Alitalia: firmato memorandum d'intesa per il 49% di Air Malta
- Autore Discussione Dome
- Data d'inizio
FCO nel 2015 ha movimentato complessivamente 248.754 pax da/per MLA, FR inclusa. 1/3 li ha veicolati AZ, non mi pare di vedere tutta questa miseria.
c'è anche da considerare che in caso di assorbimento i voli KM e AZ diventeranno di fatto un'unica cosa, le forze si sommerebbero. Poco importa chi opera materialmente il volo.
Entrambi potrebbero funzionare 'bilateralmente' e sicuramente verrebbero armonizzati, un po' come avvenuto in seguito all'accordo con AB sulla Germania/Austria/Svizzera.
Entrambi potrebbero funzionare 'bilateralmente' e sicuramente verrebbero armonizzati, un po' come avvenuto in seguito all'accordo con AB sulla Germania/Austria/Svizzera.
dunque .... servirebbero i dati di MEX, SCL e PEK........c:
provando ad effettuare una prenotazione sul sito alitalia per i prossimi giorni da SCL a FCO vedo che:
31 maggio : nessun posto in economy, 6 posti disponibili in premium economy, business disponibile
2 giugno : nessun posto in economy, 5 posti disponibili in premium economy, business disponibile
4 giugno : nessun posto in economy ed in premium economy, solo 3 in business
5 giugno : nessun posto in economy, disponibili in premium economy, solo 3 in business
6,7 e 9 giugno : posti disponibili solo in premium e business
non vedo posti disponibili in economy per tutto il mese di giugno. possibile che la tratta voli full tutti i giorni?
Air Malta will 'never be a feeder airline': Zammit Lewis
National airline Air Malta would "never" become a feeder airline and a strategic partnership with Alitalia would not go ahead unless it benefited Malta, Tourism Minister Edward Zammit Lewis today.
“Everyone can rest assured, Air Malta will never become a feeder airline,” Dr Zammit Lewis said, indirectly referencing a Times of Malta story published last week. The story cited top airline executives as saying they were concerned that the airline could end up being a feeder airline for the Italian carrier.
Dr Zammit Lewis tabled a copy of the MOU in parliament this evening. But although he was categorical about feeder airline concerns, he skirted around questions about the potential make-up of the airline's management team. The Sunday Times of Malta yesterday reported that government has agreed in principle to concede control of the management of Air Malta to Alitalia.
The minister limited himself to saying that there was "no doubt" that Air Malta’s management would include foreign recruits, "as has been the case in the past."
Alitalia, which is 49 per cent owned by Etihad, signed a Memorandum of Understanding with the government last month to assume a 49 per cent stake in Air Malta. The deal is contingent on a due diligence process being first conducted
and a business plan being agreed upon between the two parties.
Alitalia president Luca Cordero di Montezemolo told Italian reporters today that he expected the due diligence process to take approximately two months.
Dr Zammit Lewis said that while MOU was just the “first step in a long road ahead,” the government had a number of prerequisites it would insist upon before cutting any deal with Alitalia.
“Air Malta must grow, there must be a plan for its [aircraft] fleet to grow. Employees must have an opportunity to further their careers. Consumers must be part of Etihad’s frequent flyer programme. And Air Malta will no longer just be a point-to-point airline,” the Tourism Minister said.
Dr Zammit Lewis said he would not be drawn into making “sweeping statements” about the fate of Air Malta’s workforce, saying that the MOU made mention of a workforce that was the ‘right shape, right size’ but that any such decisions would be based on an eventual business plan outlining the airline’s routes.
“But the government’s plan is to grow the airline,” the minister added. "The airline's routes and its workers are of paramount importance to the government."
What was certain was that “the status quo is not a solution,” he said, adding that the government could not afford to "kick the ball further down the path".
"Even if we manage to break even, there is no scope for the airline to grow any further under its current business model," the minister said.
He argued that having Alitalia as part of Air Malta’s ownership structure would allow the national airline to benefit from economies of scale it could never hope to achieve on its own.
“We know how valuable Air Malta is, because we founded it more than 40 years ago. Unless our interests are protected, this partnership won’t happen,” Dr Zammit Lewis told his parliamentary colleagues.
Dr Zammit Lewis fielded questions from several MPs about specific concerns about the deal, from guarantees about workers’ conditions and job security, the eventual composition of its management, changes to its routes and the amount of investment Alitalia was committed to.
He said that route development strategies were commercially sensitive, but that “of course we want to get something out of this” and that work would continue to
expand the airline’s network.
Work on valuing Air Malta’s equity was ongoing, but the minister said MPs had to keep in mind that the airline had an accumulated losses “hole” of €70 million euro.
The European Commission was satisfied with much of the airline’s progress in following its restructuring programme, Dr Zammit Lewis said. “I think both sides of the House should celebrate this,” he said.
It was “evident” that the majority shareholder would maintain control of the airline’s board, the minister added.
“And if there are no evident advantages [from this partnership], we’ve got a plan B,” Dr Zammit Lewis mysteriously told MPs.
http://www.timesofmalta.com/mobile/...-airline-zammit-lewis-tells-parliament.613804
National airline Air Malta would "never" become a feeder airline and a strategic partnership with Alitalia would not go ahead unless it benefited Malta, Tourism Minister Edward Zammit Lewis today.
“Everyone can rest assured, Air Malta will never become a feeder airline,” Dr Zammit Lewis said, indirectly referencing a Times of Malta story published last week. The story cited top airline executives as saying they were concerned that the airline could end up being a feeder airline for the Italian carrier.
Dr Zammit Lewis tabled a copy of the MOU in parliament this evening. But although he was categorical about feeder airline concerns, he skirted around questions about the potential make-up of the airline's management team. The Sunday Times of Malta yesterday reported that government has agreed in principle to concede control of the management of Air Malta to Alitalia.
The minister limited himself to saying that there was "no doubt" that Air Malta’s management would include foreign recruits, "as has been the case in the past."
Alitalia, which is 49 per cent owned by Etihad, signed a Memorandum of Understanding with the government last month to assume a 49 per cent stake in Air Malta. The deal is contingent on a due diligence process being first conducted
and a business plan being agreed upon between the two parties.
Alitalia president Luca Cordero di Montezemolo told Italian reporters today that he expected the due diligence process to take approximately two months.
Dr Zammit Lewis said that while MOU was just the “first step in a long road ahead,” the government had a number of prerequisites it would insist upon before cutting any deal with Alitalia.
“Air Malta must grow, there must be a plan for its [aircraft] fleet to grow. Employees must have an opportunity to further their careers. Consumers must be part of Etihad’s frequent flyer programme. And Air Malta will no longer just be a point-to-point airline,” the Tourism Minister said.
Dr Zammit Lewis said he would not be drawn into making “sweeping statements” about the fate of Air Malta’s workforce, saying that the MOU made mention of a workforce that was the ‘right shape, right size’ but that any such decisions would be based on an eventual business plan outlining the airline’s routes.
“But the government’s plan is to grow the airline,” the minister added. "The airline's routes and its workers are of paramount importance to the government."
What was certain was that “the status quo is not a solution,” he said, adding that the government could not afford to "kick the ball further down the path".
"Even if we manage to break even, there is no scope for the airline to grow any further under its current business model," the minister said.
He argued that having Alitalia as part of Air Malta’s ownership structure would allow the national airline to benefit from economies of scale it could never hope to achieve on its own.
“We know how valuable Air Malta is, because we founded it more than 40 years ago. Unless our interests are protected, this partnership won’t happen,” Dr Zammit Lewis told his parliamentary colleagues.
Dr Zammit Lewis fielded questions from several MPs about specific concerns about the deal, from guarantees about workers’ conditions and job security, the eventual composition of its management, changes to its routes and the amount of investment Alitalia was committed to.
He said that route development strategies were commercially sensitive, but that “of course we want to get something out of this” and that work would continue to
expand the airline’s network.
