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PROJECT TIRANA

A STUDY ON THE PAST, PRESENT AND FUTURE


OF ALBANIAN AVIATION MARKET

AUTHOR :PANTELEIMON THOMAIDIS


8/3/2014

PROJECT TIRANA VER 1 SUMMER 2014
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REPORT
PROJECT TIRANA
A STUDY ON THE PAST, PRESENT AND FUTURE OF ALBANIAN AVIATION MARKET.

AUTHOR PANTELEIMON THOMAIDIS

VERSION 1 VALID FOR SUMMER 2014













FOR ANY COMMENT DO NOT HESITATE TO CONTACT THE AUTHOR :
E-MAIL : aviationgr@gmail.com
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TABLE OF CONTENTS
1. SCOPE OF REPORT .......................................................................................................................................... 6
2. INTRODUCTION .............................................................................................................................................. 6
3. HISTORY OF BELLE AIR AND BELLE AIR EUROPE ...................................................................................... 8
4. HISTORY OF OTHER ALBANIAN AIRLINES & TIRANA AIRPORT. ............................................................ 9
4.1. ALBANIAN AIRLINES .............................................................................................................................. 9
4.2. TIRANA INTERNATIONAL AIRPORT .................................................................................................... 11
5. BELLE AIR OPERATIONS FLEET ...................................................................................................................14
5.1. ROUTES ....................................................................................................................................................14
5.2. FARES ........................................................................................................................................................ 17
6. CURRENT OPERATIONS ............................................................................................................................... 18
6.1 FLIGHTS TO TIRANA .................................................................................................................................. 18
6.2 NEW ROUTES ............................................................................................................................................. 19
6.3 TICKET PRICE SERVEY ................................................................................................................................ 19
6.4 ROUTE DISTANCE ANALYSIS .................................................................................................................... 25
6.5 REVENUES ANALYSIS .................................................................................................................................. 27
7. ALBANIAN AVIATION MARKET .................................................................................................................. 35
7.1. STATICS ANALYSIS ................................................................................................................................ 35
7.2. OTHER AVAILABLE DESTINATIONS ................................................................................................... 45
7.3. ORPHAN ROUTES .................................................................................................................................. 48
7.4. TIRANA AIRPORT ................................................................................................................................... 48
7.5. MARKET ACCESS .................................................................................................................................... 52
7.6. SEASONALYTY ........................................................................................................................................ 52
8. CONCLUSIONS ............................................................................................................................................... 54



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INDEX OF FIGURES

FIGURE 1 TIA AIRPORT .......................................................................................................................................... 13
FIGURE 2 BELLE AIR ROUTE MAP ........................................................................................................................ 15
FIGURE 3 BELLE AIR ROUTE MAP PRISTINA ..................................................................................................... 16
FIGURE 4 DESTINATIONS PER AIRLINE .............................................................................................................. 21
FIGURE 5 WEEKLY FREQUENCY PER AIRLINE .................................................................................................. 22
FIGURE 6 WEEKLY FREQUENCY PER DESTINATION ....................................................................................... 24
FIGURE 7 NUMBER OF AIRLINES PER DESTINATION ...................................................................................... 25
FIGURE 8 BOOKING PATTERN DUBLIN ............................................................................................................. 29
FIGURE 9 LOW MEAN PRICE PER DESTINATION.............................................................................................. 31
FIGURE 10 RPM ...................................................................................................................................................... 32
FIGURE 11 AVERAGE RPM ..................................................................................................................................... 33
FIGURE 12 ARRIVING PASSETNGERS AT TIA PER COUNTRY .......................................................................... 37
FIGURE 13 ARRIVING PASSENGERS AT TIA FROM ITALY ................................................................................ 38
FIGURE 14 RATE OF CHANGE FO ARRIVING PASSENGERS ............................................................................. 39
FIGURE 15 ARRIVING PASSENGERS AT TIA PER DESTINATION ......................................................................41
FIGURE 16 RATE OF CHANGE OF ARRIVING PASSENGERS PER DESTINATION .......................................... 43
FIGURE 17 RANGE MAP ......................................................................................................................................... 46
FIGURE 18 RATE OF INCREASE OF PASSENGERS AT TIA ................................................................................. 49
FIGURE 19 MARKET SHARE AT ............................................................................................................................ 49
FIGURE 20 PASSENGERS AT TIA .......................................................................................................................... 50
FIGURE 21 TIRANA SEASONALITY....................................................................................................................... 53


