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Plane tickets not to get more expensive in 2008, airlines prefer to win passengers

13 august 2008

Information in English

 
Plane tickets will not get more expensive this year in the Romanian market, despite the negative trends in the price of fuels, with the airlines preferring to win passengers or market shares, market  representatives told Agerpres on August 7.
“The rise in the costs of fuels naturally leads to a rise in the prices of tickets, but I don’t believe this will happen this year in Romania, because the market is still on the rise and I think the airlines will not make such a move, “ said head of Civil Aviation at the Ministry of Transport Catalin Radu.
 
Representatives of airlines say that at least in the summer schedule, which is on until Oct. 25, the companies will not raise the price of plane tickets, which have already been contracted, and a reason why the tickets will not get more expensive this year comes from the conditions in the market, which will not increase at the pace of the past years.
 
“In the summer schedule, the price of tickets will not go up, of course, if the price of fuel goes up again, that of tickets will also increase. The problem is that the trends in the economy affect the market, this means that the number of passengers goes down, so it is hard to increase the price of tickets, “ said vice-president of Carpatair Dan Andrei.
 
The air market, without the budget companies, rose 15% in the first six months this year, under the  pace in the previous years, of 20%, but Romania still is one of countries with the highest growth in  Europe, said the International Air Transport Association (IATA).
Blue Air, the leader of the low-cost market in Romania, estimated for 2008 a 30% rise inbusiness, after  it registered a doubling in turnover year-on-year.
 
According to IATA, the rise in the price of kerosene has led to an increase from 13 to 35% in the general costs of airlines. So, IATA expects air companies worldwide in 2008 to report losses between 2.3 and 6.1 billion dollars.
Last year, air traffic reported some 7.9 million passengers, of whom some 1.8 million chose low-cost flights, the rest preferred all-inclusive flights.
Low-cost traffic exceeded 20% of total traffic, while at the beginning of last year, the market share stood at around 9%, and in 2006, low-cost traffic has registered 1.4 million passengers in Romania.

 

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