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KM Airlines to Sue Pilots’ Union Over Software Dispute

KM Airlines Initiates Legal Action Against Pilots’ Union Over Software Dispute
KM Airlines has formally notified the pilots’ union, ALPA, of its intention to pursue legal proceedings, alleging a breach of contract linked to the union’s ongoing industrial action. The core of the dispute involves SkyBreathe, a €250,000 fuel management system that KM Airlines maintains is vital for complying with European Commission regulations and statutory CO2 emissions reporting obligations.
Industrial Action and Alleged Non-Compliance
Earlier this week, ALPA directed its members to engage in a series of protest actions amid unresolved disagreements with the airline. Although the union’s instructions did not explicitly mention SkyBreathe, the industrial action has effectively rendered the system unused. In a communication sent to ALPA on Friday, KM Airlines’ executive chair David Curmi accused the union of instructing pilots not to cooperate with or utilize SkyBreathe, resulting in the system being “unutilised and effectively on hold.” Curmi emphasized that the airline is incurring substantial costs because pilots, including those in management positions, are refusing to process data generated by SkyBreathe in accordance with union directives.
KM Airlines has demanded that ALPA retract any instructions or informal communications discouraging the use of the system and provide written confirmation of its support for SkyBreathe. The airline contends that the union’s conduct constitutes a breach of employment terms, leaving it “no choice but to formally register a legal dispute with ALPA.”
Wider Implications and Industry Reactions
The ongoing industrial action has elicited criticism from Malta’s hospitality sector and the Malta Chamber of Commerce, both warning that the dispute jeopardizes jobs and economic stability. Finance Minister Clyde Caruana has publicly condemned the union’s position, labeling it “greedy” and “unjust,” and has vowed not to concede to the union’s demands.
At the heart of the conflict lies the imminent termination of a lucrative early retirement scheme for pilots, with eligible members poised to receive a €74 million payout before the scheme concludes in 2028. This financial element is believed to be a significant factor driving the dispute.
The situation poses considerable challenges for KM Airlines, heightening the risk of operational disruptions and escalating costs. Investors and stakeholders are closely monitoring the airline’s capacity to manage internal tensions while maintaining service standards. Industry analysts suggest that competitors may exploit KM Airlines’ internal difficulties to capture greater market share. Furthermore, the dispute could prompt increased regulatory scrutiny across the aviation sector, potentially resulting in more stringent compliance requirements for airlines industry-wide.

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