Low-cost carriers operating domestically get over 20m euros from the luggage taxes they charge on flights to and from Romania, according to ZF calculations taking into account a 20-kilo hold luggage and a hand luggage within the kilo limit admitted by air operators.
Low-cost carriers' prices can rise considerably if passengers carry a lot of luggage, with these being among the less visible costs a passenger takes into account when booking a plane ticket.
Blue Air, Wizz Air and MyAir, the top three low-cost carriers on the market, which account for more than 80% of it together, generate over 20m euros from luggage taxes, taking into account a minimum hold luggage per transported passenger. Thus, these revenues can bring operators around 10% in total revenues.
Blue Air, the biggest operator on the market, generates over 8m euros from luggage taxes, accounting for at least 7% in the company's turnover. "The tax for hold luggage stands at 7 euros for each travel segment," Blue Air representatives said. At the moment hold luggage weighs more than 20 kilos, the operator levies 6 euros per kilo. Blue Air last year shipped 1.2 million passengers.
In the case of Wizz Air, which last year shipped 900,000 passengers to and from Romania, luggage revenues amount to over 11m euros, given that the operator charges both for hold and hand luggage.
Taxes for luggage beyond accepted limits range between 20 and 200 euros depending on the number of kilos by which the limit is exceeded. Wizz Air levies these taxes for online payments, while the sum paid at the airport is double.
In the case of MyAir, ranking third on the market with the around 400,000 transported passengers to and from Romania, the tax paid online for the 3 luggage items not heavier than 18 kg stands at 9 euros if paid online and at 18 euros if paid at the airport.
In the case of Germanwings, Lufthansa's low-cost unit, the tax for hold baggage weighing up to 23 kilos stands at 5 euros at the booking moment or 10 euros at the airport.
The low-cost market has witnessed strong growth in recent years, getting to around 200m euros. The impressive growth could slow down as a result of the financial crisis, though. Still, both low-cost and regular operators have budgeted further growth on the domestic market.
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