Issue link: https://maltatoday.uberflip.com/i/664438
maltatoday, SUNDAY, 10 APRIL 2016 3 News Etihad sees itself as a 'rescue investor' CONTINUED FROM PAGE 1 Tourism minister Edward Zammit Lewis has said that any deal will see the government retain its majority shareholding in the national air- line. Air Malta is in the final months of a five-year restructuring plan that the previous government had agreed with the European Com- mission in 2012 in return for the latter's approval of around €130 million in state aid. Over the past five years, the car- rier was forced to trim its staff, re- duce its number of operating jets, and cut capacity. The plan should have seen the company return to profitability this year but has fall- en way short of its restructuring targets. 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 destina- tions to which it has not previ- ously had convenient access. Etihad is not new to such agree- ments – last year it saved Alitalia from bankruptcy, reinforcing the Gulf airline's reputation as a "res- cue investor" for airlines in diffi- culties. In December 2014, Etihad bought 49% of the loss making Alitalia in a €1.76 billion rescue plan, giving it access to Europe's fourth-largest travel market and 25 million 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. Etihad, which has eight equity partnerships including Alitalia, has expanded its wider network to 400 destinations, allowing the youngest of the three major Gulf carriers to compete with Dubai- based Emirates and Qatar Air- ways. 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. 'It is not letting us work serenely' – Bartolo CONTINUED FROM PAGE 1 Today's speech will be peppered with the first clear references to concrete steps that will be taken to intro- duce new reforms to swiftly bring in governance and transparency measures, but realistically it will not be enough to tame the very hostile local press and the Nation- alist party that have hounded him. Typical for the 41-year old Prime Minister, he has taken his time to weigh all his options, and yes- terday MaltaToday was told by a close aide that Muscat had decided what his next steps would be but he would not allow his timing to be dictated by the leader of the op- position. Relations between the two party leaders are at the lowest ebb pos- sible, best exemplified by the bristly and stiff greeting the two exchanged during the freedom day celebrations at the end of last month. Muscat will also be pointing his guns at Busuttil and warning him that his actions are damaging the economy, the one card which Muscat constantly uses as proof that his three years at the head of government have reinvigorated the Maltese economy and are a success. Tomorrow Muscat is expected to tour Lebanon and Jordan and re- turn on Thursday, so there is little expectation that his decision will be announced before Friday. Last Friday, addressing the con- ference, Education Minister Evar- ist Bartolo urged his party to come forward with a proposal that would see Malta promoting "a public registry" for the registration of offshore trusts and companies in countries such as Panama and the British Virgin Islands. Taking the floor, Bartolo was one of two speakers to make clear and specific reference to the Panama leaks – the other was deputy leader Louis Grech, who reiterated that the final decision was Joseph Muscat's to take. "This is a huge story which is changing the world and the in- ternational financial services sector. Its effect will be unprec- edented and we have to tackle it, not just in political terms," Bar- tolo insisted. He made it clear that the PL parliamentary group will be standing behind Muscat in next week's no confidence motion presented by the Opposition against the government. The education minister, known to be one of the more critical voices in the party, reiterated the party needed to address the issue, which embroiled senior members of the government. "It is not letting us work se- renely," Bartolo argued, adding that this should however also be an opportunity to learn. "We believe in fiscal morality and it would be wise to propose a public register. The obligation shouldn't just be on politicians – which is an enormous duty which we should always respect – but on everyone who holds an offshore trust or company in tax havens, even though the struc- ture would be legal." Bartolo said the Labour Party should never forget its roots: the people who sacrificed everything to protect the values they be- lieved in. "People judge us by what we be- lieve in and what we do. It's not enough to talk but we have to act. We need to live those values every day. And if we don't, peo- ple lose their trust in us." The minister warned that without Labour in government, different factions of society will suffer. "It's not the rich people that have to wait for their operations. It's not the wealthy children that need government to help pay for private lessons. This is the government that increased the disabled workforce from 50 to 500. Without us in government, whole factions of society will be forgotten." He pointed out that for the Labour Party to be in power, it needed the citizen's vote, which would be at risk if their trust is thrown away. "This is our biggest test… this is the test to face if we want to continue doing the good we're doing." Expressing his wish of seeing the Labour party in government in 2021 – which would be the year in which the PL celebrates its 100th anniversary – Bartolo said the PL was built by people who believed in principles and values. "They weren't the type of peo- ple who expected something from the party… they didn't ex- pect money, contracts, gifts or prizes. They were the people who faced jail, were forced to migrate and who suffered hunger. "Our party is based on social justice values, on freedom, equal- ity and dignity. These are the val- ues that must inspire us." Bartolo also urged the party supporters not to fall for the provocation of the Nationalist's campaign. On his part, deputy leader Lou- is Grech reiterated that the Pana- ma decision would be decided by the Prime Minister, "never one to shy away from his responsi- bilities". "These should be based on facts and on the interests of the party. It will be a decision taken by us and not dictated by the PN's machine. We act when the Prime Minister deems it fit and not when the PN thinks it should happen." Tomorrow 'Reporter' will be de- bating the Panama papers and the recent crisis. TVM 10pm with Saviour Balzan Reporting: Miriam Dalli & Saviour Balzan 'People judge us by what we believe in and what we do' – Bartolo Tourism Minister Edward Zammit Lewis