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The craze about introducing low-cost airlines to Malta would not solve all the tourism problems, said the Minister for Investment, Industry and Information Technology, Dr. Austin Gatt at the opening of the Amitex Fair 2006 at the Trade Fair grounds in Naxxar on Thursday. The Minister remarked that although the Government is not protecting Air Malta, there is no reason why they should protect Air Malta's competitors.
"The 'low-cost at all costs brigade' conveniently ignore the simple fact that it is the low-cost airlines that DO NOT WANT to enter the field of competition; it is the low cost airlines (or more precisely, a particular one) that are asking for subsidies, a word which is anathema when associated with state enterprises but seemingly acceptable if given to a privately owned company", said the Minister.
"It is very usual for us in Malta to expect problems to be solved by some sort of magical intervention, this time, quite literally, coming from high up in the skies. Low-cost airlines have become the magical mantra that will supposedly solve all the problems of the tourist sector", commented Dr. Gatt.
Minister Gatt remarked about when Air Malta was set up in other countries it did not ask for any special treatment, it simply accepted what was offered and worked its deals.
Speaking about the situation in Malta, the Minister stated that, "Low-cost airlines have been here, are here and will continue to come here paying the present charges. If any low-cost airline chooses otherwise, then that is its choice and no one else's; other low-cost airlines have made a different choice."
There should be no special treatment expected from people in public sector companies that are no longer commercially viable to those in private sector companies, said the minister. He also remarked about the loss of jobs that will incur if the island were to be flooded with low-cost airlines.
Referring to how people wanted to turn the old Luqa airport terminal into a low-cost mass tourism terminal the minister said that, "We are past the age of low-cost tourism as much as we are past the age of low-cost industries. It may be good for some Paceville bars; it certainly is not good for the rest of us."
The minister distinguished between Air Malta adapting to the strategy of low-cost airlines only flying from where it makes profit, and an Air Malta which is available all year round from various key locations. He remarked that low-cost airlines would not provide certain routes that Air Malta provides that are important to the Maltese, such as direct flights to Lourdes.
Another point made was that one could not be sure whether the decline of the tour operators as a result of the introduction of low-cost airlines will be compensated for by these airlines.
Dr. Gatt pointed out that, "it is in no one's interest for this country to become hostage to low-cost carriers who fly in when they like but also as quickly fly out when they like. We have already seen it in Malta with a number of low-cost carriers and other airports have seen it with Ryanair and its likes as well."
"It is important for all of us to get some sense of scale. And it is important for Air Malta to remain a genuinely competitive airline in the context of genuinely free and open market", said Dr. Gatt.
Air Malta's focus over the next two years is to achieve the revenue growth levels targeted within its plans, revenue that was lost due to increased competition and fewer tourists. This is the principal target of new CEO, Mr. Joe Cappello.
This is to be done through a restructuring of the sales force and distribution systems of individual traffic. A new round the clock centralised call centre will target individual traffic as well as long-haul traffic. The commercial side will also have to exploit new Government offers during the leaner months.
See also:
GRTU insists on need of low-cost airlines
By MaltaMedia News - Apr 13, 2006, 09:13 CET
Government to increase its efforts to decide on low cost airlines
By MaltaMedia News - Feb 16, 2006, 10:21 CET
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