Landing fees, Air Malta slow down talks with Ryanair...
Some progress was registered yesterday in high-level talks with low-budget airline Ryanair, which wants to operate to Malta, but a number of key issues remain unresolved.
Tourism Minister Francis Zammit Dimech was cautiously optimistic but reluctant to commit himself after he held meetings with Ryanair's chief operating officer Michael Cawley and the director of new routes Bernard Berger.
Dr Zammit Dimech said that should a deal be clinched, the airline would not be in a position to introduce flights before September at the earliest, though the next winter season appeared more likely.
"We need to work within the context of EU regulations and abide by the rules of competition. We are also studying the impact on other airlines," Dr Zammit Dimech told The Times.
The two main bones of contention are Malta's costly landing and travel fees as well as the impact of Ryanair on national airline Air Malta.
Ryanair is normally able to keep prices low by flying to secondary airports, a luxury Malta cannot afford.
"The fees in Malta are above those Ryanair normally pays and this is one of the sticking points," Dr Zammit Dimech said.
The authorities, he said, were trying to devise a package of performance-related incentives that would apply equally to all airlines.
Apart from operating new routes to Malta, Ryanair was also looking at the possibility of using the island as a potential base for aircraft, the minister said.
Both sides agreed to meet up shortly to try and hammer out a deal, which Dr Zammit Dimech admitted would provide a major boost to tourism figures. "It would certainly be good news for Malta but we have to proceed with caution and reach an agreement which would suit everybody," he said.
Ryanair indicated to the minister it was prepared to introduce routes to Malta from several European airports, though the main focus would be the UK and Germany. The British market accounts for half of Malta's tourism product.
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White Cap
