Issue link: https://maltatoday.uberflip.com/i/401761
maltatoday, WEDNESDAY, 22 OCTOBER 2014 News 5 SENIOR POLICY OFFICER MHRA says Maltese investment is solution to Air Malta woes THE Malta Hotels and Restaurants Association (MHRA) called on the government to consider the BOV model as a potential solution to Air Malta's financial woes. MHRA president Matthew Pace said the model is "a tried and tested case of how Maltese private in- vestment could be combined with government interest in an effective and successful manner." BOV is a public limited company with the Maltese government hold- ing a 25.23% stake while the rest is owned by private shareholders, including Italian banking and fi- nancial services giant UniCredit, which has a 14.45% stake. In comments to MaltaToday, the newly elected MHRA president explained that for years the asso- ciation has underlined Air Malta's strategic importance as the na- tional carrier, "not only to the tour- ism sector but rather to the whole economy." Air Malta is currently undergoing a massive restructuring programme imposed by the EU after the gov- ernment saved it from bankruptcy in 2010 with a €52 million loan. Two years later the EU approved €130 million in State aid on condi- tion that the airline was restruc- tured. Air Malta almost halved its workforce, reduced the number of planes in operation, cut capacity and became profitable. The plan expires in 2015, by which time the air carrier should be turning a profit. In clear reference to the airline's unremitting financial problems, Pace said "any restructuring mod- el for Air Malta should now lead to concrete results as to-date too much time and money have been wasted on this front." Last week, Air Malta chairperson Maria Micallef declared that the airline is trying to cut costs across the board in a bid to bring a fore- cast €25 million loss for March 2015, down to €16 million. MaltaToday's report that insiders had seen a €30 million forecast loss for 2015, was never denied by the airline. In October, the airline will be ex- pected to present the latest figures for the year ending March 2014. In March 2013, the second year of Air Malta's five-year restructuring, the airline reported an operating loss of €13.7 million, down from €29.7m in 2011. The airline is now expected to post €16 million in losses in the coming weeks for the year ending March 2014. With talk of part-privatisation gaining ground, Pace argued that "it is critical to ensure that the Maltese interests are retained at the fore of any change initiative adopted by Air Malta, to make sure that operations ref lect the specific commercial and social needs of our national airline and the economy respectively." In 2012, former Air Malta chair- man Louis Farrugia had said that the only way to expand the national airline's operations is through pri- vate investment. Asked whether a strategic part- nership with another airline was the preferred solution, Pace said that although the association is not opposed to a potential strategic partnership, the preferred model would be the one applied at BOV. "It is critical to ensure that the Maltese interests are retained at the fore of any change initiative adopted by Air Malta, to make sure that operations ref lect the specific commercial and social needs of our national airline and the economy respectively," he said. Pace explained that the MHRA proposal is "a concept to be ex- plored by the authorities and ac- cordingly the details would have to be worked out and adapted by the relevant experts in the process of assessing other potential options." He called on the government and Air Malta to pursue the right changes to strengthen the organi- sational structure in line with the restructuring objectives outlined by the EU Commission. "Air Malta is a strategic organisa- tion and hence critical for the tour- ism sector and our economy, so at this stage all efforts must be con- centrated to ensure the sustain- able turnaround of operations and long-term viability of the national airline. "The MHRA has however al- ready made it public and known to the authorities that it disagrees in principle with any potential change model or tactical plan that would lead to or increase the risk for the divestment of key slots in airports which could potentially reduce Air Malta's standing. To avoid any un- necessary speculation the MHRA emphasises that it has not been consulted by the government, Air Malta or any other stakeholder that such action is being considered." MHRA president Matthew Pace SOUTH African athlete Oscar Pis- torius yesterday began serving time in jail for killing his girlfriend Reeva Steenkamp. Pistorius' lawyer, Barry Roux, said on Tuesday he expected the athlete would serve 10 months in jail and spend the rest of his sentence under house arrest due to the terms of the law under which he was sentenced. The Olympic and paralympic track star was driven to Pretoria's Kgosi Mampuru prison where he is ex- pected to be housed in the hospital wing, thought to be most appropri- ate for the athlete's disability. Judge Thokozile Masipa gave Pis- torius a five-year jail sentence for culpable homicide, but cleared him of murder. Prosecutors had called for a mini- mum 10-year term, and the defence had argued for community service and house arrest. Pistorius, 27, an amputee sprinter who became the first athlete to com- pete in the Olympic and Paralympic Games, killed Ms Steenkamp on Valentine's Day last year. He says he shot her by mistake, fearing there was an intruder in his house in Pretoria. Steenkamp, a 29-year-old model, reality TV star and law graduate, was hit three times by bullets fired by Pistorius through a toilet door. After the initial widespread ac- claim for the five-year sentence, with Reeva Steenkamp's family say- ing that "justice was done", news that the athlete will serve so little jail time after a brutal killing outraged many. Pistorius showed little reaction to the sentence other than to wipe his eyes before being led away to a hold- ing cell downstairs. Public opinion is divided on the sentence, with some maintaining it was too light and others that it was fair. Judge Masipa said she considered her sentence "fair and just, both to society and to the accused". Oscar Pistorius jailed for five years Oscar Pistorius