Blue Air could lose 5% of the low-cost market

Blue Air estimates it could lose 5% of its market share through increasing competition, although it has budgeted that business will double this year, to 80.5 million euros. According to Blue Air representatives, the biggest low-cost carrier in Romania anticipates to have a 65% share of the budget airline market this year, compared with the 70% held last year. The drop in the market share is anticipated because other low-cost airlines have unveiled plans to enter the Romanian market. One of those companies is Wizz Air, which has already announced it is aiming to attain a 30 million-euro turnover and 500,000 passengers. Other players on the domestic low-cost market are Sky Europe, with a few more important players such as German Wings (Lufthansa’s low-cost division), Easy Jet, Ryan Air, and Air Berlin having announced their entry onto the local market. The low-cost airline market could double this year, reaching over 125 million euros. Blue Air has budgeted 80.5 million-euro turnover for this year, says general manager Gheorghe Racaru. “Growth will be due primarily to affordable pricing, as well as an increase in the number of destinations we will fly to,” said Racaru. Achieving this turnover would mean doubling Blue Air’s business.