Thursday, January 11, 2018

New Government company established to handle Air Malta’s landing slots in European airports

The Government has launched a new company to handle Air Malta's landing rights in European airports.  Tourism Minister Dr K. Mizzi said this step will give added value to the airline’s assets and will strengthen the national airline.

With a capital of €70 million, Malta Air Travel Ltd. has been established and will handle all landing rights for Air Malta aircraft at European airports and will in turn rent the slots to the national airline.

In a comment to tvm.com.mt, Minister Mizzi explained the reason behind this development.  He said the Government has determined to establish that Air Malta becomes the airline of the Mediterranean region.  To do this, its fleet has to be increased as well as its destinations and including crew complements.  Various strategies have been studied and singled out the need of creating a new company to assume responsibility for landing rights and slots in European airports currently being handled by Air Malta.

Asked by tvm.com.mt whether this means it will result in reducing the value of the national airline, the Minister did not agree.  He said the reality is that the slots held by Air Malta are not actually documented in its accounts because these are not tangible in financial terms.  As a result of this development these slots have now been given a value that can be reflected in accounts.  This will enable Air Malta to increase its resources and its fleet because it will enable greater investment to achieve its strategy. (Source: tvm.com.mt, 10-Jan-2018)