Decision on Air Malta's new fleet expected today

Leading European aircraft manufacturer Airbus Industrie has the edge over Boeing in the final round of negotiations over a new fleet for Air Malta, which is expected to take a decision today, sources said.

The decision is expected to be announced either this evening or tomorrow.

"Throughout several months of negotiations, Boeing and Airbus have been running neck and neck on all aspects. The difference between the two offers is not very significant. However, in the final round of negotiations, Airbus has the edge," the sources said.

"Having said that, the talks are not over and anything could happen at the eleventh hour."

The sources said the decision would be based strictly on commercial criteria.

"We are aware of rumours going round that Air Malta will be choosing Airbus because it is a European manufacturer, in the light of Malta's potential EU accession. If the contract does go to Airbus, it will be because they will manage to maintain the advantage on a commercial level that they have at the moment."

A board meeting yesterday afternoon was dominated by talks on the contract for the national carrier's new fleet.

Meanwhile, separate contacts between the two leading aircraft manufacturers and Air Malta negotiators are still going on as the two aviation giants attempt to improve their package and the concessions being offered to Air Malta.

Air Malta group Louis Grech is leading the negotiations on behalf of the national airline.

It is believed that this will be the biggest contract ever to be awarded by a Maltese company, ranging between $500 million to $600 million.

However, sources said Air Malta would not be buying the new fleet, but would be leasing them with an option to buy.

Sources said Air Malta negotiators had managed to obtain "excellent financial and technical concessions worth several millions of liri".

"It will be an excellent deal for Air Malta either way.... both companies are offering a very good package. However, Airbus seems to be at an advantage in what they are offering."

The sources described the negotiations over the past months as "very tough indeed".

Sources said that on Monday night, Air Malta negotiators had a series of talks with Boeing and the national airline is expected to hold final talks with Airbus today.