Air Malta chairman Sonny Portelli is preparing to take his island carrier through a dramatic transformation as it fights for profitable survival in today's harsh competitive climate.

Portelli, who was in the telecommunications business until a year ago, is extremely frank about the challenges his airline is facing: "Going forward, it is very simple. We have to take the business model, analyse it and come up with a totally new one to take the business forward."

People want to fly to the same destinations, but pay less, he explains. "We have to become more efficient. We have to reduce our costs to be attractive to the market," says Portelli.

Sonny Portelli Air Malta chairman
 © Billypix
Portelli: under no illusions

Air Malta is loss-making and its financial situation is "not good", says Portelli. The government is currently seeking clarification from the European Commission on what help it can legally offer without breeching state aid rules.

"There is very little the government is able to do, because we are an EU member. State aid is not allowed. We are going to have to stand or fall by our own endeavours. I am under no illusions that there will be a number of [airline] casualties and I am absolutely determined that my company will not be one of these," he says.

Source: Flight Daily News