Air Malta slashes commission rates

Luqa, 01/09/08 - Air Malta will be reducing the commission rate its pays travel agents for the sale of tickets from four per cent to one per cent as from 1 October. At the same time, the airline will charge a service fee of €10 per ticket issued by its sales offices.

Meanwhile, tickets issued through KM's call centre will be subject to a €5 service charge. Moreover, Air Malta plans to charge "anyone calling its call centre". However, callers will be told "accordingly at the time of the call".

Ryanair claims top performer status

Dublin, 27/08/08 - Ryanair today published its inbound traffic numbers for Malta for the first six months of 2008, and says its passenger numbers grew by more than 100 per cent when compared with the corresponding period in 2007.

The Irish lows cost carrier says its January to June figures rose from 47,504 to 95,917 inbound passengers.

"This growth", claims the airline, "has meant that Ryanair, and not Air Malta, was the biggest contributor to growth in Maltese tourism during the period". (See Air Malta drives Malta's tourism growth.)

In a press release aimed at irritating Malta's flag carrier, Ryanair says that Air Malta was "erroneous" in claiming to be the biggest contributor with 57 per cent of the 77,000 additional passengers. "In reality in its calculation, Air Malta had failed to take into account that a number of airlines were flying fewer passengers than previously. Consequently, Ryanair's growth of 48,413 passengers, for the first half of 2008 over 2007, meant that it was the number one airline for growth in Malta in the first half of 2008".

Says Ryanair's deputy chief executive, Michael Cawley: "Ryanair's inbound traffic growth of in excess of 48,000 passengers in the first half of this year represents a record and puts it at the top of the list for growth in inbound tourism. As some airlines are obviously reducing passenger numbers, Ryanair's lowest fares guarantee is the key to increasing passenger traffic and tourism on to and off the island".

Sharp drop in June departures

Valletta, 11/08/08 - In June 23,329 Malta residents travelled abroad, a drop of 24 per cent over the same month last year. This decrease is partly attributed to the high number of visits to Italy for the beatification of Gorg Preca in June 2007.

In the first half of the year, meantime, the number of Malta-based passengers departing by air and sea totalled 125,316, an increase of 6.8 per cent over the corresponding period last year, the National Statistics Office reports. Of these, 86.0 per cent travelled to EU destinations; the most visited countries were Italy and the UK.

Between January and June, male travellers exceeded females, the former accounting for 59.7 per cent of the total. And the largest proportion of travellers - 47.9 per cent - were aged between 25 and 44, followed by those in the 45 to 64 age bracket, who accounted for 38.4 per cent.

Slight increase in July passenger movements at MIA

Luqa, 06/08/08 - Passenger movements on scheduled and non-scheduled flights at Malta International Airport (MIA) in July increased slightly when compared to the same month in 2007.

The total passenger movements last month rose by 1.3 per cent for a total of 370,873 movements whilst aircraft movements decreased by 3.2 per cent for a total of 2,965. The seat capacity also decreased, albeit slightly, by 4,034 (-0.8 per cent) but the seat load factor increased by 1.6 points to an average of 77.7 per cent. Cargo and mail handled at MIA in July was of 1,537 tonnes, a decrease of 3.5 per cent when compared to July 2007.

A further analysis of the trends of the main markets shows that MIA had a significant decrease from the UK market which was, however, compensated with increases from the German, Italian, Spanish and French markets. Passenger movements from and to the UK decreased by six per cent to 118,660, whilst traffic from Italy, Germany and France increased by 4.2 per cent, 3.1 points and three per cent respectively. Once again, the Spanish market was the highest achiever with an increase of 7,849 passenger movements. 

MIA, meantime, registered an increase of 182,694 passenger movements, or 11.5 per cent, from January to July this year, and an increase of 425 aircraft movements (+2.8 points) on its scheduled and non-scheduled traffic. The seat capacity increased by 6.6 per cent whereas the average seat load factor also improved from 67.4 per cent in 2007 to 70.5 per cent this year. Cargo and mail activity increased by 5.4 per cent during the period January to July 2008 for a total of 10,225 tonnes handled. 

Passenger movements from the three main markets - the UK, Italy and Germany - increased by 1.9, 8.6 and 26 per cent respectively between January and July, whilst the highest increases in percentage terms were from France (+18) and Spain (+298.5).

