27 September - 3 October 2001

‘Too early to assess effect on Air Malta’ – Josef Bonnici

by Ivan Brincat

Air Malta has been affected by the terrorist attacks on the United States registering decreases both in incoming and outgoing tourists, the minister for economic services Josef Bonnici told The Malta Business Weekly yesterday.
The national airline is in the same business as other airlines who have over the past week been rationalising on flights and firing employees in a bid to decrease losses.
However, Prof. Bonnici said it is still very early to speak about subsidies and added that the situation at the Maltese company is different to that being experienced in the US, for example.
“While international airlines have reported that business travel has declined, affecting them in no small way and leading to the massive losses, Air Malta mainly relies on tourism. The cycle for tourism is different from that of business
travel,” Prof Bonnici said.
The minister said it was still very early to assess the affect on Malta’s national airline because this also depended on how long it will take for the industry to recover.
This was not the first time that Air Malta was hit by such a situation, he said. “For example, during the Gulf War in January 1991, Malta had registered a downturn but then it had recovered slowly.”
Meanwhile, speaking on the appointment of a new chief executive officer, Prof. Bonnici said a national and an international call for applications had been made because the company required particular expertise.
Air Malta said in a statement yesterday that the 11 September incidents have affected in no small way airlines worldwide. Air traffic has slowed down especially on the long haul. “Airlines are being faced with high escalation operations costs. Air Malta in line with the International Airlines associations has taken the necessary steps to
continue to safeguard the passengers and crew with the least
inconvenience.”
“We have already increased security measures on all flights. This is in addition to higher airport security at airports which Air Malta operates.
“Air Malta has offered full cooperation to interline passengers travelling to or from America who were scheduled to travel longhaul through the main European Gateways to which Air Malta operates,” the company said.