Updated at 5.20pm with Malta Chamber statement

Air Malta was not a national liability but a very important asset that had to be valued as such, the President of the Malta Hotels and Restaurants Association, Tony Zahra, said this afternoon.

He was referring to an article in The Sunday Times of Malta yesterday claiming that Air Malta would cease flying to nearly a third of its current European destinations and instead increase the frequency of its flights to North Africa and the Middle East, under a business plan drawn up by Alitalia.

 Mr Zahra said any decrease of seats would have a negative impact on arrivals and consequently on the economy of Malta and Government income from tax thereby risking increasing government’s deficit.

 “Reductions in point to point routes from our main source markets is considered by MHRA as a major threat to the sustainability of our tourism sector.  While it is important that Air Malta seeks to operate on commercial lines and develop new markets this must not be done at the cost of weakening the actual source markets that are contributing heavily to the success that the economy is currently marking.”

Important source markets for the tourism sector were not in North Africa but in Europe.

“Furthermore, the only connectivity model which makes business sense to our economy is point to point as against operating the national airline as a feeder service to other potential airlines.”

He said that ass key stakeholders of Air Malta, the MHRA would be meeting the Tourism Minister and the chairwoman of Air Malta to further discuss these issues and to keep exploring avenues to ensure that the airline would continue to serve the interests of Malta in a sustainable manner.       

In a statement earlier today, Tourism Minister Edward Zammit Lewis denied The Sunday Times of Malta report and that Air Malta was to become a feeder airline or that he had agreed to what the report was alleging.

In its report, the newspaper stated that the significant aspects in the airline’s business plan included a complete flight rationalisation, aggressive cost-cutting initiatives, including the axing of many jobs, and shifting the airline towards the southern market.

The minister said the report was only aimed at creating uncertainty at a crucial time for negotiations and at destabilising the tourism industry at a time when it was acquiring unprecedented records and successes.

Business and tourism in Malta need direct connectivity to Europe - Malta Chamber

In another statement, the Chamber of Commerce, Enterprise and Industry said the ministry’s denial served to allay the chamber’s serious concerns.

The chamber said the business plan as reported would have disastrous consequences for Malta’s tourism industry and beyond, as it did not include new capital investment and proposed complete flight rationalisation involving the loss of one third of European routes in favour of southern destinations.

“The Malta Chamber remains in favour of strategic alliances for Air Malta with a view to render the national airline financially viable. However, the chamber reiterates its position that any alliance needs to keep the entire perspective of Malta’s economic scenario well in focus.

Business and tourism in Malta, the chamber said, needed direct connectivity to Europe.

“It has been proven time and again that tourism markets are best served when direct flights are present.

“Malta cannot risk becoming fully dependent on other airlines to sustain entire markets within the tourism industry.

“Sectors such as diving, language schools and the meetings, incentives, conferences and events have sustained local operators throughout the shoulder months for years.”

It said certain routes could also serve major sectors in Malta’s economy such as remote gaming, yachting and financial services. These were completely reliant on convenient direct connections between Malta and major European cities. The same held true for cargo and connections serving the exporting manufacturing industry. 

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