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INDEX OF TABLES

TABLE 1 BELLE AIR FLEET .....................................................................................................................................14
TABLE 2 BELLE AIR ROUTES TIRANA .................................................................................................................. 15
TABLE 3 BELLE AIR ROUTES PRISTINA ............................................................................................................. 16
TABLE 4 SIMPLE OF BELLE AIR AVERAGE TICKET PRICES .............................................................................. 17
TABLE 5 AIRLINES SERVES TIA AT SPRING 2014 .............................................................................................. 18
TABLE 6 TICKET PRICES SURVEY 2014 ................................................................................................................ 20
TABLE 7 DESTINATIONS PER AIRLINE ................................................................................................................ 21
TABLE 8 WEEKLY FREQUENCY PER AIRLINE .................................................................................................... 22
TABLE 9 WEEKLY FREQUENCY PER DESTINATION ......................................................................................... 23
TABLE 10 NUMBER OF AIRLINES PER DESTINATION ...................................................................................... 24
TABLE 11 DISTANCE OF MAJOR ROUTES ........................................................................................................... 26
TABLE 12 DISTANCE OF ORPHAN ROUTES ....................................................................................................... 26
TABLE 13 LOW MEAN PRICE ................................................................................................................................ 30
TABLE 14LOW MEAN PRICE PER DESTINATION ............................................................................................... 31
TABLE 15 RPM ......................................................................................................................................................... 32
TABLE 16 ARRIVING PASSENGERS AT TIAPER COUNTRY ............................................................................... 36
TABLE 17 RATE OF CHANGE OF ARRIVING PASSENGERS ............................................................................... 39
TABLE 18 ARRIVING PASSENGERS AT TIA PER DESTINATION ....................................................................... 40
TABLE 19 RATE OF CHANGE OF ARRIVING PASSENGERS PER DESTINATION ............................................ 42
TABLE 20 DESTINATIONS ON PROXIMITY OF TIA .......................................................................................... 47
TABLE 21 ORPHAN ROUTES ................................................................................................................................. 48
TABLE 22 TIA DATA............................................................................................................................................... 48








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1. SCOPE OF REPORT

The main purpose of this report is to describe the past and current air
service from Tirana Albania in order to identify future marketing
opportunities. The results and the aftermaths of this report shall be used as
the first step of evaluation for potential routes establishment to/ from
Tirana.

2. INTRODUCTION

The data used for analysis, calculations and assumptions are mostly
collected from internet. Sources are airline sites, newspapers, aviation
forums, government organizations, airport sites, on line magazines and
others as referred in each case. Moreover airline marketing sense, air
transport management knowledge and other expertise may apply freely on
this report without need of proof or further explanation. We take as graded
that the information and data are truth and accurate but for the next step
of evaluation or for a business plan the accuracy should be checked and
official data may be used.
Generally the report study the service offered mainly by BELLE AIR and
BELLE AIR EUROPE, before withdraw of their service, mainly because they
was the biggest airlines to and from Tirana and also because it was the
biggest airlines in terms of fleet and ASM in modern Albania. On the same
time the study does not overlook the rest airlines offering service to Tirana
and of course the part studying the current situation is a survey on present
routes and prices.
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The report is focusing on regional service from Tirana (and for a small
part of the study on routes from Pristina). With term regional routes
meaning routes of no more than 600 miles on great cycle distance. This
distance is the maximum when you consider a route as regional. This is
because is equal to about 2.5 hours of flight on a modern turboprop aircraft
of 30 seats or more. A flight of this duration on a turboprop aircraft is near
the maximum accepted by passengers in Europe. Moreover even with
todays high oil price this duration of flight with a turboprop aircraft is
consider the longest route able to make profit.


















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3. HISTORY OF BELLE AIR AND
BELLE AIR EUROPE
i


Belle Air Sh.p.k. (stylized belleair) was a privately owned low-cost airline,
founded in 2005, with its head office in Tirana, Albania. Belle Air operated
international flights on scheduled services to several cities in Belgium,
Germany, Greece, Italy, Kosovo, Switzerland and the UK out of Tirana
International Airport Nn Tereza. Belle Air ceased operations until further
notice on 24 November 2013 stating economic difficulties. Their fleet has
been returned to the lessors. Belle Air Europe was a sister company to the
airline, founded in 2009 and based in Ancona, Italy. It ceased operations
two days after the parent company. As of 25 November 2013, operations
have been temporarily suspended while the airline tries to find new
investors.










i
Information sources www.Wikipedia.org, www.anna.aero, www.airliners.net
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4. HISTORY OF OTHER
ALBANIAN AIRLINES & TIRANA
AIRPORT.

