Issue link: https://maltatoday.uberflip.com/i/598356
maltatoday, SUNDAY, 8 NOVEMBER 2015 News 3 Airline unions issue joint stand against privatisation CONTINUED FROM PAGE 1 Air Malta is in the final year of a five-year re- structuring plan that the previous government had agreed with the European Commission in 2012 in return for its approval of around €130 million in state aid. Audited figures announced dur- ing the October meeting show that the airline posted a loss of €16.4 million for the year ending March 2015 and is set to reduce its losses to €4 million by 2016. Over the past five years, the car- rier was forced to trim its staff, reduce its number of operating planes, and cut capacity. The plan should have seen the company re- turn to profitability this year but it has fallen way short of its restruc- turing targets. A number of airlines have been linked to Air Malta, including Turkish Airlines, China's Hainan Airlines and Etihad, however, Zammit Lewis has been tight- lipped over the ongoing negotia- tions. But MaltaToday is informed that over the past days, Air Malta's ad- ministration has been inundated by requests from Etihad for in- formation about the company's financial situation and its contrac- tual obligations. A deal with Etihad could see Air Malta retain services such as cargo handling while overhauling its software and booking systems. Apart from code sharing, a part- nership agreement could see Air Malta gain from flying to Etihad's Abu Dhabi hub, where the com- pany can then transfer passengers to and from a range of destinations to which it has not previously had convenient access. Such a deal would need the ap- proval of government which is the sole shareholder and the unions before getting the seal of approval by the European Commission. The Commission has the duty to assess mergers and acquisi- tions involving companies with a turnover above certain thresholds and to prevent concentrations that would significantly impede effective competition in the single market. Etihad is not new to such agree- ments as last year it saved Alitalia from bankruptcy, reinforcing the Gulf airline's reputation as a "res- cue investor" for ailing airlines. In December 2014, Etihad bought 49% of loss making Alita- lia in a €1.76 billion rescue plan, giving it access to Europe's fourth- largest travel market and 25 mil- lion passengers. Etihad plans to return Alitalia to profitability by 2017 and the deal has seen the fallen Italian gi- ant expand its operations outside Europe. Following its link-up with Etihad, Alitalia launched new di- rect long-haul flights to Asia and the Americas. The negotiations for the Alitalia bailout were led by Italian prime Minister Matteo Renzi who in June of this year thanked Etihad Airways CEO James Hogan for "believing in Italy and in Alitalia" during the unveiling of the Italian carrier's livery. Hogan said that his carrier's eq- uity partnership with Alitalia rep- resented "the last chance" to save the long-struggling Italian carrier, and noted that Etihad's rescue plan for Alitalia would require a "radical change in its way of work- ing to lower costs and boost pro- ductivity." The Gulf airline demanded cuts of 2,250 jobs in exchange for its life-saving €387 million invest- ment, however some 300 workers were reemployed in June 2015. Etihad, which has eight equity partnerships including Alitalia, has expanded its wider network to 400 destinations, allowing the young- est of the three major Gulf carri- ers to compete with Dubai-based Emirates and Qatar Airways. The cash-rich Abu Dhabi air- line, which has minority stakes in Air Serbia, Air Berlin, Ireland's Aer Lingus, Virgin Australia and Air Seychelles, wants to boost its presence in the European market, where it lags behind its regional competitors and flag carriers such as British Airways and Lufthansa. jbalzan@mediatoday.com.mt ETIHAD'S AIRLINES Alitalia 49% Air Serbia 49% Air Seychelles 40% Darwin Airline 34% Air Berlin 29.21% Virgin Australia 24.2% Jet Airways 24% Aer Lingus 4.1% MEPA application for Coast Road petrol station is on transport ministry's land JAMES DEBONO PUBLIC land on the Coast Road reg- istered in the name of the ministry for transport, is being earmarked for the construction of a 3,000 square- metre petrol station by the Bilom Group, one of Malta's fastest grow- ing construction groups. MaltaToday has confirmed with the parliamentary secretariat for lands that the area selected for the intended petrol station, next to the newly constructed roundabout at Bahar ic-Caghaq and opposite the Qalet Marku coastline, was regis- tered to the transport ministry's precursor, the ministry for resources and rural affairs. However, no tenders for the lease of the site have been granted for this area, the secretariat told MaltaTo- day. But the applicants, Bilom Estates Limited shareholder Nathan Bartolo and Bilom Group general manager and owner Michael Bugeja, have indicated they hold a "title of lease" over part of the land. Bugeja's Bilom Group is widely reputed to enjoy a close relation- ship with the Labour administration. Established in 1985 as a neighbour- hood construction company, Bilom Group emerged over the last years of existence as one of the leaders in the real estate market. Their application was filed by Nathan Bartolo, but owner Michael Bugeja is listed as the "client" in plans presented by the architect of the project. Applicants for planning permits have to declare whether they are owners or not of a site, whether they notified the actual owners of their application, and whether they have a title of lease or an agricultural lease. The ODZ land where the huge pet- rol station is being proposed is de- scribed in the planning application as "disused land". Plans submitted to MEPA foresee the development of a car wash, a retail shop, an office and a store. The application is still being screened by MEPA, which has yet to inform the developer whether the proposed development conforms with existing policies. The application comes in the wake of a new policy regulating the devel- opment of ODZ petrol stations: the policy, enacted to improve safety standards, allows owners of petrol stations in urban areas to relocate to ODZ areas. But in so doing it allows them to enlarge fuel stations to a maximum of 3,000 square metres. Brand new petrol stations can also be constructed in ODZ sites if they are immediately next or opposite to industrial or storage areas. Last year MaltaToday reported that a number of petrol station li- cences were being sold thanks to a rise in their value, amid speculation that the new policy would allow larg- er petrol pump stations in ODZ sites. In submissions presented to MEPA last year the Malta Developers Asso- ciation had also warned that the new policy risks raising the "artificial val- ue" of existing fuel station licences. MEPA is already assessing four applications for the development of ODZ petrol stations in the Maghtab, Bahar ic-Caghaq, Burmarrad and Sa- lini area. Easysell Kia Malta Ltd, a company owned by the Tumas Group, is pro- posing a petrol station in Burmarrad. The petrol station is being proposed on a vacant site designated as an 'area of containment' but which was formerly a rural area ruined by past irregularities. Another proposal in Burmarrad is being made by Construction and Turnkey House Ltd. The develop- ment is being proposed next to an area of containment on land desig- nated for its agricultural value. The Environment Protection Directorate has already objected to this propos- al. Another application was presented by Luqa Construction Ltd to relocate an existing petrol station from Valley Road, Msida, to Triq is-Salini. A fuel station is also being pro- posed on a triangular plot of land wedged between Triq is-Salini to the west and Trejqet l-Arznu to the east. The surrounding area includes crop and livestock farms and small-scale industrial developments. No tenders for the lease of the site have been granted so far