Austrian Karin Zipperer was yesterday appointed as the new chairman of Malta International Airport at the first meeting of the board that emerged from yesterday’s annual general meeting.
Ms Zipperer replaces Michael Hoeferer who was MIA’s first chairman.
She has been on the MIA board for the past year but she had been involved in the privatisation process
on behalf of Vienna International Airport.
Apart from approving the financial statements and the dividend, MIA’s shareholders also approved a change in the company’s articles of association adding another director to the board.
Speaking at the AGM, MIA’s CEO Peter Bolech dwelt on last year’s bad performance by Malta in tourism. While all other EU countries, Mr Bolech said, registered considerable increases in tourism figures, and in particular the newcomers that joined the EU with Malta in 2004 experienced unprecedented growth, Malta suffered a four per cent shortfall.
This led to clamouring calls by the key players in the sector urging the authorities to modify their strategies since these were evidently not proving effective. The government on its part was engaged in a series of restructuring programmes which did not prove to be an effective antidote.
Mr Bolech mentioned a series of factors that could be blamed for the shortfall: the reduction in seat capacity, Malta’s tourism product having aged and the elimination of MTA’s offshore stations having worsened the situation while competitor countries embarked on successful aggressive campaigns.
In the middle of all this, there were persistent calls by stakeholders for low-cost carriers. While the arrival of low-cost carriers has increased capacity, the product still needs to be refined, the market approach needs to be tackled afresh and far more needs to be done as regards accessibility.
Mr Bolech then spoke of MIA’s efforts to attract low-cost carriers. He defended the airport from the accusations that it is an expensive airport: the four per cent of the airlines’ operating cost that MIA gets is its lifeline while it is not significant for decision-makers of an airline, he said.
Mr Bolech said the advent of low-cost carriers has contributed to the recovery that is already being felt, also because the traditional carriers have taken steps too. But far more needs to be done: the travellers’ profile is changing; people today are opting for shorter breaks at more affordable prices and the use of the internet to book is on the increase – tour operators who used to have 70 per cent of the market are now down to 50 per cent. And current demand is still not adequately catered for, Mr Bolech warned.
As regards MIA’s operational plans, he said MIA invested Lm2 million to ensure business growth in the medium to long term: it is expanding the air terminal, building a new Arrivals area, installing a fifth baggage carousel and enlarging the Departures area. A further Lm4 million have been allocated to upgrade the existing taxiways and runways and thus increase the aircraft handling capacity of the airport.
To this, MIA’s outgoing chairman Michael Hoeferer added a note of caution regarding the company’s plans for the development of its landside area. The project is still a priority for MIA, he said, but MIA has no intention to rush into an agreement for the sake of concluding the project. The company is still engaged in thorough negotiations with reputable international consortia, but the contractual obligations this would involve would cover the next 60 years – hence the need for caution.
The meeting also appointed Markus Klaushofer, Michael Bianchi, and Julian Jaeger as the Chief Commercial Officer, directors for the forthcoming year.
Winston J. Zahra was appointed Deputy Chairman.