4.1. ALBANIAN AIRLINES
ii


Albanian Airlines MAK Sh. p.k. (trading as Albanian Airlines) was an
airline based in Tirana, Albania. It operated scheduled international
services. Its main hub was Tirana International Airport Nn Tereza. On 11
November 2011 Albanias Civil Aviation Authority revoked the license of
Albanian Airlines. The airline was established in May 1991 under the name
of Arberia Airlines, and was the private airline of politicians for communist
Albania. It was later renamed to Albanian Airlines in May of 1992 and
started open operations to the public on 20 June 1995. It was formed as a
joint venture between the Albanian state-owned Albtransport and Tyrolean
Airways of Austria flying a single Austrian registered, De Havilland Canada
Dash 8 - 102 (MSN 242). Tyrolean opted out of the relationship in 1997,
taking back the single Dash 8. Albanian Airlines was privatized in the same
year and sold to Kuwaiti-based M.A. Kharafi & Sons Group. As a result, it
was restructured in 1997 when its operations were based on a single Airbus
A320 aircraft leased from Shorouk Air of Egypt. By 2001 it operated a fleet
of 4 Tupolev Tu-134 aircraft on scheduled services from Tirana to Bologna,
Frankfurt, Istanbul, Pristina, Rome and Zrich. In July 2001 Albanian
Airlines started upgrading its fleet by gradually removing its Tupolev
aircraft and acquired its first BAe 146. Two more BAe 146 was added in 2003
and 2004. This upgrading process allowed the company to expand to new

ii
www.wikipedia.org
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strategic markets such as Belgium and Germany. In August 2008, Albanian
Airlines was purchased by the Advanced Construction Group (ACG) Sh.p.k.
in Tirana, Albania, by the President Yahia Farwati, who purchased 100% of
capital from the Kuwaiti-based M.A. Kharafi & Sons Group. On 14 August
2009, it was announced that Albanian Airlines had been sold to Turkish
Even Group, which was purchased by Evsen Group 93% and 7% retained by
the Advanced Construction Group. In March 2012, the 93% of Albanian
Airlines shares was return with a Court Decesion to Advanced
Construction Group (ACG) with owner Yahia Farwati. Now, Advanced
Construction Group (ACG) owns 100% of its shares. With this investment
came a new logo, addition of destinations, and an addition of aircraft to the
existing fleet. In 2009, the carrier saw the addition of aircraft are two
Boeings 737 as well as one Boeing 757, all of which were leased from Air
Slovakia. On 9 October 2009, it was announced that Albanian Airlines
would soon open new destinations to Paris, Amsterdam, Milan, Rome,
Athens, Jeddah, Beijing and later the United States of America. Along with
lower rates of travel, the addition of more Fokker 100, and scheduled use of
the Boeing 747, such claims fell through due to financial problems,
including the repossession of all leased aircraft from Air Slovakia. In
October 2011, the Albanian Airlines fleet consisted of the following aircraft
with an average age of 22.5 years:
1 BAe 146-100
1 BAe 146-200
2 BAe 146-300








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4.2. TIRANA INTERNATIONAL AIRPORT
iii


Tirana International Airport Nn Tereza (Albanian: Aeroporti
Ndrkombtar i Tirans Nn Tereza, IATA: TIA, ICAO: LATI) is Albania's
only international airport. It is commonly known as Rinas International
Airport, as it is located 6 NM (11 km; 6.9 mi) northwest

of Tirana, in the
village of Rinas. In 2001, the airport was named after Mother Teresa. Tirana
International Airport Nn Tereza was constructed in a period of two years,
from 1955 to 1957. However, Tirana had commercial airline services before.
As early as 1938, Yugoslav carrier Aeroput commenced regular commercial
flights linking Tirana with Belgrade with a landing in Dubrovnik. After the
fall of communism political and social changes caused an increase in the
number of airlines operating at the airport. Its reconstruction, started in
2005 and terminated in 2008, increased the processing capacity of the
airport considerably, resulting in its number of passengers per year
doubling from 2005 to 2010, when it reached 1.5M. The airport currently
has the capacity to process 1.8M passengers per year. It is thought that such
capacity will suffice to handle the expected increase given the visa
liberalization for the citizens of Albania travelling to the Schengen Area,
which started at the end of 2010. On 10 April 2013 the CEO of Adrian
Airways, Mark Anur, has said the Slovenian national carrier is likely to
open a base in the Albanian capital Tirana. The airlines first destination
from its new base would be Frankfurt. The air traffic equipment and
facilities of the airport have been heavily modernized following
investments by Tirana International Airport SHPK, a consortium led by
Hochtief AirPort. Hochtief assumed management of the airport on April 23,
2005, for a 20-year concession period. The concession included the
construction of a completely new passenger terminal and various
infrastructure improvements, among them the construction of a new
access road, new parking lots, and a bridge over the old airport access road.

