Air Malta will earn Lm1.1m

Air Malta estimates it will earn about Lm1.1 million over the next five years through the outsourcing of in-flight entertainment that will be offered as from next month.

Blue Media Marketing, which won the tender, will be paying the national airline Lm75,000 annually.

Moreover, the company will also be providing movies and documentaries, provide disposable headphones and produce the new in-flight magazine, Skylife.

Free newspapers, which the airline stopped distributing as part of its cost-cutting exercise, will start being given out to passengers again.

Blue Media Marketing will also be buying drink coasters and headrest covers, something which Air Malta used to buy. These will also be used for advertising.

The marketing company will be splitting advertising profits with Air Malta. The total annual estimated income and savings stands at Lm223,000.

Addressing a press conference yesterday, Investments Minister Austin Gatt said three measures the airline took recently - the outsourcing of the technological sector and cabin cleaning apart from the in-flight entertainment package - will lead to cost reduction and additional revenue of about Lm750,000 annually.

The minister insisted that in the airline industry every cent counts, adding that the industry was still operating in a difficult context, especially because of the increasing oil prices.

Dr Gatt said the company was attempting to cut its operating expenses and increase its revenue while offering a better service.

Air Malta chairman Lawrence Zammit promised that the entertainment offered by the airline will be the best offered on the Malta route.

The majority of Air Malta planes - 10 out of 12 - are equipped with drop-down screens while headphones can be hooked onto the arm-rests. Another two planes with in-flight entertainment capabilities will be delivered next year.

The national airline carries more than 90 per cent of passengers arriving at and departing from Malta International Airport. Air Malta carries 18 million passengers annually.

Airline chief executive Joe Cappello explained that Air Malta waited until it had 10 planes equipped with the facilities before starting to offer entertainment, which will be completely free for all passengers. He said this would be a leap of quality in services.

George Mifsud, from Blue Media Marketing, said the company hoped to make a turnaround after the first year.

Chris Mifsud, also from the winning company, told The Times that family movies will be shown during flights, but stopped short of divulging the titles to be screened next month.

Questioned about Air Malta's voluntary retirement scheme, which closes in mid-September, Mr Zammit said 40 employees had applied to date, but more were expected to apply in the fortnight before the closing date. He said there is no intention for this scheme to be extended.