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Old 25th Mar 2005, 20:33
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FR to MLA

From Times of Malta:
The Federated Association of Travel and Tourism Agents (Fatta) has urged caution on low cost carrier projections.

It said it finds it difficult to reconcile Ryanair's projections to carry one million passengers to Malta annually within three years with the government's stated objectives of increasing tourism by 150,000 in the same period. The numbers just do not tally, Fatta said.

Malta International Airport's published statistics for 2004 indicate that Air Malta enjoyed a market share of about 60 per cent out of a total of 2.6 million passenger movements.

Fatta wondered how realistic it is to accept that Ryanair will achieve two million passenger movements without any significant effect on Air Malta.

Is anyone under the illusion that the two million passenger movements will be new business over and above what Malta already has, it asked.

Given that 80 per cent of Malta's tourist departures result from tour operator business, Fatta is also calling for careful consideration to be given to the effect low cost carriers will have on tour operators' commitments to seat capacity to Malta. Such a commitment, it said, is already very fragile as it is limited to seats and it would be somewhat easy for leading tour operators to pull out as some have already done in other resort destinations targeted by low cost airlines.

Fatta said it believed that if no such consideration is taken, it would possibly be in conflict with the current strategy of strengthening cooperation with tour operators, including Malta specialists, who are already producing considerable volume to the island.

Fatta expressed disappointment that it was not asked for its opinion at a recent meeting on the matter.



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