Air Malta will not start discussions on the Second Rescue Plan after unions involved in the talks with the airline expressed reservations about the proposals. It will in turn open the discussions for individual collective agreements.

The four unions were to submit their reactions to the airline’s proposal by the middle of January 2007. While two expressed their preference to negotiate a collective agreement rather than start discussions for a second Rescue Plan, the other two set forward reservations to a number of issues within the company’s proposal or asked further questions.

Last December Air Malta met the representatives of the four Unions and presented them with detailed proposals that the airline said it felt were necessary for its long-term commercial viability, as well as the guaranteeing of the employment of its staff.

The company’s said that its plan was to enter a two year agreement with all the four unions so that the airline’s financial turnaround, on which substantial progress has already been made but not yet finalised, is achieved and sustained on a long-term basis. Air Malta added that in its Rescue Plan proposal it would have committed itself to further enhance its revenue streams and reduce further its operating costs and overheads.

In a statement on Friday, Air Malta added that in the light of the situation it is not in a position to start the Rescue Plan discussions and has no option but to open the discussions for the individual collective agreements.