MIA and car rental group’s parking row
Dispute grows over increased cost of spaces
The rental car parking area at Malta International Airport. Photo: Matthew Mirabelli
The Rent-A-Car Association has pulled out of talks with Malta International Airport over the use of the car rental parking lot in a row over new rates.
The negotiations followed the barricading earlier this month of the 182-space parking lot in the precincts of the airport that was used by car rental companies.
When contacted, an association spokesman confirmed no agreement had been reached on the new contract because many operators withdrew their interest due to the steep increase imposed by the airport.
He said the airport company wanted the annual rental fee to rise by more than €300,000 over a three-year period for all 182 parking spaces.
With a request for a three per cent increase each year, this meant the expenses would have grown by 44 per cent in the second year and almost 49 per cent in the third year.
The spokesman said the association had called an extraordinary general meeting to discuss the issue but many car rental companies said they were not interested in renting out slots in the lot.
In view of these dropouts, the association saw that it did not have enough companies to take up all the available parking slots, giving it no option but to pull out of the discussions on the new contract.
It also gave its members who were still interested in leasing parking slots a free hand to start individual negotiations with the airport.
An MIA spokesman confirmed that the company was negotiating with individual car rental companies. He defended the new rates, saying these were competitive compared with other parking operations.
He said that talks with the association were inconclusive, so the company entered into individual discussions with a number of car rental operators following various requests to continue using this reserved area.
The spokesman refused to divulge details of agreements the company struck with individual operators, saying these were of a “commercial nature and the company is not at liberty to divulge”.
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9 Comments
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Joseph Vassallo, (Bugibba)
Jul 23rd 2012, 13:01
So... that's €1.50 per car-space per day.
How much would it cost the association members (in cash and in lost business) if they were to wait for the booking to be completed and then have someone deliver the car to the customer from the company's established garage? Surely, the economics can be worked out.
They can't expect to park hundreds of vehicles on the street surely... (or can they?) as happens in Bugibba and Qawra where parking spaces are mostly taken by hire-cars on seduction-display.
R Axisa
Jul 23rd 2012, 21:55
The 1.50 euros is the increase over and above the existing fee already being charged - these calculations show that the MIA wants a 1.50 euros increase daily for the 1st year, another 1.50 euros increase daily for the 2nd year and another 1.50 euros increase daily in the 3rd year.
May I remind you that a couple of weeks ago, a certain Mr Zammit Tabona from the Tourism industry begged the government to take over the runway and airport due to exhorbitant expenses to the detriment of the tourism industry.
Mr Peter Korsten
Jul 23rd 2012, 23:14
I don't know where you were taught maths, but it's an INCREASE of €4.50 per space per day.
The cheapest car at the first rental company I found goes for just over €30 a day. The INCREASE (and let me stress that it's an increase, not the fee itself) is about 15% of that rental price.
You don't have to be a rocket scientist to figure out that this is going to put some stress on the profit margins of the rental companies, or the rental price of cars, or both. Although it would help if you can do basic maths.
Joseph Vassallo, (Bugibba)
Jul 24th 2012, 15:50
@ Axisa and THorsten: What you are saying is different from what the report says and I quote,
"He said the airport company wanted the annual rental fee to rise by more than €300,000 over a three-year period for all 182 parking spaces."
Unquote.
This means that there will be a €300,000 increase OVER THREE YEARS not the same amount EACH YEAR FOR THREE YEARS.
You questioned where I learned my maths, but I shall refrain from asking you where you learned your English.
Joseph Vassallo, (Bugibba)
Jul 24th 2012, 16:06
@ Korsten:
As you consider yourself a rocket scientist, could you maybe explain this to me?
QUOTE: "With a request for a three per cent increase each year, this meant the expenses would have grown by 44 per cent in the second year and almost 49 per cent in the third year." UNQUOTE
An increase of 3% p.a. for three years would amount to 9.2727% over three years. So where has this figure of 44% and 49% for the second and third years come from?
Joseph Vassallo, (Bugibba)
Jul 24th 2012, 16:29
Maybe we should consider also that a company with a fleet of several hundred cars would rent reserved spaces for a couple of dozen cars at the airport which it will utilise for any number of its vehicles depending on the turnover of the day.
Commenting on the quoted daily rate of the cheapest available car (€30 as per Korsten), Malta may be pricing itself out of the market. Renting a BRAND NEW Panda (with 500 km on the clock) from the airport in Rhodes last June, cost me just over €100 for FIVE days inclusive of insurance and all waivers. The rental was NOT pre-booked but the car was in a company slot at the airport. There was no waiting time for delivery; I was simply given the registration number and key and pointed in the direction of the company's parking slots.
It may well be that the ancient principle "small profit = quick return" ought to be revisited by Maltese entrepreneurs.
Peter Murray
Jul 23rd 2012, 10:41
The MIA in line with most banks simply cannot get enough profits
Barney Camilleri
Jul 23rd 2012, 10:21
Do you all remember when we had an airport run by the local Government? it was simple, Air Malta was making profit; the Airport gave work to hundreds of workers and parking was FREE and all was well for us the people.
Until someone had a bright idea, decided to go foreign!
Today the airport is foreign owned with huge profits that we never benefit from, Air Malta run by foreigners with huge salaries and benefits but still failing, jobs are melting away of course on the Maltese side, parking has become a luxury.
We lost the airport, lost jobs and what is left is taken by foreigners. That's progress I assume.
Mind you we still have to supply and fix roads, water and power, of course this time we pay for it the tax payer.
Ray Woods
Jul 23rd 2012, 09:29
Malta killing the golden goose again! First the buses, now car rentals.
Please choose the reason of your report below: