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Background:Air Malta has undergone a 5 year restructuring plan – agreed as part of the EU’s approval for a bail-out after several years of losses. As a result, the airline cut both routes and staff.The Airline now operates 8 Airbus aircraft (1 A319 and 7 A320’s).The objective of Air Malta is to increase both load-factor and yield while at the same time to maintain effective competition with other carriers and to increase the connectivity of Malta with other destinations.The Government of Malta is now looking for outside investment in the airline.Assignment Task:Make proposals for a proposed route network together with the planning and optimisation of the aircraft fleet for the airline for the 3 years from 2018. The objective is to ensure profitable growth for the future in a highly competitive environment.Task Guidance:Specific guidance will be provided within a vodcast and within class.It is recommended that you take into account both the historic and current operations of Air Malta together with the current operations by other airlines. You should also consider currently unserved route opportunities. You should use both historic traffic trends and forecasts for the future as well as the possible impact of connecting traffic through ‘HUB’ Airports.You should not assume that the Airbus 319/320 or existing routes are permanent as current aircraft leases will all expire by the end of 2017. All options are open for fleet and network development to ensure the long term future of the airline.Looking at both actual and potential traffic flows between city pairs and utilising the Airline Simulation Model where needed and other methods as deemed applicable, you should design a route network and fleet plan for Air Malta from 2018 to 2020 (3years period; long-term plan).