The Malta Hotels and Restaurants Association (MHRA) reiterates that Air Malta has been and will continue to be, although less than previously a key factor in the success of our tourism industry as well as the wider economy.

In a statement following the news that Air Malta is in talks with Turkish Airlines, the MHRA said that some years back air travel between countries used to be regulated by air services agreement between individual countries which basically gave a duopoly to the National carrier of the countries concerned. With the coming into force of the freedom of the skies this cosy duopoly arrangement ceased as any EU carrier could fly from anywhere to anywhere within the EU.

Consequently, the legacy carriers had to change their business model or face serious financial difficulties. Malta being an EU member was no exception and Air Malta failed to change its business model and has seen increasing competition from various airlines. Air Malta had to change or face the prospect of being driven out of business. The change that has happened at Air Malta has been too little and too late.

It is clear that the market conditions for Air Malta have become increasingly challenging. The options are not many and these call for the implementation of specific measures which will definitely change the name of the game at Air Malta.

MHRA asserts that, “the tourism industry expects and will keep supporting Air Malta management in taking the necessary decisions to ensure that our national airline keeps flying.”

Towards this end, MHRA President Mr Tony Zahra asserts that, “it is critical that Air Malta should retain Maltese interests and should not be wholly sold off to a foreign entity be it an airline or an investor. A hybrid investor arrangement could also be a solution as long as Maltese interests retain control."

MHRA called upon the Government which is the shareholder to consider adopting the BOV model as a solution. This means that whilst Government retains a minority interest, say 25 per cent the other 75 per cent is sold to the Maltese investors and thus bring in commercial interests and management.

Mr Zahra said that "losing control to foreign interests of Air Malta that still produces just under 50 per cent of the passengers to Malta, and the major transporter of air cargo to the island would effectively hand over the destiny of our most important industry to non-Maltese. That is something which MHRA cannot support." Time is fast running out and decisions have to be made now.