Issue link: https://maltatoday.uberflip.com/i/844299
maltatoday, SUNDAY, 2 JULY 2017 3 News Plan to set up company for Air Malta landing slots metres. Although the local plan limits height in the area to eight storeys, ac- cording to the same plan hostels "may exceed the building height limitation for the area in which the building is situated by a maximum of one floor and in accordance with the develop- ment guidelines issued in 2015 allow the development of buildings with a height of 39m." A number of residents objected to the height of the building, complain- ing of the nuisance during the con- struction period and to the proposed use of the building for housing for- eign students. "How can 12 storeys be given the leeway in such a narrow lane? This is the last remaining space of fresh air, with the building of this hostel the air is going to be ruined. I protest most vehemently... there's no respect for residents of the street," a resident complained. CONTINUES FROM PAGE 1 Air Mal- ta's take-off and landing slots at Heathrow, the world's second- busiest international airport and the main access point for the Brit- ish economy, come with price- tags as high as €70 million for a pair. The price is itself informed by the capacity constraints at Heathrow. Another airline source, who would not be drawn into com- ment, said there was talk at top management level of hiving off Air Malta's landing slots into a new company. "You don't want a strategic part- ner buying up 49% of the airline, and then eventually taking over and controlling these landing rights," the government source said. Once hived off into the new company, Air Malta would 'lease back' those landing rights while retaining full control on them. Air Malta has been seeking more cost-cutting opportunities since it took on Marisa Micallef as chair- person over the past years. But Mizzi has already mooted that the airline is now reconsid- ering a decision to eliminate the Frankfurt route. "We're looking at growth, not cutting routes," said the govern- ment source. "That is why there is talk of restarting the Frankfurt route, and to even introduce new routes." In January, the plug was pulled on talks between Air Malta and Alitalia for the sale of 49% of the national airline's share to the Ital- ian airline. Doubts on the deal always fo- cused on whether the agreement would ultimately benefit Air Mal- ta's employees and the country. Air Malta was hoping that Alita- lia, a subsidiary of Etihad, would acquire a stake in the ailing airline in a bid to remain afloat after a massive €260 million restructur- ing package negotiated under strict EU state aid rules. But Etihad Airways, hit by slow- ing growth, announced in late 2016 that it would be eliminating jobs across several units after ac- quisitions in Air Berlin, Air Serbia and Alitalia failed to turn a profit, with Etihad losing €2.5 billion on these investments. Additionally, Alitalia's president Luca Cordero di Montezemolo had hinted in 2016 that Air Mal- ta would potentially be used as a feeder airline – a move which would definitely go against the government's vision for Air Malta. In 2016, Air Malta's board of di- rectors moved to axe two routes – Frankfurt and Manchester – insisting they were performing weakly. The national airline – whose first flights were in 1974 with scheduled services to London, Birmingham, Manchester, Rome, Frankfurt, Paris and Tripoli – continues to face stiff competition from low cost airlines, especially Ryaniar, which is close to taking the majority market share of Mal- ta's incoming passenger market. Air Malta went through a mas- sive restructuring imposed by the EU after the government saved it from bankruptcy in 2010 with a €52 million loan. Two years later, the EU approved €130 million in State aid on condition that the air- line was restructured. Under Peter Davies, roped in by the then Nationalist government to effect the necessary changes being demanded by the European Union, Air Malta almost halved its workforce, reduced the num- ber of jets in operation and cut capacity. During the summer months, it was revealed that Air Malta was €66 million in the red. At the end of the 2015 financial year, Air Malta lost €4.2 million, after losing €16.9 million the previous year.