The domestic airline market is set to witness smaller growth in 2008, after posting 20% annual surges during the 2006-2007 period. However, the market's potential will stay high, with Romania still ranking among the world's top 10 markets boasting the biggest increases.
Regular airlines operating domestically will generate cumulated sales worth 400m euros next year, from 365m euros this year, according to the International Air Transport Association (IATA).
"This year, we will overshoot the target we set last year (360m i.e.) and the value of sales will revolve around 365m euros," said Anca Apahidean, country manager at IATA Romania and Moldova. IATA monitors airlines' sales through the BSP (Billing Settlement Plan) system, through which 80% of airline ticket sales are generated.
By November, the value of sales operated through the BSP system had reached 347m euros, around 22% higher than in the similar period of last year. During the same period (January-November), one million flight documents were issued, 20% more than in the same period of last year.
Though the growth pace projected for 2008 is weaker than this year's rate, it will still allow Romania to hold a top position in the world. In 2006 and 2007, Romania boasted one of the biggest growth rates on the airline market, of over 20%.
Practically, EU integration was a boon for airlines already present on the market, as well as an additional reason for new entries.
"Newcomers include Hainan Airline of China, Singapore Airlines, Cyprus Airways and Meridiana (Italy) and they took the total number of airlines trading through BSP Romania to 47," said Apahidean.
At the same time, Delta Air Lines and Finnair started operating flights to and from Romania. Delta Air Lines posted an 80% occupancy rate in Romania during the very first months it started operating, with the load shrinking slightly in autumn-winter months.
The main airlines operating on the domestic market are TAROM, Carpatair, Air France, Alitalia, Austrian Airlines, British Airways, Lufthansa, Malev, KLM and Czech Airlines, sharing over 80% of sales.
Boasting significant increases year after year, the Romanian market is one of the most important in Central and Eastern Europe for many foreign airlines.
The most important change the Romanian market saw this year was the merger between Air France-KLM, which practically brought the new airline a share of around 20% of the market.
Despite having generated considerable increases this year, airlines say they will not stop here. Cluj is being considered as a destination by several operators on the market, such as Lufthansa and British Airways, while some operators, such as Malev, are also mulling domestic flights.
Airline market
Is set to witness smaller growth in 2008, after posting 20% annual surges during the 2006-2007 period
The market's potential will stay high, with Romania still ranking among the world's top 10 markets boasting the biggest increases
Regular airlines operating domestically will generate cumulated sales worth 400m euros next year, from 365m euros this year
Romania is one of the main Central and Eastern European markets for many foreign airlines
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