favours and give jobs to the boys, the fact that it was sometimes led by people coming from the aviation sector did not always help.

Now, the airline is being led by a person who sees things differently, someone with a business mindset, and who believes that the only way in which the company can survive is if its operations are profitable.

Perhaps this the turning point that the troubled airline needs. Maybe, this new no-nonsense approach is the ingredient it was missing over the past couple of decades. Curmi has his work cut out for him, and the journey ahead will not be an easy one, but his plan might just see Air Malta soar high in the skies again.

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