Work on valuing Air Malta’s equity was ongoing, but the minister said MPs had to keep in mind that the airline had an accumulated losses “hole” of €70 million euro.
The European Commission was satisfied with much of the airline’s progress in following its restructuring programme, Dr Zammit Lewis said. “I think both sides of the House should celebrate this,” he said.
It was “evident” that the majority shareholder would maintain control of the airline’s board, the minister added.
“And if there are no evident advantages [from this partnership], we’ve got a plan B,” Dr Zammit Lewis mysteriously told MPs.
http://www.timesofmalta.com/mobile/...-airline-zammit-lewis-tells-parliament.613804
Ti devo correggere. I voli FR verso MLA sono stati trasferiti a FCO a fine marzo 2016. Prima operavano da CIA.
Il dato 2015 si riferisce quindi a KM, AZ, VY e a qualche charter.
Corretto.
Ad FR si deve si deve il +42.37% e prima posizione ad Aprile 2016 come riportato in #153
Come si spiega questa cosa? Prenotando one way SCL-FCO tutto esaurito mentre facendo l'ar molti posti disponibli? C'è qualche legge, regolamento in Cile per cui non è possibile comprare il volo one way? Forse per questioni di visto UE?
Air Malta: perennial loss-maker struggles with rising LCC competition. Alitalia considers investing.
On 27-Apr-2016, Alitalia signed an MoU with the Maltese government over the possible acquisition of up to 49% of Air Malta. The two airlines are linked through geographical proximity and by cultural and commercial ties between Malta and Italy. However, both are perennial loss-makers and Alitalia is focusing on its own turnaround eighteen months or so after receiving investment from Etihad. The Italian national airline will only proceed if it is confident that Air Malta can both complement its strategic development, yet not compromise its own restructuring programme.
Air Malta is now a Europe-only airline. Under its Nov-2015 three year plan, it is cutting overall capacityin 2016 and has discontinued its North Africa routes. Compared with 2013, when CAPA last analysed Air Malta in detail, its seat capacity this summer will be lower by 9% and it has reduced its fleet size by two, to eight aircraft. Air Malta's highly seasonal and strongly leisure-focused network is facing growing competition from LCCs. It has struggled to compete profitably with a short haul, non-premium, point-to-point product that has little with which to differentiate itself.
Alitalia talks to continue to Jul-2016
The MoU allowed Alitalia to launch a period of due diligence regarding the acquisition of a minority stake in Air Malta. The government of Malta had initiated a search for potential investors in 2015 and it is understood that it had been in discussions with more than one airline. The MoU now gives Alitalia a period of exclusivity for more detailed negotiations. Talks are expected to continue until the end of Jul-2016.
The partial privatisation is not necessarily a foregone conclusion. Malta’s opposition Nationalist Party's economic spokesperson, Claudio Grech, is uncomfortable with the sale of 49% of the shares to Alitalia. He said that his party agrees with the concept of a strategic partner for Air Malta that goes beyond codesharing, but not necessarily the sale of so many shares (maltatoday, 31-May-2016). The Minister suggested exploring other means of increasing Air Malta's capital, including selling some shares to local investors and institutions.
Malta's Tourism Minister, Edward Zammit Lewis, reassured sceptics of the deal, stating, “If there isn’t a deal to the advantage of Air Malta, obviously, the deal is off” (The Malta Independent, 27-May-2016).
In addition to some opposition in Malta, Alitalia itself appears at least somewhat cautious. Its CEO, Cramer Ball, said, "this MoU is a first and important step, but we will only make a decision once we have completed an exhaustive examination of a possible deal. We will need to establish unequivocally that a deal with Air Malta will not undermine the progress of our three-year turnaround programme, or prejudice our financial position."
Air Malta has 25 European destinations
According to OAG, Air Malta operates from its base at Malta International Airport to 25 destinations, all in Europe. Three years ago it had 36 destinations in Europe and three in North Africa. Since then, it has dropped its North African services and a number of northern European routes.
All of its seat capacity is international, with 97% to Western Europe and 3% to Eastern/Central Europe (week of 19-Sep-2016, source: OAG).
Air Malta destinations, summer 2016*
[TD="align: center"] London Heathrow [/TD]
[TD="width: 127, align: center"] Athens **[/TD]
[TD="width: 127, align: center"] Lyon -Saint Exupéry[/TD]
[TD="width: 127, align: center"] Berlin Tegel [/TD]
[TD="width: 127, align: center"] Manchester [/TD]
[TD="width: 127, align: center"] Birmingham [/TD]
[TD="width: 127, align: center"] Marseille [/TD]
[TD="width: 127, align: center"] Bristol [/TD]
[TD="width: 127, align: center"] Milan Linate [/TD]
[TD="width: 127, align: center"] Brussels [/TD]
[TD="width: 127, align: center"] Moscow Sheremetyevo [/TD]
[TD="width: 127, align: center"] Cardiff [/TD]
[TD="width: 127, align: center"] Munich [/TD]
[TD="width: 127, align: center"] Catania Fontanarossa[/TD]
[TD="width: 127, align: center"] Paris Charles de Gaulle [/TD]
[TD="width: 127, align: center"]Düsseldorf[/TD]
[TD="width: 127, align: center"] Paris Orly [/TD]
[TD="width: 127, align: center"] Exeter [/TD]
[TD="width: 127, align: center"] Prague Václav Havel[/TD]
[TD="width: 127, align: center"] Frankfurt [/TD]
[TD="width: 127, align: center"] Rome Fiumicino [/TD]
[TD="width: 127, align: center"] Geneva [/TD]
[TD="width: 127, align: center"] Vienna [/TD]
[TD="width: 127, align: center"] London Gatwick [/TD]
[TD="width: 127, align: center"]Zürich[/TD]
*Week of 19-Sep-2016
**Jul/Aug only
Source: OAG
All are point-to-point operations - but this may change
The airline has no long haul network and operates its routes on a point-to-point basis. In the past Air Malta has served some destinations in North Africa, but it never really built on the opportunity afforded by its geographic location to develop a hub connecting Europe with cities on the southern and eastern borders of the Mediterranean.
See related report: Alitalia's network benefits from Etihad partnership. Time now to shed the dependency culture
According to media reports, Malta's Tourism Minister, Edward Zammit Lewis, has suggested that the balance of Air Malta's network will shift after an Alitalia investment. He has said that it would maintain its core routes, but the network may be reshuffled to fit withAlitalia's (Malta Independent/Times of Malta, 30-May-2016).
The Minister said, "Everyone can rest assured, Air Malta will never become a feeder airline. Air Malta must grow, there must be a plan for its [aircraft] fleet to grow. […] And Air Malta will no longer just be a point-to-point airline".
Air Malta is not part of one of the branded global alliances but has codeshares with five Star Alliance members (Austrian Airlines,Brussels Airlines, Lufthansa, SWISS, Turkish Airlines), four SkyTeam members (Aeroflot, Air France, KLM and CSA Czech Airlines) andEmirates, Etihad and Meridiana. The codeshares with Air France and KLM have been added since Sep-2013.
Air Malta is the leading airline by seats in Malta, but LCC competition is growing
Air Malta is the leading airline by scheduled seats at Malta International Airport. However, Ryanair is now running it close after Air Malta's contraction and the Irish LCC's expansion. Given Ryanair's superior load factors, it is likely that it now carries more passengers to/from Malta than Air Malta does.
Malta International Airport seat capacity by airline, 19-Sep-2016 to 25-Sep-2016
Source: CAPA - Centre for Aviation and OAG
Air Malta is facing growing competition from LCCs. The share of seat capacity taken by low cost carriers is 46% for 2016 so far, up from 42% in 2015 (see chart below). Just a decade ago, LCCs had only 4% of seats to/from Malta.
With an economy-only cabin and no long haul network, and operating in a leisure dominated market, Air Malta offers little to differentiate itself from LCC competitors.
