Air Malta could become part of a larger carrier and ultimately cease to exist unless it grows, Ryanair’s Chief Commercial Officer David O’Brien said today.
Mr O’Brien was asked for his opinion on Air Malta’s future at a press conference in which the low fares airline announced a seat sale on four of its Malta destinations.
“It is obvious that Air Malta’s costs cannot exceed its profits,” said Mr O’Brien. “Small airlines like Air Malta are increasingly becoming part of larger airlines. Growth is the key to survival. If an airline does not grow it could vanish.” This would be a pity, he said, because Air Malta is a good competitor to have.
The Ryanair CCO said in order for an airline to grow it has to appeal to a broader and deeper market. And in order to do that, it has to give customers what they want.
Mr O’Brien said Ryanair does not have a contingency plan to replace Air Malta should tha Maltese airline collapse. He also referred to recent local news headlines that said Air Malta will not decrease its fares despite the tumbling cost of fuel and noted that Ryanair never had a fuel levy.
The Ryanair CCO said advance bookings for Malta in 2015 are very strong and there are record bookings on its 2015 summer schedule. The company, which last year introduced a flight to East Midlands, is also increasing the frequency of flights to Bari, Bournemouth, Dublin, Gothenburg, Luton, Mardrid, Milan, Stockholm and Venice. Some of the summer routes could be extended into the winter months. No new routes to and from Malta are planned for the time being.
Mr O’Brien said Ryanair has an order on some 200 new Boeing 737 MAX aircraft, which are cheaper to run and can carry more passengers. This will allow Ryanair to carry more people while decreasing fares even further. The company plans to increase its 90 million client base to 160 million by 2024. “The question is how many of these passengers will be coming to Malta.”
The airline, which is celebrating its 30th anniversary, has also announced that it will upgrade its website once again and, in the coming months, its clients will be able to compare Ryanair’s fares with those of other airlines on the company’s website.
Malta represents around 1.5% of Ryanair’s total market. The airline carried some 1.1 million passengers to and from Malta in 2014, representing 28% of the local market.
Ryanair announced a seat sale where passengers can fly to Bari, Girona, Pisa and Trapani for €12.99. The sale lasts until midnight on Thursday and the flights have to be booked for March and April 2015