Blue Air business soaring to 19 million euros

Romanian low-cost airline Blue Air registered turnover worth 67.2 million RON (19 million euros) in the first half of this year, 11 times higher than last year.
“The main factors behind this increase are Blue Air’s stabilisation on the domestic and foreign markets, which led to a higher occupancy rate, as well as the launch and development of new destinations. Other factors that generated Blue Air’s progression in the first half of this year are cost efficiency achieved through the creation of the airline’s own handling service, which had been previously provided by a third party, and customer loyalty,” stated Gheorghe Racaru, general manager of Blue Air.
Blue Air derived income worth 33,594 RON (9,489 euros) in the first six months of 2006, after having logged losses standing at 9.23 million RON (2.5 million euros) in the corresponding period of last year.
This is the first time Blue Air low-cost airline has generated profit since it was launched.
Early this year, Blue Air representatives estimated they would have 350,000 passengers and reach turnover worth 35 million euros, after having beaten turnover estimates by 33% in 2005. Operating domestic and international flights from regional airports has become an increasingly popular strategy with Romanian airlines, and Blue Air was one of the first companies to embrace it.
“The benefits of operating from regional airports have to do with operation fees first, which are much lower than those of main airports. This allows us to keep our prices at a lower level than the other operators. Moreover, these airports offer dynamic terrestrial links with the main neighbouring cities,” explains Racaru.
Blue Air operates 50% of its destinations from secondary airports. These include Baneasa (Bucharest), Bergamo (Milan), Ciampino (Rome), Cuneo (Turin), Maastricht AAchens (Maastricht), Hahn (Frankfurt), Beauvais (Paris).
At present, Blue Air operates 37 international weekly flights to destinations in Italy (13 flights), Spain (10 flights), France (5 flights), Turkey (3 flights), the Netherlands (3 flights) and Germany (3 flights).
Blue Air has a fleet of 3 Boeing 737-300 and Boeing 737-500 aircraft and 150 employees. Accounting for 5% of the overall Romanian air travel market, Blue Air works with over 1,000 travel agencies and has developed a network of 5 agencies of its own in Bucharest.