€20-30 Is Real. Belarus’ Aviation Works On Low-Cost Fares For Belavia
BelarusFeed
6 November 2019, 18:36
The Department for Aviation is working to introduce low airfares in Belarus, the agency’s representative Artem Sikorsky said at a press conference in Minsk.
So far, the only agreement that has been reached is the one with WizzAir. Starting next spring, the Hungarian low-cost air carrier will start regular flights from Minsk to Budapest.
“The government is very concerned with the issue, we can offer low-cost routes at the expense of Belavia Airlines. Belavia already has low-cost routes to Zhukovsky Airport (Moscow).
The route network of low-cost destinations can be expanded. For this model to start working, a decision should be made at the governmental level,” Artem Sikorsky stressed.
He noted that “we should upport the national carrier, create the conditions under which it will be able to work in any direction, including regional airports.”
Belavia has already waived a traditional business model of a full-service company and is currently introducing a modern hybrid model to optimize the ticket price.
For some reason, they never compare Belavia with LOT, Lufthansa, Austrian Airlines. They compare it with low-cost companies, but that’s not a fair comparison. Low-cost airlines have tickets that cost over €20 or 30 and more.
For current economic realities, a ticket price is objective. It consists of a number of factors, otherwise, the airline would not be competitive, 20 airlines operate from the Minsk National Airport, Belavia has to compete with them, pricing included.”
Belavia General Director Anatoly Gusarov noted that, in technical terms, the airline is ready to expand the route network, but the issue is the economy.
“Low-cost companies are registered in countries with rather a mild taxation, for instance, Ryanair is registered in Ireland. Today everyone is trying to register firms, leasing companies there because of the minimized tax base.
The second issue is loan rates: let’s take loan rates in Belarus, Russia and, say, in the EU. This all affects the financial situation of anн airline. The most important factor is the large passenger flow.”
According to Gusarov, the airline is striving to reduce fares and a €20-30 price is achievable. However, the official noted that the number of cheap tickets on every particular flight will be limited.
6 November 2019, 18:36
Photo: TUT.BY
So far, the only agreement that has been reached is the one with WizzAir. Starting next spring, the Hungarian low-cost air carrier will start regular flights from Minsk to Budapest.
“The government is very concerned with the issue, we can offer low-cost routes at the expense of Belavia Airlines. Belavia already has low-cost routes to Zhukovsky Airport (Moscow).
The route network of low-cost destinations can be expanded. For this model to start working, a decision should be made at the governmental level,” Artem Sikorsky stressed.
He noted that “we should upport the national carrier, create the conditions under which it will be able to work in any direction, including regional airports.”
Belavia has already waived a traditional business model of a full-service company and is currently introducing a modern hybrid model to optimize the ticket price.
Belavia tickets cost as much as they should cost, these are world prices.
For some reason, they never compare Belavia with LOT, Lufthansa, Austrian Airlines. They compare it with low-cost companies, but that’s not a fair comparison. Low-cost airlines have tickets that cost over €20 or 30 and more.
For current economic realities, a ticket price is objective. It consists of a number of factors, otherwise, the airline would not be competitive, 20 airlines operate from the Minsk National Airport, Belavia has to compete with them, pricing included.”
Belavia General Director Anatoly Gusarov noted that, in technical terms, the airline is ready to expand the route network, but the issue is the economy.
“Low-cost companies are registered in countries with rather a mild taxation, for instance, Ryanair is registered in Ireland. Today everyone is trying to register firms, leasing companies there because of the minimized tax base.
The second issue is loan rates: let’s take loan rates in Belarus, Russia and, say, in the EU. This all affects the financial situation of anн airline. The most important factor is the large passenger flow.”
According to Gusarov, the airline is striving to reduce fares and a €20-30 price is achievable. However, the official noted that the number of cheap tickets on every particular flight will be limited.
