Ryanair wants to link Malta to 26 destinations

Ryanair has promised to fly two million passengers to Malta within four years and base six aircraft on the island in return for a long-term low-cost deal which the airline claims would "save" Malta's tourism.

The airline also says it would create up to 2,000 jobs in and around the airport within three years if the Maltese authorities realise the massive potential of low cost airlines. Ryanair's deputy chief executive officer, Michael Cawley, told a news conference his airline was prepared to compensate any discounts given to the airline if it failed to deliver the number of passengers it was promising.

"For years, Malta's tourism industry has been in decline, starved of the low cost access which is so necessary to boost tourism," Mr Cawley said.

Ryanair sees big potential in Malta. It plans to link the island with 26 destinations, ranging from Seville to Oslo to Salzburg, but is only prepared to do so if Malta International Airport slashes its "huge" costs.

Backed by a power-point presentation, Mr Cawley gave statistics to prove that his claims were no bluff.

The Irish airline was now flying 35 million passengers a year and last month it carried more passengers than British Airways. Its capacity has multiplied as millions capitalise on the give-away ticket prices. The average fare for Ryanair is €39, with Easyjet, the other low cost airline, charging an average of €62, he added.

The Irish airline evidently plans to soar even higher - it is projecting to double the number of passengers within five years.

"It's only modesty which stops us from advertising we're the world's favourite airline," Mr Cawley said.

With a staff complement of 2,000, Air Malta flies a total of 1.5 million passengers a year. With 2,800 employees, Ryanair flies 35 million passengers, he said.

Mr Cawley urged Malta to follow the success of Ryanair's new route to Riga, Latvia. In seven months, the airline carried 650,000 passengers to the Baltic country and hotels practically cannot keep up with the influx. "And with all due respect, Riga is not even remotely as attractive as Malta."

But Ryanair estimates it would cost it €25 per passenger to operate to Malta - a figure made up of airport and handling charges, plus government-related security costs.

MIA's discounted offer of €19 to all airlines to certain destinations was still not attractive for Ryanair, Mr Cawley said, given that most other airports it was operating to were charging just €7.50.

MIA once again came under attack, with Mr Cawley saying that a private monopoly did not have the social interests of the people at heart. He urged the airport to slash its rates to all airlines, provided they guaranteed big numbers in return.

He dismissed an MIA study circulated among stakeholders and reported by The Times last week, which claimed that the airport's landing charges are not the real obstacle to low cost carriers hitting the Maltese market.

Mr Cawley urged the tourism authorities to reflect well before stating that "cheap" tourists normally travel on low cost airlines. Suffice it to say that British Prime Minister Tony Blair has chosen Ryanair for three of his private holidays over the last five years.

He provided statistics to substantiate his argument that Malta was the biggest loser in tourism from the UK in the last 10 years, in stark contrast to countries like Italy and Ireland, which reported 130 per cent and 110 per cent increases in volume.

"Low fare airlines are here to stay and for a country which depends on tourism it would be criminal for Malta not to participate. But if Malta wants to participate in the boom then it needs to be competitive," Mr Cawley insisted.