Air Malta launches online check-in

Luqa, 01/08/08 - Air Malta has made checking-in for flights easier with the launch of web check-in on its internet portal www.airmalta.com. Passengers travelling with or without baggage can easily check-in online and print boarding passes from their home or office.

With this new service Air Malta passengers can now save time at the airport and proceed through airport formalities smoothly and easily. By logging on to www.airmalta.com and clicking on the web check-in button between 23 and two hours before their flight's departure, passengers can not only have their bar-coded boarding pass printed but can also choose their seat on board the aircraft.

Air Malta is offering web check-in from Malta to EU countries and from London's Gatwick and Stansted, Birmingham, Zurich, Geneva, Vienna, Athens, Frankfurt, Düsseldorf and Berlin to Malta. More destinations will be introduced soon.

Passengers travelling with baggage can also make use of web check-in. On arrival at the airport the passenger must proceed to the drop-off web check-in counter and check in their luggage.

 "With web check-in Air Malta is continuing to invest and make use of innovative technology to enhance our customer's experience. We are not only simplifying the check-in process but also saving valuable time to our passengers", said Joe Cappello, Air Malta's chief executive. "Through this new online service we are continuing to enhance the features offered through our portal www.airmalta.com. Our portal has become very popular and has grown exponentially with over 20 per cent of our sales now being booked online."

Air Malta's portal has also started offering online insurance cover, bookings of hotel accommodation in Malta and abroad, bookings for major attractions happening worldwide and discounted purchase of excess baggage. These services are part of a corporate wide strategy to simplify the airline's business, reduce costs and offer better, efficient services to Air Malta customers.

Air Malta is putting on increased emphasis on the independent traveller who wants to book online and make his own travel arrangements.

"Air Malta's easy to use portal is a transparent method of purchase of several services that, unlike some airline websites, it does not resort to hidden charges or credit card fees. Air Malta is the only airline in Malta which is truly committed to its customers' needs".

KM drops Glasgow services

Luqa, 01/08/08 - As from this winter Air Malta will no longer operate directly to Glasgow, but will support the destination through a new code share agreement with bmi (British Midland Airways) that will increase frequencies from two flights a week to at least two flights a day. BMI will fly passengers from Glasgow to London for a KM connection to Malta. The code share agreement will also cover other UK regional airports offering daily connectivity to Malta via its London and European gateways.

Air Malta is confident that it will replicate the Scandinavia success, whereby through the Lufthansa code share it has carried more traffic from Scandinavia via Munich and Frankfurt than its own direct service. Today the airline offers three daily flights to the Scandinavian capitals via Munich and Frankfurt. Only network airlines such as Air Malta can continue to support offline destinations through cooperation agreements with network carriers. The airline has also just concluded a cooperation agreement with Turkish Airlines to exploit the Far East and Asian markets via the Istanbul hub.

CHI to operate Liverpool apartments under Ramada brand

Floriana, 01/08/08 - CHI Hotels and Resorts (formerly Corinthia Hotels International) signed a 20-year agreement with Vermont Developments of the UK to manage and operate 66 apartments at the third phase of Vermont's £100 million Liverpool waterfront scheme, Sefton Street: The Quarter, under the Ramada Plaza brand tier.

CHI Hotels, the joint venture partner of the Wyndham Hotel Group - owners of the Ramada brand - will operate the units as apartment-suites alongside the four star Ramada Plaza hotel already being built at the site. The units are located in The Tower element of the scheme, a graceful 22-storey glazed building.

The Vermont's scheme, located at the junction of Sefton Street and Parliament Street, has already established a reputation for defying the residential market slowdown - 83 per cent of the 187 first phase apartments have been sold.

Mark Connor, chief executive of Vermont Developments, said: "We are obviously delighted to have achieved another positive milestone for The Quarter. It is a tough market but we believe in the quality of our scheme. Given the challenging residential sales market, achieving an agreement to operate these units on a serviced basis is obviously welcome news and a testament to our vision for The Quarter, and also the confidence shared by our hotel operator."

"This latest deal with Vermont Developments helps solidify an already excellent business relationship between our two companies", commented CHI vice president - development Paul Pisani. "Together with the hotel rooms, the 66 additional serviced apartment-suites will increase our marketing options immensely. This entire project will no doubt also generate increased awareness of CHI in the UK as a leading hotel operator that already exclusively manages the luxury Corinthia Hotels brand worldwide and the Wyndham and Ramada brands in Europe, Africa and the Middle East".