iii
Information sources www.wikipedia.org ,www.open.data.al, www.anna.aero,
www.tirana-airport.com
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The expansion resulted in an increased number of passengers per annum,
estimated at 1.5M passengers for 2009. The number of passengers
effectively increased to more than 1.5M in 2010. Tirana International
Airport Cargo Department is a leader in Albania for cargo handling, sales,
shipping and logistics. Following the opening of the new Cargo Terminal,
in April 2007, this Department has constantly demonstrated affordability
and maintained its leading position in this industry. The Department offers
international standard solutions to all carriers operating at Tirana.
Concessionaire is assessed with respect to construction performance and
operational performance. Investment plans in the Concession Agreement
for the reconstruction and modernization of Tirana Airport were realized
on time and according to British standards. The quality of services and
facilities offered by TIA remains, in general, satisfactory to very
satisfactory. In matters of protection and improvement of the
environment considerable progress has been made. Also TIA, in
compliance with its environmental permits, procedures and environmental
& health legislation, monitors noise levels, air quality, waste water
parameters and potable water quality in the airport. In 2011, one of the
main challenges was TIAs optimization of energy efficiency, aimed at
sustainable use of resources and energy saving. In the financial year 2011,
due to increased traffic TIA reached a turnover of EUR 33.9M. The
passenger and freight traffic at TIA, after the reconstruction of airport in
2007, has so far increased from year to year. The traffic flow has been
accommodated in a secure and comfortable way with a very high quality of
service. TIA has indicated a growth in passenger numbers of 18.2% in 2011,
with Italy the main growth driver. This has been mainly due to visa
liberalization. Air Traffic Movements (ATM) had a growth of 10.7% for the
year 2011. Increased frequencies during the summer peak and the
introduction of new routes contributed to the overall positive
development. Cargo grew by 17.6% in 2011, with the increase mainly due to
the introduction of dedicated cargo flights and increased mail charter
services. In recent years (2011-2012) TIA has achieved its objectives and
targets related to quality, environment, health and safety and social
responsibility. In this regard TIA has continued raising the awareness and
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understanding of its employees and business partners of managing
environmental, health and safety effects.


FIGURE 1 TIA AIRPORT












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5. BELLE AIR OPERATIONS
FLEET
iv


The time of companys collapse the BELLE AIR fleet consists of:
NUMBER OF AIRCRAFTS AIRCRAFT TYPE SEATS
3 A319 144
2 A230 180
2 ATR72 68
1 MD81 164

TABLE 1 BELLE AIR FLEET


5.1. ROUTES

From 2005 until 2013 Belle air had growing network focusing mainly on
routes to Italy but also serve some Europe. Those routes serve mainly
Albanian immigrants but also some leisure destinations served during
summers. At the last season of operations Belle air reach 26 routes on
variable weekly frequency with total 129 departures per week. According
with company and other industry sources the routes of last season from
Tirana international airport (TIA) was:



iv
www.ch-aviation.com
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COUNTRY CITY AIRPORT A/C TYPE FREQUENCY ROYTE TYPE
BELGIUM BRUSSELS BRU 2 ALL YEAR
EGYPT SHARM EL SHEIKH SSH 1 SEASONAL
GREECE ATHENS ATH A319/ATR72 4 ALL YEAR
GREECE HERAKLION HER A319 2 ALL YEAR
GREECE RHODOS RHO A319 1 SEASONAL
ITALY TRIESTE TRS 3 ALL YEAR
ITALY VENICE VCE 8 ALL YEAR
ITALY RIMINI RMI 4 ALL YEAR
ITALY ANKONA AOI 7 ALL YEAR
ITALY PESCARA PSR 3 ALL YEAR
ITALY BARI BRI 11 ALL YEAR
ITALY ROME FCO 10 ALL YEAR
ITALY PERUGIA PEG 4 ALL YEAR
ITALY PISA PSA 7 ALL YEAR
ITALY BOLOGNA BLQ 7 ALL YEAR
ITALY PARMA PMF 2 ALL YEAR
ITALY VERONA VRN 7 ALL YEAR
ITALY BERGAMO BGY 8 ALL YEAR
ITALY MILANO MXP 13 ALL YEAR
ITALY CUNEU CUF 2 ALL YEAR
ITALY FLORENCE FLR 6 ALL YEAR
ITALY GENOA GOA 3 ALL YEAR
KOSOVO PRISTINA PRN 1 ALL YEAR
SPAIN PALMA DE MALLORCA PMI A320 1 SEASIONAL
TURKEY ANTALYA AYT A320 5 SEASONAL
UK LONDON STD A320 7 ALL YEAR

