The Malta Hotel and Restaurants Association (MHRA) was surprised to learn from the media that Air Malta are pulling out of the Manchester Route as of April 2017 given that only two days prior to this news, the Malta Council for Economic and Social Development (MCESD) had a meeting specifically on the topic of Air Malta, and there was no hint of such a move.

MHRA has voiced 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. 

In a statement, the association said that they are "concerned by the latest twist in the Air Malta saga and wonder whether the airline is now relinquishing its role as a national airline and relegating itself to just another airline that services Malta". 

"MHRA is concerned that the latest move indicates that Air Malta might be shutting shop by stealth.  It certainly does not inspire confidence to have a MCESD meeting discussing Air Malta without a director of Air Malta present, neither to have a strategic destination such as Manchester dropped from the schedule 48 hours after the MCESD meeting without a hint of such action being taken. Clearly all the stakeholders now are in need of clarity as to the direction that the shareholder is taking in so far as Air Malta is concerned.  Stakeholders who are investors in Malta need clarity" stated MHRA President Tony Zahra. 

Mr Zahra further asserts that "Whereas it is important that Air Malta needs to be run efficiently, MHRA feels that the dismantling of key routes cannot be justified by arguing that such routes are now being serviced by other airlines. Over the past years MHRA has consistently argued that Air Malta must keep flying because beyond the commercial interest, it has to cater for the national interest." 

MHRA believes what Air Malta urgently needs at this point is not a debate solely focused on which routes must change or remain but rather should be strategically focused on how best to change its business model.  Mr Zahra asserts that, "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."

MHRA insists that dismantling routes on ad hoc basis without proper consultation with the relevant stakeholders and proper understanding of the strategic consequences may lead to a situation where the decision makers risk losing the wood for the trees. "If this happens, it will be bad news for all". 

Tourism Ministry says decision is part of strategy

Tourism Minister Edward Zammit Lewis, in response, said that the whole issue surrounds whether they want Air Malta to start taking commercially viable decisions “as the MHRA has always insisted, or else remain afraid of taking important decisions that would assure the airline’s commercial viability”.

“The decision regarding Manchester, following the Frankfurt decision, is part of a strategy and internal changes that this government is committed to implement so that the national airline can emerge from the serious difficulties leftover from the previous administration” 

The Manchester decision was based on the fact that to fly this route, Air Malta was projected to lose up to €2 million, the ministry's statement read.

“Government is determined  to wipe the bad decisions taken under the previous administration, while also take important decisions. This, also in the aviation sector that is ever more compettitive and aggressive”.

“The reality is that connectivity during the 2016-2017 winter months, and for summer 2017 will increase and not reduce”.

The minister said that 2017 is expected to be more positive than this year.

 

The airline will take decisions that make commercial sense, he said.