230,000 low-fare tourists expected

Fiscal incentives have been announced for airlines that choose to operate new routes from four countries amid forecasts that low-cost carriers will fly 230,000 passengers to Malta next year.

Malta International Airport said it will give up to 50 per cent discount on its passenger service fees and landing charges on flights from airports in Spain, Sweden, Norway and Poland. The government will also provide market support.

Addressing a news conference yesterday, MIA chief executive Peter Bolech said the incentives were directed at any airline that wished to operate a minimum of three weekly flights all year round from any airport in the four countries.

Though no Spanish airline flies to Malta, Mr Bolech said he was optimistic that operations to the Iberian Peninsula would start by April 2007.

He said the incentives announced by the government a few months ago (Luton, Pisa and Dublin) had generated considerable interest.

The MIA, he added, forecasts that an estimated 230,000 passengers will travel to Malta on low-cost airlines next year and most of them will be new traffic.

He said the airport had been proactive and had taken the necessary steps to counter the negative trend in tourist arrivals. In mid-2005 it had introduced a series of incentive schemes aimed at airlines wishing to start operations from a number of routes that were deemed to be underserved.

The airport's airline marketing had recently been focused on low-cost carriers and had been successful with the introduction of services offered by Centralwings, Meridiana and Germanwings.

Tourism Minister Francis Zammit Dimech said the authorities would be monitoring the situation "closely, precisely and professionally".

He expressed the hope that budget airline Easyjet will resume talks for a possible service to Malta but added that the government could not provide market support for Gatwick airport, as the airline wished.

Europe's biggest budget airline Ryanair will have its first flight to Malta today, even if the European Commission has not formally given the green light to the government's support schemes.

According to EU rules, schemes such as the one launched by the government last July to lure low-cost airlines to Malta have to be in line with its strict state aid guidelines.

However, Dr Zammit Dimech said he was optimistic the issue will be ironed out shortly.

An intermittent fault on Ryanair's website has affected the Malta destination for the past couple of days, prompting many to believe that something was amiss after all.

But a spokesman for the airline said the issue will be resolved shortly. Ryanair boss Michael O'Leary is expected in Malta for a flying visit on Thursday.