TABLE 2 BELLE AIR ROUTES TIRANA

FIGURE 2 BELLE AIR ROUTE MAP
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On the same time BELLE AIR EUROPE operates the following routes from
Pristina airport:










FIGURE 3 BELLE AIR ROUTE MAP PRISTINA
COUNTRY CITY AIRPORT
GERMANY HANNOVER HAJ
GERMANY STUTTGART STR
GERMANY MUNICH MUC
ITALY MILANO MXP
ITALY VENEZIA VCE
ITALY VERONA VRN
SWITZERLAND BASEL BSL
SWITZERLAND ZURICH ZRH
SWITZERLAND GENEVA GOA
UK LONDON STN
SWEDEN MALMO MMX
TABLE 3 BELLE AIR ROUTES PRISTINA
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In addition a route from Skopje to Rome, Ancona and Venice was
operated by ATR72.

5.2. FARES
Although ticket prices were on dynamic yield management and changed
continuously some examples of average fares including all extras and taxes
have been collected as follow:

FROM TO PRICE IN EURO
TIA ATH 220
TIA RHO 238
TIA PSR 178
TIA AOI 158
TIA BLQ 143
TIA MXP 153
TIA PEG 178
TIA RMI 143
TIA STN 135

TABLE 4 SIMPLE OF BELLE AIR AVERAGE TICKET PRICES
The average ticket price was estimated at 219 Euros.







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6. CURRENT OPERATIONS
6.1 FLIGHTS TO TIRANA
v

Although BELLE AIR bankrupts many airlines still serve TIRANA
INTERNATIONAL AIRPORT and some of them trying to fill the gap left by
BELLE AIR. This season flight schedule was
FROM AIRPORT COUNTRY AIRLINE FREQUENCYAIRCRAFT
ATHENS ATH GREECE AEGEAN 7 DHC8
BARI BRI ITALY ALITALIA 3 A319
BOLOGNA BLQ ITALY AIR ONE 3 A320
BOLOGNA BLQ ITALY BLUE EXPRESS 5 B737
BOLOGNA BLQ ITALY LIVINGSTON 2 A320
BRERGAMO BGY ITALY BLUE EXPRESS 5 B737
BRUSSELS BRU BELGIUM JETFLY 2 B737
GENOA GOA ITALY AIR ONE 2 A320
ISTANBUL SAW TURKEY PEGASUS 5 B737
ISTANBUL IST TURKEY TURKISH 7 A320
LJUBJIANA LJU CROATIA ADRIA 11 CRJ200
LONDON LGW UK BRITISH AIRWAYS 4 B737
MILAN MPX ITALY AIR ONE 7 A320
MILAN MPX ITALY BLUE EXPRESS 7 B737
MILAN MPX ITALY LIVINGSTON 2 A320
MILAN MPX ITALY MERIDIANA 7 A320
MUNICH MUC GERMANY LUFTHANSA 7 EMB195
PISA PSA ITALY AIR ONE 4 A320
PISA PSA ITALY BLUE EXPRESS 3 B737
ROME FCO ITALY ALITALIA 14 A319
ROME FCO ITALY BLUE EXPRESS 6 B737
ROME FCO ITALY DARWIN 3 SF2000
VENICE VCE ITALY AIR ONE 4 A320
VENICE VCE ITALY BLUE EXPRESS 6 B737
VERONA VRN ITALY AIR ONE 6 A320
VERONA VRN ITALY BLUE EXPRESS 6 B737
VERONA VRN ITALY LIVINGSTON 2 A320
VERONA VRN ITALY MERIDIANA 7 A320
VIENNA VIE AUSTRIA AUSTRIAN 14 F100

TABLE 5 AIRLINES SERVES TIA AT SPRING 2014

v
www.anna.aero, www.tirana-airport.com
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6.2 NEW ROUTES

After the bankruptcy of BELLE AIR many of existing airlines on TIA
increase their flights and some other add routes on TIA. At the time that
this report is writing the only new route is to be start is the FCU Rome to
TIA from Darwin Airline ( now ETHIHAD REGIONAL ) while the
announcements from SMALL PLANET ITALY airlines is consider as
cancelled due to the companys license revoke from Italian aviation
authorities. Currently there are no plans from any other company to start
new routes or to increase frequency to TIA.


