EU debutants decide to ditch frills

Airlines from central and eastern Europe reveal low-cost ambitions as they seek to compete with western rivals

Smaller airlines across central and eastern Europe are using this week's enlargement of the European Union to launch no-frills business models and expand their networks in a bid to compete against existing low-fares carriers.

The enlargement of the EU on 1 May will take in eight former communist states in central and eastern Europe as well as Cyprus and Malta - all will become part of the liberalised air transport market. Several low-fare airlines from existing western European EU countries including EasyJet, Scandinavian Airlines' Snowflake and Air Berlin City Shuttle are exploiting European competition rules to start services to destinations previously subject to air service bilaterals. While the region's two largest carriers, CSA Czech Airlines and LOT Polish Airlines have been drawn into international alliances, flag carriers in the remaining eight states are considering their own no-frills services and are offering flights from third countries, in order to compete in the single aviation market.

Maltese flag carrier Air Malta is to launch a service from London Gatwick to Catania on the Italian island of Sicily from 2 May, and is also launching flights under its Fares4U no-frills sub-brand from its base in Luqa to London Stansted, in addition to its scheduled full-service operations to Heathrow and Gatwick, says Dale Keller, Air Malta head of northern European sales.

Meanwhile, Cyprus Airways is awaiting enlargement to acquire 100% of its Greek budget subsidiary Hellas Jet, but admits it is also awaiting the enlargement with some trepidation as "until now we were protected on some of our main routes but these will now be open to competition". Cyprus Airways plans to further integrate Hellas Jet and Cyprus Airways operations once full ownership is secured. From 1 May, privately-owned full-service Helios Airways will also introduce a five-times-weekly service from Larnaca to London Heathrow.

Polish low-cost start-up Wizz Air is aiming to capture the expanding passenger market resulting from the country's EU membership when it launches services on 19 May linking Katowice to Berlin, London, Milan and Rome using 180-seat Airbus A320s. It plans to build its fleet from an initial six to nine by the end of the year, with 10 more aircraft due to arrive next year.

Further north, Latvian carrier AirBaltic will be the first Baltic airline to take advantage of the opening of the aviation market following EU accession, says Bertolt Flick, AirBaltic president. The carrier has decided to strip its service down to the basics. "Our aim is to offer regular air transport from Vilnius for the prices that are competitive not only with other airlines, but also with the prices of buses, cars, trains or ferries," says Flick.

Lithuanian Airlines, meanwhile, the only one of the three Baltic flag carriers to be 100% state-owned, is making fleet changes in view of route developments associated with EU membership. Dalijus Zebrauskas, marketing and sales director, says its two Boeing 737-500s will be used on routes such as Amsterdam, London and Paris, and its turboprops on routes to the former Soviet Union. Estonian Air, meanwhile, is adding three additional Tallinn-London Gatwick flights a week from 16 May, taking the total to nine.

CHRISTINA MACKENZIE / PARIS & JUSTIN WASTNAGE / LONDON

Source: Flight International