
Friday, 18th April 2008 - 12:44CET
Ryanair may cut winter routes to Malta because of costs
Low-cost airline Ryanair said today that high fuel and Malta airport costs had caused it to curtail growth in Malta and may even lead to services on some routes being stopped for the winter.
“Despite our positive results in Malta to date, further growth or the establishment of a base (in Malta) are unrealistic in the absence of lower airport costs, particularly in a market environment where continuing record oil prices threaten to make some existing routes unviable,” Bridget Dowling, sales and marketing manager, said.
“Malta has huge potential to grow its tourism product, however this requires vision from the Maltese government to lower airport costs and prioritise growth, choice and competition by opening up the island to the low fare revolution which consumers in other European countries have enjoyed.”
She said that over the past 18 months Ryanair carried 350,000 passengers to and from Malta, giving a badly needed boost to the island's tourism.
Ryanair operates routes to London, Dublin, Pisa, Barcelona, Stockholm, Bremen, Valencia and Venice.
No final decision has been taken yet on the reduction of services for the winter, or which routes will be affected.




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Comments
Some people are just not aware about Malta's huge touristic potential and are just too dumb to notice. The most important thing is that by the end of the day he/she gets back home.
Ryanair CAN BOAST of the 'TOUCH & GO' logo/risk factor for customers and tourism in general. Thus, it suits Malta best to limit capacity of the so called 'low cost ' and to ensure a level playing field.
Ryanair - Touch & Go.
NO CONSISTENCY
To make matters worse, the previous administration fobbed off (FZD actually laughed at the proposal on TV) the idea of a second budget terminal in Luqa sharing the same runway proposed by the GRTU. This trend is happening in many cities where budget terminals serve the same runway alongside glitzy terminals. That way there is competition between terminals to attract airlines which leads to lower costs and lower fares.
Whoever devised the MIA privatisation did not have sufficient foresight in air travel trends at the time and we are suffering from this now because airlines like Ryanair come and go as they please when it suits them and Airmalta has to suffer the costs and rely on government support because it is losing money. Perhaps C scerri is unaware of the fact that Airmalta's losses are footed by the taxpayers.
to C. schmid: Let us not forget that even Airmalta's lifeline may dry up someday unless it is returned to profit and that will be a real disaster for the Maltese islands. The time to act is now. Make Malta competitive for air travel in all respects including airport services and get Airmalta into profit on the basis of its strengths which are indeed many. Patriotic sentiment does not work in today's globalised markets. Business logic and forecasting trends does, and the only way to keep Airmalta serving the country is to make sure it becomes leaner and more efficient and competitive and that includes lowering the cost of buying its services, in this case Airport services.
Air Malta like any other national carrier lived in a different world back then when people travelled less so the past is gone and forget about it. What one has to applaud them for is how quickly they adapted. Air Canada and Swiss Air for example went bankrupt. Here let me point out that I will cheer the air staff all the way and all those ground crews that ensure the planes are spotless and well maintained. Truly they are doing a fantastic job. Only problem is the administration that in my opinion is over bloated and still suffering from too much political meddling and can be arrogant. If it became leaner I'm sure they can blow Ryanair away and still keep doing the less travelled routes that Ryanair nor any other low cost airline will ever do but are needed for business.
On the other hand if there was no competition then inevitably Air Malta will become complacent so something else needs to keep that going. If Ryan Air just floated around and behaved as an occasional deterrent then I think we would have hit the perfect balance :)
As for the other comments about the taxes I cannot really tell because I have never actually compared different airport rates but uneducated guess is that are paying 25% more than we should be. For that blame Gonzi!
In Malta we only have one airport and it has to serve all airlines and on a level playing field. MIA cannot operate without charging fees, remember it has its own expenses - electricity and water fees, personnel, cleaning, etc.
What these people that are happy to have low fees want is that us, the people, pay for their holidays through our taxes - thanks but no thanks!
Malta has been a tourist resort for much before Ryanair came into being and seeing the good results Airmalta has had this Winter, I believe that the good results in tourism in 2007 had little to do with Ryanair and more to do with some good moves of MTA and government.
supporting your airline is supporting your economy and supporting your future and that of your children.
and as I said in my previous message, this is hardly a matter of high airport fees as Ryanair is looking at grounding 20 aircraft next winter. don't think that these 20 aircraft are only being deployed to Malta. And these airport fees are also being paid by Air Malta and all other airlines flying to Malta. if Ryanair, flying to eight destinations, is claiming that airport fees are high and consequently stop its operations, what should Air Malta do since it is flying to over 45 destinations..and other airlines using MIA?
