Henri Coanda: an airport worth 890m euros

Bucharest’s Henri Coanda international airport (Romania’s largest airport) boasted one of the highest profit margins in 2006, around 40%. Lacking a genuine competitor on the market, the airport is now taking full advantage of the air travel industry’s growth and the arrival of new operators.
With rates similar to those registered at airports in Frankfurt, Prague and Budapest, Henri Coanda airport forecasts revenues worth 71.5 million euros this year, against 61.6 million euros in 2006. However, after net profit increased by 85.15% on 2005, this year, company representatives estimate a 30% decline.
According to Valentin Iordache, foreign relations, quality and marketing director at AIHCB, last year’s results were due to increased passenger traffic, as well as the growth and diversification of available commercial activities.Henri Coanda airport is currently involved in a long-term development plan which stretches until 2020, when it intends to become the hub for Central and Eastern Europe and register around 10 million passengers.
Currently, the airport is in its third stage of development, which will entail investments worth over 75 million euros. These investments primarily target the expansion of the international departures terminal, and also the international arrivals terminal by 2,000 square metres. Company representatives target an overall capacity of 3,600 passengers per peak hour for international flights, an increase on the current 2,400.
“We will increase our capacity for international flights by 50%,” said Iordache. The capacity of the terminals will, in turn, increase to six million passengers a year. The number of passengers transiting the airport this year is estimated at 4.5 million, compared with 3.5 million last year. The upward trend is linked both to EU accession and to the entry of new companies on the market (Delta Air Lines and Finnair) and also because AIHCB handled the bulk of air traffic from Baneasa airport for a while this year.
During the renovation of the Baneasa airport, AIHCB experienced record high levels of traffic. According to Iordache, July saw the highest increase in passenger traffic, up 77% against the level in 2006. According to a study conducted by the Ministry of Transports, EU accession has generated significant opportunities for growth. Airports that service the capitals of countries that entered the EU in 2004 saw significant increases in terms of passenger traffic: Budapest – 28.6%, Prague – 30%, Bratislava – 86%, Tallin – 39%, Vilnius – 38% and Riga – 49%.