The time has come to take an unemotional look at what would happen if the Air Malta deal with Alitalia fails to materialise – with no other option on the cards. Until now, talk about the importance of Air Malta to the tourism and the business sectors were coloured by patriotism and nostalgia, both noteworthy motivations but ones which need to be revised in the cold light of reality.

The Malta of today would not have been possible without Air Malta, which forged connections with the mainland that allowed us to flourish, opening up tourist markets, enabling business travellers and supporting incoming and outgoing cargo.

No one will ever dispute that; but neither should they dispute that the Air Malta of today is one that was riddled with the sins of various legislatures, from a bloated workforce with unsustainable collective agreements, to inappropriate plane purchases, and from overambitious route networks to inflexible pricing that alienated passengers.

This is why, when Ryanair turned up 10 years ago, the situation was ripe for its loyal customers to defect, all talk of patriotism and national airlines forgotten.

But Ryanair is not the only story: there are now over 50 international airlines serving Malta. We can no longer claim that Air Malta is our lifeline: it only serves 18 destinations this winter, compared with Ryanair’s 38 routes. So much for Air Malta being the only carrier to provide a year-round service, no matter whether profitable.

In the past we heard ad nauseam that Air Malta represented 52 per cent of all the traffic into Malta. The Business Observer reported on October 20 that Ryanair was forecasting that it would have 40 per cent of the market share, and to carry two million passengers.

Let us be honest with ourselves: the Air Malta of today cannot afford to operate routes merely because there is some compelling national interest. And the Air Malta of tomorrow would have even less leeway.

Would and could the government pay the airline, whether with or without a strategic partner, a public service obligation to operate economically unfeasible routes, just as it pays the bus service to go to outlying areas and the Gozo ferry to operate through the night? Is that actually going to solve anything?

The Air Malta of the future would need to stand on its own two feet, even if it has a strategic partner. Unless we manage to find a charity willing to plough money into it merely to keep it alive out of some altruistic fervour, it would have to rationalise. No loss-marking company has ever been bought out without a harsh evaluation of its headcount, its operational costs, which of its segments makes a profit and what its long-term sustainable future strategy should be. At present, Air Malta is unable to take those steps, even though there are undoubtedly many who know exactly what it should be doing: the political cost is way too high.

The Malta Tourism Authority chief executive, Paul Bugeja, made a courageous statement in today’s interview: Air Malta is no longer critical to the island’s survival. Yes, it would be fantastic if a formula were to be found – for a multitude of reasons, not the least of which is its workforce – but if not, there will be other airlines who would step into its already much diminished shoes. The Air Malta of the future will never be able to sustain the economy and tourism the way it used to in the pre-EU days of subsidies and government support. It’s time to face up to that.

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