Editorial

The past fortnight has provided good news for Air Malta and, therefore, for the island's economy. In the context of competition from low-cost and other carriers - Air Malta has lost 24 per cent of the British market as a consequence of stiffer competition from British Airways and Ryaniar - three positive elements have emerged to indicate that the national carrier is coping well.

Perhaps more significant, the rescue plan signed four years ago with a view to reduce operating costs seems to be on course - unless there is a loss of nerves. Losses for the financial year that ended in March 2007 were halved to Lm3.1 million from Lm6.2 million the previous year and this despite a fuel bill that rose by nearly Lm13 million over the past three years. This is excellent news.

A reduction in staff, albeit this was carried out over a period of five years, from nearly 2,000 to just over 1,600 has helped to cut costs. Aircraft leased out in winter and a young fuel-friendly fleet contributed to the good results posted during the last financial year; as have increases in revenue from scheduled and charter services - Lm12.7 million and Lm3.3 million respectively. A second positive element was Air Malta's placing as Europe's most reliable airline in a quarterly report released by the Association of European Airlines. It was top of the league in luggage efficiency - a mere 3.2 Air Malta passengers out of 1,000 arrived at their final destination without their luggage, compared with British Airways' 28 bags per 1,000 passengers, in this respect the worst airline of 23 who gave baggage details to the Brussels-based AEA. This, of course, offers no consolation to those who travelled Air Malta, however small in number, and were parted from their luggage.

The national carrier was also top for flight regularity but down to the middle of the table in delays. And at the beginning of the month we reported that Air Malta flew two million passengers in one year.

All this must be sweet music to the carrier and to the country. It would be wrong, however, to go into euphoria mode. There is still a Lm3 million loss to be turned round and the airline business and international travel suffer from a tendency to volatility. As any passenger will tell you from his own experience, it is all too easy for a flight to encounter turbulence. This danger applies in a metaphorical sense for any airline trying to get away from a deficit and into profit.

Ongoing improvements in management in every sector, cost-cutting, new revenue-finding like the recent introductions of scheduled flights from Venice and Liverpool - these are expected to bring an additional 25,000 passengers to Malta - aggressive and creative marketing, which includes passenger comfort and a professional in-flight magazine catering for the airline's guests to and from 48 destinations, efficient handling on the ground by Malta International Airport, a manageable fuel bill and a responsible attitude on the part of unions, which have a stake in the airline's success, will be decisive if we are to obtain favourable results during the financial year that ends next March.

Although there are a number of low-cost, scheduled and charter airlines plying to and from Malta, adding to the success of the tourism sector, the national carrier remains central to that success. Senior management and staff cannot rest on any laurels that have recently come Air Malta's way.

They would be inhuman not to be pleased but they would be foolish to forget that the achievement of their ultimate objective is necessarily based on perpetual and well-planned, properly managed  motion.