No doubt low cost carriers (LCC’s) have increased visitor numbers to Malta. Indeed new routes, recently opened, particularly in Italy, have led to a very positive response so much so that 2010 was a record year which can be mainly attributed to the activity generated by LCCs

This trend was very evident since the introduction to the market of LCCs - save 2009 which was the year of the recession and was definitely not a good year to make comparisons with.

There is obviously the great ongoing debate on the subsidisation granted to LCCs under the route development schemes. Passengers brought to Malta by LCCs do admittedly come at a cost to the Maltese taxpayer, but one has to gauge the net effect on the general economy. Without LCCs we would not have been able to generate enough business to keep hotel rooms occupied and other businesses directly and indirectly involved in the industry active.

The vast majority of LCC passengers enjoy a subsidy from the Maltese taxpayer which has affected the previous level playing field between legacy, charter and low cost carriers.

Furthermore one needs to look at the passengers generated through LCC’s as having substituted and made up for the drop in tour operator business, which also benefited and still does from financial assistance through marketing support schemes, and this has always been the case. It’s a matter of ensuring having the right policies in place so as not to allow LCC’s displace business already generated by legacy airlines like Air Malta.

Also not all low cost airlines travel to core Air Malta destinations, so they do not necessarily disturb Air Malta. However, where route development subsidies to low cost carriers are concerned the line of demarcation can be very fine, particularly when low cost carriers travel to airports which are in relative close proximity to other airports that have been core destinations of Air Malta for years. This is where questions arise about whether new arrivals can be considered as the product of new business.

The option lies in the ability to maintain a proper balance between Air Malta, legacy airlines and low cost carriers. It would be a critical mistake if Air Malta, that accounts to nearly 50% of seat capacity to Malta, decides to curtail its current operations, as the tourism industry could become increasingly reliant on low cost carriers.

LCCs have already demonstrated robust attitudes towards airports when negotiating new routes and conditions. They indeed had the gall to pull out of strong destinations and core markets when conditions offered to them did not match with their expectations. Although it is an unlikely scenario for Malta, past experience in Europe has shown that there can be no guarantee. LCCs are paid a subsidy to fly to Malta but they are not paid to remain. Who will fill up the vacuum if they decide to pull out as they have already done elsewhere?

The importance of maintaining a balance between legacy airlines and LCCs is now an issue taking centre stage, as the crises at AirMalta has accentuated the urgent necessity to keep the national airline flying unless our industry ends up slaving to the LCCs.

The survival of Air Malta is a vital tool to keep maintaining the balance.

Dr Gulia is the Opposition’s Main Spokesman on Tourism and Air Malta