Talks on helicopter service encounter turbulence

Discussions between the government and British company Veritair over the provision of a Malta-Gozo helicopter service have been inconclusive due to "excessive demands" made by the company, according to sources.

It is understood that the British company requested a subsidy and argued that it would be operating at an even higher loss than Malta Air Charter.

Gozo has been without an air link since October 31, when Air Malta's subsidiary, Malta Air Charter, ceased operations after 14 years because the service lost money and the fleet of two Russian-built 26-seater MI-8 helicopters no longer complied with safety standards.

The full effect of an end to Malta Air Charter's helicopter operations was felt last Sunday when high winds made the ferries inoperable and a number of Gozitans and tourists missed flights from Malta International Airport.

After Malta Air Charter made the announcement last year, the government received 16 proposals from companies and individuals that were interested in operating either a helicopter or fixed wing service, though Gozo does not yet have an airstrip.

However, the sources said discussions over a helicopter service were held this week with a "highly enthusiastic southern European company" and a meeting with another foreign company is to take place in the coming days.

When contacted, Competitiveness and Communications Minister Censu Galea said discussions with Veritair were not yet over but it seemed highly improbable that the company would meet the government's demands. "Our aim is to seek private and foreign investment and provide a quality leap in standards and service. Therefore, a request for subsidy goes beyond our desired targets."

Mr Galea declined to comment on the progress of discussions so far with the other companies, though he said they had been positive. "I have always maintained the government is determined to ensure the service will be in place by December or January."

However, he said a "low-schedule" service may be introduced since take-up was likely to be low, with a view to a fully-fledged service by March or April when the number of passengers increased.

He said this "positive twist" would put an end to weeks of speculation over whether the service would be discontinued. "We were always committed to providing Gozo with an air link which primarily caters for the needs of industry and tourism."

Mr Galea also stressed that the service provided by Malta Air Charter was discontinued due to a decision by Air Malta "but also primarily due to the fact that the service was below acceptable standards".

He added: "This resulted in tourist operators cancelling Gozo as a destination from their brochures long before the service stopped due to safety considerations for visiting tourists. I am surprised that the Opposition Leader was defending a service with a potential safety hazard," he said.

Labour Party leader Alfred Sant had condemned the government's decision to stop the helicopter service without providing an alternative. Such a move, he said, would continue to hinder tourism and development in Gozo.