KM Airlines to Launch Legal Dispute Over Alleged Breach by Pilots’ Union
KM Airlines has notified the pilots’ union, ALPA, of its intention to initiate legal action over what it claims is a breach of contract tied to ongoing industrial action. The dispute centres around SkyBreathe, a €250,000 fuel management system required for EU compliance and CO2 reporting, which the airline says pilots are refusing to use. While ALPA’s directives did not specifically mention SkyBreathe, the airline claims the system has been sidelined due to “unofficial instructions” from the union. KM Airlines says this refusal is causing significant operational costs and urged ALPA to withdraw any communication discouraging use of the system and confirm its support in writing. The legal notice follows ALPA’s call for industrial action on Monday amid disagreements with KM. The airline’s stance has gained support from Malta’s hoteliers and the Malta Chamber, who criticised the disruption.
Government Tables Bill to Strengthen Tax Enforcement and Tackle Financial Crime
The Government has tabled a new Bill in Parliament aimed at strengthening Malta’s fight against tax evasion and financial crime. The proposed amendments affect several key laws, including those covering social security, income tax, VAT, and the Criminal Code. The Bill enhances the enforcement powers of the Commissioner for Tax and Customs, introduces new criminal offences, and increases penalties for breaches. One major change is the introduction of a harmonised system across all tax laws allowing taxpayers to settle breaches through formal agreements. These agreements involve fines between €10,000 and €1 million and offer protection from criminal charges—though civil liability remains. The Bill also introduces the concept of “connected breaches,” referring to offences committed in support of or to conceal tax violations. Government says the reforms will modernise fiscal enforcement and improve fund recovery from unpaid dues.
PN Sounds Alarm over Soaring National Debt and Deficit
The Nationalist Party has raised fresh concerns over Malta’s growing public debt and deficit, following new figures from the NSO. By the end of June, national debt rose by €1 billion compared to June 2024, edging close to €11 billion—an all-time high. The government is now accumulating around €2.8 million in new debt daily. Interest payments on this debt also surged, reaching €144 million in the first half of 2025—€17 million more than the previous year. The PN noted that when Robert Abela took office, national debt was just over €5 billion; it has since more than doubled. The deficit also widened significantly, jumping from €89 million in mid-2024 to over €457 million this year. While revenue increased slightly, spending soared by €437 million. The PN criticised the government’s lack of results despite record borrowing.
