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3 NEWS 17.2.2022 FROM PAGE 1 Air Malta executive chairman Da- vid G. Curmi told BusinessToday that all 571 workers would be transferred onto the public payroll. "The company had set no ceiling for the number of applications it would accept," he said. In January, when the restructuring exercise had been un- veiled, Curmi and finance minister Clyde Caruana had said that at least 420 Air Malta employees - out of an eligible 824 - would need to subscribe to the scheme for the plan to be finan- cially viable. When asked whether this significant reduction in employees will affect the daily operations of the company's var- ious departments, Curmi said that the restructing plan would be revised ac- cordingly. "The Voluntary Employee Transfer Scheme which was launched by the Company on 17 January 2022 and which closed on 11 February 2022 is part of a major restructuring plan and will provide the airline with a one- time opportunity to establish a tar- get operating model and a new and leaner organisational structure where a higher proportion of costs become variable through the outsourcing of certain services that were previously in-sourced," he said. Air Malta had originally announced target savings of around €15 million per year with a reduction in its staff complement of 420 employees. This latest development is now ex- pected to net the company more sav- ings. Critical staff shortfall Industry sources told BusinessToday that all departments appear to have been hard hit by the transfer requests, except for pilots who were not includ- ed in this scheme. Staff within the revenue manage- ment office will drop from five to two, whereas only one employee within the company's reservations control office looks set to stay. Also hit is the sales team, with 12 out of 15 staff expected to transfer out. Only two staff members will be left to operate the airline's ticket office at Malta International Airport. The same sources said that other departments, including engineering, will experience critical shortfalls in staffing levels. Finance minister Clyde Caruana had said the cost-cutting plan will see the airline ridding itself of ground han- dling operations, which covered the bulk of the 420 original transfer tar- get. The restructuring plan also includes a commitment to negotiate new col- lective agreements that include more worker flexibility to allow the airline to fly between different airports that do not include Malta. These collective agreements have to be concluded by June. The airline is in dire financial dif- ficulties, made worse during the pandemic. Government sought per- mission from Brussels to be able to provide State aid, however, it decided to move ahead with cost cutting meas- ures even though the European Com- mission has yet to pronounce itself. Government's cost-cutting plan is independent of the amount of state aid the European Commission will al- low. Restructuring intends to give the airline "a fighting chance" to survive, Caruana had said. Air Malta restructing plan 'to be revised accordingly' The voluntary employee transfer scheme was open to all Air Malta employees of the company apart from pilots

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