The planned re-introduction of a helicopter passenger service between Malta and Gozo would not be operated by Air Malta, Times of Malta was told.
Tourism Minister Konrad Mizzi deemed such a service “does not fall within the airline’s business plan or strategy”, a spokesman said.
Plans to re-introduce an air connection between the two islands, a service that gave rise to viability issues every time it was running, were resurrected recently by Dr Mizzi.
His spokesman confirmed the government’s intention to put in place a new helicopter service, adding feasibility studies were already underway.
“The service will be run by a specifically-set-up subsidiary company of Malta MedAir,” the spokesman said.
Malta MedAir is a government company originally set up to buy airport slots previously owned by the national airline and lease them back to Air Malta. It is distinct from Air Malta, although the government owns the majority of shares in both.
“With regard to Air Malta, the service does not fall within the airline’s business plan or strategy. The airline will focus only on international flight connections,” the spokesman said.
Civil aviation industry sources commented that, while the government had every right to operate a helicopter service between the islands, the explanation with respect to Air Malta did not make sense as the air connection could still be easily provided by the national airline, as happened in many other European countries.
“Since the service will be heavily subsidised, the new service can also be a new revenue stream for Air Malta,” they said.
According to EU rules, the government will be allowed to subsidise the service between Malta and Gozo through a public service obligation contract. However, the level of subsidies allowed are not yet known and neither whether a tender, similar to the Gozo channel crossing concession, is necessary.
Sources close to the government said the Gozo Minister was pushing for the helicopter service, particularly as it was deemed crucial for certain top-end hotels in Gozo, especially during the winter months.
A helicopter link used to be provided by an Air Malta subsidiary, Malta Air Charter, between 1990 and 2004, carrying an average 50,000 passengers a year. Despite Air Malta having forked out about €345,000 in subsidies a year, the service was stopped as it was not making money.
A Spanish company – Helicopteros del Sureste – had started flying between the two islands in the first quarter of 2005 but, again, the operation turned out to be a loss- making venture and was also stopped.
The same happened to a seaplane service, which ran between 2007 and 2012.