Hoteliers have voiced concern that Air Malta could be shutting shop by stealth after dropping its services to Frankfurt and Manchester.
In a statement this morning, the Malta Hotels and Restaurants Association complained that it learned of the decision to stop services to Manchester from the media, despite attending a meeting with the airline just two days previously.
"MHRA is voicing its serious concerns on the future of the National Airline since this comes quickly on the heels of the Air Malta pulling out from Frankfurt Airport.
"MHRA is concerned by the latest twist in the Air Malta saga and wonders whether the airline is now relinquishing its role as a national airline and relegating itself to just another airline that services Malta," the association said.
MHRA President Tony Zahra called for clarity and said that dismantling key routes cannot be justified by arguing that such routes are now being serviced by other airlines.
"As long as the international economic and political environment keeps favouring the growth of our tourism sector the critical importance of Air Malta servicing key routes will be less felt if at all. It is when the market turns unfavourable that our tourism and commercial sector will reach out for an Air Malta as the national airline to take up the slack.
"The fact that the tourism sector today is not only doing well but also marking an encouraging immediate prospect doesn't mean that we should take this as a perpetual guarantee for the future. It is here that we expect a clear vision and strategic thinking by the relevant authorities taking decisions in relation to our national airline."
AIR MALTA: DECISION SAVED THE AIRLINE €2M
In a reaction, Air Malta said that it was projected to lose up to €2million in variable costs by operating its Manchester route with four flights per week in summer 2017.
"By simply leaving the aircraft parked, the airline would have saved these costs. However, Air Malta has decided to operate additional routes that will give a positive contribution," it said.
"The decision to close the Manchester route was taken after a thorough analysis of supply and demand. As a price-sensitive leisure route without a big business travel component, Manchester is well served by various low-cost airlines and charter airlines, who are able to cross-subsidize certain routes. Due to journey distance, Manchester is also an expensive route to operate for Air Malta and should have therefore been axed many years ago."
The airline said it could not ignore its commercial obligations, although it was conscious of the needs of the local economy.
"As an airline, operating in this cutthroat environment, Air Malta must continually strive to achieve operational efficiency and maximise opportunities by operating the best conveniently timed flight schedule and network.
As from May 2017 the Maltese airline will concentrate on its profitable routes, and increasing frequencies on Munich, Brussels, Amsterdam, Vienna, Zurich, Rome, Catania, Lyon, Palermo, Prague and Moscow.
Next summer Air Malta will be operating 150 weekly flights to 29 destinations and plans to carry 1.2 million passengers while operating with a fleet of eight aircraft similar to this year.