The airport's new extension was testimony to Malta's determination to keep improving its tourism product despite the global economic crisis, Prime Minister Lawrence Gonzi said.

Over the past years, the total investment at the airport reached about €25 million and included works inside the terminal and improvements on the runway, he added.

"I was told that, previously, this area was an open space that separated the arrivals from the departures lounge. Now we have maximised every square inch ... and every square inch will be translated into further employment," Dr Gonzi said.

Accompanied by his wife, Kate, Dr Gonzi visited the extension that houses the gates, duty-free shops, cafés and the VIP lounge, which were blessed by Archbishop Paul Cremona.

Dr Gonzi took the opportunity to stress that the investment would not have been possible without the airport's privatisation in 2002. In July that year, the government had signed an agreement with the Malta Mediterranean Link Consortium for the sale of 40 per cent of MIA. The deal was worth €93.5 million. The following November the government had sold a further 20 per cent of its shares in MIA by means of an Initial Public Offering and another 20 per cent in November 2005.

"The fear of change, brought about by the privatisation, was not only unfounded but also irresponsible," he said.

He joked that, perhaps, he was not so fortunate in travelling through the VIP ministerial lounge, on the other side of the airport, because this meant he missed out on the "impressive" extension.