When Air Malta starts offering anything below 100 euros, like the majority of Ryanair flights, I might start bothering checking their website.
Flying with AirMalta or Ryanair would incur the same charges. The high airport charges are part of the reason why airfares are so expensive no matter which airline you choose to fly with. Reducing these ridiculously high fares, would benefit airmalta passengers just as much as ryanair's. Such a move would need to be pushed by our government. Ignoring the problem and blaming the critics (i.e. Ryanai) won t solve anything.
I am sorry to point this out but rather then aiming at Air Malta why you don't ask MIA what is doing to support tourism?!!
Air Malta has and is doing it's share to sustain more traffic. Some have already pointed out the reduction in fares and has become more efficient and competitive!!!
If Ryanair has an issue because of costs fine good luck to you and find a way to solve this issue rather then pointing fingers to others to solve it for them.
Mr. Gouder you are right in your case but if more energies are directed towards the national airline then it would be possible to sustain again the Dublin route and others.
Stop aiming at Air Malta, ask MIA !!
Consider how you will get to Malta if Ryan Air decide they do not want to fly the Dublin - Malta route any more. A ferry to Wales or England then an Air Malta flight from a regional airport in the UK?
This company is mercenary, flying in for a subsidy and threatening to leave when it wants more.
Reducing competition (like Dublin - Malta) because no other company will compete against their state subsidised service is not a recipe for success.
This has very little to do with airport charges as I assume that these are the same for all airlines.
I suppose that this is the market but a question that the Maltese should ask themselves..who has been serving them constantly for so many years?
Luggage charge - I travel with a considerably large hand luggage. Ryanair are very generous in their hand luggage size.
Check-In charges - Again, with a little wit you don't pay for this neither. Simply use the online check-in option. You do it from home 5 days before and you don't wait at the airport, plus you don't pay anything.
You mention flight timings but all Ryanair flights are late in the morning or in the afternoon, there are no freaky 1am flights Ms Gauci. If you check out statistics, Ryanair is the no.1 most on-time airline.
The airports they operate are most of the times central. Valencia, Bremen and Pisa are 2mins away by bus from the city centre. I don't know Dublin. Standstead, Barcelona, Venice and Stocholm are not more than 1hr away by train/bus from city centre.
But then again, even places like Heathrow you have 30mins tube from the city centre.
Credit Card Charges - Pay with Visa Electron, you don't get charged with that. You only get charged with normal Visa and Masercard cards. P.S. Visa Electron is much much more useful and cheaper than a normal Visa.
Perhaps I am living in a world different from yours Ms Gauci, cos you don't know what you're talking about. As I explained you can fly with Ryanair for a measly 20 euros incuding return.
The cheapest flights you found on Air Malta are 120 euros for March 2009 (What are they kidding?) and with Ryanair more and more Maltese have the ability to travel with some wonderful prices of 20 euros... and sometimes less.
to C. Scerri: Niche tourism is indeed a worthy aspect of tourism which Malta needs to invest in; however it is only a tourism product, and you still need to consider the transport phase of actually getting tourists to malta.
to S. Said: Air Malta had a near monopoly for over 25 years in Malta; so for us to complain as soon as someone else starts to get preferential treatment is a bit rich...why was Air malta charging us extortionate prices before the idea of ryanair even was suggested?
Overall, ryanair has been dissapointing, given the fact that many of its flights are infact a lot more expensive than air malta (irony) one has to wonder where these subsidies it gets are going.
Also, im dissapointed that despite the advent of several UK low cost companies, services to the uk have barely imcreased at all; only the service to luton has been introduced, while Scotland remains badly underserviced, while air malta persists in operating to Liverpool and Manchester, which are only 30 miles apart.
Whats critical for me is that the routes which are being served are full and therefore sustainable, if we think that just having the subsidies in place to enable ryanair to fly planes half empty every day will solve our tourism problem we are badly mistaken because this is unsustainable and will eventually stop.
The issue here is whether Malta can stay competitive with the current monopolistic practices at the airport. The way a deal was struck with Ryaniar 2 years ago is certainly not the best because it directly subsidizes an airline operating a particular route who then turns over that subsidy to our one and only airport which is owned by institutional investors abroad. This solution was a hotch potch solution for our dear bungling ex minister of tourism to stay in his place until kicked out by the electorate.
