Air Malta’s restructuring process ‘not my business’ | Markus Klaushofer

One would have expected that MIA's CEO would be aware of the details related to Air Malta's restructuring process. However, according to the soft-spoken Markus Klaushofer, "this is simply not the case".
Contrary to Julian Jaeger, Klaushofer's predecessor, who was renowned to be more 'conversational', a rather calm Klaushofer feels that the airline's restructuring was "none of [his] business".
Jaeger had been aware of the crucial role the national airline played for its own operations as well as for the national economy and had been quoted as saying by MaltaToday that "MIA was following the restructuring process within the national airline very closely".
Klaushofer added rather surprisingly: "Although we do work hand in hand to promote Malta as a hub, we are not informed and we don't expect to be informed on the nature of Air Malta's restructuring process."
MIA makes most of its revenues because of Air Malta and one would have expected Klaushofer to be more on the guard.
The Austrian CEO insists that "MIA didn't make most of its revenues because of Air Malta and that the statement is nothing but a myth, since the 48% of passenger movements registered didn't reflect the same percentage in revenue.
"Air Malta is crucial for the island and we are trying to support the airline as much as possible, however MIA is not just banking on Air Malta's revenues."
If it made more sense that foreigners formed part of the ownership than if it was fully owned by Maltese, Klaushofer gave the example of Austrian Airlines which was sold to Lufthansa.
"Sometimes it's easier for foreigners to take the harder decisions, because as a foreigner you have no obligations to anyone in particular, making it easier to help push the company forward, taking these hard decisions without any politically-related obstacles."
Furthermore, Klaushofer says that investing in Malta Airport was being considered by Vienna's shareholders as one of a string of good investments.
"Vienna is quite happy with the results. Obviously shareholders of a company always want better results, but nevertheless I think the part purchase of MIA has gone down well among its foreign shareholders," adding that "MIA is on par with other airports".
And has the CEO offered concrete and favourable rates to the national airline since the downsizing programmes of the airline?
"The package we are offering, when compared to other airlines, is a good combination. The regulated fees have remained the same for the past six years - which in reality mean a 10% decrease due to inflation."
The business model at MIA is based also on retail and a business centre. What other growth areas is Klaushofer envisaging?
"When we finish SkyParks Business Centre - being seen as a milestone in reaching our goals in the retail and property segment - we will see how things develop and will discuss with the board accordingly if it's viable to expand and build a second one. But at the moment, we are keen on the consolidation of what has been achieved so far.
"The shopping activity at MIA is doing quite well and we have again been rated as one of the best airports in Europe because of the layout and the mixture of products being offered such as the vast array of traditional food stuffs.
"If one had to look at all the airports worldwide, they all look the same: you find the same brands. But in Malta there is that traditional touch where local food and wine products are concerned.
"You can buy Hugo Boss everywhere, but not Gozitan goat cheese!"
"I would like to see continued enhancement of our services to customers. It is very gratifying when customers tell us they appreciate the services they have received."
In the past, the MIA was the fiefdom of political appointees. Has MIA moved to basing new recruitment based on meritocracy?
Klaushofer laughs off the suggestion.
"I have heard this rumour before. I simply am not interested in any political fiefdom, even if it existed before. Things are different now.We are here to do business and not promote ourselves with politicians. We are not politicians, we are businessmen.
"The advantage of a person working in a foreign country is that these issues are irrelevant.
"However, I am very strict on this issue and I am determined to employ the best people whatever their political background and not through the influence of any politician but based on their skills and abilities. I want the best people to work for MIA."
Regarding the government's recently announced Special Purpose Vehicle, did MIA intend to purchase shares in Malita?
 "So far, we don't have any intention to do so."
On the marketing strategies and core markets that are being targeted, Klaushofer says that "our marketing strategy is aimed at making Malta an attractive offer for airlines to operate from, which are all transparently published on our website, in line with the European Union's regulations.
"The strategy entails a mixture of incentive schemes, catering for airlines interested in operating new or undeserved routes and which can avail themselves of reduced airport charges, as well as the initiative launched back in November of last year, that of waiving all landing fees in our winter schedule.
"However, whatever scheme we implement is written on black and white."
"The travel and tourism sector is a volatile market, and the economic situation in the major markets has a direct effect on the performance of tourism in Malta and on the results MIA achieves.
"I think it's highly important for the government, through the Malta Tourism Authority, to assist airlines in their marketing since it adds on to the marketing assistance we give as an airport. At the end of the day it's a government decision I have no problem with since it's a positive one.
"However, the Group intends to remain cautious on this year's outcome. The forecast for this year is being primarily evaluated on the European economic crisis which is expected to lessen demand for travel and which in turn could affect MIA's core markets. This could lead to a decrease in passenger movements during 2012 as a result."
Klaushofer views his role at MIA as quite a plain sailing one when compared to other airports he worked in.
"I'm not new here because I was on MIA's Board of Directors between 2007 and 2009. Doing business in Malta is easier when compared to other countries like Spain because in Malta everybody speaks excellent English, making life easier for me.
Compared to other airports like Moscow, where I worked for three years prior to my appointment at MIA, I personally feel that it's much more convenient and easier to work in Malta than in any other country."
Asked about a possible change in government, an adamant Klaushofer replied by saying that "it will be business as usual. I bumped into the Opposition leader, Joseph Muscat, recently during a NatureTrust event and we had quite an interesting chat. However, I would like to emphasise that as a foreigner I am open to opinions from all sides of the political spectrum and I openly discuss what in my personal capacity think is best for MIA and the tourism industry to move forward".
What are the real advantages of shopping at MIA, and the fiscal major challenges MIA is facing?
"Reasonable prices combined with good quality products coupled with a vast array of brands.
"On the fiscal challenges, when compared to other EU countries, Malta has fared well. On comparing passenger numbers, we are hoping that this year will be as good as 2010 where a record number of passengers, that of 3.29 million, was seen. But as I said earlier the European economic crisis could leave a dent in this year's passenger movements.
"Despite all this, the Group was expecting the volume of traffic to be around 2.8% less than the all-time record of 3.5 million passengers registered last year."
Klaushofer added that while  MIA's main markets for last year were the UK (31% of market share), Italy (17.6%) and Germany (15%), "for the long-term, we are not relying solely on these markets and we will be focusing on other emerging markets like Russia and Ukraine, targeting new relatively untapped areas".
"The Malta Tourism Authority is executing some good marketing campaigns to promote the islands. A case in point is the recent event at Harrods.
"This should help promote both the airport and the airline which in return will favour the whole island which undoubtedly banks on the tourism industry.
"From our end, we are investing heavily in turning the airport into a hub rather than simply a destination airport."

MIA's ownership
Twenty per cent of MIA is owned by the government, 40% by the consortium comprising Airport Investments Ltd, SNC-Lavalin and last but not least Vienna International Airport, and the remaining 40% is floated on the Malta Stock Exchange.