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Letters | Sunday, 09 May 2010

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Ryanair subsidies aiding outgoing traffic

Air Malta refers to the letter by Stephen McNamara, Head of Communications, Ryanair, under the title ‘Air Malta should stop complaining and lower fares’ (MaltaToday, 18 April 2010).
Since its inception, Air Malta has invested heavily and opened up over 40 new markets without demanding a cent in subsidies.
Today, as was also the case throughout its 36 year history, Air Malta operates without receiving any assistance from Maltese taxpayers. When the airline lost money in recent years this came from its financial reserves.
From Stephen McNamara’s reply it is now obvious that the route incentive scheme is being used by Ryanair for the outgoing traffic from the islands when these should be intended to attract more tourists to the islands.
Air Malta has not applied for government support schemes due to the fact that it operates to major and centrally-located airports and not secondary airports. If Air Malta had to operate to these airports it would have had to drop flights to its main airports since operations would not be sustainable.
Moreover, should Air Malta stop its flights to major airport hubs, this would not only be detrimental to the Maltese public and the incoming tourism industry but also to the local manufacturing industries due to loss of international connectivity.
Over the last years Air Malta has maintained its market share (56% last year) at Malta International Airport, meaning that it has remained a key player in the Malta market competing successfully with Ryanair and all other low-cost carriers.
Air Malta’s shareholder is Malta. As an airline we are intrinsically tied to the island’s tourism product and have shown our commitment to the islands by transporting 40 million passengers or 58% of all traffic at Malta International Airport since the airline starting flying on 1 April of 1974.


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