The Malta Business Weekly

Is Air Malta shutting shop by stealth?

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MHRA was surprised to learn from the media that Air Malta are pulling out of the Manchester route as of April given that only two days prior to this news, MCESD had a meeting specifical­ly with Air Malta as the only subject and there was not even a hint of this decision that Air Malta will be pulling out of Manchester.

MHRA is voicing its serious concerns on the future of the national airline since this comes quickly on the heels of Air Malta pulling out from Frankfurt airport.

MHRA is concerned by the latest twist in the Air Malta saga and wonders whether the airline is now relinquish­ing its role as a national airline and relegating itself to just another airline that services Malta.

"MHRA is concerned that the latest move indicates that Air Malta might be shutting shop by stealth. It certainly does not inspire confidence to have a MCESD meeting discussing Air Malta without a director of Air Malta present, neither to have a strategic destinatio­n such as Man- chester dropped from the schedule 48 hours after the MCESD meeting without a hint of such action being taken. Clearly all the stakeholde­rs now are in need of clarity as to the direction that the shareholde­r is taking in so far as Air Malta is concerned. Stakeholde­rs who are investors in Malta need clarity," stated MHRA president Tony Zahra.

Mr Zahra further asserts that: "Whereas it is important that Air Malta needs to be run efficientl­y, MHRA feels that the dismantlin­g of key routes cannot be justified by arguing that such routes are now being serviced by other airlines. Over the past years MHRA has consistent­ly argued that Air Malta must keep flying because beyond the commercial interest, it has to cater for the national interest."

MHRA believes what Air Malta urgently needs at this point is not a debate solely focused on which routes must change or remain but rather how it should be strategica­lly focused to best change its business model. Mr Zahra asserts that: "As long as the internatio­nal economic and political environmen­t keeps favouring the growth of our tourism sector the critical importance of Air Malta servicing key routes will be less felt if at all. It is when the market turns unfavourab­le that our tourism and commercial sector will reach out for Air Malta as the national airline to take up the slack.

The fact that the tourism sector today is not only doing well but also marking an encouragin­g immediate prospect doesn't mean that we should take this as a perpetual guarantee for the future. It is here that we expect a clear vision and strategic thinking by the relevant Authoritie­s taking decisions in relation to our national airline."

MHRA insists that dismantlin­g routes on ad hoc basis without proper consultati­on with the relevant stakeholde­rs and proper understand­ing of the strategic consequenc­es may lead to a situation where the decision-makers risk losing the wood for the trees. If this happens, it will be bad news for all.

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