Blue Air airline has budgeted turnover worth 120 million euros for this year, a value that will secure it the leading position on the market this year, too.
The biggest low-cost carrier on the Romanian market, Blue Air, owned by businessman Nelu Iordache, anticipates its growth pace will slow down to 30% from the 100% level it has registered in the past three years.
The operator has budgeted 120 million-euro turnover for 2008, with preliminary figures for 2007 standing at 90 million euros.
The growth rate below the average of the past years budgeted for 2008 comes after new operators, such as WizzAir, Germanwings or easyJet, have entered the market.
At the same time, Europe's biggest low-cost carrier, Ryanair, will start operating flights on the Romanian market this year. However, Blue Air representatives say the new operators have a positive impact over the market.
"Competition is not harming us as there's room for everybody on the Romanian market. Competition is just bringing passengers better and more diversified products," said the company's representatives.
By yearend, Blue Air will reach 100 weekly flights, from 80 at the moment, with the new destinations including Berlin and Larnaka.
"For 2008, we project an average occupancy rate of 83%, similar to last year's level," the company's representatives also said.
Last year, the company went beyond initial forecasts, which pointed to turnover worth 70-80 million euros, succeeding again in doubling sales and the number of carried passengers, which reached 900,000. At the same time, 2007 was the first year when the company managed to register profit worth above one million euros.
"We believe last year's profit ranges between one and two million euros," said Gheorghe Racaru, the company's manager. He also specified the firm during the winter period registered additional costs of between 70,000 and 90,000 euros because of the bad weather conditions that caused flight delays.
The company's net income amounted to around 105,000 euros in 2006, according to Finance Ministry data.
Also in 2007, Nelu Iordache, founder and owner of the company, was in talks to sell Blue Air with Aegean Airlines Greek company, after holding similar talks with Hungary's Wizz Air two years ago.
According to Iordache, the price asked for Blue Air topped 30 million euros. However, talks with the Greek company were halted and the company's representatives stated they were still considering floatation on the stock market.
Blue Air started operating in December 2004 and now has a fleet of five Boeing 737 aircraft.
"We have two other BAE aircraft rented and we'll bring another three Boeing 737s," the company's representatives added said.
Blue Air
Has budgeted turnover worth 120 million euros for this year, a value that will secure it the leading position on the market this year, too
Anticipates its growth pace will slow down to 30% from the 100% level it has registered in the past three years
By yearend, Blue Air will reach 100 weekly flights, from 80 at present
Started operating in December 2004 and now has a fleet of five Boeing 737 aircraft
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