Malta: LCC capacity share (%) of total seats: 2007 - 2016
*Year to Month indicated
Source: CAPA - Centre for Aviation with data provided by OAG
Summer 2016: Air Malta capacity shrinking; Ryanair's is growing
According to OAG schedules data, Air Malta's weekly capacity in Sep-2016 will be 21,776 seats (based on the week of 19-Sep-2016). This is 11% lower than a year earlier and 9% below its level of Sep-2013. Again based on Sep-20016 data, Air Malta's share of seats on routes between Malta and Europe is 33%, compared with 43% for the same week in 2013 (it was 46% in 2012).
Air Malta's 11% capacity cut in summer 2016 follows a 2% capacity cut in winter 2015/2016. Data from OAG indicate that its annual seat capacity was little changed in the period 2012 to 2015.
For the first time, Ryanair will have almost the same weekly capacity as Air Malta in summer 2016 (it will briefly surpass Air Malta in Aug-2016). In the week of 19-Sep-2016, Ryanair's seat numbers will be 38% higher than in the same week of 2015. Ryanair's share of Malta-Europe seats is 32% in Sep-2016, up from 30% in 2013, while easyJet's share is 5%, which is reduced from 6% in 2013.
One of the more significant changes in the competitive landscape over the past three years is Wizz Air's expansion from a seat share of less than 1% to just over 3%. Vueling, Alitalia and Turkish Airlines have also expanded their presence in Malta.
Air Malta's potential new shareholder Alitalia has a seat share of 2%, based on OAG schedules data for the week of 19-Sep-2016. Alitalia operates a daily A321 service to Malta from Rome Fiumicino. Air Malta is the leading airline by seats on this route, with Alitalia second, but there is also competition from Ryanair and Vueling.
Italy is Air Malta's largest destination country
OAG data for Sep-2016 indicate that Italy is Air Malta's largest destination country by seats, while the UK is number two, France number three and Germany number four. These four – Europe's largest countries by population – also formed the top four destinations in Sep-2013, but the order has changed. Three years ago the UK was at number one, followed in order by Germany, Italy and France.
Belgium has moved up the list from eighth to fifth, Switzerland from seventh to sixth, Netherlands from tenth to seventh and Austriafrom ninth to eighth.
Russia has slipped from six to nine and Libya, ranked at four in 2013, has fallen out of the list entirely. Destination Greece, ranked at eleven in 2013, has also been discontinued.
Air Malta international seat capacity by country 19-Sep-2016 to 25-Sep-2016
Source: CAPA - Centre for Aviation and OAG
For long haul connectivity, Air Malta must rely on major European hubs…
Air Malta's network of 26 routes includes the major European hubs of London Heathrow, Paris CDG, Frankfurt and Amsterdam, plus the secondary hubs of Munich, Rome Fiumicino, Moscow Sheremetyevo, Zürich, Vienna and Brussels.
These routes provide vital connections into long haul networks, supported by Air Malta's codeshares with Lufthansa (Malta to Düsseldorf, Frankfurt and Munich), Air France (Malta to Lyon, Marseille, Paris CDG and Paris Orly), KLM, Aeroflot (Malta to Sheremetyevo), SWISS,Austrian and Brussels Airlines.
However – with the possible exception of Alitalia's Rome Fiumicino – all of these hubs are quite far from Malta and require a significant detour, particularly for destinations in the Middle East and Asia Pacific.
…and codeshares with Etihad, Emirates and Turkish Airlines
Malta's long haul connectivity options are also provided by codeshares with Etihad, Emirates and Turkish Airlines. The partnership with Etihad is the most extensive of these, although it does not currently cover Malta-Abu Dhabi.
According to OAG, Etihad carries Air Malta's KM code on its services from Abu Dhabi to Brussels, Geneva, Heathrow, Manchester and Rome FCO, from each of which Air Malta carries the Etihad code to Malta. In addition, Etihad carries the KM code to Sydney.
Perhaps, if the Etihad investment Alitalia is to become an Air Malta shareholder, this would help develop the relationship so that thecodeshare also covers Malta-Abu Dhabi.
Turkish carries the KM code on its service from Istanbul Atatürk to Malta. Emirates serves Malta with a four times weekly Dubai-Tunis-Malta-Dubai service and a twice weekly Malta-Larnaca-Dubai service. It carries the KM code on the Malta-Larnaca leg (according to the Emirates website).
Air Malta is the leading airline on most of its routes, but competition is strong
Although Air Malta is ranked number one on 18 of its routes and number two on the remaining eight, it faces competition on 20 of its 26 routes (based on competitors that operate on the same city pairs). Most of its six monopoly routes are relatively small and the one monopoly in its top 10 routes – to Brussels – will become another Ryanair destination from Oct-2016.
Air Malta faces competition from LCCs on 15 routes (16 from Oct-2016), including Ryanair on 11 routes (12 from Oct-2016).
Among Air Malta's 26 airport pair routes this summer, two are new: twice weekly services to Palermo and Moscow Sheremetyevo. The Sheremetyevo service is a switch from Domodedovo and should facilitate better access for Air Malta passengers into Aeroflot's Far East network (although Air Malta is cutting its Moscow capacity by half).
Air Malta: competitive position on its routes from Malta International Airport, 19-Sep-2016 to 25-Sep-2016
[TABLE="width: 747"]
[TR]
[TH="width: 36, bgcolor: #00529F"]Rank*[/TH]
[TH="width: 96, bgcolor: #00529F"]Destination[/TH]
[TH="width: 48, bgcolor: #00529F"]One way freq[/TH]
[TH="width: 48, bgcolor: #00529F"]AirMaltarank by seats on city pair[/TH]
[TH="width: 348, bgcolor: #00529F"]Competitors on city pair ranked by seats[/TH]
[/TR]
[TR="bgcolor: #BED4E8"]
[TD="width: 36, align: center"]1[/TD]
[TD="width: 96"]London Heathrow[/TD]
[TD="width: 48, align: center"]15[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 348"]1 Air Malta (to LHR and LGW), 2 Ryanair (LTN and STN), 3 easyJet(LGW), 4 British Airways (LGW), 5 Thomas Cook Airlines (LGW), 6Thomson (LGW)[/TD]
[/TR]
[TR]
[TD="width: 36, align: center"]2[/TD]
[TD="width: 96"]Catania[/TD]
[TD="width: 48, align: center"]15[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 348"]1 Air Malta, 2 Volotea[/TD]
[/TR]
[TR="bgcolor: #BED4E8"]
[TD="width: 36, align: center"]3[/TD]
[TD="width: 96"]Paris Orly[/TD]
[TD="width: 48, align: center"]9[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 348"]1 Air Malta (to CDG and ORY), 2 Transavia[/TD]
[/TR]
[TR]
[TD="width: 36, align: center"]4[/TD]
[TD="width: 96"]Brussels[/TD]
[TD="width: 48, align: center"]9[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 348"]Monopoly (Ryanair to launch Oct-2016)[/TD]
[/TR]
[TR="bgcolor: #BED4E8"]
[TD="width: 36, align: center"]5[/TD]
[TD="width: 96"]Rome Fiumicino[/TD]
[TD="width: 48, align: center"]9[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 348"]1 Air Malta, 2 Alitalia, 3 Ryanair, 4 Vueling[/TD]
[/TR]
[TR]
[TD="width: 36, align: center"]6[/TD]
[TD="width: 96"]Munich[/TD]
[TD="width: 48, align: center"]8[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 348"]1 Air Malta, 2 Lufthansa, 3 airberlin (summer only)[/TD]
[/TR]
[TR="bgcolor: #BED4E8"]
[TD="width: 36, align: center"]7[/TD]
[TD="width: 96"]London Gatwick[/TD]
