The application of cost-benefit analysis on Air Malta operated routes for a public service obligation appraisal : the case of Dusseldorf

Since its inception as a national earner, way back in 1974, Air Malta was responsible to develop air services connectivity between Malta and the rest of the world for the benefit of Malta's island economy and its people. In 1974, Malta welcomed 272,516 tourists. 35 years on Air Malta operates a fleet of 12 aircrafts to over 50 destination in Europe, North Africa and the Eastern Mediterranean. Over its 35 year history, Air Malta transported over 38 million passengers to and from the Maltese islands. Today over 55% of tourists who visit our islands choose the National Airline. But the ride throughout these 35 years of success has sometimes been somewhat bumpy and the journey into the future looks to be full of fresh challenges. Indeed the airline's backdrop has changed drastically in the last 35 years, but the airline so far has been able to ride the winds of change to its benefit. In view of this set up Air Malta has two important missions to serve; the socio-economic development of a nation and its own interests. At face value, these commitments may appear to be one one and the same. But further in depth analysis suggest that the two mission statements are sometimes conflicting and impinging on one another. On one hand Air Malta should be committed towards the country's economic, growth and social development and international profile. On the other hand, Air Malta, as a commercial organisation, needs to be developed into a performance driven organisation that will enhance the value of shareholders and enhance the value of its employees through motivation and development. ln a nutshell, it is driven by the financial sustainability motive that will only then enable it to satisfy the nation's social and economic needs. Although this is indisputable on paper and in principle, it is sometimes overlooked in practice.

Grantor dc:publisher.institution

University of Malta

Year dc:date.issued

2010

• Airlines -- Malta
• Local service airlines -- Malta
• Tourists

Statement dc:rights

• info:eu-repo/semantics/restrictedAccess

Language dc:language.iso

en

Repository record dc:identifier.uri

https://www.um.edu.mt/library/oar/handle/123456789/75019

OAI identifier oai:identifier

oai:www.um.edu.mt:123456789/75019