Chamber to EC: Air Malta plays a ‘pivotal role’ in economy

The Malta Chamber has insisted with the European Commission that Air Malta has played a "pivotal role" in the country's economic and social development.

"The airline's international route network, built by sustained investment over the years, is vital for the country's economic development," the Chamber said, in a letter sent to the Commission as part of the consultation process for the approval of Air Malta's rescue package.

The Chamber said that Air Malta's growth has been closely linked to the growth of the Maltese economy and specifically to its tourism industry.

Malta's hotel, restaurant and catering sector employs 8.6% of the employed population - the highest for any EU-27 country and double the European average (4.3%).  These figures exclude the additional employment opportunities generated indirectly by tourism, in food and beverage manufacturing, wholesale and retail, transport, recreation and entertainment.

"Having the right mix of legacy and low cost carriers is essential to Malta because they cater for different markets," the Chamber insisted.

"[Our] members cannot risk losing the national airline and depend on other operators that enter and exit markets at short notice. Malta's long-term strategic interest and future economic development cannot be allowed to depend exclusively on the short-term profit motives of internationally-owned airlines."

The Chamber said that beyond tourism, Air Malta also offered a lifeline to the manufacturing industry. "Reliable and timely supply of components and raw materials is essential to modern just-in-time manufacturing and integrated supply-chains," it said, adding that pharmaceuticals, microelectronics, electrical components and printed security documentation are all totally reliant on inward/outward air-freight.

"Besides, the airline provides an equally important role to emerging sectors of the economy such as real-estate, yachting, education, logistics and remote gaming."

The Chamber told the EU that people and businesses depended on Air Malta much more than other member states depended on their airlines. 

"Air Malta is the only air carrier which is offering a range of essential services to the Maltese business community which is seemingly not attractive enough in terms of revenues to other airlines. An island state with a limited internal market needs this link to help stimulate commerce and tourism," the Chamber said. It added that Air Malta will continue to be a key player in the development of tourism and foreign trade.