Air Malta repossesses fleet of RJs

The much-criticised Avro RJ fleet belonging to Azzurraair has been repossessed by Air Malta, the national airline revealed yesterday.

The seven aircraft, which are currently parked in Exeter, will be remarketed, according to Air Malta.

Azzurraair is an Italian regional airline in which Air Malta holds a 49 per cent share and substantial strategic interests.

The airline said it was prompted to react after press reports based on Italian newspaper reports quoting Azzuraair president Fausto Capalbo saying his company recently terminated the lease of the Avro RJ fleet because the aircraft was too small and because their maintenance cost was high.

So far, Air Malta has kept mum on this issue to avoid causing damage to Azzurraair and its employees - "and also in line with the Seven Group, Air Malta, and other parties' obligations to maintain confidentiality".

However, in light of Mr Capalbo's alleged statement to the press, Air Malta said it felt obliged to clarify the issue.

Contrary to what Mr Capalbo is alleged to have said, Azzurraair did not send the aircraft back, Air Malta said.

It was the Air Malta Group that withdrew these aircraft and terminated the relevant lease agreements, pursuant to default by Azzurraair in terms of the relevant lease agreements.

The size of the fleet and the cost of maintaining it had nothing to do with it being withdrawn, Air Malta maintained.

"In the present circumstances, Air Malta is taking, and will continue to take, all measures necessary to safeguard its interests and enforce its rights under the law."

Sources close to the airline said discussions were already going on with a view to leasing them again.

Azzurraair started commercial operations in December 1996, with two RJ 85s (92-seaters) and in May of the following year a third Avro RJ85 was added to the fleet. These RJs belonged to Air Malta.

In late 1997 and early 1998 Air Malta decided to lease its Avro fleet, composed of four RJ 70s (82-seaters), to Azzurraair, bringing the fleet to seven aircraft.

In an interview with The Times in December, former Air Malta chairman Louis Grech criticised the acquisition of the RJ's, saying the investment in them had slashed the group's reserves by millions of liri.