SkyEurope takes off in Poland
This marks the first stage in SkyEurope's anticipated major presence in this country that will integrate Poland within a growing European low-cost network.
While the first flights will cover routes between Warsaw and Budapest and 'Vienna-Bratislava' (SkyEurope's Bratislava base is linked to Vienna with a one hour bus link), seven more routes are set to follow, including Warsaw to London Stansted, in direct competition with tiny Polish start-up Air Polonia. Three routes, Warsaw to London, Paris and Amsterdam, are available from June 14, with fares from as little as zł.121. Routes to Rome, Milan and Zurich will follow in October 2004.
SkyEurope has pioneered an adaptation of the low-cost model known so well in Western Europe. Early feasibility studies into the Central European low-fare market indicated that low credit card penetration, as well as a lack of computer literacy and Internet use, would pose a massive sales problem for the likes of Ireland's Ryanair.
Management of the Irish low-cost titan has commented that the Internet revolution was essential to their growth, and they still do not have a single Central European destination largely for this reason. Thus a local mimic of Ryanair seems like a bad idea at first.
"SkyEurope is adjusted to the local economy and local mentality of consumers," says Stanislav Saling, PR Manager of SkyEurope. "Across SkyEurope's three-year experience that began in Slovakia, we have found solutions to the problems found in a developing market."
In each country, local banks (in Poland's case BPH) are used as channels for the sale and distribution of flights. Customers can bring cash to a local branch, whether it is in a city or a small town, deposit money into a SkyEurope bank account, and thereby activate their ticket.
"Within the low-cost airline industry, we are the only company doing this," says Saling. "This is a new idea, but the success of this system has proven that it makes sense for banks to partner with us for mutual benefit."
Before SkyEurope approached the Polish banks with partnership proposals, the arrangement had already been proven in Slovakia and Hungary. Another service specific to the Central European market are call centers offering seven different languages.
"People in Central Europe feel more comfortable with being able to call in and make inquiries," adds Saling. "That requires a well-staffed call center infrastructure with well-trained staff. The establishment of this has given us a first-mover advantage."
SkyEurope carried over 170,000 passengers last year. While Air Polonia has led the way in low-cost flight travel in Poland, and now has around fourteen flights from Poland to the UK each week alone, it is bound by its brand at least to devote itself to the Polish market. In contrast, SkyEurope argues that to achieve economies of scale and critical mass, it requires operations from several international bases at once.
"We are interested in east-west traffic as much as west-east traffic and traffic between Central European cities," says Christian Mandl, SkyEurope's CEO. "That is why we are interested in starting in Warsaw, not specifically because we are seeking to compete with Air Polonia.
Wizz Air, starting up this month, looks set to offer SkyEurope competition on several fronts, especially in Hungary and Poland. But Mandl's ambitions lead him to see far into the future - to an era when his company competes across Europe with the European flight sector leaders.
"We see Ryanair and Easyjet as the real competition," says Mandl. "They are still focusing on their development in Germany and Spain. By 2007, our plan is to have grown rapidly in Central Europe. We hope to have 32 aircraft by then, by which time we will be able to compete with the two low-cost leaders."
Mandl does not expect Ryanair or Easyjet to adapt their product to Central Europe by allowing alternative methods of payment to credit card booking. In this scenario, SkyEurope would have a captive market.
"We are going to do everything to become the market leader in Poland," says Mandl. "We are starting in the capital and our next step will be to look at new bases in other airports in Poland." SkyEurope has Embraer short-range aircraft in its fleet ready to serve spoke routes, if deemed necessary, from their Warsaw base.
On the subject of the Charleroi-Ryanair ruling, Mandl says "...it was a relatively good thing for Ryanair, even if they pretend the opposite. More than 70 percent of the money they received has been legalized de facto by the European Commission ruling."
Mandl also feels strongly about another European policy issue with a massively important relationship to the flight sector: labor migration. "The press has sensationalized the mass influx of labor to Western Europe. It is not happening and will not happen," says Mandl. "Labor movement should be totally free across the EU, and we should not treat the people of the accession states as second-class citizens."
Ironically, SkyEurope's experience has seen the reverse of an expected trend for a westward drift of workers. "Many airlines have gone bust in recent years in Western Europe," says Mandl. "If you don't fly, you lose your license. So we have recruited many French, German and Austrian pilots who now work in the growing Central European market."
"SkyEurope is operating 13 aircraft, which enables us to properly serve the demand in Central Europe, and Poland in particular," says Alain Skowronek, SkyEurope's Chairman, whose ancestors come from Poland. "SkyEurope is investing zł.79.5 million ($20 million) in Poland to confirm its leadership in the region."
