The Malta Independent 25 April 2024, Thursday
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National carrier: Will the low cost model help Air Malta

Monday, 3 August 2015, 07:53 Last update: about 10 years ago

Last week, Air Malta announced that it would be introducing more in-flight meal options, but at a cost.

Could it be that the penny might have dropped somewhere, and that the airline has realised that it might be worth emulating the low cost model, in terms of making the bulk of profits on board, rather than through ticket sales?

All low cost carriers make their money in this way. Of course, low cost airlines offer cheap tickets, but on top of that you normally get slapped with a reservation fee and a luggage fee, so what started out as, for example a €100 ticket could end up costing you €150 by the time you get on the aircraft.

And that is where the serious profits begin. From scratch cards to alcoholic drinks and snacks and sandwiches, low cost airlines make a killing once people are on board. The reasoning is simple. By the time you have got your cheap ticket, you already feel that you have gained something, so the fact that you are paying for horrendously overpriced cans of lemonade or beer or sandwiches does not really bother you.

But for this strategy to work, Air Malta must find a way to lower its ticket prices, which are still highly inflated. While still trying to find a strategic partner, as the government puts it, there are also plans to reduce the size of the fleet to optimize aircraft use – again on the low cost model.

But what will happen to the stewards and stewardesses? Already, there are more than enough staff on board flights, sometimes with up to five cabin crew. The number should be brought down. One for business class and two for economy should be more than enough. After all, low cost carriers seem to manage without impacting on the service of the flight. And this begs the question. What is Air Malta going to do with the extra cabin crew once the fleet is reduced? And will it also be considering the option of reducing cabin complement?

The fact is that Air Malta cannot survive in its current model. The European Commission will not be allowing more state aid and something has to be done to make the airline self sufficient to be able to stand on its own two feet. The increased presence and dealings with China look to have continued in this regard as it has been reported that the government is in talks with a Chinese airline to possibly invest and get a strategic toehold in Europe through code-sharing and more.

This country cannot afford for its vital air link to be pulled out. If something were to happen whereby low cost carriers pull the plug for whatever reason, then Malta would be isolated. The truth is that Malta needs both Air Malta and low cost carriers. But to compete, the national carrier must evolve. It can still retain legacy status while altering its business model to be more akin to that of low cost carriers. Either way, something must happen or the airline will go bust.

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