Jaeger says MIA following Air Malta restructuring ‘closely’

Malta International Airport CEO Julian Jaeger has reiterated that the airport did not charge expensive tariffs to airlines, at the AGM in which MIA approved a final 6c5 net dividend – a total payout of €8.8 million.

“MIA does not have the most expensive charges in Europe, and is definitively within the European average in so far as its airport charges are concerned.

“Obviously there are cheaper airports, but circumstances are different for e.g. all Spanish airports (AENA) are state-owned and as a group, have recorded a loss of over 600 million euro in the last two years – a loss financed by taxpayers.”

The CEO took the opportunity to mention the current restructuring process underway within the national airline, and he stated that the company is following this process very closely as it is aware of the crucial role the national airline plays for its own operations as well as for the national economy.

“MIA is confident that this process will be positive and MIA is willing to support it in an objective, transparent and non-discriminatory way; and to this effect, discussions are already underway with Air Malta management.”

Jaeger also mentioned MIA’s considerable contribution to the Maltese economy, and referred to the issue of privatisation. He insisted that this process has led to “€160 million to state funds through the sale of shares, a total of €52 million invested in capital projects since privatisation in 2002, enhancing the amenities and infrastructure at MIA; up to €8 million per year in taxes and dividends paid to government; and up to €1.5 million per year to the Marketing Fund of the Malta Tourism Authority.”

Whilst achieving major controls on the company’s cost-base, in 2010 the utilities bill went up by 59% over 2009, and this had impacted the overall cost-control initiatives by the company.

The early retirement scheme initiated in the last quarter of the year at a cost of €640,000, which will enable the company to continue in becoming a leaner organisation.

MIA also experienced an increase of 12.8% in passenger movements when compared to 2009, with total number of passengers reaching the record figure of €3.29 million.

The retail and property segment achieved a growth of 10.6% in 2010 over 2009, on top of a 22.9% over 2008.

“These results vindicate the company’s diversification strategy which is now further enhanced with the SkyParks Business Centre - the €16 million development which kicked off during 2010, and which should be inaugurated by the end of the year,” Jaeger said.

Welcoming the shareholders at the AGM, MIA chairman Andreas Schadenhofer said that from a financial perspective, the company’s performance last year was indeed a record one, thanks to higher passenger numbers as well as to the efforts to control expenditure.

“The revenue of the Company increased by 10.5% over 2009, and one must mention that 2009 was a year in which we had registered profits notwithstanding the recession which hit the international travel industry, and which had negatively affected our passenger numbers,” he added.

Schadenhofer said that from an operational perspective, although one can always find areas for improvement, Malta International Airport should be proud of the service levels and commitment achieved in recent years.