Carpatair, the airline set up by Nicolae Petrov, has budgeted a 15-20% increase in annual revenues for the coming period in the wake of expansion in South-Eastern Europe.
"We'll expand at a regional level, on markets that are already crucial such as Ukraine. We don't have any fixed plan with regard to new flights, but we've strengthened our presence in Ukraine and Greece because we're starting from a different level," said Nicolae Petrov, Carpatair chairman and CEO.
Last year, the airline generated turnover worth 82.8m euros and targets a 30% increase (in dollars) this year. As a result, the company is expected to approach turnover worth 100m euros in 2008. In addition, the company's income almost doubled in 2007 year-on-year and neared around 800,000 euros.
"The airline industry is certain to register losses in the wake of high oil prices. However, we've budgeted our income for this year, and if oil prices don't go up that much, we should be in the black," said Petrov. Another problem besides oil prices is related to the workforce. "The salary budget has increased by 25%," explained Petrov.
Besides revenues from flight operations, the company generates around 10% of turnover by renting aircraft to other carriers and around 5% from charters.
Carpatair's hub is Timisoara, wherefrom it operates most of its flights. Besides international flights that depart from Timisoara to destinations in Italy, Ukraine, Greece and Germany, the company also provides domestic flights.
This year, the company has doubled the number of internal flights and added new return flights from Bacau, Sibiu, Oradea and Satu Mare to Timisoara.
As a result, the share of internal flights in terms of overall traffic will increase from 8% last year to 15% this year, according to some previous statements made by the company's representatives.
Carpatair operates the most flights to Italy, to nine cities, followed by Germany with four cities.
This year, the company has introduced the Timisoara-Odessa flight and also strengthened its presence in Greece, and boosted the number of flights to Athens. Besides the new flights from Timisoara, the company has also added a direct Bucharest-Kiev flight.
"We are currently thinking of other destinations from Timisoara and will start operating flights to Vienna in September. We do not rule out other international flights from Bucharest."
Carpatair was founded nine years ago and some important international businessmen shortly joined its shareholding structure.
"Owing to this strong shareholder structure, we could quietly develop our company," said Petrov, who also owns Moldavian Airlines.
"Practically, both Moldavian Airlines and Carpatair have the same shareholder structure and manager. The two companies may merge at some point," added Petrov.
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