€450,000 for pilots to leave

Around 20 Air Malta pilots have been offered an early retirement package amounting up to €450,000 each as part of the airline’s bid to drive down staff numbers, The Sunday Times has learnt. Sources said the pilots aged over 50 with more than 20 years of service have received a letter from the airline’s management with this “one-time offer” for early retirement. The airline currently has 130 pilots and wants to reduce the number to 110. The airplane captains were offered two-thirds of their salary until their retirement age. Some pilots retire at 63 while others retire at 65. Rough calculations conducted by The Sunday Times reveal that pilots stand to receive between €370,000 and €450,000 each, depending on their salary. If pilots opt to take the payment in the form of a lump sum, they will receive a smaller figure overall. Pilots can opt to receive a sum over a period of time, which could also include monthly payments. According to the collective agreement, early retirement or golden handshake payments are tax free. In the letter, the pilots were told that the early retirement package was being offered as part of the collective agreement which it had reached with pilots last...