Deal close on two routes

Flights to Spain and Portugal could be available at give-away prices starting from next year following a day of "successful" meetings between low-cost carrier Ryanair and the local authorities, Tourism Minister Francis Zammit Dimech said.

The airline's chief operating officer, Michael Cawley said Ryanair was prepared to fly to up to 30 destinations from Malta, provided the island deals with its excessive taxes.

Ryanair's head of the flights development department, Bernard Berger, was yesterday involved in meetings with the Tourism Minister, Malta International Airport and the Malta Hotels and Restaurants Association.

The minister said the airline had in principle agreed to the government's request to fly to the low-serviced routes first, starting with flights to Girona in Spain and Porto in Portugal.

Ryanair has promised to get back to the government in the coming days to confirm the feasibility of the route.

Dr Zammit Dimech said the authorities had agreed to give a discounted fee for air travel to the Iberian peninsula, a concession that would apply to all airlines.

"I'm pleased to say it was a very positive meeting and Ryanair has expressed its willingness to start operating from Malta to Spain and Portugal," the minister said.

"It's in their interest to start with these routes and we can move ahead to others in future."

The idea is for the airline to fly four times a week to one or two destinations. Full details will be announced shortly if all goes according to plan.

With flights averaging €40 (Lm17), Ryanair evidently has big plans for Malta.

Contacted by The Times, Mr Cawley confirmed that the airline could fly over one million passengers a year once Malta reduced its "expensive" rates.

He said that if Malta was to prosper in the EU it had to embrace low-cost airlines sooner rather than later.

"The earlier your politicians take the courageous step of enticing low-cost airlines the better. It will inevitably happen one day and when it does it will be a boost for the economy."

Mr Cawley claimed that MIA was one of the most expensive airports in Europe - far costlier than London's Heathrow - a reason he said was leading to the decline in air passengers to Malta.

"MIA is a private monopoly so it's the worst possible scenario," he charged.

He said that thanks to the current rates, every route was grossly underserved.

Mr Cawley believes the airline can fly one million passengers to Malta a year, but insists the figure can rise up to three million once Ryanair establishes itself on the island.

"Despite the vast interest in Malta the overwhelming majority of tourists have never been to your country. Why? Because fares are expensive.

"We fly 700,000 people to Lubek in Germany every year - and I think more tourists are interested in visiting Malta than Lubek."

Air Malta's future has nothing to do with Budget airlines, and it's a worrying financial situation squarely boiled down to inefficiency, Mr Cawley claimed. National airlines have coexisted and prospered with low-cost airlines all across Europe.

The profits of Ireland's own national airline Aer Lingus increased despite the ever-increasing popularity of Ryanair.

"If the government remains worried about the jobs at Air Malta then the only thing I can say is that the tourism industry as a whole employs considerably more people than Air Malta."

Ryanair exceeded forecasts with profits of €269 million for the year to March 31.

The other Budget airline Easyjet, with whom the government is also negotiating, has reported a 22 per cent rise in passenger numbers in May from a year ago as it presses ahead with expansion in Europe.