[TD="width: 48, align: center"]7[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 348"]1 Air Malta (to LHR and LGW), 2 Ryanair (LTN and STN), 3 easyJet (caLGW), 4 British Airways (LGW), 5 Thomas Cook Airlines (LGW), 6 Thomson (LGW)[/TD]
[/TR]
[TR]
[TD="width: 36, align: center"]8[/TD]
[TD="width: 96"]Milan Linate[/TD]
[TD="width: 48, align: center"]7[/TD]
[TD="width: 48, align: center"]2[/TD]
[TD="width: 348"]1 Ryanair (BGY), 2 Air Malta (3 easyJet to MXP Jul/Aug only)[/TD]
[/TR]
[TR="bgcolor: #BED4E8"]
[TD="width: 36, align: center"]9[/TD]
[TD="width: 96"]Zurich[/TD]
[TD="width: 48, align: center"]7[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 348"]1 Air Malta, 2 SWISS[/TD]
[/TR]
[TR]
[TD="width: 36, align: center"]10[/TD]
[TD="width: 96"]Paris CDG[/TD]
[TD="width: 48, align: center"]7[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 348"]1 Air Malta (to CDG and ORY), 2 Transavia[/TD]
[/TR]
[TR="bgcolor: #BED4E8"]
[TD="width: 36, align: center"]11[/TD]
[TD="width: 96"]Amsterdam[/TD]
[TD="width: 48, align: center"]7[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 348"]1 Air Malta, 2 Transavia[/TD]
[/TR]
[TR]
[TD="width: 36, align: center"]12[/TD]
[TD="width: 96"]Vienna[/TD]
[TD="width: 48, align: center"]7[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 348"]1 Air Malta, 2 NIKI[/TD]
[/TR]
[TR="bgcolor: #BED4E8"]
[TD="width: 36, align: center"]13[/TD]
[TD="width: 96"]Manchester[/TD]
[TD="width: 48, align: center"]4[/TD]
[TD="width: 48, align: center"]2[/TD]
[TD="width: 348"]1 easyJet, 2 Air Malta, 3 Ryanair, 4 Thomas Cook, 5 Jet2.com[/TD]
[/TR]
[TR]
[TD="width: 36, align: center"]14[/TD]
[TD="width: 96"]Berlin Tegel[/TD]
[TD="width: 48, align: center"]4[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 348"]1 Air Malta, 2 Ryanair[/TD]
[/TR]
[TR="bgcolor: #BED4E8"]
[TD="width: 36, align: center"]15[/TD]
[TD="width: 96"]Frankfurt[/TD]
[TD="width: 48, align: center"]4[/TD]
[TD="width: 48, align: center"]2[/TD]
[TD="width: 348"]1 Lufthansa, 2 Air Malta[/TD]
[/TR]
[TR]
[TD="width: 36, align: center"]16[/TD]
[TD="width: 96"]Moscow SVO[/TD]
[TD="width: 48, align: center"]2[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 348"]Monopoly[/TD]
[/TR]
[TR="bgcolor: #BED4E8"]
[TD="width: 36, align: center"]17[/TD]
[TD="width: 96"]Prague[/TD]
[TD="width: 48, align: center"]2[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 348"]1 Air Malta, 2 CSA Czech[/TD]
[/TR]
[TR]
[TD="width: 36, align: center"]18[/TD]
[TD="width: 96"]Palermo[/TD]
[TD="width: 48, align: center"]2[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 348"]Monopoly[/TD]
[/TR]
[TR="bgcolor: #BED4E8"]
[TD="width: 36, align: center"]19[/TD]
[TD="width: 96"]Lyon-St Exupéry[/TD]
[TD="width: 48, align: center"]2[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 348"]Monopoly[/TD]
[/TR]
[TR]
[TD="width: 36, align: center"]20[/TD]
[TD="width: 96"]Marseille[/TD]
[TD="width: 48, align: center"]2[/TD]
[TD="width: 48, align: center"]2[/TD]
[TD="width: 348"]1 Ryanair, 2 Air Malta[/TD]
[/TR]
[TR="bgcolor: #BED4E8"]
[TD="width: 36, align: center"]21[/TD]
[TD="width: 96"]Duesseldorf[/TD]
[TD="width: 48, align: center"]2[/TD]
[TD="width: 48, align: center"]2[/TD]
[TD="width: 348"]1 Ryanair (to Weeze), 2 Air Malta[/TD]
[/TR]
[TR]
[TD="width: 36, align: center"]22[/TD]
[TD="width: 96"]Cardiff[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 348"]Monopoly (summer only)[/TD]
[/TR]
[TR="bgcolor: #BED4E8"]
[TD="width: 36, align: center"]23[/TD]
[TD="width: 96"]Exeter[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 348"]Monopoly (summer only)[/TD]
[/TR]
[TR]
[TD="width: 36, align: center"]24[/TD]
[TD="width: 96"]Bristol[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 48, align: center"]2[/TD]
[TD="width: 348"]1 Ryanair (year round), 2 Air Malta (summer only)[/TD]
[/TR]
[TR="bgcolor: #BED4E8"]
[TD="width: 36, align: center"]25[/TD]
[TD="width: 96"]Birmingham[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 48, align: center"]2[/TD]
[TD="width: 348"]1 Ryanair (year round), 2 Air Malta (summer only)[/TD]
[/TR]
[TR]
[TD="width: 36, align: center"]26[/TD]
[TD="width: 96"]Geneva[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 48, align: center"]2[/TD]
[TD="width: 348"]1 easyJet, 2 Air Malta (both are summer only)[/TD]
[/TR]
[/TABLE]
*Ranked by Air Malta weekly seats
Source: CAPA - Centre for Aviation and OAG
Air Malta has low frequencies and high seasonality
Air Malta’s leisure focus shows in the relatively low frequencies on its routes. OAG data for the week of 19-Sep-2016 show that it will have a frequency of once daily – or greater – on fewer than half of its routes: 12 out of 26 (although this proportion has improved since summer 2013, when only 11 out of 41 routes had at least a daily frequency). It has 11 routes with only one or two flights per week.
This leisure focus is also evident in the seasonality of Air Malta’s schedule: its seat capacity in the week of 18-Jan-2016 was only 60% of its capacity in the peak week of 1-Aug-2016, a ratio that has not changed over the past three years. This shows that Air Malta's schedule is more seasonal than the average across all intra-European routes, where the low week has 68% of the seat capacity of the peak week in 2016.
For the Malta-Europe market as a whole this ratio is 46%, so Air Malta's schedule has a less pronounced seasonality than this market. However, this just means that the level of competition increases significantly in the summer, just when it should be making good profits to offset winter losses.
All-Airbus fleet has reduced by two aircraft
According to the CAPA Fleet Database, Air Malta has a fleet of eight Airbus narrowbodies as at 1-Jun-2016, with an average age of 10.8 years. This comprises two A319s with 141 seat and six A320s (one with 150 seats, four with 168 and one with 180 seats), all on operating leases.
Compared with three years ago the fleet is smaller by two aircraft, following the withdrawal of two A319s.
Air Malta has made losses since FY2008
The most recent financial data for Air Malta are for the financial year to Mar-2015 (FY2015). According to data taken from its annual reports, Air Malta plc's revenue fell by 7% to EUR218 million in FY 2015 after three years of modest growth. However, its net loss increased from EUR18 million in FY2014 to EUR26 million in FY2016, and its operating loss doubled from EUR12 million to EUR24 million.
Before restructuring costs, the operating loss increased 2.5 times from EUR9 million to EUR24 million. The operating margin fell by 6.6ppts to 10.5% in FY2015.
Air Malta plc consolidated revenue, EUR million, FY2008 to FY2015*
*Financial year end March
Source: CAPA - Centre for Aviation and Air Malta plc annual reports
Air Malta plc has not made a net profit since FY2008, and then only thanks to discontinued operations. It has not made a positive operating profit in any year going back as far as FY2004 (the earliest year for which results are available on its website).
Air Malta plc operating profit, EUR million, FY2008 to FY2015*
*Financial year end March
Source: CAPA - Centre for Aviation and Air Malta plc annual reports
Air Malta's relative CASK positioning is little changed over three years
Based on Air Malta financial data for FY2015 and traffic data for the airline from AEA STAR for calendar 2014, CAPA has calculated an estimate of its unit cost (CASK – cost per available seat kilometre) and average trip length in FY2015.
