The volume of low-cost airline traffic could triple this year to almost 2 million passengers, with the market's high potential luring new companies to Romania such as Wizz Air, Germanwings and easyJet. At present, the market is in the early stages of a boom, whilst in the near future the battle for the top positions will become more apparent as the newly arrived companies strengthen their positions on the market.
At the end of last year only 3 low-cost carriers were present on the Romanian market, now there are 6 airlines operating low-cost flights to and from Romania, with yet another company, easyJet, having recently announced its entrance onto the market. Additionally, the established low-cost carriers have introduced new routes and expect to see their occupancy rates double. All these facts indicate that the domestic low-cost air market is one of the most dynamic in the region.
"Given the occupancy rate registered in the past year, we believe the low-cost market now accounts for around 15% of overall Romanian passenger air traffic, and within a few years believe it could account for around 50%, thus mirroring the other states in Central and Eastern Europe, which became EU members before Romania," said Natasa K?zmer, director of corporate communications & public affairs at Wizz Air. Last year, the level of air traffic registered at Romanian airports stood at around 5.5 million passengers.
Wizz Air representatives also expect the entire Romanian air market to double in the next 10 years. The significant growth potential of the domestic market has attracted some low-cost airlines that are not only well established on other regional markets, but also internationally. The first indication of this became apparent after Romania joined the EU and once the "open sky" agreement was signed.
For example, Germany's Germanwings, the low-cost unit of Lufthansa, has been operating on the domestic market, with three Bucharest-K?ln flights per week, since late March. Spain's Clickair arrived on the domestic market, in May, on the Bucharest-Barcelona route, whilst Britain's easyJet airline has recently announced its intention to operate, starting September 10, daily flights on the Bucharest Baneasa-Milan-Malpensa route.
Although both airlines have so far only announced one route each from Romania, their overall international experience shows that it is unlikely they will stop here. easyJet's record on other regional markets also indicates that the airline is constantly considering viable new routes.
According to company representatives, out of the low-cost airlines already present in Romania last year, Blue Air held a 70% market share. Taking into consideration the fact that the market leader registered a 50m-euro turnover, it is possible to estimate that the low-cost air market reached 70m euros last year. SkyEurope and MyAir primarily accounted for the remaining 30%.
In addition, other low-costs airlines, such as Air Berlin and Ryanair, have also expressed an interest in the Romanian air travel market.
Low-cost airline market
Considering that the market leader, Blue Air, registered a 50m-euro turnover, last year's market's value can be put at around 70m euros
Out of the low-cost airlines already present in Romania in 2006, Blue Air held a 70% market share, with the remaining 30% primarily held by SkyEurope and MyAir
Low-cost air traffic could triple this year to almost 2 million passengers
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