A cloud of controversy surrounds the consultancy firm Knighthood Global Ltd, hired by the Maltese government to revitalize the struggling Air Malta. The firm’s owners, James Hogan and James Rigney, former top executives of Etihad Airways, are currently facing criminal charges in Italy related to the bankruptcy of Alitalia, the Italian national airline.
These charges, brought against Hogan, Rigney, and twelve other former Alitalia and Etihad officials, allege serious financial misconduct. The accusations include aggravated fraudulent bankruptcy, falsifying company communications, and obstructing financial oversight. The prosecutors claim that excessive spending on accommodations, meals, and other expenses significantly contributed to Alitalia’s collapse.
Despite these accusations, Hogan and Rigney maintain their innocence. The legal proceedings are ongoing. However, the presence of Rigney at Air Malta Executive Chairman David Curmi’s office three days a week raises serious questions.
While Curmi has refused to disclose Rigney’s specific role or the number of Knighthood Global personnel working for Air Malta, sources indicate that Rigney is effectively acting as the de facto CEO for the airline.
The Cost of Experience?
The government’s choice of Knighthood Global raises concerns about the consultants’ past. Hogan and Rigney were forced out of Etihad in 2017, after the airline suffered significant financial losses, raising concerns about their management capabilities.
The government’s decision to hire Knighthood Global is particularly concerning, given the hefty price tag. The firm receives €200,000 a month for consultancy services alone, totaling almost €5 million between 2022 and 2023.
Moreover, Knighthood Global employs other consultants, paid separately outside the main contract. Two former Etihad officials, Lorna Delziel and Tomas Damien Powell, are on Air Malta’s payroll, each receiving over €10,000 a month, excluding expenses.
Despite repeated requests, Curmi has not provided details about these expenses, including costs for accommodation, travel, meals, and entertainment. The lack of transparency fuels suspicions about the financial burden imposed on taxpayers by Knighthood Global.
The Ties That Bind
The connection between Knighthood Global and Air Malta goes beyond the consultancy agreement. Hogan and Rigney have a long-standing relationship with Leslie Cassar, a former Air Malta agent in Australia and the founder of World Aviation Group.
Cassar’s company, Centercom, has a multi-million-euro contract to operate Air Malta’s call center. The government has also awarded another multi-million euro contract to Centercom for customer care services. Interestingly, Air Malta holds a shareholding in Centercom.
Knighthood Global and World Aviation Group share a physical presence in Malta. Both companies operate from the same office building at the Mosta Technopark, further highlighting the close ties between these entities.
The relationship between Hogan, Rigney, and Cassar raises serious questions about potential conflicts of interest and favoritism. Their intertwined business dealings and shared presence in Malta create an appearance of cozy connections, which may not be in the best interest of Air Malta or the Maltese taxpayers.
A Question of Competence
Air Malta’s executive chairman, David Curmi, lacks any aviation experience and has never worked in the sector. He receives a monthly salary of €21,500.
Sources within Air Malta claim that Curmi is entirely dependent on Knighthood Global for guidance. He relies on the firm to make decisions about Air Malta and the proposed new airline. This reliance raises questions about Curmi’s suitability for the role, given his lack of experience and his apparent dependence on a consultancy firm facing serious legal accusations.
In 2017, Hogan and Rigney attempted to broker a deal for Alitalia and Etihad to acquire a majority stake in Air Malta. This deal fell through at the last minute, likely due to Alitalia’s impending bankruptcy and the revelation of Hogan and Rigney’s involvement in the airline’s demise.
The government’s decision to hire Knighthood Global despite the firm’s questionable past and the ongoing legal proceedings against its owners is troubling. The lack of transparency surrounding Knighthood Global’s role and the potential for conflicts of interest raise serious concerns about the future of Air Malta and the financial burden it may impose on taxpayers.
