Air Malta To Cut Employee Count In Half As It Tries To Survive

Air Malta is continuing to struggle amid the ongoing coronavirus pandemic. The Maltese flag carrier had consistently been making losses before COVID-19 struck, with the global health crisis only worsening its situation. As such, it is now set to shed half of its employees.

Half of the workforce to be laid off

The ongoing coronavirus pandemic has provided an immense and unprecedented financial challenge for airlines worldwide. The global health crisis has hit some airlines harder than others, and particularly threatened carriers that were already struggling beforehand.

Air Malta is one such airline, with Nasdaq reporting that it has almost continually made losses since 2005. These total $295 million, and 2018 represented its only year of profit during this time. With losses continuing to rack up against the challenging backdrop of COVID-19, the Maltese flag carrier now looks set to take significant downsizing action.

According to The Malta Independent, the country's Finance Minister, Clyde Caruana, announced that the national airline would have to cut more than 400 jobs in order to survive. With an existing workforce of 890 employees, this represents around half of the carrier's workers. Some 300 of these will come from the airline's ground handling department.

Other money-saving strategies

The shedding of up to 460 employees will, according to The Times Of Malta, save the struggling carrier up to €15 million ($17.1 million) a year. The cuts will allow Air Malta to streamline its operations, following an assessment that showed that it was overstaffed.

As it happens, the cuts, which Nasdaq reports will be made in exchange for further state aid as part of a deal with the European Commission, are just one part of a wider recovery plan. Indeed, The Times Of Malta notes that the national airline will also work on its network to save money. This area includes aspects such as scrapping unprofitable routes.

Furthermore, Air Malta's financial situation also means that it will have to abandon its long-haul plans, in favor of a more concentrated European network. Other aspects will include a greater focus on charters, and even finer details such as a revised, cheaper livery.

Redeploying affected workers elsewhere

For many people, the thought of losing a job during the challenging and uncertain pandemic era would, understandably, be a cause for significant concern. However, for the workers that Air Malta looks set to cut, there will be a lifeline from the government. Indeed, those losing their jobs will instead have the opportunity to transfer to public sector roles.

The first group of employees to be offered this transfer will be the 100+ cabin crew and administrative staff that will begin leaving tomorrow. Then, later in the year, the aforementioned 300 ground handling employees will receive similar offers. Transfers to the private sector are also being considered, given the shortages currently faced in this area.

Source " Simple Flying "