13 July 2005

The Web

Air Malta reorganising outstation offices

Air Malta is taking several steps to streamline its outstation offices with a newly revised structure. The new structure follows a critical analysis of Air Malta’s operations in the overseas offices throughout its network. This whole process is part of a wider exercise which the Company had embarked upon in the middle of last year to reduce its costs structure throughout the organisation.
“The outstation review is an integral part of the Rescue Plan Agreement signed with the four Unions last year. The restructuring of outstations is expected to yield Lm1.35 Million in cost savings over the three years and I think that our specific targets in this area will be met. So far through the first phase of the restructuring we are on track and have already achieved close to Lm 500,000 over the past year,” commented Joe Cappello, Chief Operating Officer of Air Malta.
As a result of this restructuring, Air Malta has closed its outstation offices in Egypt and Morocco and is being represented there by General Sales Agents. The Air Malta Dutch and Belgian offices have been amalgamated under one management responsible for the whole Benelux area and which is now based in Brussels. The Office in Milan is being closed down and all the activities are being transferred to the airline’s Rome offices. The Zurich office will be manned by local staff and will be managed from Head Office. In London, Paris and Frankfurt, Maltese staff based in these offices have been reduced. Air Malta has closed down its London Heathrow Terminal 4 office. At this service point, KLM, which provides Air Malta with handling services at Heathrow, has now undertaken general supervision and operational coordination at this airport. Heathrow will retain the services of a Station Manager to ensure service delivery and quality levels.
Commenting on the changes at London Heathrow Joe Cappello explained “we are practically following others in our industry. Our size no longer justifies having our own set-up at Heathrow even because third parties are now able and willing to provide a high level of service and quality to their airline clients at reasonable costs. In fact this type of system has been in place in Air Malta for a number of years at a number of other major airports including Gatwick, Manchester, Frankfurt, Amsterdam and Paris where we have extensive operations.”

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