Vacations Malta launches MICE solution

Sliema, 29/07/08 - It has been 10 years since Vacations Malta was set up as an incoming agency, handling FIT, some groups, but mostly leisure traffic from, principally, Switzerland, Austria, Germany and the Benelux plus "some from Italy and now Spain", says managing director Kenneth Baldacchino.

"Ten years on, and the company is still operating in much the same was as it did in 1998", explains the ever-cheerful Baldacchino. That does not mean Vacations Malta has remained static, far from it. "I naturally wanted the company to grow, but not to a degree that it became unwieldy. I wanted to keep it to a size that is manageable, so that I can manage it on my own".

And Baldacchino has certainly achieved that. Today, Vacations Malta is not a mega player but, nevertheless, an important one in the islands' tourism industry.

Now, he is ready to take it to the next level. Between 80 and 90 per cent of Vacations Malta's business is leisure travel, now Baldacchino wants to increase the MICE (meetings, incentives, conference and exhibitions) segment. "We do have MICE business, but it requires its own identity", he says.

Cue Event Solutions Malta. This is a new company that will concentrate on group and MICE travel, and will operate using Vacations Malta's infrastructure.

"I wanted a straightforward name that does not hide its link to Vacations Malta", explains Baldacchino, "yet a separate brand will facilitate sales and marketing in the MICE sector".

Even Solutions, based in the same Sliema offices as Vacations Malta, already has a major contract signed that will see some 2,000 people travelling to Malta next year. Baldacchino refuses to divulge details, except to say that this will be a group from Europe.

Cruise traffic up over 2007

Valletta, 29/07/08 - June cruise passenger traffic rose 21.4 per cent to 67,259, an increase of 11,852 over the same month last year. Fifty cruise liners called at the Grand Harbour in June, the national Statistics Officer reports.

Meantime, in the first six months of the year cruise passenger traffic amounted to 198,570, an increase of 20.5 per cent over the same period last year.

Excursionists from EU countries accounted for 78.9 per cent of the total traffic, the main markets being Italy, Spain and Germany. On the other hand, the US market remained substantial, representing 60.2 per cent of non-EU passengers.

The overall growth in cruise passenger traffic was underpinned by increases from the American, British and Spanish markets. At the same time, the cruise passenger scene was characterised by falls in German and French nationals - respectively by 8,854 and 2,378 passengers.

On a gender basis, males slightly exceeded female passengers. The largest proportion of passengers - 34.4 per cent - were aged between 60 and 79, followed by those in the 40 to 59 age group who accounted for 30.9 per cent of the total.

In the first six months of 2008 155 cruise liners called here, 20 more than in the same period of 2007.

IACA dismayed at increases in airport charges in Cyprus

Mosta, 25/07/08 - The International Air Carrier Association (IACA) expressed dismay at a further nine per cent increase in airport charges at Larnaca and Paphos in Cyprus for 2009, four per cent above the average yearly rate of inflation for Cyprus. This increase comes on top of an outrageous increase of 77 per cent in charges last year by Hermes, the management company for the two airports. Hermes announced the new increases in a letter to all airlines last week, Travel Daily News reports.

IACA, which represents 39 airlines serving the leisure industry and 30 per cent of the airline market share in Cyprus (50 per cent at Paphos airport), has repeatedly challenged the recent increases in airport charges warning that they are putting extreme pressure on leisure airlines serving the country and make Cyprus uncompetitive when compared with other Mediterranean leisure-based airports. Today Cyprus is already up to 150 per cent more expensive than other similar airports in the Mediterranean region and this additional increase will make this percentage even greater.

At a time when inbound tourism, especially from the UK, is declining, as well the effect of the strong euro and global credit crunch on the travelling public, IACA is surprised that Cypriot authorities are not taking more steps to attract more visitors to the country.

Luc Geens, Manager Ground Operations, IACA, commented: "These further increases send a wrong signal to airlines and their passengers that Cyprus is serious about encouraging tourism to Cyprus. Our airlines need more incentives to come to Cyprus not further charges. There is no justification for an increase in airport charges at a time when tourism is suffering and ground handling services at Larnaca and Paphos airports are more chaotic than ever.

"I'm disappointed that directly after our meeting with minister Nicolaides and minister Paschalides in early July, our members receive a further above-inflation increase in airport charges. I call upon both ministers and Hermes to reconsider the 2009 increases urgently".