The CASK disadvantage relative to ultra-LCCs such as Ryanair and Wizz Air is substantial, based on this analysis of Air Malta's last set of reported financial results.
Data for the most recently completed financial year, FY2016 (year to Mar-2016) are not yet available. Nevertheless, in spite of three more years of restructuring its relative position on a plot of CASK against average trip length has not really changed.
Unit costs (cost per available seat kilometre, EUR cent) and average sector length for selected European legacy and low cost carriers, 2014*
*Includes CAPA estimate for Air Malta based on FY2012
Source: CAPA analysis of airline company traffic and financial statements and press releases
New plan: break-even in FY2017; profit from FY2018
In Nov-2015, Air Malta's Board of Directors approved another three year business plan, covering FY2016 to FY2018. This aims to restore break-even in FY2017 and to post positive results from FY2018.
The plan includes reducing the fleet to its current size of eight aircraft, with major contract renegotiation and improved efficiency and productivity. It also aims to develop revenues by increasing load factor to compensate for expected yield reduction.
Losses have been inevitable without an LCC cost base
At the time of CAPA's Sep-2013 analysis on Air Malta its then Restructuring Plan aimed for a break-even result that year, FY2014, and a profit in FY2015. These targets proved elusive and Air Malta has remained a perennial loss-maker.
Competing with an undifferentiated product in leisure markets where LCCs are increasingly present makes it next to impossible to attract and sustain a revenue premium. This inevitably leads to losses when the cost base is not that of an LCC.
Alitalia, with Etihad support, will want to help Air Malta to improve
Alitalia's interest in Air Malta comes as it is also planning to return to profit, in 2017. Historically a perennial loss-maker like Air Malta, Alitalia now has the support of its 49% shareholder, Etihad. This has helped its network development and offered both revenue and cost synergies.
See related report: Alitalia's network benefits from Etihad partnership. Time now to shed the dependency culture
Alitalia, presumably with input from Etihad, will no doubt be considering how, and if, it can help Air Malta to improve its offer and lower its costs.
Alitalia will be looking to strengthen Air Malta's network, including the network accessible through partnerships (particularly long haul). A deeper relationship with Etihad, through Alitalia, would be beneficial to Air Malta in increasing its indirect access to Middle East and Asia Pacific destinations. In addition, the closer proximity of Alitalia's Rome hub – relative to other European hubs – may give Air Malta more options in terms of North American routes via Alitalia.
Alitalia will also be examining ways to revitalise Air Malta's commercial strategy, including its service quality, approach to pricing andancillary revenue streams. A priority must surely also be to find sustainable CASK reduction opportunities.
Before the announcement of the MoU, there had previously been some reports that Etihad itself was looking at buying a stake in Air Malta. Certainly, its guidance will be shaping Alitalia's thinking.
source : CAPA
On 27-Apr-2016, Alitalia signed an MoU with the Maltese government over the possible acquisition of up to 49% of Air Malta. The two airlines are linked through geographical proximity and by cultural and commercial ties between Malta and Italy. However, both are perennial loss-makers and Alitalia is focusing on its own turnaround eighteen months or so after receiving investment from Etihad. The Italian national airline will only proceed if it is confident that Air Malta can both complement its strategic development, yet not compromise its own restructuring programme.
Air Malta is now a Europe-only airline. Under its Nov-2015 three year plan, it is cutting overall capacityin 2016 and has discontinued its North Africa routes. Compared with 2013, when CAPA last analysed Air Malta in detail, its seat capacity this summer will be lower by 9% and it has reduced its fleet size by two, to eight aircraft. Air Malta's highly seasonal and strongly leisure-focused network is facing growing competition from LCCs. It has struggled to compete profitably with a short haul, non-premium, point-to-point product that has little with which to differentiate itself.
Alitalia talks to continue to Jul-2016
The MoU allowed Alitalia to launch a period of due diligence regarding the acquisition of a minority stake in Air Malta. The government of Malta had initiated a search for potential investors in 2015 and it is understood that it had been in discussions with more than one airline. The MoU now gives Alitalia a period of exclusivity for more detailed negotiations. Talks are expected to continue until the end of Jul-2016.
The partial privatisation is not necessarily a foregone conclusion. Malta’s opposition Nationalist Party's economic spokesperson, Claudio Grech, is uncomfortable with the sale of 49% of the shares to Alitalia. He said that his party agrees with the concept of a strategic partner for Air Malta that goes beyond codesharing, but not necessarily the sale of so many shares (maltatoday, 31-May-2016). The Minister suggested exploring other means of increasing Air Malta's capital, including selling some shares to local investors and institutions.
Malta's Tourism Minister, Edward Zammit Lewis, reassured sceptics of the deal, stating, “If there isn’t a deal to the advantage of Air Malta, obviously, the deal is off” (The Malta Independent, 27-May-2016).
In addition to some opposition in Malta, Alitalia itself appears at least somewhat cautious. Its CEO, Cramer Ball, said, "this MoU is a first and important step, but we will only make a decision once we have completed an exhaustive examination of a possible deal. We will need to establish unequivocally that a deal with Air Malta will not undermine the progress of our three-year turnaround programme, or prejudice our financial position."
Air Malta has 25 European destinations
According to OAG, Air Malta operates from its base at Malta International Airport to 25 destinations, all in Europe. Three years ago it had 36 destinations in Europe and three in North Africa. Since then, it has dropped its North African services and a number of northern European routes.
All of its seat capacity is international, with 97% to Western Europe and 3% to Eastern/Central Europe (week of 19-Sep-2016, source: OAG).
Air Malta destinations, summer 2016*
| Amsterdam Schiphol |
[TD="align: center"] London Heathrow [/TD]
[TD="width: 127, align: center"] Athens **[/TD]
[TD="width: 127, align: center"] Lyon -Saint Exupéry[/TD]
[TD="width: 127, align: center"] Berlin Tegel [/TD]
[TD="width: 127, align: center"] Manchester [/TD]
[TD="width: 127, align: center"] Birmingham [/TD]
[TD="width: 127, align: center"] Marseille [/TD]
[TD="width: 127, align: center"] Bristol [/TD]
[TD="width: 127, align: center"] Milan Linate [/TD]
[TD="width: 127, align: center"] Brussels [/TD]
[TD="width: 127, align: center"] Moscow Sheremetyevo [/TD]
[TD="width: 127, align: center"] Cardiff [/TD]
[TD="width: 127, align: center"] Munich [/TD]
[TD="width: 127, align: center"] Catania Fontanarossa[/TD]
[TD="width: 127, align: center"] Paris Charles de Gaulle [/TD]
[TD="width: 127, align: center"]Düsseldorf[/TD]
[TD="width: 127, align: center"] Paris Orly [/TD]
[TD="width: 127, align: center"] Exeter [/TD]
[TD="width: 127, align: center"] Prague Václav Havel[/TD]
[TD="width: 127, align: center"] Frankfurt [/TD]
[TD="width: 127, align: center"] Rome Fiumicino [/TD]
[TD="width: 127, align: center"] Geneva [/TD]
[TD="width: 127, align: center"] Vienna [/TD]
[TD="width: 127, align: center"] London Gatwick [/TD]
[TD="width: 127, align: center"]Zürich[/TD]
*Week of 19-Sep-2016
**Jul/Aug only
Source: OAG
All are point-to-point operations - but this may change
The airline has no long haul network and operates its routes on a point-to-point basis. In the past Air Malta has served some destinations in North Africa, but it never really built on the opportunity afforded by its geographic location to develop a hub connecting Europe with cities on the southern and eastern borders of the Mediterranean.
See related report: Alitalia's network benefits from Etihad partnership. Time now to shed the dependency culture
According to media reports, Malta's Tourism Minister, Edward Zammit Lewis, has suggested that the balance of Air Malta's network will shift after an Alitalia investment. He has said that it would maintain its core routes, but the network may be reshuffled to fit withAlitalia's (Malta Independent/Times of Malta, 30-May-2016).
