Flight sector surges ahead of May 1
But in desperation to claim new territory as fast as possible, companies risk overstretching themselves in a year when the sector is only just beginning to move back into growth.
In a strategic move to protect its pan-European future, tiny low-fare start up Air Polonia (AP) has agreed to code share with Italian carrier Volareweb, ensuring that there will be no competition on routes between Italy and Poland. Volareweb is expected to operate Venice-Warsaw, while AP is expected to operate Warsaw- Rome.
"The cooperation is intended to avoid competition between low-fare airlines on these routes," says AP's Eryk Kłopotowski. "You can see the same thing happening in Germany, where German Wings and Air Berlin tend not to compete on the same routes."
AP's international offer began with a Warsaw-London Stansted route, and already extends to Paris, Brussels, Madrid, Athens, Cologne, Frankfurt and soon Rome. The company expects to carry around ten times more passengers this year than it has done since the start of scheduled flights in December.
Ryanair, the European low-fare sub-sector leader, long kept out of the Polish market for want of purpose-built low-cost airports in this country, may at last be in a position to apply its strategy to the Polish market.
Morrison and Infratil, an airport developer partnership associated with Ryanair bases, have come to Poland for talks about an investment in Kraków, inviting speculation that this will be Ryanair's first Polish destination.
Air industry analysts predict that world air travel will grow by around seven percent this year, much of the amount being produced by a recovery from worries about SARS and the possibility of terrorism. Airline strategists anticipate the same and are ensuring that they are able to head off demand by massively enlarging their offers.
While EU enlargement is expected to create interest from Western European tourists and businessmen alike, an interest that will turn into flight passenger numbers, non-essential trips will still be driven down by Europe's slow economic recovery compared to the rest of the world.
However, Lufthansa's European sales and marketing vice-president, Ulrich Wachter, was in Warsaw last week to tell the press that the German flag carrier expects 10 percent growth in passenger numbers this year and, in order to profit from it, will open new routes between Munich and Kraków, Poznań and Gdańsk. "Poland is becoming a significant playing field for low-cost carriers," said Wachter, "but it shouldn't put all traditional airlines out of business."
Wachter sites a 2003 McKinsey report on the airline business indicating that while traditional carriers will lose market share to newcomers, overall passenger volume is set to grow this decade to the relief of all.
At the other end of the scale, GetJet is trying to start its operations after several delays by securing a part buy-up of its parent company Silesian Air by TSB Holdings. Furthermore, another crucial development for the firm has been indications from the Civil Aviation Authority (ULC) that it is willing to grant it a carrier license in due course.
"German Wings was granted a license. Wizz Air and SkyEurope have applied for licenses, but these have not yet been issued," ULC press spokesperson Adam Borowski said last week.
German Wings is set to start a Cologne-Warsaw route within weeks, while SkyEurope announced its intention to enter the Polish market one month ago, hoping to link Warsaw with low fares to Vienna, Bratislava and Budapest.
In keeping with the consensus that a rush to the Polish market makes sense, SkyEurope Airlines CEO Christian Mandl states, "Poles still suffer from a poor choice of airline services. SkyEurope will offer Poles a choice of popular destinations at zł.99 (20) for a one-way fare."
By year-end, Poland will be served by up to seven new airlines and many times the number of routes. Analysts' predictions that the market may become oversupplied will already be tested by that time. In this era of uncertainty for air travel, the survivors may be the airlines who are able to identify a loss-making route fast and adapt quickly. A small example of bigger things to come is a recent move by AP, which has already discontinued its Warsaw-Gdańsk route, which was deemed unprofitable after just a few weeks of operation.
In a strategic move to protect its pan-European future, tiny low-fare start up Air Polonia (AP) has agreed to code share with Italian carrier Volareweb, ensuring that there will be no competition on routes between Italy and Poland. Volareweb is expected to operate Venice-Warsaw, while AP is expected to operate Warsaw- Rome.
"The cooperation is intended to avoid competition between low-fare airlines on these routes," says AP's Eryk Kłopotowski. "You can see the same thing happening in Germany, where German Wings and Air Berlin tend not to compete on the same routes."
AP's international offer began with a Warsaw-London Stansted route, and already extends to Paris, Brussels, Madrid, Athens, Cologne, Frankfurt and soon Rome. The company expects to carry around ten times more passengers this year than it has done since the start of scheduled flights in December.
Ryanair, the European low-fare sub-sector leader, long kept out of the Polish market for want of purpose-built low-cost airports in this country, may at last be in a position to apply its strategy to the Polish market.
Morrison and Infratil, an airport developer partnership associated with Ryanair bases, have come to Poland for talks about an investment in Kraków, inviting speculation that this will be Ryanair's first Polish destination.
Air industry analysts predict that world air travel will grow by around seven percent this year, much of the amount being produced by a recovery from worries about SARS and the possibility of terrorism. Airline strategists anticipate the same and are ensuring that they are able to head off demand by massively enlarging their offers.
While EU enlargement is expected to create interest from Western European tourists and businessmen alike, an interest that will turn into flight passenger numbers, non-essential trips will still be driven down by Europe's slow economic recovery compared to the rest of the world.
However, Lufthansa's European sales and marketing vice-president, Ulrich Wachter, was in Warsaw last week to tell the press that the German flag carrier expects 10 percent growth in passenger numbers this year and, in order to profit from it, will open new routes between Munich and Kraków, Poznań and Gdańsk. "Poland is becoming a significant playing field for low-cost carriers," said Wachter, "but it shouldn't put all traditional airlines out of business."
Wachter sites a 2003 McKinsey report on the airline business indicating that while traditional carriers will lose market share to newcomers, overall passenger volume is set to grow this decade to the relief of all.
At the other end of the scale, GetJet is trying to start its operations after several delays by securing a part buy-up of its parent company Silesian Air by TSB Holdings. Furthermore, another crucial development for the firm has been indications from the Civil Aviation Authority (ULC) that it is willing to grant it a carrier license in due course.
"German Wings was granted a license. Wizz Air and SkyEurope have applied for licenses, but these have not yet been issued," ULC press spokesperson Adam Borowski said last week.
German Wings is set to start a Cologne-Warsaw route within weeks, while SkyEurope announced its intention to enter the Polish market one month ago, hoping to link Warsaw with low fares to Vienna, Bratislava and Budapest.
In keeping with the consensus that a rush to the Polish market makes sense, SkyEurope Airlines CEO Christian Mandl states, "Poles still suffer from a poor choice of airline services. SkyEurope will offer Poles a choice of popular destinations at zł.99 (20) for a one-way fare."
By year-end, Poland will be served by up to seven new airlines and many times the number of routes. Analysts' predictions that the market may become oversupplied will already be tested by that time. In this era of uncertainty for air travel, the survivors may be the airlines who are able to identify a loss-making route fast and adapt quickly. A small example of bigger things to come is a recent move by AP, which has already discontinued its Warsaw-Gdańsk route, which was deemed unprofitable after just a few weeks of operation.