6.3 TICKET PRICE SERVEY

The following survey on exist routes from and to Tirana is based on
requisites on each airline sites for ticket booking on return economy class
including taxes, fuel surcharge and all other charges but depends on each
companys policy may not include luggage, seat selection, cancellation right
and other optional services. The selections will be for next available flight,
after 2 weeks flight, after 1 month flight, after 3 months flight and flight on
11-12 of August (if it is available) always on economy class but if more than
one option on economy class is available for example on flexible ticket the
range of available prices will be mentioned. The requests are applied on 2
of March 2014 randomly and for weekday flights. All prices are for round-
trip and only for direct flights. From the following table you can see that
DARWIN AIRLINS has not yet announced ticket prices, MERIDIANA sell
tickets for flight after 1 April and LIVINGSTON blocks the ticket sale for
summer 2014 at the time of the survey so ticket prices are for the period
until May 2014.
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FROM AIRLINE FREQ
//////////// ///////////// ///// LOW HIGH LOW HIGH LOW HIGH LOW HIGH LOW HIGH
ATHENS AEGEAN 7 320 390 217 297 165 261 165 261 165 261
BARI ALITALIA 3 191 675 99 675 99 675 99 675 125 675
BOLOGNA AIR ONE 3 207 302 138 288 127 247 127 247 167 262
BOLOGNA BLUE EXPRESS 5
BOLOGNA LIVINGSTON 2
BERGAMO BLUE EXPRESS 5
BRUSSELS JETFLY 2
GENOA AIR ONE 2 231 319 175 300 144 262 126 262 179 271
ISTANBUL PEGASUS 5 130 240 90 200 100 210 80 190 80 190
ISTANBUL TURKISH 7 198 356 198 356 198 356 198 356 198 356
LJUBLJANA ADRIA 11 294 400 199 400 139 400 139 400 228 400
LONDON BRITISH AIRWAYS 4 433 377 296 340 296 340 351 424
MILAN AIR ONE 7 182 279 141 306 113 218 138 262 182 280
MILAN BLUE EXPRESS 7
MILAN LIVINGSTON 2
MILAN MERIDIANA 7 103 900 103 900 103 900
MUNICH LUFTHANSA 7 578 1038 339 1038 339 1038 339 1038 339 1038
PISA AIR ONE 4 223 270 143 261 133 223 116 223 199 308
PISA BLUE EXPRESS 3
ROME ALITALIA 14 276 650 206 650 206 650 206 650 206 650
ROME BLUE EXPRESS 6
ROME DARWIN 3
VENICE AIR ONE 4 127 247 137 287 127 247 127 247 167 262
VENICE BLUE EXPRESS 6
VERONA AIR ONE 6 189 303 129 249 128 249 128 249 258 358
VERONA BLUE EXPRESS 6
VERONA LIVINGSTON 2
VERONA MERIDIANA 7 103 900 103 900 103 900
VIENNA AUSTRIAN 14 647 797 647 797 647 797 647 947 677 947
NEXT 2 WEEKS 1 MONTH 3MONTHS 10/8/2014
210
146
241
304
151
146
131
234
132
146
121
264
132 162
N/A
131
205 284
182
395
201
146
131
153
111
153
151 182
N/A
N/A
211 141 111 141 181
225 156 125 125 166
N/A
191 131 121 151 181
200
145
N/A
130
145
100
145
140 180
N/A

TABLE 6 TICKET PRICES SURVEY 2014
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In total at this moment 14 different airlines serve 16 destinations
with a sum of 160 weekly routes from Tirana peeked during
summer season. Most destinations served by BLUE EXPERESS as
follow:

AIRLINE TOTAL DESTINATIONS
BLUE EXPRESS 7
AIR ONE 6
LIVINGSTONE 3
ALITALIA 2
MERIDIANA 2
TABLE 7 DESTINATIONS PER AIRLINE

