The coronavirus pandemic continues to have a major economic impact on carriers worldwide. One such financially demanding airline is the Malta flag carrier Air Air Malta, which is currently losing more than $ 200,000 per day. They have sought support to overcome the current crisis, and the country’s government is currently negotiating with the European Commission.
Financial impact across the industry
According to The Times Of Malta, Finance Minister Clyde Caruana has confirmed that the country’s national airline is currently losing around € 170,000 a day as the current crisis escalates. fall forward. This equates to approximately $ 206,000 every 24 hours.
In fact, Air Malta is far from the only airline to make a huge loss due to COVID-19. In fact, Lufthansa was losing as much as € 1 million ($ 1.2 million) an hour in April last year. This has dropped to around € 500,000 ($ 600,000) per hour.
Government support necessary to avoid losses
Nonetheless, figures like these and the picture of Air Malta paint a grim picture of the precarious situation in which countless carriers currently find themselves. In terms of what a Maltese flag bearer has to do to survive, government support looks like a real necessity.
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According to Lovin Malta, Finance Minister Caruana has warned that the airline’s lack of state support could fold in weeks. The Maltese government is currently in talks with the European Commission, which it hopes can deliver state aid to its national airline.
The Maltese government and the European Commission appear to be in a dire relationship, due to unfulfilled promises regarding Air Malta. Nonetheless, Caruana hopes the country can present “honest and credible” to the commission to save the carrier.
Long-term economic problems
There is no denying that coronavirus has posed a major personal and financial challenge to airlines around the world. However, Air Malta has its problems ahead of the time of the pandemic. Lovin Malta details them in frightening fashion, saying:
“The airline has been struggling for several years. It has only recorded a profit once in the last 19 years. By the end of 2019, Air Malta reportedly recorded a loss of € 30 million. ”
2020 got the airline off to a bad start, as the pandemic forced them to suspend their commercial flights in March last year, leaving it with very few revenue streams. Later in the year, it became the subject of controversy over a union issue.
In particular, he is said to have offered pilots € 1,200 a month in hard pay, which was denied by ALPA, his pilots’ union. Lovin Malta reports that this controversy has resulted in some pilots losing their jobs, with the case since being taken to court.
With half of its eight-strong fleet currently based, according to Planespotters.net, the situation hangs in the balance for Air Malta. He will certainly hope that he can get government support before time, and money, comes out.
To what extent do you value Air Malta ‘s chances of gaining government support and surviving in the current crisis? Have you ever flown in with a Maltese flag carrier? Let us know your thoughts and experiences in the comments.