Ministers agree on way forward

A government core group has agreed to forge ahead with a strategy that will pave the way for the introduction of low-cost airlines to Malta.

A meeting held between Prime Minister Lawrence Gonzi, Tourism Minister Francis Zammit Dimech, Government Investments Minister Austin Gatt and Parliamentary Secretary Tonio Fenech on Thursday endorsed a plan to ensure "sustainable air travel".

When contacted, Dr Zammit Dimech said he would be calling a meeting with Irish airline Ryanair as well as other low-cost airlines in the coming weeks to sketch out an agreement.

The government plans to introduce preferential landing rates on those routes where it would like to see further growth. The two main destinations under discussion for the time being are the Iberian Peninsula and Scandinavia.

Ryanair, which has revolutionised air travel, has envisaged that it could start flying some one million passengers to Malta every year within three years of setting up. Another budget airline, Easyjet, has also held "positive meetings" with the management of Malta International Airport.

Statistics released on Wednesday show that low-cost airlines now account for 12 per cent of all scheduled flight operations and 15 per cent of all available seats worldwide.

The minister did not wish to give specific details about a draft agreement with Ryanair, though he said the government wanted to put an accent on new routes.

Dr Zammit Dimech said equal treatment would be given to all airlines operating to Malta, in line with EU competition rules.

He staunchly rebutted claims that the government was doing its utmost to hamper the plans of low-cost airlines to protect the "inefficiencies" of Air Malta.

"We certainly have no intention of stopping anyone. We have no problem if, for example, Ryanair wants to operate to Heathrow or Gatwick, even from tonight - but the existing handling charges would have to be paid. We have to give equal treatment to everybody as long as a level playing field is guaranteed," Dr Zammit Dimech said.

Deloitte & Touche have been commissioned to draw up a report by the Malta Hotels and Restaurants Association to analyse the effect of low-cost carriers on Malta and the tourism industry.