Airport in talks with low-cost carriers

Good news for those that want to travel without breaking the bank: a number of low-cost airlines are expected to start flying to Malta as from next year.

Malta International Airport chief executive officer Peter Bolech said the airport was in discussion with a number of "reputed" low-cost carriers but he stopped short of giving details, saying these would be announced in due course.

"All I can say is that a number of carriers are interested and I would be surprised if we won't see a big involvement in low-cost carrier operation to and from Malta," Mr Bolech said at a news conference marking the first year of the airport's privatisation.

Incoming and outgoing traffic could soar and new niche markets could be tapped if some of the no-frill airlines renowned for flying at incredibly cheap prices start operating to Malta.

Budget airlines not only bring new passengers but also offer a new kind of distribution channel. Malta "needs" a bigger reliance on such modes of transport, Mr Bolech said.

Asked whether he believed the introduction of such airlines would dent the business of Air Malta, the national airline, he said one has to keep in mind that airlines were operating in a very competitive market.

"Air Malta, like any other airline in the industry, has to fight for its market share. We know that the airline is prepared to do so and its initiative for the UK shows there is a demand. I can't see how Air Malta can be harmed in this respect."

The national airline recently launched a new low-cost, no-frills service to and from London Stansted Airport, with one-way prices starting from Lm23, excluding tax.

Mr Bolech explained that some markets, such as Spain, were scarcely being served by Air Malta and frequency was not reflective of the potential market.

The MIA chief executive augured that the worst was over for tourism and envisaged a recovery on the German market by summer, irrespective of the operation of low-cost carriers.

One also had to take into account the introduction of airlines like Snowflake, the low-cost carrier of Scandinavian Airlines, which is to start services between Malta, Copenhagen and Stockholm in March, he said.

Mr Bolech revealed that a second ground-handling agent would start operating at MIA in the second quarter of 2004.

He explained that the contract awarded to Swissport was dropped after the company's new owners decided not to operate in Malta. As a result, MIA shifted its negotiations to the other short-listed company, Globeround, a former Lufthansa organisation.

New outlets in the tax-free area and a project in the area currently utilised by the car park would bring in more revenue streams for the airport.

"We have a plan to build a so-called airport city to create a centre of diverse businesses."

Mr Bolech cast doubts over the return of Austrian Airlines to Malta after the airline decided to close its MIA office in October. He admitted he was surprised at the decision since the number of Austrian passengers had shot up in the second quarter of this year.

Tourism Minister Francis Zammit Dimech said he felt that future MIA strategy should include the implementation of the hub concept in which airlines would use the Malta airport on their flights from Europe to Africa, taking into account the introduction of low-cost traffic.

Heaping praise on the airport's management, Dr Zammit Dimech said the future development of Malta's tourism sectors entailed the continuous development of the terminal facilities. It was worth noting, he said, that MIA intended to embark on a Lm20 million investment programme spread over a 15-year period.

Herbert Kaufmann, spokesman for the Vienna Airport management board, said that eight low-cost carriers started serving Vienna airport this year, carrying 700,000 passengers in the process. Vienna airport is a shareholder of MIA.