Last Tuesday, the Maltese government and Ryanair announced the creation of Malta Air, a new low-cost airline based in Malta, in the perspective of a Hard Brexit of the United Kingdom… But Malta already has a national airline, called Air Malta, so why create a new airline, probably massively subsidized?

Ryanair needs to reallocate its fleet

Bertrand was explaining to us last what the potential impacts of Brexit were on European airlines, especially those with a massive British shareholding.

Beyond the fact that Ryanair will be able to continue to operate its intra-EU routes thanks to this move, it will benefit from the Maltese flag, known for its fiscal softness.

For passengers, little change, it will be a no-frills airline, like its Irish parent company.

But why another Maltese airline?

Malta already has its own airline, called Air Malta. This airline operates only 8 medium-haul aircraft and very often code-shares with other airlines, all alliances included.

But what is the Maltese State doing, already a shareholder of Air Malta, by financially supporting Malta Air, with a similar economic model, at the risk of competing strongly with the national airline? That’s the whole point. If, from a political point of view, one can understand the logic of developing a new airline in order to boost employment, the economic logic is quite different, as the employment conditions of Ryanair’s crews are known to all, and this at the risk of destroying Air Malta’s fragile health… But the Maltese Prime Minister seems far from these considerations!

By wanting to do too much, one loses the common sense… Have a great weekend!