Where do you see Air Malta in 10 years’ time?
In spite of the tough and uncertain beginning, Air Malta has grown to be a vital pillar of the Maltese economy. Our tourism product still needs a long-term secure and sustainable airline that can provide Malta and the Maltese with consistent, reliable air services. That airline is Air Malta and we see it continuing to offer its excellent service for years to come.
Does the airline see any advantages in joining an alliance? Why and which?
We have been closely cooperating with Star Alliance members and signing various code-share agreements with members of this alliance. We are pleased with our performance, but whether these could lead to Air Malta joining an alliance is another matter.
The low-cost carriers are eating away from the legacy airlines’ markets. What does this tell Air Malta? Does it see itself taking the risk and consider having part of its operations running on a low-cost basis, possibly offering low-cost flights?
Since 2003, Air Malta anticipated shifts in passenger demands and patterns and began a wide restructuring process that has drastically changed the way it operates. We have changed the way we do business, especially how we sell our seats. Although we have always had low fares, traditionally we made these available only to tour operators. While low-cost airlines are 100 per cent direct sell, we still believe strongly in the validity of tour operators and ticket agents, but at the same time we have increased our direct sales considerably. We are giving direct access to low fares and have drastically changed our fare structures, launched a user-friendly internet-booking engine as well as introduced electronic ticketing. Last year we opened an international call centre based in Malta open seven days a week, for those passengers who prefer to buy their tickets over the phone.
We have also sought to increase efficiency and productivity within the airline and today our cost base is significantly lower than what it was six years ago. We achieved this result maintaining our position as a full service airline. We intend to continue offering premium services at low fares.
Can Air Malta continue to sustain its social obligations? Is there a way out?
Over the past 35 years we have always found the right balance between the airline’s commercial and social obligations. Air Malta is committed to continue providing assistance on medical and humanitarian grounds apart from assisting organisations in the field of the environment, sport, culture and heritage. However, to sustain this we need to have a level playing field with our competition.
What has been the biggest achievement and the worst mistake in the airline’s 35-year history?
One of Air Malta’s biggest achievements is undoubtedly its ability to face international competition successfully. Since its inception it has faced international competition from airlines far larger and resourceful than itself.
Another important achievement is the wide-ranging process of re-organising the company’s business. Since 2003, Air Malta took critical decisions to focus on its core operation, divesting itself from other investments, reorganising its structure, outsourcing cabin cleaning, IT and inflight entertainment, launching a new booking engine, investing heavily in international marketing. All these have contributed towards making Air Malta a stronger organisation capable of facing the challenges that lie ahead.
We don’t think we made too many mistakes, but if we have to mention one then that is that, over the years, we employed more staff than was strictly necessary. But since 2003 we have reduced the number of staff working with the airline by 500.
Source: Weekender, March 28, 2009