flydubai reported (29-Jun-2011) it increased ASKs by 161% and RPKs by 181% between Jun-2010 and May-2011. Passenger traffic increased 200% over the same period. flydubai celebrated its second anniversary of operations at the beginning of Jun-2011. flydubai operates 16 aircraft to 36 destinations.
flydubai traffic up 181% in 12 months
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Georgia aviation market Part 2: a case study on liberal policies driving rapid airport growth
Georgia’s three international airports have benefitted from a liberal aviation policy, which has led to a period of rapid traffic growth. As highlighted in the first half of this report, total passenger traffic in Georgia increased by 26% in 2016 and is projected to grow by another 40% in 2017.
Passenger traffic at Georgia’s main gateway, Tbilisi International Airport, increased by 22% in 2016. Tbilisi traffic has grown from only 700,000 in 2009 to 2.3 million in 2016. The airport has been operated by Turkey’s TAV since 2007.
Georgia’s other two international airports, at Batumi and Kutaisi, grew even faster in 2016. Batumi also has been operated by TAV since 2007, while Kutaisi has been government owned since it opened in 2012.
Kutaisi is marketed as a low cost airport – the first of its kind in former Soviet republics – and has experienced an accelerated rate of growth since the opening of a base by Wizz Air in Sep-2016. Georgia’s investment in Kutaisi, and decision to pursue an LCC model for the new airport, represent another example of a liberal and innovative approach in a region dominated by legacy thinking.
Finnair and TAP Portugal: their location based long haul niche strategies compared
Both Finnair and TAP are based in peripheral corners of Europe: Finnair in the extreme northeast and TAP in the southwest. Both are based in countries with relatively small populations, but they have developed networks that capitalise on their geographic location to carry connecting traffic from across Europe and elsewhere to long haul destinations in other continents.
TAP's main long haul market is Upper South America (primarily Brazil), but it also has a secondary long haul niche in Africa. Finnair's main long haul market is Northeast Asia, with an additional presence in South and Southeast Asia. Both also operate to the US. On short haul, LCC competition has been a bigger threat to TAP than to Finnair, but cost savings are important to both.
TAP and Finnair have similar traffic volumes, unit costs and average trip lengths. Moreover, both have struggled to generate sustainable profitability. This report compares and contrasts Europe's two leading independent exponents of the location based long haul niche strategy. Both are set to accelerate their long haul growth.