Why low-cost carriers avoid Budapest, Prague or Vienna

29 oct 2009 Autor: Mirabela Tiron

Low-cost airlines have daily flights to capital cities such as Rome, Paris or London, but there is no low-cost flight to Prague, a top destination for Romanians' weekend trips.

Rome, Paris and London get 60 flights per week operated by low-cost carriers from the main Romanian airports, while to Vienna, for instance, there are 14 low-cost flights per week, operated by Blue-Air.

Nevertheless, the Austrian capital has a good position, considering there is no low-cost flight from Bucharest to Budapest, with Wizz Air as the only operator including this destination in its schedule, but from Targu-Mures.

Prague is a destination low-cost carriers do not take up though the Czech capital city is one of the most frequently included destinations on travel agencies' websites.

"Blue Air does not fly to Budapest or Prague because these destinations would not be in demand by passengers so that they may generate a business and a profit. These cities attract tourists only at weekends and it wouldn't be profitable to have only one flight per week. You must have at least three flights per week to make a business, generate a market, and Prague and Budapest do not have this potential, yet," stated Adrian Ionascu, general manager of Blue Air low-cost carrier.

The carrier in 2008 reported 115m-euro turnover, being the leader of the low-cost segment in terms of turnover in 2008. Ionascu added aircraft should have a 70-75% occupancy rate to cover their costs.

Starting next February, though, NIKI low-cost carrier, founded by Niki Lauda Formula 1 champion, will operate on the Bucharest-Vienna route and back. The Austrian company thus fills the gap left on the market by Sky Europe's bankruptcy.

On the other hand, it is only Hungary's Wizz Air that flies to Budapest, from Targu-Mures, twice a week. Prague and Budapest destinations would become profitable provided they attracted at least 1,000 passengers per week.

Low-cost carriers are seeking high-traffic destinations, particularly focusing on countries where there are Romanians working and not so much on leisure travel.