Issue link: https://maltatoday.uberflip.com/i/1107757
3 maltatoday | SUNDAY • 21 APRIL 2019 NEWS CONTINUED FROM PAGE 1 to buy Air Malta's landing rights at London Heathrow and Gatwick air- ports, through a new company that leases those slots back to the national airline. Just on the speculative value of those landing rights – €33.8 million for the summer slots only – Air Malta re- ceived a much-needed cash boost in a year where its selling and distribution costs climbed to €15 million and ad- ministration expenses increased to €17 million. But in the year ending March 2019 it will once again be a one-off €22.8 mil- lion boost from the London slots, this time for winter, that will keep the air- line's finances stable. "The agreement contemplates two separate transactions, one for the re- spective slots for the summer season and the other for the winter season… the summer slots were exchanged on 20 March 2018 [€33.9 million] which amount is fully reflected as a gain [in] financial year ended 31 March 2018… "The winter slots were exchanged on 12 July 2018 and accordingly, after the end of the current reporting period, the company recognised [a gain of] €22.8 million for the year ending 31 March 2019," auditors noted in the fi- nancial accounts. Still, auditors PricewaterhouseCoop- ers noted that Air Malta as a group is forecasting losses from continuing operations in the 2019 financial year due to market and operational matters. However, it is "proposed transactions" mentioned in the company's business plan that will "give rise to funding that meets liquidity requirements". A financial expert who analysed the 2018 accounts with MaltaToday said the government will probably find new ways of boosting Air Malta's cash flow, while tip-toeing around the restric- tions on state aid from the EU. "Air Malta are using all the tricks in the book to keep the finances looking good: one assumes that using its spe- cial purpose vehicle, they are able to hive off landing slots at other airports, so that government keeps coughing up the millions every year needed to keep the airline afloat," the expert said. Despite the triumphant note struck by the Labour government on Air Mal- ta, its own auditors have highlighted major conditions relating to the com- pany as a going concern: "the underly- ing assumption [is] that the business plan 2019-2021 can be successfully im- plemented… and [that] the confidence that the government has expressed, on the basis of the legal advice obtained, that the proposed arrangements do not give rise to any form of state aid and that all restructuring actions are pur- sued within the framework set by the European Commission." Air Malta currently has €47 million out of €74 million in bank balances which are 'frozen' – that is, pledged in favour of bankers – even though they are considered to be "an integral part" of the group's cash management. That is almost double what was pledged back in 2017 (€28.4 million). One way the airline has realised new profits is by recognising the sales val- ue of unused tickets as profit, after 12 months rather than 18 months. The ef- fect of this change increased the com- pany's revenue by €3.1 million. mvella@mediatoday.com.mt London slots cash split between 2018 and 2019 Just a quick run-through on those numbers... Tourism minister Konrad Mizzi (left) with Air Malta chairman Charles Mangion KARL AZZOPARDI THE proposed tunnel linking Malta and Gozo took centre- stage at a debate on Gozitan workers and the EU, which was organised by the Associa- tion for Gozitan Employees in Malta. The debate included Nation- alist Party MEP candidates Frank Psaila and David Stel- lini, Democratic Party candi- date Martin Cauchi Inglott, as well as independent candidate Arnold Cassola. Green MEP Michael Cramer was also part of the panel, while AGEM as- sociation president Sean Zam- mit chaired the debate. Labour Party candidates said they could not attend the debate due to party commitments. Cassola immediately came out on the offensive, hitting out at PN MP David Stellini for his vote in favour of a motion on the tunnel tabled by the govern- ment last week. The former AD leader, now contesting as an independent after falling out with the party on its position on abortion, ac- cused both parties of voting in favour of the tunnel without having reviewed all the assess- ments of the link's impact. Stellini, however, hit back at Cassola, arguing that the PN had amended the motion, to ensure that all commissioned studies be made available to the public. The PN's amend- ments, he said, had also sought to force the government to improve connectivity through other means until the tunnel is completed. Fellow candidate Frank Psaila agreed with Stellini saying that it was imperative for govern- ment to also address connectiv- ity issues in the short term for the benefit of all Gozitans. "Why are we waiting for the fast ferry? Why are we waiting for the water taxis? The tunnel is not an immediate solution," Psaila said. Cassola, however, insisted that parliament's vote in favour of the motion was "criminal", insisting that the PN's amend- ments were nothing to boast about. "It is criminal for Franco Mer- cieca to propose this motion, it is criminal of you [Stellini] to vote in favour," he said. Cassola went on to claim that PN MP Chris Said's support of the project was influencing the PN's position. "Said goes to your party head- quarters and starts his tantrum, then everyone follows suit," he claimed. Audience members were also invited to have their say, with all those who spoke saying they were against the tunnel. A good number of those who did, de- scribed the PN's willingness to support the tunnel as collusion with the government. Stellini calls for regional refer- endum As the debate went on, Stellini said that Gozitans should be al- lowed to decide for themselves whether a tunnel was the best option. "It's up to the Gozitan people to decide, they are the ones who will be using the tunnel, and they are the ones who should choose," he said, much to Cas- sola's disapproval. "What about the residents under whom the tunnel will be dug?" Cassola rebutted. Cassola went on to say that he had met many people currently performing geological studies, who, he said, had told him that the tunnel could possibly drain the Simar and Ghadira nature reserves, while also endanger- ing the lives of residents in the Manikata area. Cauchi Inglott said that the PD had already expressed its views on the Gozo tunnel. He said that the way the project was be- ing administered, showed that the government lacked a long- term vision on the country. AGEM President, Sean Zam- mit said that the association's views on the tunnel had re- mained consistent. "As an association, we are in favour of a permanent link, but the system proposed, with a sin- gle lane car tunnel, will not help the worker. One-size-fits-all will not work," he said. Tunnel debate, Cassola attacks 'criminal' MPs