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The number of people visiting Malta has risen well as a result, and fares to the holiday island have come down in the island's main UK customer base, but new routes have also started in otherwise unchartered territories for Malta's tourism industry, including Norway and Spain.
Faced with the new competition the airline opened new routes - notably Liverpool in the North West of England - but also cut her offers with various offers.
The most notable difference though for frequent flyers to Malta either on business or for Malta holidays has been the level of service offered by the airline, setting them apart from the new low cost airlines flying to the island's Luqa Airport.
One example of the airline's success at providing a quality service has been the lack of losing their passengers luggage - while some airlines are notorious for upsetting passengers by frequently losing their luggage, the airline has proved to be the best in Europe.
'There was real concern before the advent of the low cost carriers that the established Malta airline would be knocked out of the skies' comments one Malta travel site, 'but they have approached the situation well and not only tried to match the fares, but gone a step further by improving the quality of service and opening new routes too - impressive.'
New official figures show that last year's all important summer season had been the best in six years for Malta, reversing the decline in fortunes for the Mediterranean island.
The good news for Malta is that despite the increase in the number of tourists arriving on the island via low cost flights, the occupancy levels of hotels has increased from basic to 5 star, showing that Malta can appeal to all.
Further good news for Malta came from the figures for hotels and holidays with the news that while the number of arrivals from her traditional UK market rose by eleven per cent, the number of people from Germany visiting Malta increased by a third this year, adding strength to the holidays industry that has been reliant on tourism from one country in the past, and even Spanish tourists now visiting the island.
And Malta's airline has shown that you can visit the island in comfort, and still pay less for the airfare than two years ago!
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