Air Malta separates ground-handling operations

Air Malta is to split off ground-handling operations from flying activities, as part of efforts to improve its financial position.

Ground-handling staff, numbering more than 450, will form a new, state-owned company. The Maltese government and the island’s General Workers Union signed an agreement for the new arrangement earlier this week.

Among staff affected will be those in ground-handling service operations, ground equipment maintenance and cargo operations.

Maltese media reports in recent weeks have said the government was prepared to close down the airline and set up a replacement, freed from legacy costs and conditions, if an agreement was not reached to separate the ground operations.

The Mediterranean island’s tourism minister, Konrad Mizzi, said the ground-handling move was part for a wider plan to revitalize the airline, which has been under increasing pressure from LCCs in recent years. Malta is a popular holiday destination for Europeans.

Mizzi said a new business plan for the airline was under preparation that aimed to generate growth, new business and provide investment for new equipment.

Air Malta chairman Charles Mangion said separating the ground-handling side of the airline would allow it to concentrate on its core business of flight operations. The airline is moving from a full-service model to one closer to that of a hybrid airline.

As part of this effort, and to generate new business, the airline has introduced a new range of fares, including a low-cost Go Light ticket for passengers traveling with only hand luggage.