KM Malta Airlines axes Abu Dhabi consultants paid €7.1 million

KM Malta Airlines terminated a consultancy contract with a group of Abu Dhabi-based consultants last year, just a few months after it was renewed.

The multi-million-euro consultancy contract with Global Knighthood Ltd has been ongoing for years. It was previously established with Air Malta and has cost taxpayers €7.1 million.

Finance Minister Clyde Caruana confirmed in parliament, in response to questions from Opposition MP Mario de Marco, that the contract was terminated at the end of last year.

Caruana did not provide a specific reason for discontinuing the Global Knighthood contract, despite mentioning that the consultants were assisting the new national carrier in establishing itself and facilitating a ‘seamless transition’ from the now-defunct Air Malta to KM Malta Airlines.

The Finance Minister also confirmed that the consultants were paid a total of €7.1 million between 2020 and 2024, with the largest portion—€4.6 million—attributed to ‘turnaround consultancy’ fees paid by the already bankrupt Air Malta.

The consultants were recruited in 2020 when David Curmi became the head of Air Malta. They were expected to help the airline negotiate a deal with Brussels to secure state aid subsidies for continued operations.

Despite the significant payments to the consultants, their efforts ultimately led to a dead end. The European Commission rejected their five-year business plan and ordered the government to shut down the airline.

Instead of seeking new consultants to start afresh with KM Malta Airlines, the government retained the same chairman. Curmi continued working with the same consultants whose proposals had been rejected by Brussels.

This ‘seamless transition’ raised concerns within the airline and the government, particularly as news of the multi-million-euro payments to the consultants circulated.

The two principal figures behind Global Knighthood, James Hogan and James Rigney—former CEO and CFO of Etihad—had previously stepped down from the Abu Dhabi airline due to reports of mismanagement.

An Italian court later indicted them for alleged criminal activities that contributed to the failure and bankruptcy of Alitalia, the former Italian national carrier.

Hogan and Rigney maintained a long-standing connection with Malta through Leslie Cassar, a former Air Malta agent in Australia who founded the World Aviation Group and continued business with Air Malta in subsequent years.

Through one of his companies, Centrecom, in which Air Malta still holds a share, Cassar has secured a multi-million-euro contract to manage KM Malta’s call centre. His company has also been awarded another lucrative contract to provide call centre services to the government and other public agencies.

Global Knighthood has a presence in Malta, with offices in the same building as Cassar’s World Aviation Group at Mosta Technopark. Additionally, the two former Etihad officials are Knighthood Capital Partners Malta Ltd shareholders, which is currently in dissolution.