Air Malta yesterday continued its drive to become a more competitive airline by launching its summer schedule which includes new routes and increases the frequency on those that have become more popular.
However, the airline said that it is very concerned about the increasing cost of oil which, in turn, is causing aviation fuel costs to skyrocket.
This is not a problem faced only by Air Malta, but a problem which is hampering the operations of each and every airline around the world.
Many people have criticised Air Malta about its airfares, which are higher than those of other airlines.
Yet an important fact was mentioned at the press conference yesterday. Speaking about how Air Malta looked at competitors such as Britishjet.com and possibly Ryanair, the company’s chief officer Strategic Planning Dominic Attard, said that Air Malta expected that the discounts given to these airlines to operate at low costs to and from Malta are also extended to Air Malta.
He said, and we agree, that it is unacceptable for Malta International Airport to charge these airlines Lm2 per passenger while Air Malta has to pay Lm5 or Lm6 per passenger.
Air Malta is contending that “what is sauce for the goose is sauce for the gander”, and rightly so.
The airline says that it is at the forefront of the tourism industry and that there should be a level playing field.
This is fair enough.
However, Air Malta must now work doubly hard to become profitable.
When the airline first went public and admitted that its finances were not in a good state, the price of oil was not as high as it is now, neither was there as much direct competition as there is now and will be in the future.
There have been several positive initiatives, such as the launching of a dogleg service between Malta, Catania and the UK in an effort to maximise carrying capacity and aircraft utilisation. Other successful projects have included the basing of aircraft at UK airports to service other markets from there.
Air Malta has projected that booking patterns this year are more or less in line with those of previous years. While it is positive that we have kept our markets, Air Malta must continue to find ways in which it can continue to make itself more cost effective, while at the same time offering a good efficient service.
Air Malta has added new routes to its portfolio this year while at the same time increasing the frequency in core markets and bolstering services to up-and-coming markets such as Brussels, Paris and Manchester.
However, the crux of the issue remains that while Air Malta is to be commended for its cost-cutting exercises, it will not have the desired effect unless the airline finds a way to lower its prices.
There are some no-frill, low-cost routes being operated by the national carrier, but the truth is that these destinations are not exactly money-spinners, for the simple reason that the flights are at awkward times and not exactly ideal for connections – Stansted for example.
Of course, for Air Malta to be in a position to offer lower fairs, it must be making a profit. For the airline to make a profit it must be able to carry more passengers for more air miles and at a cheaper cost than it has done in the past.
Air travel is not a prestige issue. Most people will go for the cheapest carrier around and Air Malta must be in a position to compete with other carriers on a price level.
Unless it manages to find a way to do this before other airlines come in, then it will find it all the more difficult to recover and regain a good financial position.