Air Malta Privatization

Paper Summary:

This paper begins by providing a thorough survey of the history of Air Malta. It then analyzes and compares the airline to its major competitor, Azzurra Air. This is followed by an explanation of the process of privatization being considered by Air Malta and how major restructuring is needed for this process to succeed. It looks at the hurdles the airline needs to overcome for this to happen.

From the Paper:

"There is a lot of confusion about the relationship of Air Malta with Azzura Air. This was a new entrant in the Italian air transport scene and was started in 1995. From the beginning it was supported by Air Malta and the airline was equipped with a small number of 92 seat capacity Avro RJ85s. The scheduled services of the airline began in 1996 and were to connect Bergamo/Orio al Serio with Rome/ Ciampino, and London and Zurich. The new destinations were added in the summer schedule of 1997 when the flights of the airline connected Turin to Paris, Zurich and London City. The flights were in competition or collaboration with other airlines on the same routes. The concentration of the airline has been to organize a number of domestic and international services from the different airports in Italy, other than Milan and Rome. The airline also has an interest in the charter market. The airline also tried to reopen some of the other routes within Italy that had been discontinued when some of the regional airlines had collapsed."

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