The Minister said, "Everyone can rest assured, Air Malta will never become a feeder airline. Air Malta must grow, there must be a plan for its [aircraft] fleet to grow. […] And Air Malta will no longer just be a point-to-point airline".
Air Malta is not part of one of the branded global alliances but has codeshares with five Star Alliance members (Austrian Airlines,Brussels Airlines, Lufthansa, SWISS, Turkish Airlines), four SkyTeam members (Aeroflot, Air France, KLM and CSA Czech Airlines) andEmirates, Etihad and Meridiana. The codeshares with Air France and KLM have been added since Sep-2013.
Air Malta is the leading airline by seats in Malta, but LCC competition is growing
Air Malta is the leading airline by scheduled seats at Malta International Airport. However, Ryanair is now running it close after Air Malta's contraction and the Irish LCC's expansion. Given Ryanair's superior load factors, it is likely that it now carries more passengers to/from Malta than Air Malta does.
Malta International Airport seat capacity by airline, 19-Sep-2016 to 25-Sep-2016
Source: CAPA - Centre for Aviation and OAG
Air Malta is facing growing competition from LCCs. The share of seat capacity taken by low cost carriers is 46% for 2016 so far, up from 42% in 2015 (see chart below). Just a decade ago, LCCs had only 4% of seats to/from Malta.
With an economy-only cabin and no long haul network, and operating in a leisure dominated market, Air Malta offers little to differentiate itself from LCC competitors.
Malta: LCC capacity share (%) of total seats: 2007 - 2016
*Year to Month indicated
Source: CAPA - Centre for Aviation with data provided by OAG
Summer 2016: Air Malta capacity shrinking; Ryanair's is growing
According to OAG schedules data, Air Malta's weekly capacity in Sep-2016 will be 21,776 seats (based on the week of 19-Sep-2016). This is 11% lower than a year earlier and 9% below its level of Sep-2013. Again based on Sep-20016 data, Air Malta's share of seats on routes between Malta and Europe is 33%, compared with 43% for the same week in 2013 (it was 46% in 2012).
Air Malta's 11% capacity cut in summer 2016 follows a 2% capacity cut in winter 2015/2016. Data from OAG indicate that its annual seat capacity was little changed in the period 2012 to 2015.
For the first time, Ryanair will have almost the same weekly capacity as Air Malta in summer 2016 (it will briefly surpass Air Malta in Aug-2016). In the week of 19-Sep-2016, Ryanair's seat numbers will be 38% higher than in the same week of 2015. Ryanair's share of Malta-Europe seats is 32% in Sep-2016, up from 30% in 2013, while easyJet's share is 5%, which is reduced from 6% in 2013.
One of the more significant changes in the competitive landscape over the past three years is Wizz Air's expansion from a seat share of less than 1% to just over 3%. Vueling, Alitalia and Turkish Airlines have also expanded their presence in Malta.
Air Malta's potential new shareholder Alitalia has a seat share of 2%, based on OAG schedules data for the week of 19-Sep-2016. Alitalia operates a daily A321 service to Malta from Rome Fiumicino. Air Malta is the leading airline by seats on this route, with Alitalia second, but there is also competition from Ryanair and Vueling.
Italy is Air Malta's largest destination country
OAG data for Sep-2016 indicate that Italy is Air Malta's largest destination country by seats, while the UK is number two, France number three and Germany number four. These four – Europe's largest countries by population – also formed the top four destinations in Sep-2013, but the order has changed. Three years ago the UK was at number one, followed in order by Germany, Italy and France.
Belgium has moved up the list from eighth to fifth, Switzerland from seventh to sixth, Netherlands from tenth to seventh and Austriafrom ninth to eighth.
Russia has slipped from six to nine and Libya, ranked at four in 2013, has fallen out of the list entirely. Destination Greece, ranked at eleven in 2013, has also been discontinued.
Air Malta international seat capacity by country 19-Sep-2016 to 25-Sep-2016
Source: CAPA - Centre for Aviation and OAG
For long haul connectivity, Air Malta must rely on major European hubs…
Air Malta's network of 26 routes includes the major European hubs of London Heathrow, Paris CDG, Frankfurt and Amsterdam, plus the secondary hubs of Munich, Rome Fiumicino, Moscow Sheremetyevo, Zürich, Vienna and Brussels.
These routes provide vital connections into long haul networks, supported by Air Malta's codeshares with Lufthansa (Malta to Düsseldorf, Frankfurt and Munich), Air France (Malta to Lyon, Marseille, Paris CDG and Paris Orly), KLM, Aeroflot (Malta to Sheremetyevo), SWISS,Austrian and Brussels Airlines.
However – with the possible exception of Alitalia's Rome Fiumicino – all of these hubs are quite far from Malta and require a significant detour, particularly for destinations in the Middle East and Asia Pacific.
…and codeshares with Etihad, Emirates and Turkish Airlines
Malta's long haul connectivity options are also provided by codeshares with Etihad, Emirates and Turkish Airlines. The partnership with Etihad is the most extensive of these, although it does not currently cover Malta-Abu Dhabi.
According to OAG, Etihad carries Air Malta's KM code on its services from Abu Dhabi to Brussels, Geneva, Heathrow, Manchester and Rome FCO, from each of which Air Malta carries the Etihad code to Malta. In addition, Etihad carries the KM code to Sydney.
Perhaps, if the Etihad investment Alitalia is to become an Air Malta shareholder, this would help develop the relationship so that thecodeshare also covers Malta-Abu Dhabi.
Turkish carries the KM code on its service from Istanbul Atatürk to Malta. Emirates serves Malta with a four times weekly Dubai-Tunis-Malta-Dubai service and a twice weekly Malta-Larnaca-Dubai service. It carries the KM code on the Malta-Larnaca leg (according to the Emirates website).
Air Malta is the leading airline on most of its routes, but competition is strong
Although Air Malta is ranked number one on 18 of its routes and number two on the remaining eight, it faces competition on 20 of its 26 routes (based on competitors that operate on the same city pairs). Most of its six monopoly routes are relatively small and the one monopoly in its top 10 routes – to Brussels – will become another Ryanair destination from Oct-2016.
Air Malta faces competition from LCCs on 15 routes (16 from Oct-2016), including Ryanair on 11 routes (12 from Oct-2016).
Among Air Malta's 26 airport pair routes this summer, two are new: twice weekly services to Palermo and Moscow Sheremetyevo. The Sheremetyevo service is a switch from Domodedovo and should facilitate better access for Air Malta passengers into Aeroflot's Far East network (although Air Malta is cutting its Moscow capacity by half).
