Air Malta, Ryanair share spoils in tussle over routes

Ryanair is expected to start flying to Venice this winter and Air Malta has taken up Bologna, following months of behind-the-scenes negotiations to determine which airline would land the latter route.

Bologna was officially dropped by Meridiana on September 1 and both airlines had expressed interest in it.

The government is now issuing a call for proposals from low-cost airlines to operate the Venice route, which Tourism Minister Francis Zammit Dimech described as an "important development". He confirmed that Ryanair had already registered strong interest in this route.

Air Malta is starting scheduled operations twice a week to Bologna's G. Marconi Airport as from mid-December, while Ryanair is expected to start the Venice route in the same period, flying three times weekly.

Dr Zammit Dimech said the decision - three months in the making - was considered to be a "win-win situation" for the low-cost carrier and the legacy airline. "It is a total synergy in favour of the tourism industry and to the benefit of everyone."

The decision was the result of intense discussions with Prime Minister Lawrence Gonzi and IT and Investments Minister Austin Gatt on Monday after industry stakeholders strongly appealed to the government to ensure that Ryanair would fly the Bologna route. They feared that, otherwise, the airline's operation in winter and the positive trends that have resulted would be in jeopardy.

"It is normal practice also in other countries to gauge what the market stood to offer before issuing a call for proposals; otherwise, you risk that there is no realistic take-up. If other airlines bid for Venice, they will obviously be considered on a fair and equal playing field, but we do know for a fact that Ryanair has already expressed its interest in the route," Dr Zammit Dimech said.

The call for proposals for the underserved route is being published in the Government Gazette tomorrow and advertised in the international trade websites. It is open until October 18.

The flights to and from northern Italy would be another means to attract Italian tourists to Malta and to grow that important market, he said.

When the government did its calculations, it took into account everything the country required, including increasing the possibilities for low-cost operations, which are a crucial element of tourism, while continuing to strengthen the legacy carriers, and the national airline in particular, which remains the main channel to access tourists, Dr Zammit Dimech said.

The Malta Tourism Authority's chairman Sam Mifsud and industry stakeholders were kept in the loop throughout.

Last week, the Malta Hotels and Restaurants Association piled pressure on the government, warning about indications that if the parties did not conclude on the short route Ryanair needed, the other routes announced for the winter (Stockholm, Bremen, Girona and Valencia) would be in danger.

Yesterday, it expressed its satisfaction with the decision, saying it was "excellent news".

MHRA president Josef Formosa Gauci said a compromise had been reached in the best interests of all players in the industry, and "we can now concentrate on the task ahead of ensuring that we fill the extra seat capacity we have this winter so as to be able to maintain the monthly increases in arrivals that we have got used to this year".

Predictions for winter from hotels are the continuation of significant increases in arrivals and occupancy, Mr Formosa Gauci said.

"This, together with Air Malta's decision to take up the Bologna route itself, should further enhance the positive trends."

The national carrier announced yesterday that Bologna has become its eighth scheduled destination in Italy, in line with its "aggressive" expansionist strategy in that country.

The route is being included in its latest promotion, Thank God For Wednesdays, every week.