While the first flights will cover routes between Warsaw and Budapest and 'Vienna-Bratislava' (SkyEurope's Bratislava base is linked to Vienna with a one hour bus link), seven more routes are set to follow, including Warsaw to London Stansted, in direct competition with tiny Polish start-up Air Polonia. Three routes, Warsaw to London, Paris and Amsterdam, are available from June 14, with fares from as little as zł.121. Routes to Rome, Milan and Zurich will follow in October 2004.
SkyEurope has pioneered an adaptation of the low-cost model known so well in Western Europe. Early feasibility studies into the Central European low-fare market indicated that low credit card penetration, as well as a lack of computer literacy and Internet use, would pose a massive sales problem for the likes of Ireland's Ryanair.
Management of the Irish low-cost titan has commented that the Internet revolution was essential to their growth, and they still do not have a single Central European destination largely for this reason. Thus a local mimic of Ryanair seems like a bad idea at first.
"SkyEurope is adjusted to the local economy and local mentality of consumers," says Stanislav Saling, PR Manager of SkyEurope. "Across SkyEurope's three-year experience that began in Slovakia, we have found solutions to the problems found in a developing market."
In each country, local banks (in Poland's case BPH) are used as channels for the sale and distribution of flights. Customers can bring cash to a local branch, whether it is in a city or a small town, deposit money into a SkyEurope bank account, and thereby activate their ticket.
"Within the low-cost airline industry, we are the only company doing this," says Saling. "This is a new idea, but the success of this system has proven that it makes sense for banks to partner with us for mutual benefit."
Before SkyEurope approached the Polish banks with partnership proposals, the arrangement had already been proven in Slovakia and Hungary. Another service specific to the Central European market are call centers offering seven different languages.
"People in Central Europe feel more comfortable with being able to call in and make inquiries," adds Saling. "That requires a well-staffed call center infrastructure with well-trained staff. The establishment of this has given us a first-mover advantage."
SkyEurope carried over 170,000 passengers last year. While Air Polonia has led the way in low-cost flight travel in Poland, and now has around fourteen flights from Poland to the UK each week alone, it is bound by its brand at least to devote itself to the Polish market. In contrast, SkyEurope argues that to achieve economies of scale and critical mass, it requires operations from several international bases at once.
"We are interested in east-west traffic as much as west-east traffic and traffic between Central European cities," says Christian Mandl, SkyEurope's CEO. "That is why we are interested in starting in Warsaw, not specifically because we are seeking to compete with Air Polonia.
Wizz Air, starting up this month, looks set to offer SkyEurope competition on several fronts, especially in Hungary and Poland. But Mandl's ambitions lead him to see far into the future - to an era when his company competes across Europe with the European flight sector leaders.
"We see Ryanair and Easyjet as the real competition," says Mandl. "They are still focusing on their development in Germany and Spain. By 2007, our plan is to have grown rapidly in Central Europe. We hope to have 32 aircraft by then, by which time we will be able to compete with the two low-cost leaders."
Mandl does not expect Ryanair or Easyjet to adapt their product to Central Europe by allowing alternative methods of payment to credit card booking. In this scenario, SkyEurope would have a captive market.
"We are going to do everything to become the market leader in Poland," says Mandl. "We are starting in the capital and our next step will be to look at new bases in other airports in Poland." SkyEurope has Embraer short-range aircraft in its fleet ready to serve spoke routes, if deemed necessary, from their Warsaw base.
On the subject of the Charleroi-Ryanair ruling, Mandl says "...it was a relatively good thing for Ryanair, even if they pretend the opposite. More than 70 percent of the money they received has been legalized de facto by the European Commission ruling."
Mandl also feels strongly about another European policy issue with a massively important relationship to the flight sector: labor migration. "The press has sensationalized the mass influx of labor to Western Europe. It is not happening and will not happen," says Mandl. "Labor movement should be totally free across the EU, and we should not treat the people of the accession states as second-class citizens."
Ironically, SkyEurope's experience has seen the reverse of an expected trend for a westward drift of workers. "Many airlines have gone bust in recent years in Western Europe," says Mandl. "If you don't fly, you lose your license. So we have recruited many French, German and Austrian pilots who now work in the growing Central European market."
"SkyEurope is operating 13 aircraft, which enables us to properly serve the demand in Central Europe, and Poland in particular," says Alain Skowronek, SkyEurope's Chairman, whose ancestors come from Poland. "SkyEurope is investing zł.79.5 million ($20 million) in Poland to confirm its leadership in the region."
