Efly's operations 'made impossible'

Efly, the San Ġwann-based low-fare airline, has cancelled all scheduled flights to Catania after conditions "hardly pertaining to a free European market" made the company's operations impossible, sources close to the airline have told The Times Business.

The airline, which launched four daily flights to and from Catania in September, flew for 45 days and carried over 2,500 passengers, sources said, adding that flights had always been on time. Initially, Efly also had intentions to operate other routes to major cities including Rome and London.

Efly, which besides Air Malta, is the only other commercial airline to be based in Malta, operated its last scheduled flight on November 2. By the last weekend of operation, loads were described as being "very good" and the airline was beginning to make a little profit on the route.

Refunds to passengers whose flights have been cancelled are being processed and sources close to the airline said only few were left to settle.

Efly will continue to be based in Malta but will now focus on wet leasing, charter and ad hoc flights in other destinations, its original strategy. Its Malta-registered aircraft, a BAe 146-300, undergoes maintenance every day and is currently in a private company's hangar.

On Friday, Efly issued a statement saying competitors had used "predatory tactics" to force the airline out of the route by "dumping prices to below cost level".

"Matters got out of hand when Malta International Airport made it next to impossible for our service vehicles to access the aircraft. There were also serious delays in the issue of entry permits to our technical staff. This has led the company to reconsider its own presence in the scheduled market," the company said.

It added that Efly would only review its position if a serious level playing field is established in the local market.

Sources have spoken of a bizarre trail of events they claim made daily operations a struggle. Airside passes for Efly's Maltese and foreign personnel took over two months to be issued by authorities. The airline was also told its staff would have to have had passes for six months before a licence was issued for company vehicles to be driven airside.

Efly was contacted for its personnel to take a special driving course just this week. With no licence, driving engineers 200 metres to and from the aircraft several times a day cost several hundred euros a day in fees.

Mobile aircraft steps were sometimes provided 25 minutes late and the crew once even accessed the aircraft through a hatch after they had had enough of waiting. Efly paid its handling agent for a dedicated check-in desk but passengers were often confused over which desk to approach.

Sources said Efly had a responsibility to its shareholders and could not operate in a market where measures were taken to kill off any new entrant.

The intense price war with the competition brought matters to a head.

"Efly wanted to maintain good relations with everyone in the Maltese market but the airline just could not operate any longer," the sources said.

"There were only good intentions on Efly's part and its management really thought it would work but it will no longer disturb anyone in Malta. It is a shame because it means the chances for Maltese travellers to have access to good fares have been lessened."

Yesterday, the Department of Civil Aviation said: "Efly decided of its own accord to temporarily suspend its operations."