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Matthew Vella
Competitiveness Minister Censu Galea believes the price of a return flight from Malta to Gozo with the revamped helicopter service offerred by Spanish company Helicopteros del Sureste is not likely to be discriminatory with EU citizens who are not Maltese residents.
The new price structure for the helicopter service, brought back to life months after Malta Air Chater ceased operations due to financial trouble, “should not be a problem” according to Censu Galea, in terms of EU consumer rights, although the prices differentiate between residents and non-residents of the Maltese islands.
The prices announced in Parliament by Gozo Minister Giovanna Debono clearly show that an EU citizen who does not reside in Malta will be paying higher fees to travel from Malta to Gozo by helicopter.
The Lm26 return flight for Maltese and Gozitan residents, as well as students and elderly irrespective of nationality, will cost far less than the price charged to so-called ‘regular passengers’ – and that includes EU citizens – who will pay Lm50 for a return flight to Gozo.
Speaking to MaltaToday about the apparently discriminatory prices between Maltese citizens and EU citizens not resident in Malta Minister Censu Galea said the information he had “in this regard is that this should be no problem. Obviously, in this new life we are leading,” he alluded to Malta’s new European dimension, “somebody can always put in a claim.”
In another case of price discrimination, tourists have remained exempt from the Lm10 travel levy charged for passengers on the ferry to Sicily. MaltaToday has confirmed that Maltese residents have to pay the Lm10 travel levy, but other EU citizens not resident in Malta remain exempt.
A return fare to Sicily costs Lm52, including Lm6 in port taxes and the Lm10 departure tax. Tourists travelling to Sicily for more than one day are exempted from the Lm10 levy.
Exorbitant price
Apart from its consumer ramifications, the Lm50 flight has already attracted notoriety with the Gozitan hotel industry, which believes the cost of the flight for tourists is not sustainable. The Malta Hotels and Restaurants Association has dubbed the price “exorbitant”.
Despite suspicions from hoteliers that Helicopteros del Sureste would be ready to bow out of the Malta-Gozo airlink if business turns out not to be profitable, it is assumed that the company is in for the long haul with a five-year contract signed with the government to provide the service.
The Competitiveness Ministry told MaltaToday that any breach of the provisions of the contract will expose Helicopteros del Sureste to the payment of contractual damages according to the provisions of Civil Law. The Ministry noted that the contract does not grant exclusivity to Helicopteros del Sureste.
The company is expected to retain its Lm50 price tag for non-residents, despite doubts from the Gozo hotel industry about the price’s attractiveness.
It has been noted that the company has neither started its marketing campaign nor has it made any contacts with tourist operators at a critical time when holiday contracts have already been finalised and brochures printed.
With the short summer season being the only months in which the tourism industry reaps generous profits, aiming to cut losses as much as possible throughout the rest of the year, hoteliers speaking to MaltaToday believe the Lm50 price is not likely to look favourable during during the low and mid seasons.
In comments to sister newspaper The Malta Financial and Business Times last week, Ta’ Cenc Hotel director Victor Borg empahsised that “acccessibility to any destination is the most important thing. It has to be easily accessible money-wise, safe and comfortable. If prices are not competitive, it will die a natural death,” Borg said referring to the new helicopter service.
His doubts were also echoed by George Fenech, director or the Mgarr Hotel, who noted that travellers can go to London for Lm50, and Xavier Stocker, director at the Kempinsky San Lawrenz, who said any price for the Malta-Gozo airlink “has to be competitive, otherwise it will not work.”
The new helicopter service is expected to offer an average of 20 flights a day in summer and eight daily flights in winter on helicopters taking a maximum of 13 persons, starting from 21 March.
matthew@newsworksltd.com
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