Karl Stagno-Navarra Government has reportedly approached GO plc chairman Sonny Portelli to consider taking the helm of Air Malta, if and when Lawrence Zammit decides to resign his post.
The news comes just days before Air Malta convenes its annual general meeting on Thursday, where record losses are expected to be announced.
Sister newspaper Business Today has reported Air Malta’s losses for 2009 are estimated to be in excess of €25 million.
Interviewed by Malta Today, Air Malta’s chief executive Joe Cappello described the situation at the national airline as “bumping along at the bottom of the curve and we have not yet taken off.”
However, he stressed that the national airline was not “falling behind as before” adding that the potential of a turnaround existed.
Contacted yesterday, Sonny Portelli – who is also chairman of the Malta Council for Economic and Social Development – refused to comment, while Lawrence Zammit said he will still chair next Thursday’s AGM.
Zammit, however, has since been non-committal about his reported intention to resign his post as chairman of the airline, even though he is said to have told government his days at Air Malta are counted.
Times have been difficult for all airlines since 2001, following the shock of the 9/11 terror attacks on the US, and 2008 was a particularly bad year as the price of oil caused extreme pressure on the airline’s fuel cost.
Cappello said the impact had totalled €30 million, with the recession hitting the British pound sterling in value against the Euro, and travel demand in the airline’s core markets decreasing.
The bridge between 2008 and 2009 spelt disaster for Air Malta, but while overall demand for seats was down by 2% last summer, a glimmer of hope came in October with a 5% increase of 5% in demand.
Other issues hindering progress at Air Malta concern collective agreements with the General Workers Union, which represents the general workforce. The union says any wage freeze that Air Malta wants to implement would have to affect all levels, management included.
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