The closed Niki desk at Palma. | MDB

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The Balearic government's ports and airports department is concerned about the impact of the business collapse of airlines in recent weeks. Niki's bankruptcy follows that of Monarch and the ending of Air Berlin operations.

The director-general, Xavier Ramis, notes that these failures mean fewer seats and higher prices. There is also a potential loss of competitiveness by comparison with other destinations, and this could be concerning for the 2018 tourism season.

With competitor destinations offering incentives to attract tourists away from the Balearics, Ramis believes that prices currently on offer for German passengers travelling between Majorca and Germany don't help with tourist bookings.

The immediate effect has been to push up prices over the festive period, and these obviously affect both tourists and residents.

The ports and airports department is therefore going to be holding meetings with low-cost airlines. Ramis says that there have already been approaches to half a dozen airlines of a similar nature to Air Berlin and Niki. There is great demand for Majorca in Germany, Austria and Switzerland, so he believes there is business viability for other airlines.

With German residents of Majorca, he adds, the collapse of Niki has had a negative effect because of the number of trips that are typically booked well in advance.