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.<br/>