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Air Malta executives outline change after EUR36m loss

28-Jun-2011 10:11 AM

Air Malta Chairman Louis Farrugia and CEO Peter Davies stated (24-Jun-2011) there is a need for change at the carrier. In a meeting attended by hundreds of employees, Mr Farrugia said that Air Malta had no option but to carry out a significant restructuring to save the airline and hundreds of jobs. “We’re doing all that is possible to carry out this very difficult but mission critical task. Every stakeholder needs to embrace change in order to survive and rebuild the future," he said. Mr Farrugia also announced that the airline has already started implementing the restructuring plan that has been presented to the European Commission, with a key milestone being the reducing costs by EUR30 million p/a, at the same time also increasing revenue by EUR30 million annually. Mr Davies also presented the roadmap with milestones to be achieved that will secure the successful turnaround of the airline. He also stated that in the 12 months to Mar-2011, unaudited accounts indicated that Air Malta made a loss of EUR36 million. Mr Davies also announced a Voluntary Redundancy Scheme for the airline’s employees and said that formal talks with the unions will start as early as next week. Mr Davies announced the appointment of Philip Saunders as CCO while a CFO will be appointed on 01-Sep-2011. Five additional executives have been appointed in the areas of IT,  Revenue Management, Finance, Engineering and Cargo. This team is appointed on a temporary basis, specifically focussed on accelerating the pace of change during these six months. [more]