Issue link: https://maltatoday.uberflip.com/i/1490343
3 NEWS 19.1.2023 Airport CEO says Malta needs a national airline: 'I hope the Commission agrees' FROM PAGE 1 He added that works on Apron X started in September. It is now in the excavation process. Apron X will offer a new aircraft park- ing area spanning 120,000sqm. It had been billed as the largest investment in aerodrome infrastructure since MIA took over management of the airport in 1998 e airport will undergo a resurfac- ing of the secondary runway, which will pave the way for a resurfacing of the main runway. Meanwhile, designs are being finalised for a covered walkway connecting the Park East car park to the airport terminal. e arrivals hall is looking to be ren- ovated, Borg said, with the company looking into the idea of having a tradi- tional cafeteria in the hall to give pas- sengers a 'Mediterranean feel' as soon as they step out of the airport. e departures hall will also be reno- vated, with grab-and-go concept shops to make space for more check-in desks. e company is also in the process of finalising a new fuel station to make way for the SkyParks 2 project. Borg said that the company has issued calls for the development of the project. "is is a huge task. We're talking about a development that's three times the size of the first SkyParks project." He added that the Cargo Village pro- ject should be contracted by end of year, with 1,100 sqm remaining in the pro- ject's development. Borg also said that the VIP terminal is due for an upgrade, ideally into a six-star development that can accom- modate larger delegations of high-level personnel. Air Malta state aid ruling 'a waiting game' e European Commission's ruling on state aid for the national airline is a waiting game for the country's only airport, Borg said when asked on how it could impact the airport's forecasts. Borg said that the airport's company forecasts are drafted on the assump- tion that Air Malta continues to oper- ate with the eight aircraft it has in its fleet. "It's a waiting game for us, waiting for the Commission to make its ruling. We keep close contact with Air Mal- ta management, it's of critical impor- tance. But I do think that Malta should have a home carrier, and I hope the Commission agrees." Government filed a formal state aid application in October 2020 in order to provide Air Malta with financial assis- tance after suffering a major hit during the pandemic. Air Malta has already benefited from a state aid injection of €200 million back in 2012, and further capital injec- tions from strategic asset sales to the government. In 2021, Finance Minister Clyde Caruana described Air Malta's posi- tion as a "pitiful state", losing €170,000 daily. A year later, he announced a restruc- turing of the airline that aimed to re- duce the company's workforce by half and outsource its ground-handling op- erations. Current challenges Borg said that the airport was lucky to avoid some of the major staff shortag- es and operational constraints faced in other European airports. However, the landscape is still a challenging one, in- dustrial actions abroad impacting local operations nonetheless. He also said that there is still the pos- sibility of worsening macro-economic and geopolitical factors, noting the war in Ukraine as a particular concern that could impact demand. Uncertainty posed by these factors, coupled with cost increases, could af- fect consumer confidence, booking windows, and medium-term visibility for airlines. And while 2022 was a good year for airport traffic, the pent-up demand for travel after the pandemic is expected to level off into 2023/ "People will be smarter in their deci- sions," he said. "Occupancies will un- likely surpass 2022 levels." Carlo Micallef, CEO of the Malta Tourism Authority, said that the air- port saw impressive seat load factors in 2022, often above 90%. He said this is an indicator of high demand to visit the country, and that people are willing to spend more to come to Malta. "e cost of flights to Malta was quite high at one point. is shows visitors to Malta are looking for the experience." He insisted that Malta should com- pete in tourism on quality, rather than price. Monthly recovery in 2022 (Source: MIA) MAPFRE has signed on to the Net Zero Asset Owner Alliance with the aim of transitioning its investment portfolios' net Greenhouse Gas (GG) emissions and becoming a Net Zero (NZ) company by 2050. By signing on to this initiative, MAPFRE pledges to establish individual targets that must be reached concerning the emis- sions of its investment portfolio, and to regularly report on progress made. Highlights among the challenges set out by the Alliance include specific targets for customers with high emissions, along with other so-called "financing transition" targets that aim to promote investment in climate solutions that contribute to the energy transition. "It's another step forward in our com- mitment to accelerating the energy tran- sition and making progress on the fight against climate change," highlighted MAPFRE CEO Antonio Huertas, who re- iterated the company's environmental ob- jective of helping decarbonize the planet. Huertas also indicated MAPFRE's in- tent to "continue adding to the demand for sustainability firmly and progressively, with concrete objectives that contribute to reducing the greenhouse gas emissions of the multinational's insurance and re- insurance portfolio, and that enable the company to accompany society through a fair transition;" that is, "to help and guide companies so that they can transform and continue generating wealth in a way that is increasingly environmentally friendly." By signing on to this new alliance, MAPFRE reinforces its commitment to decarbonization. In April 2022, the com- pany announced it was signing on to the Net-Zero Insurance Alliance (NZIA) with the objective of achieving greenhouse emission neutrality by 2050 in its insur- ance and reinsurance portfolios. In 2022, it developed its own tool for the Group's asset manager to analyze and assess the risks associated with climate change in its investments. is enabled the company to contribute to the reduc- tion of more than a million tons of CO2 emissions associated with its investments. e insurance group includes joining the Net Zero Asset Owner Alliance in its Sustainability Plan 2022-2024, with which it aims to make progress on stra- tegic objectives such as rating 90% of its investment portfolio with ESG criteria at the global level by 2024, as well as neutral- izing the company's carbon footprint by 2030, and not investing or insuring car- bon, gas, or oil companies that don't have an energy transition plan. All of these targets reflect the company's ambition to take an active role in the nec- essary and urgent transformation towards a low-carbon economy. e alliance, launched in 2019 by the United Nations Environment Programme Finance Initiative (UNEP FI), is currently made up of a total of 74 institutional in- vestors, representing 10.6 trillion dollars in assets under management. MAPFRE joins Net Zero asset Owner Alliance