Big brother to watch over Paceville

Msida, 22/07/08 - The Malta Tourism Authority has been monitoring tourism zones for the past five years through a specially-designated unit of its product development directorate. This unit makes certain that "mundane tasks of urban management are executed by the respective local councils and to ensure that the central government is providing the necessary support through extra human and financial resources".

To further improve its monitoring function it was felt that "the next step would be to invest in the installation of a CCTV network in those localities that may be considered tourism priority areas and that are considered to be at highest risk".

This pilot project focuses on St Julian's with particular emphasis on Paceville and addresses a series of issues about which a number of complaints have been made.

These cameras, apart from being a deterrent, provide round-the-clock surveillance and will help identify illicit behaviour and help the policed "to take remedial action".

In view of this, an agreement has been reached between the MTA, the KDM Group of Companies, the St Julian's local council and the police. The system will be installed and commissioned by the KDM Group and funded by the St Julian's council. The police will provide the necessary law enforcement back-up. The MTA is providing the initial capital funding and is in charge of co-ordinating the implementation of the scheme.

Five new cameras together with an existing one near the Hilton roundabout will provide comprehensive coverage of the entire Paceville area. The locations to come under surveillance will ensure extensive monitoring of pedestrian and vehicle movement.

The locations being considered are: St George's Bay, Dragonara Gate, Wilga Street corner with Paceville Avenue, St Rita's Steps, Paceville Square and Gort Street corner with San Gorg Street.

Rolls-Royce and BA launch alternative fuel trial

London, 22/07/08 - Rolls-Royce and British Airways have started a test programme to investigate the viability of alternative fuels for the aviation industry. The in-depth study will seek to identify practical alternatives to the current industry-standard fuel kerosene, with the potential to make real reductions to the carbon footprint of aircraft. The companies will initiate a joint tender process, inviting suppliers to offer alternative fuel samples for testing on a Rolls-Royce RB211 engine from a British Airways Boeing B-747. The tests will be carried out on an indoor engine test bed at the Rolls-Royce facility in Derby, UK.

Testing the engine in this controlled environment enables more accurate data to be gathered than would be possible on an actual flight because additional instrumentation can be used and performance and emissions will not be affected by other external factors.

Following the tender process, there will be a selection of up to four alternative fuels, which will undergo laboratory testing before delivery to Rolls-Royce in the coming year. Each company will be asked to supply up to 60,000 litres of their alternative fuel.

This will be followed by intensive trials, during which the aero-engine will be powered by the alternative fuels and its performance compared to running on conventional kerosene. In each case, the engine will be operated through its full range of power settings including idle, acceleration, take-off and cruise.

Testing is expected to be complete by the end of March 2009 after which the results will be analyzed and reported. Ric Parker, director of research and technology at Rolls-Royce, said: "The key criteria for the selection of the alternative fuels will be their suitability, sustainability and industrial capability.

"It is critical that the fuel can not only do the job required of it, but can also offer a CO2 benefit and be produced without a detrimental impact to food, land or water. There must also be clear evidence of the potential for mass production and global distribution of an alternative fuel to support the world's aviation industry".

Jonathon Counsell, head of environment at British Airways, said: "We are delighted to be leading this study with Rolls-Royce. British Airways was the first airline to set fuel efficiency targets, leading us to improve out fuel efficiency by 28 per cent since 1990. We are now well on our way to our target of a 30 per cent improvement by 2010. Recently, we announced a further 25 per cent improvement target on fuel efficiency by 2025 compared with 2005. Should the tests we are undertaking with Rolls-Royce be successful, the potential for bringing us closer to a greener fuel alternative that will help the aviation industry reduce its carbon footprint is enormous.

The results of the study will be made public. "So the whole industry, its customers and most importantly, the environment, can benefit"

Euro parliament passes transparency rules on air fares

Mosta, 12/07/08 - Earlier this month the European parliament adopted regulations on the publication of all inclusive air fares and on non-discriminatory access to air fares throughout the EU. ECTAA and GEBTA - the Guild of European Business Travel Agents - welcome the new legislation for transparency in the distribution of air tickets.

For years now, both ECTAA and GEBTA have been calling for effective legislation on inclusive air fares. The new regulations address this request by ensuring indication at all time of the final price of air tickets, including unavoidable and foreseeable taxes, fees, charges and surcharges.

The regulations also prohibit discrimination in access to fares based on the place of residence of the passenger or the place where the travel agent operates. This provision will help travel agents overcome the current restrictions in access to fares and to make their customers benefit from the best fares.

