No one wants to see Air Malta flounder – this is fact. Everyone recognises that the airline is of national strategic importance and cannot afford to go under. Quarter after quarter, we had seen Air Malta registering loss after loss.

We only have the management report and the faith being shown in the restructuring exercise by the European Commission to base any initial reactions on, but it does seem that some progress has been registered. Losses have still been registered, but it has been declared that some heavy haemorrhages have been contained, or at least stemmed.

One of the usual signs of a company in recovery, or at least with a vision of recovery, is investment. It gives a clear signal that the enterprise is taking remedial action and is trying to upgrade, modernise and restructure. Whether or not this works is not always apparent, as has been the case with other airlines that have attempted to restructure and return to viability. But sometimes it has worked and airlines have actually grown stronger.

Air Malta announced last week that it has committed an investment of €3.5 million in new ground service equipment specifically for airport environment use. The business case for this heavy investment was to modernise the airline’s ground-handling capabilities and service delivery standards and offer both Air Malta’s customers as well as third-party airlines a high quality ground services package.

The equipment purchased comprises 35 vehicles and other airport units that include high-reach mobile passenger steps, ground power units, airport buses, loader transporters, electric tow tractors, ambulifts, air starter units, fork-lifters, cargo dollies, baggage and cargo carts and various trucks. A tendering process was followed for the purchase of this equipment.

Air Malta’s management said this investment will not only standardise and modernise all Air Malta’s airport ground equipment fleet but will also reduce operating costs for the airline. The ground power vehicles purchased, which supply electric power to aircraft whilst on the ground, operate at less than one-fourth the cost of their corresponding power units (Auxiliary Power Units) found on board aircraft.

€2.3million worth of equipment has already been delivered. The rest will be delivered in the next six months. Air Malta is set to continue shedding workers till it reaches the benchmarks stipulated in the plan approved by the European Commission. In doing so, it will require equipment that is (as mentioned above) more cost effective, but which will also offer the possibility of servicing aircraft with a smaller number of ground crew.

Air Malta’s service has always been good, but it had waned over the years. The new uniforms, coupled with a little bit more of a smile and a kind word to customers have helped to begin to restore the airline’s previously excellent name. Air Malta has always retained its great time keeping and baggage delivery ratio records, but we are sure that it can continue to improve. The new investment should help and coupled with the excellent service on offer at Malta International Airport, will continue to improve the image of all concerned, as well as our overall tourism product.

There is only one more issue that really needs to be tackled – fares. While some special offers are a good buy, fares are still astronomical and erratic. Even the best airline in the world struggles to sell seats which are just too expensive.