Ryanair’s Maltese expansion set to pump €270m into local economy

RYANAIR is pledging to pump €270 million into the economy in Malta as it moves to open up to four new bases across Europe in the coming months.

As the airline continues with its aggressive expansion plans it said it is aiming to double the number of tourists it flies to Malta and introduce 12 new routes there.

Ryanair’s director of route development Ken O’Toole said talks have begun with Malta’s secretary for tourism Mario de Marco, and the airline is hoping the government will agree to an incentive plan based on the volume of passengers brought to Malta.

“We are at a very embryonic stage of discussions. We suggested a principle we have seen work across all Europe, reducing the airport charges per passenger for carriers that produce a high volume of passengers,” said Mr O’Toole.

Malta’s airport charges are three times more expensive than the average European airport, he added. “Malta’s airport has traffic of around three million passengers a year. Our proposal is to increase that by 20%, but to achieve that we need to change the current pricing.”

The airline is hoping for a quick response from the Maltese government and hopes to set up the base by October. It would place two aircraft in Malta annually and employ 100 people.

Meanwhile, Ryanair said it will save €50 million a year in ground-handling fees by discouraging passengers to check-in bags.

The airline also said it will carry more passengers this year than Lufthansa after beating the German airline in March and April.

Chief executive Michael O’Leary said: “We want passengers to bring two or three pieces of luggage that pass through the airport security check instead of one big suitcase which has to be handled by ground services.”

The carrier will only allow internet check-in from October and plans to ban bag check-in next year.

About 25% of Ryanair’s passengers travel with luggage that must be processed by ground handlers.

Ryanair shares jumped 0.7% to €3.44 yesterday.