The government is expected to intensify its efforts through a specifically set-up core group to determine the way forward on the matter of low cost airlines, which has been at the centre of controversy. This was stated by Tourism Minister Francis Zammit Dimech during a Business Breakfast organised by the Business Today on Adapting to the new reality of Low Cost Airlines.
Minister Zammit Dimech explained that the government’s aim is to achieve a sustainable introduction of low cost carriers that will ensure a future which does include low cost carriers not as a new and dangerous monopoly but as a new partner in a thriving all year round tourism business. He added, “the government wants to ensure that the national carriers and tourism operators who have stood alongside us for all these past years to build up our tourism industry are not pushed out of the scene in such a way that our country at its peril becomes totally dependent on low cost carriers that would not hesitate at all to dictate to us new terms and conditions whenever it so suits them.”
The Tourism Minister also stated that from the analysis carried out to date, there were cases for immediate growth both with and without low cost airlines. He added, “however we need to look further at the long-term implications of either strategy. Yes we will grow if Ryan Air and or Easy Jet come to Malta. Yes we can grow if our branding and intensive marketing strategies bear fruit. In both cases, we must ask ourselves: at what price and for how long?”
Minister Zammit Dimech explained that the government’s aim is to achieve a sustainable introduction of low cost carriers that will ensure a future which does include low cost carriers not as a new and dangerous monopoly but as a new partner in a thriving all year round tourism business. He added, “the government wants to ensure that the national carriers and tourism operators who have stood alongside us for all these past years to build up our tourism industry are not pushed out of the scene in such a way that our country at its peril becomes totally dependent on low cost carriers that would not hesitate at all to dictate to us new terms and conditions whenever it so suits them.”
The Times reported that Air Malta Chief Operating Officer Joe Cappello stated that low cost airlines will for sure increase traffic in Malta. He explained that however, this will not last for long and most likely it would decrease.
On his part, Malta International Airport Chief Executive Officer Peter Bolech said that low cost airlines maintain that 60 per cent of their traffic represents new tourists. He expressed concern on this claim, by stating that other studies give very different statistics and questioned whether it is true that low cost airlines create new traffic or just attract existing tourists.
Mr Bolech insisted, “Ryanair Ryanair is simply not interested in Malta.” He explained that low cost airlines make money from short journeys so that they can manage to do three flights (with return) a day. If they decide to operate from Malta, they would be able to do two rotations a day since Malta is further away.
See also:
Government not to give subsidies to low-cost airlines
By MaltaMedia News - Apr 22, 2005, 12:22 CET
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