Follow @p_harbison Follow @capa_events Follow @capa_aviation

CAPA > Aviation News > Budapest Airport: 60% of Malev point-to-point traffic has been recovered by other airlines

Hungary's Budapest Airport stated (09-Feb-2012) it continues to receive offers from airlines wishing to operate services to/from Budapest since the collapse of Malév on 03-Feb-2012. A series of airlines have already announced new services, including Lufthansa, Air Berlin, Aegean, Ryanair, Smart Wings and Wizz Air. This is in addition to the existing airlines efforts, many of which have increased capacities on their routes into Budapest. The airport noted five days after the carrier ceased operations, more than 60% of the Malév point-to-point traffic has been recovered with the new capacities announced. Most of these services will become effective over the next few weeks, with CEO Jost Lammers commenting: “Whilst the earlier assumptions of a complete loss of transfer traffic have been validated, the announcements made by the airline community since last Friday have put us on the road to recovery". Aviation director Kam Jandu added: “The announcements made in the last few days confirm our long held view that Budapest is indeed a primary destination for many airlines as they bid to grow their presence here in the absence of Malév. In spite of this early success, a gap remains in our business plan and we welcome discussions with airlines interested in services to Budapest Airport". [more - original PR] [more - CAPA Analysis]

Budapest Airport: "Even though the above mentioned encouraging developments show signs of recovery of point-topoint traffic the complete loss of 1,5 million annual transfer passengers and income generated by them creates an extremely difficult financial situation for the airport. In order to be able to cope with this dramatic situation Budapest Airport calls the Ministry Of National Development and the relevant authorities to take urgent and coordinated joint steps together with the airport." Source: Company statement, 09-Feb-2012.

---

You may also be interested in the following articles...

• Wizz Air: why Europe’s second lowest cost producer may be looking for fresh capital: IPO time?
  3-Apr-2013

  The fast-growing Wizz Air Group, privately owned and not subject to the same financial and traffic reporting requirements as publicly listed companies, has remained a mystery when it comes to its cost structure and profitability. CAPA has obtained and analysed detailed financial and operating data and the results are presented in this article. The group’s cost base is certainly low – it has the second lowest unit costs among European carriers, with CASK more than one third lower than easyJet’s, and a track record of cutting ex fuel unit costs. This cost structure, built mainly on Europe's most productive and low-cost labour force, has helped Wizz Air to a strong market position in Central and Eastern Europe, where it was the leading LCC in the 12 months to Mar-2013.

  Its last reported financial year (to Mar-2012) saw a healthy EBIT margin of 5.8%, after seeing net losses in six of the previous seven years, suggesting that the business may be maturing. Wizz's closest competitor, with overlap on around one quarter of its routes, is Ryanair, whose unit costs are 14% lower than Wizz Air’s. Ryanair is growing strongly in the region and this could threaten Wizz Air’s goal to become its largest carrier over the next decade unless it can continue to lower unit costs.

• Wizz Air to significantly boost LCC penetration in Bosnia and Herzegovina
  7-May-2013

  Wizz Air has unveiled plans for significant expansion in Bosnia and Herzegovina, an under-served market that has traditionally fallen outside the spotlight of low-cost carriers. The Bosnian market has not had much attention in recent years but is poised to see a sudden surge of capacity as Wizz Air plans to connect the country with several new destinations including Malmö, Basel Mulhouse and Gothenburg.

  The expansion from Wizz Air would provide Tuzla, the third largest city in Bosnia and Herzegovina, with scheduled commercial service. LCC expansion may also follow for the country’s other airports including in Sarajevo and Mostar.

  LCCs currently account for less than 20% of seat capacity to and from the southeastern European country. But the recent launch of services by Turkish LCC Pegasus has already doubled LCC capacity in the market. Wizz Air’s entry will push the LCC penetration rate up further, approaching 30%, with more increases possible in 2014 as Wizz and other European LCCs ponder further expansion in Bosnia and Herzegovina.