Issue link: https://maltatoday.uberflip.com/i/737583
6 maltatoday, WEDNESDAY, 12 OCTOBER 2016 News Alitalia threatened by preferential treatment given to low-cost CONTINUES FROM PAGE 1 Howev- er, the Italian government has failed to get permission from the EU to allow f lights to non- EU destinations from Linate. "We simply want to see lib- eralisation, because all the airports in the world can't tell you when you can and can't f ly. London City, Heathrow or Gat- wick. Three airports that are open for all. But here in Italy you've got Linate restricted. So we can't use it as effectively as we want to," Hogan said. Hogan is also concerned with the strong presence of low-cost airlines, with Ryanair increas- ing its market share from 20% to 50% in the 18 months since Etihad invested $2.4 billion in Alitalia. "In most markets of the world national carriers are protect- ed to some degree so that as I mentioned earlier, but here in Italy you have six low cost airlines and you have none at Heathrow and none in Paris Charles de Gaulle," Hogan said. Asked whether he has brought this up with Renzi, Hogan said "We do. We raise these issues with the Minister of Transport. What we see in other national carriers, we believe Alitalia should be treated the same." He added that "Alitalia is re- building, Alitalia needs to get back on its feet. The competi- tive issues and the economic is- sues are our job and we'll tackle those. But the stakeholders of Italy Inc must also help the Italian carriers. If they don't, that's a major concern." Hogan also hinted at a down- sizing exercise, pointing out that the market is changing and legacy airlines such as British Airways and Iberia un- derwent a restructuring pro- cess in order to compete with easyJet and Ryanair. "You see us being back with brand, product and service to be competitive. But we need to continue the restructur- ing to become more efficient. Taking advantage of technol- ogy and finding ways that people are more productive." "How does Alitalia use its workforce more effectively? How can it maximize the number of hours aircraft can f ly? And maximizing the le- gal use of workers. As long as things are done, of course, within the legislative frame- work." Hogan added "we may need to downsize, but if we grow the business in the longer term and bring on more air- craft, we may downsize in one part of the business with skillsets that are no longer relevant and grow in other parts of the business where we can employ more pilots, more cabin crew and more engineers." Likewise, Air Malta has been undergoing a restruc- turing process costing some €230 million ever since it was given the green light for state aid under strict European Commission rules. With low cost giant Ryanair close to taking the majority market share of the incoming passenger market to Malta and Air Malta's financial sus- tainability in serious doubt, the part-privatisation of Air Malta is a priority for Mus- cat's government. MaltaToday is informed that Alitalia are due to take a final decision on the acquisi- tion of Air Malta this month following a rigorous due dili- gence exercise. But last week Mus- cat insisted that all op- tions were on the ta- ble, and no deal would be signed with Ali- talia if it would not give Air Malta the u l t i m a t e benefits. Secure Investment Secure Investment Issue of Issue of €100,000,000 100,000,000 in in Fixed Rate Malta Fixed Rate Malta Government Stocks Government Stocks (subject to the over (subject to the over-allotment option allotment option up up to a maximum of to a maximum of €60,000,000 60,000,000) MALTA GOVERNMENT STOCKS MALTA GOVERNMENT STOCKS STOCK STOCKTAL TAL-GVERN GVERN _______ _______ (i) (i) 1.5% 1.5% Malta Government Stock Malta Government Stock (Fourth Issue) (Fourth Issue) Fungibility Fungibility Issue Issue maturing aturing in in 2022, 2022, and and (ii) (ii) 2. 2.1% Malta % Malta Government Stock Government Stock (First Issue) (First Issue) maturing in 2039 maturing in 2039, , or or (iii) Any combination of the above two Stocks which in the aggregate shall be €100,000,000 Fixed Rate Malta Government Stocks Applications Applications open open on on Monday Monday 17 17 th th October, October, 2016 2016 at at 8.30 30 a.m. and and close close on on the the time time and and dates dates as as hereunder, hereunder, or or earlier earlier at at the the discretion discretion of of the the Accountant Accountant General General: The Treasury announces the issue of €100,000,000 Malta Government Stocks subject to an over- allotment option up to a maximum of €60,000,000 as follows: MALTA GOVERNMENT STOCK FOR SAFE INVESTMENT AND LIQUIDITY WITH MALTA GOVERNMENT STOCK FOR SAFE INVESTMENT AND LIQUIDITY WITH INTEREST PAID INTEREST PAID UP TO UP TO THE DAY OF RE THE DAY OF RE-SALE OF SALE OF STOCK STOCK SECURITY SECURITY CONTINUOUS LIQUIDITY CONTINUOUS LIQUIDITY INTEREST EVERY SIX MONTHS INTEREST EVERY SIX MONTHS (The value of the investment may go up or down during the tenor of the Stock.) Treasury Department, The Mall Building, The Mall Treasury Department, The Mall Building, The Mall - Floriana, Floriana, Malta Malta The The Price Price for for each each Stock Stock at at (i) and and (ii) (ii) above, above, offered offered for for subscription subscription by by members members of of the the public public shall shall be be established established on on Thursday Thursday 13 13 th th October, October, 2016 2016, based based indicatively indicatively on on the the prevailing prevailing secondary secondary market market prices, prices, and and shall shall be be announced announced through through a Press Press Release Release issued issued by by the the Department Department of of Information Information (DOI) (DOI). • at at 5.00 00 p.m. on on Wednesday Wednesday 19 19 th th October, October, 2016 2016 for for applications applications by by any any single single and/or and/or joint joint applicants applicants which which in in the the aggregate aggregate do do not not exceed exceed €100 100,000 000 per per person, person, and and • at at 12 12.00 00 (noon) (noon) on on Monday Monday 24 24 th th October, October, 2016 2016 for for applications applications in in the the form form of of sealed sealed bids bids (auction) (auction). Application Application forms forms may may be be obtained obtained from, from, and and lodged lodged at, at, all all Members Members of of the the Malta Malta Stock Stock Exchange Exchange and and other other authorized authorized Investment Investment Service Service Providers Providers on on the the indicated indicated dates dates. Application Application forms forms may may also also be be downloaded downloaded from from the the Treasury's Treasury's website website at at www www.treasury treasury.gov gov.mt mt with with effect effect from from Friday Friday 14 14 th th October, October, 2016 2016. Bids Bids on on the the prescribed prescribed forms forms are are to to be be transmitted transmitted by by fax fax on on 2596 2596 7210 7210 or or by by e-mail mail at at the the e-mail mail addresses addresses indicated indicated on on the the application application forms forms or or deposited deposited in in the the Tender Tender Box Box at at the the Treasury's Treasury's premises premises in in Floriana Floriana. James Hogan