Monday, August 4, 2008

Expectations of a Gozo Businessman

Joseph G. Grech, is the CEO of the Gozo Business Chamber. He is a businessman. Right. Gozitans are fully aware what type of business Mr. Grech is into! The rumour goes that if you need a MEPA permit approval, better join in the Grechs. This is his contribution on The Times today.

I refer to the letter by Franco J. Scicluna titled Serious Inter-island Air Service (July 25).

The Gozo Business Chamber has always been, and still is, in favour of an airlink between the two islands.

The Chamber is worried that no air service is in force at present because this is detrimental to Gozo's economy.

The recent presentation about the airlink made by Roy Perry, in conjunction with the Gozo Business Chamber, was made with the aim of creating more awareness of the great need for an early decision by the relevant authorities. The Chamber is of the opinion that the airlink should be serviced by small fixed-wing planes. We also hope that the proposal presented in the Pre-Budget Document by the Ministry of Finance, the Economy and Investment to "study effective ways for reintroducing a reliable air transport service to and from Gozo" will result in concrete action in the shortest time possible.

The pros (and cons?) of an airlink for Gozo

It is becoming clearer that the Roy Perry's lobby group is working on a planned strategy, that of provoking the public reaction towards embracing an airstrip on the Isle of Calypso nymph.

Nothing wrong with that.

David Carrington also an ex-pat from Sannat and a friend of Roy Perry did his bid on today's
Times.
In his letter called 'The pros of an airlink for Gozo' says thus:

I would like to support the sentiments expressed by Franco Scicluna on the question of an airlink for Gozo (July 25). I, too, was at Roy Perry's recent presentation and some key points arose which the government ought to be actively considering.

First, it is no longer feasible to consider the option of a helicopter service as being economically viable, especially in these days of exponentially increasing fuel costs. Fixed wing aircraft are several times cheaper to run.

Second, certain types of fixed wing aircraft have been successful linking many island communities similar to ours in the Mediterranean, in northern Europe, the Caribbean, the Indian Ocean and the Pacific. There are precedents on which to draw experience.

Third, Gozo's economy suffers from double insularity. It would benefit from having wider direct links to the outside world.

Fourth, Ryannair is understood to be establishing a route to Ragusa in Sicily. Gozo is closer to Sicily than Malta. Joining up with a major airline directly and cutting Luqa and Cirkewwa out of the loop would be attractive to incoming tourists, residents and, perhaps, commuting businessmen alike.

Fifth, the footprint required to establish a suitable airstrip would not impact the environment adversely, if the existing heliport and its immediate, largely moribund, hinterland were to be utilised. The ensuing runway would be measured in hundreds, not thousands, of metres.

Sixth, if investment in a new airstrip takes place, the opportunity for spin-off benefits are readily apparent. One that is being mooted is the opportunity to build a massive underground reservoir to take water run-off from the winter downpours. We all know that water is going to be a key issue in the decades to come. The Eco Island strategy would benefit (particularly as the EU are looking for tangible ideas to justify support).

Seventh, why does the public purse have to be utilised exclusively? If a public-private partnership is considered there is at least one foreign entrepreneur who is known to be interested in investing in infrastructure.

To my certain knowledge, Mr Perry has put years of research into the question of a sustainable airlink for Gozo, with no expectation of reward - other than perhaps seeing a dream realised. Now, opinion on the ground is growing that something ought to be done. The least the Government could do would be to acknowledge this. But platitudes are no longer enough. There needs to be some form of tangible action.

Next action might be for Price Waterhouse, or equivalent, to be commissioned to do a preliminary opportunity-risk assessment, on which a business case might be built. This should be wide-ranging, involving public opinion, business opinion, technical and financial feasibility, price-modelling, ROI estimates - and particularly include such questions as whether overseas companies would be more interested in investing in Gozo and perhaps regenerating the dilapidated Xewkija Industrial Estate (perhaps rebranded as "Smart Village"? But that is another story!). Certainly a holistic approach, for the benefit of the island, would make sense.

This letter is intended to provoke. There will no doubt be others, both for and against. But if you go to www.gozoairlink.blogspot.com you will see just where public opinion is on this right now. I hope the government in its broader sense (not just our ministry) takes note.

Sunday, August 3, 2008

On-line Poll on Gozo airstrip

The Malta Surveys.Com website carried out an online survey asking whether an airstrip for fixed-wing aircrafts be built on Gozo.

Here is the result.
The poll took place between 10th may and 20th June 2008.


Read more by clicking
here.

Convenience versus the politics of Conviction

Way back on the 22nd Novermber 2006, the Cabinet asked MEPA for guidelines on extending Gozo airstrip.

I found this report on the Business Today newspaper - a report by Karl Stagno-Navarra.

It said that the Government was set to ask the Malta Environment and Planning Authority for guidelines over the proposed extension of the current Xewkija heliport and to turn it into a landing strip, capable of allowing a light fixed-wing aircraft to service Gozo’s tourism needs.

Business Today was informed that the issue regarding the use of fixed-wing aircraft as an alternative to the now defunct helicopter service has been discussed informally in Cabinet, early that week of November 2006.

The then Minsiter Censu Galea, and Giovanna Debono have recently been approached by potential operators as well as constituted bodies who have urged them to consider the proposal seriously. It has been decided that an ad hoc committee has been set up made up of the representatives of various sectors to compile an assessment and report back to ministers on the options and viability of such a service.

Members of MEPA are represented in the committee and have already carried out an onsite inspection.

Speaking to Business Today, Gozo minister Giovanna Debono explained that government still has all its options open including analysing the proposal for a wet ease by Helisureste.

An expression of interest would be drafted only after the assessment report is completed. Government has also said it could opt for an open market.

“Government is moving speedily on this matter,” Debono told this newspaper.

Yesterday night, Opposition leader Alfred Sant said Labour’s proposal was to subsidise the helicopter service.

Synergy Aviation of Surrey, UK was the first company to register its interest with government to offer a fixed-wing airlink service between Malta and Gozo.

In an interview with Business Today, 35-year-old pilot and Synergy Aviation director Glen Heavens reveals his intentions to service the two islands with a seven to nine-seater Islander aircraft, and offer it at Lm25 with return.

While explaining that all he needs is an extra 220 metres of airstrip at the existing Xewkija heliport in Gozo, Glen Heavens explains that he is interested in servicing Gozo with its immediate neighbours in the region, introducing flights to
Palermo, Catania, Reggio Calabria,Lampedusa, Pantelleria, Tunis and Tripoli.

The furthest flight-time is estimated to be one hour and ten minutes, while flying between Malta and Gozo would take less than ten minutes.

Glen Heavens’s project is thoroughly supported by the business community in Gozo, and
both the Gozo Tourism Association and the Gozo Business Chamber have voiced their support for the initiative, and are recommending to government that the fixed-wing operation is the best way forward.

The news about Synergy Aviation, revealed last week by this paper, has triggered quite some interest amongst different sectors. Synergy executives have this week met with Air Malta officials over passenger handling,and were reported to have been
“extremely good”.

May I remind the readers of this blog that all this occurred in 2006.

I never heard of the outcome of the workings of the ad hoc committee. Did you?

I don't know neither what happened to the studies compiled and the assessment (if these ever took place). Do you?

Did you hear anything about MEPA's guidelines? I did not.

Do I know of the options and viability of such a service?
Answer is NO.



Conclusion: This is an example of politics run by conveniences and not by convictions.