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Matthew Vella
Air Malta has claimed that Robbie Borg’s low-fares BritishJet.com airline does not have “cause to challenge” its presence on the board of the Malta Tourism Authority, after Borg complained the national airline’s representation on the MTA board was discriminatory.
But a ruling by the Commission for Fair Trading has described the MTA board as a “cartel” by favouring particular operators and “making it possible for its participants to condition” the tourism market, because of the presence of operators such as Air Malta and other entrepreneurs on the MTA board, reportedly controlling 40 per cent of the market.
It ordered the Office of Fair Competition to investigate further Robbie Borg’s complaint, after the office claimed the complaint was not in its remit.
Magistrate Silvio Meli, who presided the Commission, said in his ruling the tourism authority could not be used “for the manipulation of private interests of its members by handling public funds”.
In comments to MaltaToday, an Air Malta spokesperson said BritishJet.com was not an airline but a brand name: “it does not have an airline licence either… the operating carrier is Hello Airlines, a Swiss carrier, which is flying one aircraft depicting the BritishJet.com brand. Therefore, the company owning BritishJet.com does not have cause to challenge the presence of Air Malta on the MTA.”
The Ministry of Tourism, which is not ruling out changing the MTA structure, has justified Air Malta’s presence on the MTA board as a net contributor in cash and kind to the authority’s marketing strategy.
Air Malta told this newspaper it was the only airline contributing Lm600,000 every year to the tourism authority’s marketing efforts. “Air Malta invests directly in tourist generating markets, and not just the UK, a further Lm600,000 a year. It also invests another Lm3.5 million in its outstation offices which are at the forefront of promoting tourism to Malta.
“Neither BritishJet.com nor other tour operators flying to Malta contribute any funds to the MTA. Air Malta is totally committed to Malta and its tourism industry unlike many others who have come and gone.”
The Ministry of Tourism has however claimed that any airline which would “like to extend the same level of contribution” would be awarded the same advertising space offered to Air Malta – a statement which so far has not been clarified by the ministry.
Robbie Borg however claims his companies spend Lm1 million in a year for advertising in the UK.
Justin Zammit Tabona, the president of the Malta Hotels and Restaurants Association, also an MTA board member, said there was no discrimination on the MTA board or the ingredients of a “cartel”.
“The MTA board is fairly representational of various national associations involved in tourism representing their membership and hence ultimately individual interests in a group. With this factual consideration, one cannot then say that there is a discriminatory presence.”
mvella@mediatoday.com.mt
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