Air Malta: competitive position on its routes from Malta International Airport, 19-Sep-2016 to 25-Sep-2016
[TABLE="width: 747"]
[TR]
[TH="width: 36, bgcolor: #00529F"]Rank*[/TH]
[TH="width: 96, bgcolor: #00529F"]Destination[/TH]
[TH="width: 48, bgcolor: #00529F"]One way freq[/TH]
[TH="width: 48, bgcolor: #00529F"]AirMaltarank by seats on city pair[/TH]
[TH="width: 348, bgcolor: #00529F"]Competitors on city pair ranked by seats[/TH]
[/TR]
[TR="bgcolor: #BED4E8"]
[TD="width: 36, align: center"]1[/TD]
[TD="width: 96"]London Heathrow[/TD]
[TD="width: 48, align: center"]15[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 348"]1 Air Malta (to LHR and LGW), 2 Ryanair (LTN and STN), 3 easyJet(LGW), 4 British Airways (LGW), 5 Thomas Cook Airlines (LGW), 6Thomson (LGW)[/TD]
[/TR]
[TR]
[TD="width: 36, align: center"]2[/TD]
[TD="width: 96"]Catania[/TD]
[TD="width: 48, align: center"]15[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 348"]1 Air Malta, 2 Volotea[/TD]
[/TR]
[TR="bgcolor: #BED4E8"]
[TD="width: 36, align: center"]3[/TD]
[TD="width: 96"]Paris Orly[/TD]
[TD="width: 48, align: center"]9[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 348"]1 Air Malta (to CDG and ORY), 2 Transavia[/TD]
[/TR]
[TR]
[TD="width: 36, align: center"]4[/TD]
[TD="width: 96"]Brussels[/TD]
[TD="width: 48, align: center"]9[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 348"]Monopoly (Ryanair to launch Oct-2016)[/TD]
[/TR]
[TR="bgcolor: #BED4E8"]
[TD="width: 36, align: center"]5[/TD]
[TD="width: 96"]Rome Fiumicino[/TD]
[TD="width: 48, align: center"]9[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 348"]1 Air Malta, 2 Alitalia, 3 Ryanair, 4 Vueling[/TD]
[/TR]
[TR]
[TD="width: 36, align: center"]6[/TD]
[TD="width: 96"]Munich[/TD]
[TD="width: 48, align: center"]8[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 348"]1 Air Malta, 2 Lufthansa, 3 airberlin (summer only)[/TD]
[/TR]
[TR="bgcolor: #BED4E8"]
[TD="width: 36, align: center"]7[/TD]
[TD="width: 96"]London Gatwick[/TD]
[TD="width: 48, align: center"]7[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 348"]1 Air Malta (to LHR and LGW), 2 Ryanair (LTN and STN), 3 easyJet (caLGW), 4 British Airways (LGW), 5 Thomas Cook Airlines (LGW), 6 Thomson (LGW)[/TD]
[/TR]
[TR]
[TD="width: 36, align: center"]8[/TD]
[TD="width: 96"]Milan Linate[/TD]
[TD="width: 48, align: center"]7[/TD]
[TD="width: 48, align: center"]2[/TD]
[TD="width: 348"]1 Ryanair (BGY), 2 Air Malta (3 easyJet to MXP Jul/Aug only)[/TD]
[/TR]
[TR="bgcolor: #BED4E8"]
[TD="width: 36, align: center"]9[/TD]
[TD="width: 96"]Zurich[/TD]
[TD="width: 48, align: center"]7[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 348"]1 Air Malta, 2 SWISS[/TD]
[/TR]
[TR]
[TD="width: 36, align: center"]10[/TD]
[TD="width: 96"]Paris CDG[/TD]
[TD="width: 48, align: center"]7[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 348"]1 Air Malta (to CDG and ORY), 2 Transavia[/TD]
[/TR]
[TR="bgcolor: #BED4E8"]
[TD="width: 36, align: center"]11[/TD]
[TD="width: 96"]Amsterdam[/TD]
[TD="width: 48, align: center"]7[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 348"]1 Air Malta, 2 Transavia[/TD]
[/TR]
[TR]
[TD="width: 36, align: center"]12[/TD]
[TD="width: 96"]Vienna[/TD]
[TD="width: 48, align: center"]7[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 348"]1 Air Malta, 2 NIKI[/TD]
[/TR]
[TR="bgcolor: #BED4E8"]
[TD="width: 36, align: center"]13[/TD]
[TD="width: 96"]Manchester[/TD]
[TD="width: 48, align: center"]4[/TD]
[TD="width: 48, align: center"]2[/TD]
[TD="width: 348"]1 easyJet, 2 Air Malta, 3 Ryanair, 4 Thomas Cook, 5 Jet2.com[/TD]
[/TR]
[TR]
[TD="width: 36, align: center"]14[/TD]
[TD="width: 96"]Berlin Tegel[/TD]
[TD="width: 48, align: center"]4[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 348"]1 Air Malta, 2 Ryanair[/TD]
[/TR]
[TR="bgcolor: #BED4E8"]
[TD="width: 36, align: center"]15[/TD]
[TD="width: 96"]Frankfurt[/TD]
[TD="width: 48, align: center"]4[/TD]
[TD="width: 48, align: center"]2[/TD]
[TD="width: 348"]1 Lufthansa, 2 Air Malta[/TD]
[/TR]
[TR]
[TD="width: 36, align: center"]16[/TD]
[TD="width: 96"]Moscow SVO[/TD]
[TD="width: 48, align: center"]2[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 348"]Monopoly[/TD]
[/TR]
[TR="bgcolor: #BED4E8"]
[TD="width: 36, align: center"]17[/TD]
[TD="width: 96"]Prague[/TD]
[TD="width: 48, align: center"]2[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 348"]1 Air Malta, 2 CSA Czech[/TD]
[/TR]
[TR]
[TD="width: 36, align: center"]18[/TD]
[TD="width: 96"]Palermo[/TD]
[TD="width: 48, align: center"]2[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 348"]Monopoly[/TD]
[/TR]
[TR="bgcolor: #BED4E8"]
[TD="width: 36, align: center"]19[/TD]
[TD="width: 96"]Lyon-St Exupéry[/TD]
[TD="width: 48, align: center"]2[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 348"]Monopoly[/TD]
[/TR]
[TR]
[TD="width: 36, align: center"]20[/TD]
[TD="width: 96"]Marseille[/TD]
[TD="width: 48, align: center"]2[/TD]
[TD="width: 48, align: center"]2[/TD]
[TD="width: 348"]1 Ryanair, 2 Air Malta[/TD]
[/TR]
[TR="bgcolor: #BED4E8"]
[TD="width: 36, align: center"]21[/TD]
[TD="width: 96"]Duesseldorf[/TD]
[TD="width: 48, align: center"]2[/TD]
[TD="width: 48, align: center"]2[/TD]
[TD="width: 348"]1 Ryanair (to Weeze), 2 Air Malta[/TD]
[/TR]
[TR]
[TD="width: 36, align: center"]22[/TD]
[TD="width: 96"]Cardiff[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 348"]Monopoly (summer only)[/TD]
[/TR]
[TR="bgcolor: #BED4E8"]
[TD="width: 36, align: center"]23[/TD]
[TD="width: 96"]Exeter[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 348"]Monopoly (summer only)[/TD]
[/TR]
[TR]
[TD="width: 36, align: center"]24[/TD]
[TD="width: 96"]Bristol[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 48, align: center"]2[/TD]
[TD="width: 348"]1 Ryanair (year round), 2 Air Malta (summer only)[/TD]
[/TR]
[TR="bgcolor: #BED4E8"]
[TD="width: 36, align: center"]25[/TD]
[TD="width: 96"]Birmingham[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 48, align: center"]2[/TD]
[TD="width: 348"]1 Ryanair (year round), 2 Air Malta (summer only)[/TD]
[/TR]
[TR]
[TD="width: 36, align: center"]26[/TD]
[TD="width: 96"]Geneva[/TD]
[TD="width: 48, align: center"]1[/TD]
[TD="width: 48, align: center"]2[/TD]
[TD="width: 348"]1 easyJet, 2 Air Malta (both are summer only)[/TD]
[/TR]
[/TABLE]
*Ranked by Air Malta weekly seats
Source: CAPA - Centre for Aviation and OAG
Air Malta has low frequencies and high seasonality
Air Malta’s leisure focus shows in the relatively low frequencies on its routes. OAG data for the week of 19-Sep-2016 show that it will have a frequency of once daily – or greater – on fewer than half of its routes: 12 out of 26 (although this proportion has improved since summer 2013, when only 11 out of 41 routes had at least a daily frequency). It has 11 routes with only one or two flights per week.
This leisure focus is also evident in the seasonality of Air Malta’s schedule: its seat capacity in the week of 18-Jan-2016 was only 60% of its capacity in the peak week of 1-Aug-2016, a ratio that has not changed over the past three years. This shows that Air Malta's schedule is more seasonal than the average across all intra-European routes, where the low week has 68% of the seat capacity of the peak week in 2016.
For the Malta-Europe market as a whole this ratio is 46%, so Air Malta's schedule has a less pronounced seasonality than this market. However, this just means that the level of competition increases significantly in the summer, just when it should be making good profits to offset winter losses.