It is high time for the government to take stock of this subsidy arrangement and the resulting cost effectiveness and ensure that our airport and all costs affecting flights to and from Malta are reduced and kept competitive for all airlines operating routes to and from Malta, whether Airmalta or Ryanair or any other airline. We must also call a spade a spade and if the sale of MIA was a mistake because we lost control of our one and only doorway into the island, let's swallow the pill and make it right. MIA considerations should never have been about profit but about strategy.
After all this would be for the benefit of Airmalta, Tourism, Business and citizens working or studying abroad.
Ryanair is not cheap when you consisder all charges, credit card fees, flight timings and the airports they operate to. The price paid and the value for money is what counts at the end.
Does she really think that Ryanair can operate a flight selling seats at 20 euros or less and make a profit! Absolutely not! Ask an economist!
The fact that she found that price is the way all airlines are working, buy early - buy cheap. This is also what Air Malta is doing and competing well I must say.
It stands to reason that today's Ryanair's press conference was intended as a statement to government - give us more subsidies or else we'll decrease flights. In other words pure blackmail.
I am against that the government subsidising an operation of a foreign airline from the taxes I pay. This is ridiculous!
I suggest Ms Bartolo to subsidise Ryanair by offering them part of her salary if she wants them so badly!
me and my family are Maltese citizens like you but with the difference that we live in Ireland. Just to remind you before Ryanair started to operate to Malta I used to fly with Air Malta but since Ryanair started to operate to and from Malta, Air Malta stopped flying to and from Dublin.
Ryanair is the only carrier for us Maltese citizens that can bring us back to our beloved Island.
That's why we support Ryanair nowadays.
Ryanair keep up the good service.
We should not be held to ransom by these mercenaries. Support Air Malta, BA and Easy Jet if you want to fly to the UK, it's these airlines that will bring in the customers we need!
Can Air Malta give us flights for 20 euros? Even a 30min trip to Sicily costs more with Air Malta.
I think that Ryanair can give a lot of opportunities to the Maltese middle and lower class, who can easily afford to pay for 20 euro flights.
As Mr Grech pointed out, its hard to find anything cheaper than 200-250 euros on the Air Malta schedules... while Ryanair, especially in pre-summer and winter time, have tremendous prices of less than 20 euros.
I rather hope that Ryanair expands its business and gives us more from where to choose from.
The point via a vis low Cost airlines is the incoming tourists. There is no doubt that the low cost airlines, given the way they market their product, have been responsible for a larger influx of tourist s to our island and that is the more positive aspect of low cost. The bonus is us being able to travel for less.
We can be patriotic and nationalistic and supprot Air Malta but making Air Malta more competitive and having a good source of competition as well as the increased marketing of our country (via low cost for example) is the way to go. Cheering because Ryanair may cut back its flights to Malta is very short sighted and a significantly retrograde step.
For those that travel regularly and time schedules are more important Ryan Air is just as expensive. So don't stay if you want more of our tax money. I'm sure that Air Malta can provide just as competitive prices as them during those least important slots for those that want to travel on rock bottom budgets. I don't like flying with Ryan Air and prefer to go Air Malta, or BA but we do need more competition to keep them in check so open up to anyone in my opinion.
If we alienate the low cost airlines, we will lose an important part of our tourist arrivals, not only based on cost, but also because airlines like Ryanair often fly from regions like Pisa that Air Malta simply does not do, not to mention countries like Spain that Air Malta somehow seems to shun. And whoever says that Air Malta worked out cheaper for them should be thanking their lucky stars for the fluke.
Ryanair make their money by flying to secondary airports, which in Paris/Beauvais is a glorified tent and 100km away from central Paris. The airport charges are obviously cheaper. The issue with Ryanair in Malta is that they don't have a second rate airport to choose from.
The comments here are evidence that the consumer ultimately decides which airline stays through their patronage. Gone are the days when the Maltese gov could offer subsidies (except in special cases of course) Low cost airlines are only getting subsidised now thanks to a special agreement in order to give the time to develop the low cost market to Malta, after a number of years they too will have to fend for themselves.
I have travelled twice with Ryanair.
