Decision on new Air Malta fleet expected soon

Separate talks between Air Malta and senior officials from the European consortium Airbus Industrie and the American manufacturer Boeing, over a new fleet for the airline, are nearing completion, sources said.

The sources said that a decision by Air Malta was expected by the end of this month or early in July.

On the Air Malta side talks are being led by chairman Louis Grech.

The discussions are being conducted both in Malta and abroad, and representatives of the two manufacturers have been in Malta on a number of occasions.

The financial aspects of either of the possible deals are now under scrutiny, a source said. One of the options being considered is for Air Malta to lease its new fleet with an option to buy after a number of years.

The package is also expected to determine the destiny of Air Malta's four RJ70 Avroliners, currently used by Azzurra Air.

The sources said that a technical study prepared by Air Malta puts the capabilities of Airbus and Boeing practically neck and neck on all fronts.

"It's like choosing between a Mercedes and a BMW," a source close to Air Malta remarked.

However, the sources discounted the possibility being mentioned in some quarters close to Air Malta that the company could opt for a mixture of Airbus and Boeing jets, saying this was the "least likely" probability.

Air Malta sold its two Airbus A320s and three Boeing 737-300s last April to International Lease Finance Corporation (ILFC). It then leased back the five aircraft, making it the second time in its history that Air Malta has had a fleet of leased aircraft.

Air Malta has not said how much it received for the aircraft. The A320s were originally acquired in 1990 and 1992 and the three 737s in 1993.