10 - 16 February 2000

Air travel set to be engulfed in price war

by David Kelleher

Maltese travellers to the UK can look forward to excellent airfares starting from April if the British airline Sabre Airways is given a licence to operate scheduled flights to Malta.

This is expected to result in a price war between the airline and two main competitors flying to London from Malta - national airline Air Malta and British Airways.

Over the past few weeks, both Air Malta and British Airways launched special offers on flights to London before the summer months for those who book by the end of February.

Sabre Airways have applied to operate four scheduled flights a week, at prices that are not only attractive but also highly competitive compared to what Maltese travellers are used to paying.

Sources close to the airline industry told The Malta Business Weekly yesterday that Sabre Airways' application has "jolted both Air Malta and GB Airways" and that was why GB Airways is strongly opposing the application.

"If they get the licence, both of them will have to start offering extremely competitive prices or they will risk losing Maltese customers to Sabre Airways," the sources said.

Pending approval by the British aviation authorities, Sabre Airways will be offering return flights to Gatwick Airport in London or Manchester for Lm49 excluding taxes. This is the same price being offered to UK travellers to Malta.

Sabre Airways are not required to apply for a licence through the Department of Civil Aviation or Transport Ministry. If the airline is given permission by the British Authorities, the latter will only have to inform the Maltese authorities.

Contacted yesterday in London, Robbie Borg, man-aging director of Bargain Holidays and Sabre Airways' representative in Malta, told The Malta Business Weekly that there is no reason why the Sabre Airways should not be given a licence to operate scheduled flights to Malta. The airline already flies to Malta on a charter basis.

"A licence must be given to Sabre Airways. The bilateral agreement between both countries stipulates that all British airlines can operate scheduled flights. GB Airways, a subsidiary of British Airways, have objected and are trying to delay our plans," Mr Borg said.

The case between the two airlines is now before the UK Office of Fair Trading. Mr Borg said the aim behind operating scheduled flights to Malta is to give Maltese the same offers that apply to British or Maltese persons living in the UK.

"If in the UK they pay Lm49 return, why can't a Maltese citizen do the same and enjoy the low air fare? Why must he or she have to pay a much higher price as is the case now?" Mr Borg said.

He stressed that the price being offered starting 18 April was for a period of time, however, this did not mean that the offer was a one-off.

"We are not saying that the price will always be Lm49. It could be higher but it also could be lower depending on the price in the UK. If in the UK someone pays X amount, then Maltese travellers will pay the same," Mr Borg said.

With regards to the dispute between Sabre Airways and GB Airways, he said: "If they want a war, we will give them a full-scale war."

He added that Sabre Airways will be offering single fares for Maltese travellers as well, a service that to date was not always possible unless at very short notice.

"We intend offering one-way flights from Malta to the UK without travellers having to wait until a day or two before. They can book now for a single flight in June or July. The price will be half that of a normal return ticket," Mr Borg said.