Air Malta 'will not' become feeder airline to Africa, Middle East - Zammit Lewis

Tourism minister Edward Zammit Lewis has categorically denied reports that Air Malta will become a feeder airline of Alitalia or Etihad Airways.

The Sunday Times of Malta has reported that a new business plan for Air Malta will see the national airline slash one third of its European routes, but introduce new flights to Northern Africa and the Middle East, including to Tripoli, Tunis, Casablanca, and Jeddah.

“This strategy confirms Alitalia’s plan to use Air Malta as a feeder airline to the already established networks operated by Etihad and the Italian carrier,” the report claimed.

However, in a statement, Zammit Lewis vehemently denied that Air Malta will become a feeder airline.

“The report written so as to create uncertainty for the airline at a crucial moment during negotiations, and to destabilize the tourism industry during a time of unprecedented success,” he said.

The government signed a memorandum of understanding with Alitalia back in April, in a deal that will see the Italian airline acquire 49% of Air Malta’s shares. Alitalia is itself 49% owned by Abu Dhabi based airline Etihad Airways.

The deal is expected to see Air Malta benefit from a €400 million investment at Alitalia, as well as from its vast network and airport slots. Zammit Lewis has also said that the deal will allow the airline to cut its ticket prices.

However, the deal will also see the government absorb Air Malta’s full €66 million in debt and liabilities, as well as fork out some €6 million on a voluntary early retirement scheme for pilots and cabin crew.

Air Malta’s cabin crew union last weekend ordered work-to-rule industrial action after a breakdown in talks over a new collective agreement. A day earlier, the national airline reached an agreement with the pilots’ union (ALPA) following lengthy negotiations. 

‘Don’t reduce flights to European markets’, MHRA warns

The Malta Hotels and Restaurants Association (MHRA) had warned Air Malta not to reduce its direct flights to tourist source markets in Europe.

“Reductions in point to point routes from our main source markets is considered by MHRA as a major threat to the sustainability of our tourism sector,” MHRA president Tony Zahra said in a statement. “While it is important that Air Malta seeks to operate on commercial lines and develop new markets, this must not be done at the cost of weakening the actual source markets that are contributing heavily to the success that the economy is currently marking.

“The important source markets for our tourism sector are not in North Africa but in Europe. Furthermore, the only connectivity model that makes business sense to the economy is point to point as against operating the national airline as a feeder service to other potential airline.”

Zahra added that the MHRA will soon sit down with Zammit Lewis and Air Malta chairperson Maria Micallef to discuss these critical issues. 

‘Reported business plan would be disastrous’ – Chamber of Commerce

The Chamber of Commerce welcomed Zammit Lewis’ denial, warning that the business plan as reported would have disastrous consequences for Malta’s tourism industry.

“We are in favour of strategic alliances for Air Malta with a view to render the national airline financially viable. However, we reiterate that any alliance needs to keep the entire perspective of Malta’s economic scenario well in focus,” the Chamber said in a statement. “Business and tourism in Malta need direct connectivity to Europe. It has been proven time and time again that tourism markets are best served when direct flights are present. Malta cannot risk becoming fully dependent on other airlines to sustain entire markets within the tourism industry.

“Sectors such as diving, language schools, and the Meetings, Incentives, Conferences and Events have for long sustained tourism operators during the winter months.”

The Chamber also argued that the remote gaming, financial services and yachting industries are completely reliant on Malta’s direct links to major European cities.