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Low-cost operators to challenge TAROM on domestic routes

05.10.2007, 20:34 6

The internal flights market, currently dominated by TAROM, is set to become more dynamic in the coming years amid rising competition from both Carpatair and other new competitors, such as the low-cost airlines MyAir and Blue Air.
Whereas the international flights market has lured new operators each year, the internal flights market is still dominated by TAROM, with Carpatair (based in Timisoara) as the only other rival operating flights between various destinations in Romania. However, Blue Air and MyAir are both eyeing the internal flights market with a view to introducing flights between various domestic destinations.
Despite dropping the Bucharest-Cluj route from its services earlier this year, Blue Air is still mulling this segment, while Italy's MyAir is expected to start operating on this segment next spring, although has still not specified its destinations. MyAir announced its intention to introduce internal flights as early as last year, but will probably make a move next spring, according to company representatives. MyAir could be a serious rival to companies on the market, as well as to rail and road passenger travel.
"We want to offer internal flights at low prices," said Antonio Iervolino, MyAir Romania manager. This new strategy is also visible in the company's decision to base its operations in Baneasa and boost its fleet earmarked for the Romanian market. As a result, MyAir will have 2 Airbus aircraft in Romania, and plans to have 4 by next year. Internationally, the company has already acquired 19 Bombardier aircraft (with a 90-seat capacity), some of which may be used for internal flights. As a rule, carriers operate with aircraft with less than 100 seats on internal routes.
TAROM posted a 45% increase on the segment of internal flights in H1, registering 180,000 passengers. As a result of the high occupancy rate and rising demand, company officials consider increasing, or introducing new flights, despite the fact that the number of aircraft remains quite low at present for such a move.
The lack of small aircraft was the reason behind Blue Air's decision to drop the Bucharest-Cluj flight, which was introduced last October-November. However, company officials do not rule out a possible investment on this segment. Airlines targeting internal flights not only have to cope with the lack of small aircraft, but also with the low capacity of airports outside Bucharest.
Another airline likely to operate internal flights is low-cost airline Wizz Air, but the company's representatives say they are presently focusing on foreign destinations, with Germanwings also in a similar situation. Major international carriers operate internal flights exclusively in their country of origin. However, the market is expected to gain momentum in the coming period.

New internal flights
TAROM operates internal flights from Bucharest to Cluj, Timisoara, Iasi, Bacau, Suceava, Sibiu, Targu-Mures, Oradea and Baia Mare
Carpatair operates internal flights from Timisoara to Bucharest, Suceava, Iasi, Craiova and Constanta
MyAir will be the first foreign carrier to operate internal flights in Romania starting next spring
Blue Air operated an internal flight on Bucharest-Cluj route, which it dropped, but is mulling investments on this segment

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