ECTAA and GEBTA are, however, in favour of abolishing further discriminations in access to fares, notably based on the distribution channel. European institutions have an opportunity to deal with this issue in the current revision of legislation on computerised reservation systems.

Finally, the regulations strengthen the monitoring of European airlines' finances. ECTAA and GEBTA strongly supported the initial position of the European parliament to establish a system to protect passengers in case of airline failure. However, this was not retained in the final text. ECTAA and GEBTA therefore call on the European commission to initiate specific legislation on this issue, which is becoming even more important with the rising fuel prices affecting airline costs.

Costa Crociere breaks own record

St Julian's, 12/07/08 - This is turning out to be another boom year for Italy's Costa Crociere, represented in Malta By SMS Travel and Tourism.

There have already been one million bookings for 2008, not only repeating the feat of 2007 but also bettering it. The Genoa-based company expects to end 2008 with six per cent more passengers than last year, in line with its increased capacity. Some 1.5 million passengers a year are forecast by 2010.

As regards Malta, Costa Crociere is by far the largest cruise company calling at the Grand Harbour, with nearly 100 calls this year. Costa Crociere has also chosen Malta as one of the few ports from where it embarks and disembarks passengers - on the Costa Concordia - to run weekly Malta/Malta cruises.

Iberia to own 45% of new Vueling

Mosta, 08/07/08 - In a statement to the Spanish stock exchange, low cost carrier Vueling said its board had approved a deal whereby it will absorb Clickair via a capital increase. Both carriers operate to Malta.

The merged entity will be headquartered in Barcelona, where both airlines are already based, and retain its listing on those stock markets where Vueling shares currently trade, that is Madrid, Barcelona, Bilbao and Valencia (see Vueling and Clickair in merger talks).

Iberia, which controls 20 per cent of unlisted Clickair's voting rights and about 80 per cent of its capital, will reportedly own 45 per cent of the new company. The other major shareholders will be Nefinsa and Inversiones Hemisferio. All three have agreed to remain investors for at least two years.

In a separate statement to regulators, Iberia said it was seeking an exemption from stock exchange rules that force any company acquiring more than 30 per cent of another to make an offer for its entire share capital.

The merger also requires clearance from competition authorities.

The new Vueling will have a fleet of 45 aircraft and a workforce of about 2,000, operate 300 flights a day on 112 routes and carry some 10.7 million passengers a year. It will be Spain's third biggest airline behind Iberia and Spanair.

Clickair boss, Alex Cruz, is expected to be named chief executive.

Ryanair axes Bremen, introduces Bari flights

Mosta, 01/07/08 - Ryanair will be operating a Bari-Malta frequency from 28 October. The service will operate on Tuesdays, Thursdays and Saturdays.

Meantime, as reported in Island Travel Trader Online in May, Ryanair has confirmed that it is axing its non-viable Bremen-Malta service this coming winter (see Ryanair to axe Bremen, cut frequencies). And although nothing has been officially mentioned about its intentions to reduce frequencies from London's Luton and Nykoping, Sweden, this coming winter, rumours persist that the Luton service will be reduced to five flights a week from the current seven. And the Nykoping service is also to be shaved from three to one a week.

Air Malta and Turkish Airlines sign code sharing agreement

Luqa, 01/07/08 - Air Malta and Turkish Airlines have signed an agreement by which Turkish Airlines code shares KM's twice weekly flights between Malta and Istanbul. The code sharing agreement paves the way for further cooperation between the two airlines.

The joint code allows Turkish Airlines to use its own flight numbers on services operated by Air Malta. Through this agreement both Air Malta and Turkish Airlines passengers can avail themselves of a broader choice of connections that will be developed via Istanbul to other destinations.

Said KM's chief officer commercial Brock Friesen: "This agreement gives both airlines' passengers full service treatment, seamless travel arrangements and enhanced network connections. We expect that this agreement will lead towards a more comprehensive agreement in the near future were Air Malta will further enhance its network connections beyond Istanbul through Turkish Airlines' extended route network in Asia, the Commonwealth of Independent States, the Far East and Middle East. Future developments are expected to include a restructured Air Malta schedule on the route and more Air Malta flights to the Turkish cultural and financial capital. Turkish Airlines, a Star Alliance member, have established themselves as a quality airline in the region and this falls perfectly into Air Malta's strategic plans to tap into the new emerging Asian, Far East and CIS markets. This code share will further assist the development of the already excellent business links between Malta and Turkey".