FIGURE 4 DESTINATIONS PER AIRLINE




0 1 2 3 4 5 6 7 8
BLUE EXPRESS
AIR ONE
LIVINGSTONE
ALITALIA
TOTAL DESTINATIONS
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As per weekly routes from Tirana the rank comes as follow:
AIRLINE WEEKLY ROUTES
BLUE EXPRESS 38
AIR ONE 26
ALITALIA 17
AUSTRIAN 14
MERIDIANA 14
AIR ADRIA 11
TABLE 8 WEEKLY FREQUENCY PER AIRLINE

FIGURE 5 WEEKLY FREQUENCY PER AIRLINE

BLUE EXPRESS a division of BLUE PANORAMA is by far the
airline company with the most flights to Tirana with an average of
more than five flights per day, following by AIR ONE with an
average of less than four flights per day. ALITALIA come third but
servicing direct only two destinations. Also noteworthy that
AUSTRIAN and AIR ADRIA are in the ranked between the most
0 5 10 15 20 25 30 35 40
BLUE EXPRESS
AIR ONE
ALITALIA
AUSTRIAN
MERIDIANA
AIR ADRIA
WEEKLY FREQUENCY PER AIRLINE
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frequent users of Tirana International Airport but by servicing
only one destination in relative high frequency.
As for weekly frequency per destination the rank comes as
following:

DESTINATION FREQUENCY
MILAN 23
ROME 23
VERONA 14
VIENNA 14
ISTANBUL 12
LJUBLJANA 11
BOLOGNA 10
VENICE 10
MUNICH 7
PISA 7
ATHENS 7
BERGAMO 5
LONDON 4
BARI 3
BRUSSELS 2
GENOA 2
TABLE 9 WEEKLY FREQUENCY PER DESTINATION
As expected Italian cities are the most frequent served
destinations with Rome and Milan at top ranked with more than 3
daily departures. On the same time other major Italian cities like
Verona, Venice, Bologna and Pisa also well served with an average
of at least one departure every day. If you except Italian cities
Istanbul, Vienna, Ljubljana and Munich are the most frequently
connected cities from Tirana with an average of at least one
departure per day. For this report only direct flight are taken into
account and Bergamo is consider as a city destination and not as a
secondary airport serves Milan.
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FIGURE 6 WEEKLY FREQUENCY PER DESTINATION

In some destinations more than one airline offering service with
direct flights as following:
DESTINATION NUMBER OF AIRLINES
MILAN 4
VERONA 4
ROME 3
BOLOGNA 3
ISTANBUL 2
PISA 2
VENICE 2
TABLE 10 NUMBER OF AIRLINES PER DESTINATION
0 5 10 15 20 25
MILAN
ROME
VERONA
VIENA
INSTANBUL
LJUBLJANA
BOLOGNA
VENICE
MUNICH
PISA
ATHENS
BERGAMO
LONDON
BARI
BRUSSELS
GENOA
FREQUENCY PER DESTINATION
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FIGURE 7 NUMBER OF AIRLINES PER DESTINATION
Again Milan is on the top, even if you not consider Bergamo as
an airport serves Milan, but now Rome comes third together with
Bologna and Verona comes second. Istanbul is the only
destination outside Italy with more than one company servicing
the route.


6.4 ROUTE DISTANCE ANALYSIS

For the following analysis only regional routes until 600 miles
will token into account. As mentioned before this is around two
and a half hours flight on a modern turboprop and is the longest
distance, according to turboprop aircrafts manufactures studies,
able for profits. The route distance is valid for IFR flight at FL250
as proposed by CMFU. Track distance of STAR, SID and approach
is not included.
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5
MILAN
VERONA
ROME
BOLOGNA
ISTANBUL
PISA
VENICE
NUMBER OF AIRLINES PER
DESTINATION
PROJECT TIRANA VER 1 SUMMER 2014
26

DESTINATION CODE DISTANCE
ATHENS LGAV 406
BARI LIBD 176
BOLOGNA LIPE 516
BERGAMO LIME 562
GENOA LIMJ 572
ISTANBUL LTBA 525
LJUBLJANA LJLJ 396
MILAN LIMC 612
PISA LIRP 502
ROME LIRF 386
VENICE LIPZ 483
VERONA LIPX 530
VIENNA LOWW 473

TABLE 11 DISTANCE OF MAJOR ROUTES
After the collapse of BELLE AIR some routes left orphan and
there is not any company serve those routes or plan to serve them.
The distances for the regional of those are:

