Low-cost solution

It has been implied that one reason the government has not rushed into the decision to welcome low-cost airlines is that they would be a threat to Air Malta.

The government cannot directly stop EasyJet or Ryanair from coming to Malta. They are, however, achieving the same goal by allowing Malta International Airport's charges to be out of line with competing destinations.

The MIA argues that airport charges at Luqa are no higher than Heathrow. But Luqa is not Heathrow.

If EasyJet and Ryanair find MIA charges prohibitive, then these very same charges must be contributing to Air Malta's financial problems.

Now that EasyJet is going to operate to Morocco, this indicates that the low-cost model can work beyond the two-hour flight segment, so Malta should be in the range of the low-cost travel market.

The government should have the courage to force a reduction in MIA charges and direct Air Malta to run a full-blown low-cost operation to the appropriate markets.

This strategy would simultaneously solve the tourism problem and Air Malta's financial problems.

The increased volumes will compensate MIA for the reduced charges.