Air Malta warns of too many airlines

Air Malta’s top brass yesterday warned against too much competition, particularly from low-cost airlines, as this can have “devastating effects” on the future of the national carrier and tourism at large. Addressing members of the tourism industry, particularly hoteliers and restaurant operators, Air Malta chairman Louis Farrugia said that although the Malta Hotels and Restaurants Association was one of the main lobby groups pushing for the introduction of low-cost carriers, more competition might not be healthy. “By encouraging too many more airlines to serve our island we could be tipping the balance against Air Malta’s sustainability,” Mr Farrugia cautioned. “Let’s ensure that we succeed through sensible management in allowing competition to set the market prices at sustainable levels, which will allow our current success to continue,” he said. He warned that if Air Malta stopped trading, other airlines would move quickly to take its place, adding that this would have devastating effects on the tourism industry as the cost of travelling to Malta would substantially rise. “Malta’s successful tourism business model would collapse. To maintain this model requires managing a...