The figures say it all. Over the past year, 2.8 million passengers passed through Malta International Airport, which has a capacity for five million passenger movements a year.

More: last year’s figures were just 3,000 more than the previous year and just 24,000 more than the figures registered in 2001.

At the MIA annual general meeting last Thursday at The Hilton, the lack of progress and growth of MIA came to the fore.

CEO Peter Bolech admitted 2005 had been a difficult year worldwide but while Europe registered a growth rate, which was one percentage point above the long-term trend of the region, and while the Southern and Mediterranean basin enjoyed an increase of six per cent in international tourist arrivals, Malta did not achieve this growth and instead “still appears to be struggling to recover from the negative impacts of the immediate past”.

Mr Bolech blamed it on the impact of the 100 per cent increase in the government departure tax midway through the financial year. This took its toll on Maltese travellers, and especially on Air Malta. MIA welcomed the government’s declared intention to reduce this tax.

A closer look at the passenger figures shows that Gatwick is the most favoured airport of origin or destination, with 356,000 passengers coming or going there, followed by Manchester, Frankfurt and Heathrow with 156,000.

Predictably, Air Malta carried most passengers but its numbers slumped by 48,000 to 1.556 million. British Airways increased from 111,000 to 150,000 and British Jet made a spectacular entrance carrying no less than 104,000.

Mr Bolech said that British Jet has continued to do well, as have the Polish low-cost airline Central Wings and more recently Meridiana.

This was somehow damped by his next words: “In our endeavour to generate additional business for MIA, it is notably not our intention to create any distinct category of operations, such as low-cost or other, but much rather we will continue to strive to attract to Malta, on the basis of a level playing field, any airline that has the potential to increase tourism.”.

Joe Buttigieg de Piro, a shareholder, asked Mr Bolech to confirm that a low cost airline has offered a guaranteed two million passengers more and a 50 per cent airport expansion.

Mr Bolech replied he could not confirm anything. MIA has examined a number of scenarios including opening up less frequented routes. However, in the interests of its shareholders, MIA could not be asked to forego its profits.

A highly critical shareholder (MIA, unlike other companies, does not ask the speaker to identify himself before he speaks) read out a list of airlines and their decreasing numbers. “Your level playing field,” he said, “is just not working. Replacing Air Malta with other airlines should be an open question, not a closed one.”

Another shareholder had previously told the MIA board, to applause, to do its utmost to attract low cost airlines to Malta.

Mr Bolech agreed and reminded everyone that a year ago, only MIA had taken the initiative to open up routes and slash the landing charges by as much as 50 per cent in order to attract new airlines. The government had followed suit last April but other institutions, he complained, have done nothing so far.

The airport charges in Malta are mid-range in the Mediterranean, Mr Bolech said, and with airport charges being some five to six per cent of the airline’s cost structure, it is difficult to see how a rise in airport charges could affect an airline that wants to come here.

Cargo

With the opening of a new terminal last year, Mr Bolech said, cargo handling at the airport has increased considerably. The company is now in the process of finalising a contract for initiating development on part of the proposed new area of the Cargo Village, which will include both warehouses and offices. In June, MIA recorded its 10th consecutive month of increase in air cargo throughput; in the first half of this year, air cargo throughput was some eight per cent higher than last year.

Cruise and fly

Despite the unexpected jolt the cruise and fly concept got last year due to My Travel halting operations, MIA has now attracted Star Cruises to use Malta as its home port. This venture is expected to bring some 22,000 new passengers to Malta. Star Cruises have also confirmed their operation for 2007 and MIA may also handle a good proportion of the ship supply activity in Malta also through air cargo.

Retail business

After the initial slump due to the abolition of duty free facilities, new outlets are being opened. Ten new outlets have opened since privatisation.

Customer satisfaction

MIA has once again scored significant results in IATA’s Global Monitor Report overall passenger satisfaction. It ranked fifth among European airports and second in the small airports category for the second time running.

Nevertheless, there are significant nuances in the ratings. MIA has a lower than average rating in the business and executive lounges category, and a barely satisfactory rating as regards courtesy and helpfulness of staff and speed of baggage delivery. Its best ratings were for cleanliness and ambiance and for waiting time at security inspection.

Complaints

A forlorn group of five persons, who were kept out in the heat of the sun by MIA personnel as they had arrived late for the AGM, complained bitterly.

Inside the hall, an American shareholder complained he had received note of the AGM just the day before. In the US, he told the meeting, you have five week’s notice.

MIA’s company secretary told him that all notices were dispatched 14 clear days before the meeting. “We do not control the postal system,” he said.