Hoteliers want expanded air route support schemes

The Malta Hotels and Restaurants Association has called on the government to expand its route support schemes, following the evident success being registered by Ryanair.

There are clear indications that the introduction of low-cost routes was a success, and the authorities simply cannot afford to spend another two to three years bickering to open up more routes, MHRA president Josef Formosa Gauci said.

The Irish airline told The Times last Friday that 71,000 passengers had already booked to use the low-cost carrier's service to Malta, despite operating only from Pisa, Luton and Dublin.

Mr Formosa Gauci said he had no doubt that the 15 per cent increase in tourism last month was to a certain extent due to the introduction of the Ryanair service. Suffice it to say that arrivals from Italy increased from 2,400 in December 2005 to 4,700 last month.

However, the government needs to look at the potential of other routes, especially the all-important German market, as well as servicing a secondary airport in the UK, other than Luton.

In its latest incentive, Malta International Airport has offered to give up to 50 per cent discount on its passenger service fees and landing charges on flights from airports in four countries - Spain, Poland, Norway and Sweden. The government will also provide market support.

Mr Formosa Gauci suspects the interest in the four routes has been minimal - Ryanair is believed to be interested in flying to Girona, provided it also gets a German link.

Asked whether he agreed with claims that Ryanair was nothing more than an arrogant airline capitalising from Maltese government subsidies, he replied: "We don't have the luxury of more than one airport and these incentives are therefore important. I believe it's money well spent. Ultimately, any business will look at the bottom line".

It was also clear by now that Air Malta can survive and even compete - the national airline's winter sale proved to be an overwhelming success.

Mr Formosa Gauci said: "Air Malta was, is, and will remain an important partner. Unfortunately, in the past, the airline was a convenient recruitment place before an election. Maybe it's high time the government absorbs some of the workers now.

"I'm optimistic that, with the right restructuring process, the airline has a long life."