Ryanair offers to invest in Malta airport

Low-cost airline Ryanair has offered to invest in the old Luqa terminal building and runway or even finance an extension to Malta International Airport to secure a strong base on the island.

However, a detailed proposal by the popular airline, followed up by successive communications, has not been answered by the government, sources close to the industry said.

Ryanair is evidently not looking for any sort of subsidy from the government but is prepared to make a long-term commitment in return for commercially viable airport charges, the sources said.

When contacted, Ryanair's local representative, Philip Lingard did not deny the claims, but preferred not to comment further.

Ryanair said yesterday its proposal was not met in Monday's public statement wherein the government announced a series of initiatives intended to boost tourism.

Among the measures, the government said it would provide support schemes to the tune of Lm1 million to airlines if they operate to specific destinations in the winter months.

"Ryanair will consider where to go from here but there is no formal comment at this point, as the government has not responded directly," the airline said.

When contacted, Tourism Minister Francis Zammit Dimech confirmed that the Irish airline had made a proposal for use of the old terminal building, which is currently being used for cargo.

"It's next to MIA, it has the same runways as MIA, so we found the proposal unrealistic," he said.

Asked whether he believed the initiatives being taken were enough to entice low-cost airlines, Dr Zammit Dimech said there was certainly enough initiative to see new operators.

"Yes, I believe we've provided a serious opportunity for them to start operating. We have certainly drawn up a package which is in the interest of Malta."

Though evidently enthusiastic about introducing a service to Malta, Ryanair is at odds over the landing fees. The airline says that while MIA charges about €25 per passenger it pays an average of €6 per passenger at other similar-sized airports across Europe.

Ryanair has proposed to select Malta as its central Mediterranean base starting operations this winter and scaling steadily upwards to flying some 26 routes.

It also claims it can sustain thousands of jobs boosting all year round employment in the tourism industry.