All-Airbus fleet has reduced by two aircraft
According to the CAPA Fleet Database, Air Malta has a fleet of eight Airbus narrowbodies as at 1-Jun-2016, with an average age of 10.8 years. This comprises two A319s with 141 seat and six A320s (one with 150 seats, four with 168 and one with 180 seats), all on operating leases.
Compared with three years ago the fleet is smaller by two aircraft, following the withdrawal of two A319s.
Air Malta has made losses since FY2008
The most recent financial data for Air Malta are for the financial year to Mar-2015 (FY2015). According to data taken from its annual reports, Air Malta plc's revenue fell by 7% to EUR218 million in FY 2015 after three years of modest growth. However, its net loss increased from EUR18 million in FY2014 to EUR26 million in FY2016, and its operating loss doubled from EUR12 million to EUR24 million.
Before restructuring costs, the operating loss increased 2.5 times from EUR9 million to EUR24 million. The operating margin fell by 6.6ppts to 10.5% in FY2015.
Air Malta plc consolidated revenue, EUR million, FY2008 to FY2015*
*Financial year end March
Source: CAPA - Centre for Aviation and Air Malta plc annual reports
Air Malta plc has not made a net profit since FY2008, and then only thanks to discontinued operations. It has not made a positive operating profit in any year going back as far as FY2004 (the earliest year for which results are available on its website).
Air Malta plc operating profit, EUR million, FY2008 to FY2015*
*Financial year end March
Source: CAPA - Centre for Aviation and Air Malta plc annual reports
Air Malta's relative CASK positioning is little changed over three years
Based on Air Malta financial data for FY2015 and traffic data for the airline from AEA STAR for calendar 2014, CAPA has calculated an estimate of its unit cost (CASK – cost per available seat kilometre) and average trip length in FY2015.
Air Malta's unit cost compares favourably with other legacy carriers in Europe but still puts it at a unit cost disadvantage compared with the LCCs
As was the case when CAPA previously made an estimate of its CASK in Sep-2013, Air Malta's unit cost compares favourably with other legacy carriers in Europe but still puts it at a unit cost disadvantage compared with the LCCs.The CASK disadvantage relative to ultra-LCCs such as Ryanair and Wizz Air is substantial, based on this analysis of Air Malta's last set of reported financial results.
Data for the most recently completed financial year, FY2016 (year to Mar-2016) are not yet available. Nevertheless, in spite of three more years of restructuring its relative position on a plot of CASK against average trip length has not really changed.
Unit costs (cost per available seat kilometre, EUR cent) and average sector length for selected European legacy and low cost carriers, 2014*
*Includes CAPA estimate for Air Malta based on FY2012
Source: CAPA analysis of airline company traffic and financial statements and press releases
New plan: break-even in FY2017; profit from FY2018
In Nov-2015, Air Malta's Board of Directors approved another three year business plan, covering FY2016 to FY2018. This aims to restore break-even in FY2017 and to post positive results from FY2018.
The plan includes reducing the fleet to its current size of eight aircraft, with major contract renegotiation and improved efficiency and productivity. It also aims to develop revenues by increasing load factor to compensate for expected yield reduction.
Losses have been inevitable without an LCC cost base
At the time of CAPA's Sep-2013 analysis on Air Malta its then Restructuring Plan aimed for a break-even result that year, FY2014, and a profit in FY2015. These targets proved elusive and Air Malta has remained a perennial loss-maker.
Competing with an undifferentiated product in leisure markets where LCCs are increasingly present makes it next to impossible to attract and sustain a revenue premium. This inevitably leads to losses when the cost base is not that of an LCC.
Alitalia, with Etihad support, will want to help Air Malta to improve
Alitalia's interest in Air Malta comes as it is also planning to return to profit, in 2017. Historically a perennial loss-maker like Air Malta, Alitalia now has the support of its 49% shareholder, Etihad. This has helped its network development and offered both revenue and cost synergies.
See related report: Alitalia's network benefits from Etihad partnership. Time now to shed the dependency culture
Alitalia, presumably with input from Etihad, will no doubt be considering how, and if, it can help Air Malta to improve its offer and lower its costs.
Alitalia will be looking to strengthen Air Malta's network, including the network accessible through partnerships (particularly long haul). A deeper relationship with Etihad, through Alitalia, would be beneficial to Air Malta in increasing its indirect access to Middle East and Asia Pacific destinations. In addition, the closer proximity of Alitalia's Rome hub – relative to other European hubs – may give Air Malta more options in terms of North American routes via Alitalia.
Alitalia will also be examining ways to revitalise Air Malta's commercial strategy, including its service quality, approach to pricing andancillary revenue streams. A priority must surely also be to find sustainable CASK reduction opportunities.
Before the announcement of the MoU, there had previously been some reports that Etihad itself was looking at buying a stake in Air Malta. Certainly, its guidance will be shaping Alitalia's thinking.
source : CAPA
Air Malta to benefit from Alitalia global network; eco-contribution tax to pay for 2017 initiatives
Tourism Minister Edward Zammit Lewis said that, in terms of Air Malta we need to consider the vast network and all the partners which Alitalia have in Europe and outside of Europe to see how to benefit from it. This is the crux of the negotiations going on at the moment. We cannot answer any direct questions about the negotiations until we have a draft business plan by the end of this month.
This was after the first round of questions posed by the public at this evening's 'Gvern Li Jisma' conference after discussing all the benefits which Malta has reaped after 2015 and the first six months of 2016 as well.
Zammit Lewis also said of Air Malta at the end of his introductory address that the mere fact that there is a great amount of discussion about tackling the issues is positive and the government could have just left it to go bankrupt like a number of international airlines instead.
Minister Zammit Lewis also spoke about the controversial eco-contribution tax saying that the money which comes from this tax will be used to focus on new projects in 2017. The reasoning behind this being that there can be further projects without taking any money from existing reserves.
http://www.independent.com.mt/artic...on-tax-to-pay-for-2017-initiatives-6736159855
Tourism Minister Edward Zammit Lewis said that, in terms of Air Malta we need to consider the vast network and all the partners which Alitalia have in Europe and outside of Europe to see how to benefit from it. This is the crux of the negotiations going on at the moment. We cannot answer any direct questions about the negotiations until we have a draft business plan by the end of this month.
This was after the first round of questions posed by the public at this evening's 'Gvern Li Jisma' conference after discussing all the benefits which Malta has reaped after 2015 and the first six months of 2016 as well.
Zammit Lewis also said of Air Malta at the end of his introductory address that the mere fact that there is a great amount of discussion about tackling the issues is positive and the government could have just left it to go bankrupt like a number of international airlines instead.
Minister Zammit Lewis also spoke about the controversial eco-contribution tax saying that the money which comes from this tax will be used to focus on new projects in 2017. The reasoning behind this being that there can be further projects without taking any money from existing reserves.
http://www.independent.com.mt/artic...on-tax-to-pay-for-2017-initiatives-6736159855
Mi spieghi che cosa cavolo c'entra Brexit con un accordo fra AZ (Italia) e KM (Malta)?
Direttamente nulla. Ma non bisogna sottovalutare il forte legame di Malta con UK. Un'acquisizione di quote in un contesto europeo pre brexit è molto diverso da oggi. UK tenterà di ritagliarsi un maggiore ruolo nella politica mondiale ad ogni livello. E, per non rischiare di essere isolato, credo riunirà attorno a se tutti quei paesi sui quali ha un forte ascendente e tra questi Malta senza dubbio. In questa ottica, potrebbe condizionare il percorso iniziato da Az per l'acquisto delle quote KM.
E' una ipotesi, lo so, ma probabile.
Traffico, transiti ed interessi si sposteranno in uno stato dell'Unione di cui non fa più parte
Minchia, oggi tutti esperti di politica internazionale, finanza e diritto dell'Unione Europea.
Penso che in UK abbiano altro a cui pensare che osteggiare la possibile acquisizione di Air Malta da parte di AZ.
Penso che in UK abbiano altro a cui pensare che osteggiare la possibile acquisizione di Air Malta da parte di AZ.