Going through the 'weighing in' operation, every gram counts and if your luggage happens to just exceed the limit then be prepared ! I had to pay out of my nose for my hold-all camera bag slung on my shoulder - yes this is considered as luggage. To do so, I had to stay in a long queue of other passengers who, for some reason or another seemed to have infringed some stipulation in "the book" !!! The only solution was to PAY ! Furthermore, along the route we had to follow there were no trollies available for our use, and the departure gate was the most distant possible from the 'weighing in' station ! so pull,drag, push or carry the luggage until first signs of exhaustion set in, and still you are not even half-way to the gate ! - but then, you can always sit on your luggage to regain some breath ! Unbelievable !!!
When it comes to seat reservation this is unheard of, of course!!! ....literally reminiscent of the late 40's early 50's ...
I will not comment on the price of 'on board' refreshments! I simply preferred to fight my thirst until we got there.
I am sure that Ryanair is making a good profit, and the fact that it is still in operation is certainly not to be traced to some inherent and extraording sense of generous altruism towards Malta or its Tourist Industry.
AIRMALTA you are GREAT for the way you deal with your passengers - from weighing in to the moment when we getting off the plane !!!. When all is said and done and all calculations made - no !... you are not that expensive, and certainly competitive - no hassle, no tension, no sprints, no standing in queues for significant periods - all these do cost invisible money !
Instead of subsidising and increasing profits to Tony Ryan & Co (and a few other shareholders) we should start to seriously invest in niche tourism - basically low numbers but high value added!
I only flew once with a low cost airline, and always prefer to fly AirMalta - after all the cost of the flight is a minimal percentage to the total cost of the holiday, like Mark said it is better to start your holiday well!
Last month I flew to Bremen for 1c and 10 euros in taxes... same price for the return.
Air Malta dream of offering such prices. Ryanair is giving the opportunity to everyone in Malta to travel as much as they want, an opportunity previously reserved for the elite and the rich.
Everyone knows that with Air Malta you have at least 200 euros (inc return) for 99% of their flights.With Ryanair, if you go on their website, they have flights for 20 euros (inc return).
So with 200 euros...with Air Malta you travel once a year, with Ryanair you travel 10 times.
Sure you pay 3 euros for a hot dog on the plane, and if you have luggage you pay 6 euros... but look at how much you paid in the first place. For those who are complaining the check-in fees... if they are too high for you, perhaps you can use the web check-in and check-in for free and be able to avoid the queues at the airport.
Regarding their routes of Dublin, Stockholm and London, the demand is higher, therefore its not worth it using Ryanair in those cases. But Ryanair offers other destinations at unbelievable prices.
Considering Malta is an island, the government would be denying people the right of movement if it doesn't reduce the costs for European airlines to operate in Malta.
We are an EU nation now, lets do like our European counterparts and eliminate our borders once and for all. We have all seen the increase in tourism because of low-cost airlines... but it's not just that.
It the possibility for a Maltese citizen to travel in Europe for 10 euros, the price of a meal.
However, i come to Gozo twice a year and i WILL ALWAYS fly Air Malta, simply because the service you receive is a lot more pleasant than Ryanair and is a nice way to start your holiday instead of being cramped on a plane that is nothing more than a bus with advertising etc. I purchased tickets for me and my Girlfriend in January and we could have flown with Ryanair for £90 each return including taxes but even though this was half of what we paid with Air Malta i would still rather pay extra. With Ryanair you also have the inconvenience of going to Luton and the return flight lands far too late to get into London at a reasonable hour.
Long live Gozo and Air Malta
Mark Duffy
Apart from that, you get a free meal on you flight and Air Malta has the best in-flight entertainment on the Malta routes! Thanks Ryan Air, because with your introduction Air Malta has become more competitive. And now what? You are making excuses about airport costs! If Ryan Air was the competitor it said it was going to be, it would not threaten to cut its winter routes but it would try to increase competition within the market!
I just have one suggestion for Ryan Air. Instead of begging the Maltese government to lower airport costs, wouldn't it be better to reduce your bizarre charges and strive to improve your service.
'Bye 'bye, fresh water sailors!
If anyone (airline) wants to show its mettle, let it fly ALL YEAR 'ROUND to Malta...particularly in the lean winter months when the country most needs the tourist arrival figures.
It doesn't need a rocket scientist to sell airline capacity in the summer months!
And to think that we have "patriots" on this rock who will stop at nothing to throw jibes at our Air Malta who has ALWAYS been there for Malta and the Maltese....and not just in the summer months!
Choose Air Malta - Flying you all year round!