Il-Prim Ministru jikteb lill-"ex"-Diretturi ta' l-Airmalta

Il-Prim Ministru Dr. Alfred Sant illum wiegeb ittra ta' erba' ex-diretturi tal-Kumpanija Nazzjonali ta' l-Ajru AIRMALTA. L-ex Diretturi huma s-sinjuri Tony Mallia, Richard Cachia Caruana, Frank Portelli u Joseph Ross.

Kopja ta' din l-ittra qed tigi mehmuza ma' din l-istqarrija.

8 March 1997

Mr Tony Mallia,

Mr Richard Cachia Caruana,

Mr Frank Portelli,

Mr Joseph Ross.

Dear Sirs,

Thank you for your letter of yesterday in which as former directors of Air Malta you explained your position regarding the analysis being made about Air Malta's present financial and operating stance, as well as your assessment of the airline's situation.

It certainly is not the intention of the Government to make of Air Malta a political football. Indeed for the past few years I have myself been very worried that Air Malta had been allowed to become the preserve of one or two individuals who considered the airline as their personal toy. I had observed how as a result, Air Malta's overall performance had deteriorated.

Air Malta is a leading publicly owned company with perhaps the major responsibility to ensure that our tourist industry continues to grow and flourish.

The Government is committed to ensuring that it is run in a cost effective and professional manner. The new Board of the company which has just been appointed reflects this commitment. Professional and business people having different dimensions of experience in our society's affairs and a proven track record of success in their respective fields have accepted to serve as members and I thank them for this. Their skills should complement each other, to create the right kind of corporate purpose that will triumphantly bring Air Malta out of its current situation.

For a careful reading of your letter underlines the point that Air Malta is indeed facing serious difficulties. Whether one approaches them from a strategic perspective or from an accounting basis, the conclusion is inescapable. The difficulties that Air Malta is facing do result largely from decisions that were taken during your stint on the Board.

It is not just today that Air Malta is facing a difficult international environment, one that in your words "changes virtually every day of the year". This has been the case since its inception. Previous boards dealt with the situation without fuss, and without overextending the airline's resources, both financially and operationally, as they are now to a dangerous extent.

Forgive me for being blunt, but I believe that in the end, it is the bottom line that counts. The buck must stop somewhere. And directors of Air Malta should be publicly accountable for their decisions, just like other people who assume responsibilities or tasks.

I do not accept your argument that creating public discussion about the airline's current challenges will compound its problems and should therefore, be smothered. This is a recipe for cronyism and lack of transparency. I do not subscribe to such an approach, never have and never will.

It is significant that you refer to "growing pains" as the real problem - which would presumably not be blameable on any body - and which should not be attached to any single "solvable item". You then list these items as being the position of Mr J N Tabone, the regional jets purchased in 1993, the Airbuses purchased in 1990, monies held in Libya, UN sanctions on Libya, the AZZURAIR investment, the GWU's "intransigence", and the generous incomes paid to Air Malta's employees.

You were appointed to the Air Malta board to deal with these issues. My conclusion is that actually over the years not only were these issues not resolved, but they were compounded. This is so with particular reference to relations with the General Workers Union (whom it seems especially convenient for you to blame with "intransigence"); the purchase of the Avro carriers; and the situation at Selmun and Hal Ferh, where what should have been profitable operations were allowed to run to seed.

I assure you again that the Government fully believes in Air Malta's future. We will ensure that it is run professionally, autonomously and definitely not as the private fief of anybody, but in the interests of the whole nation.

Difficulties there will be, but there will also be many opportunities which I am sure the new Board will be fully able to meet with determination, commitment and imagination.

Yours faithfully,



Dr Alfred Sant

Prime Minister