DESTINATION CODE DISTANCE
ANCONA LIPY 369
ANTALYA LTAI 717
CUNEO LIMZ 635
FLORENCE LIRQ 467
HERAKLION LGIR 534
PARMA LIMP 544
PERUGIA LIRZ 440
PESCARA LIBP 312
PRISTINA BKPR 154
RHODOS LGRP 557
RIMINI LIPR 408
TRIESTE LIPQ 446

TABLE 12 DISTANCE OF ORPHAN ROUTES





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27

6.5 REVENUES ANALYSIS

The following analysis of ticket prices is incomplete and has
only the purpose to help on the achievement of these study goals
of describing current operations and identify any future market
opportunities. Due to lack of accurate data and studies for the
Albanian aviation market there are many assumptions during the
following calculations. In addition conditions, passenger
behaviors, airline company economical performance and other
values taken into account as applied on other countries or
regions. In generally the results may be taken as an index and not
as real and applicable numbers. For this reason the main principle
of this analysis is the principle of relatively. This is mean that the
same assumptions are applied for everything, so even if the final
results are not accurate in real life you can compared with other
results of this analysis and have a good picture of market
condition and market opportunities. In future if there is the need
for a business plan or for price determination an in depth study
based on individual case may be applied.
The first goal will be the determination of MEAN LOW PRICE.
This is a term that is describing a theoretical fix price for a route
and is not according to bibliography or any other term with the
same name that may applied on statics, economics or marketing.
The term has application only on this repor. It describes the
average ticket price for a return route that an airline company
should expect to receive from a passenger. In our days airline
companies use dynamic yield management in order to set ticket
prices this mean that price even for the same seat may vary over
time. Moreover airline companies even if there are LOW COST or
PROJECT TIRANA VER 1 SUMMER 2014
28

traditional CONVENTIONAL AIRLINE offer a wide range of
possible terms on the ticket that may include free or no luggage,
food and beverages, FFP points, flexibility to cancel ticket or to
change date of flight and others. On the same time they offer seat
only ticket for price sensitive passengers closer to what everybody
have in mind as low cost, no frill service.
The Albanian GDP is only 25% of EU average, moreover 2.5
million Albanians lives around Europe and have major effect on
passenger mix to Tirana, lastly the 3 million tourist visiting last
year Albania are mostly attracted from low prices and not from
high quality. All those drive us in the conclusion that the majority
of passengers to or from Tirana are price sensitive. For this reason
for the purposes of this analysis when a range of available price
categories exist the lowest will be chosen and this is why the word
LOWEST is used.
The passengers do not everybody book their tickets on specific
time before departure and this creates difference in the final price
of each ticket. In order to identify the MEAN (or average) we
have to calculate the average of all tickets (the sum of price of all
tickets divided by the number of tickets). Unfortunately those
data are not available. On previous table you can see sample of
ticket prices taken on a specific time for 5 different possible travel
dates. If we take the average of those five samples we will have a
totally untruth result because passengers do not book tickets
divided in equal groups but the number of tickets sold in each
period before flight change. The best way is to factorize each
period and then take their average. The factor that must apply for
each period is different for each market and even for each market
segment and it depends on factors like technology, culture, labor
laws and rights, consumer credit, political and economical
stability and others. Unfortunately are not available studies and
PROJECT TIRANA VER 1 SUMMER 2014
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data for passengers behaviors when book ticket for flights to or
from Albania. For this analysis we will use the following data as
applied for Dublin airport:

FIGURE 8 BOOKING PATTERN DUBLIN
And summarized as follows:
NEXT AVAILABLE FLIGHT 15% FACTOR 0.15
UP TO 2 WEEKS 12% FACTOR 0.12
UP TO 1 MONTH 26% FACTOR 0.26
UP TO 3 MONTHS 31% FACTOR 0.31
11/08/2014 (as an indication for prices of more than 3 months)
16% FACTOR 0.16

By applying those factors the prices converted as follows.
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Flight of DARWIN AIRWAYS to Rome omitted due to lack of
data. Because we need to determine one price per destination an
average of the ticket prices of all companies must be calculate but
each company transfer a different number of passengers so the
weight of each company is different. For this reason we consider
that all companies have almost the same load factor and the
weekly frequency will be the factor that we will use for our
calculations.
FROM AIRLINE LOW MEAN PRICE
//////////// ///////////// ///////////////
ATHENS AEGEAN 194
BARI ALITALIA 117
BOLOGNA AIR ONE 147
BOLOGNA BLUE EXPRESS 151
BOLOGNA LIVINGSTON 145
BERGAMO BLUE EXPRESS 153
BRUSSELS JETFLY 251
GENOA AIR ONE 161
ISTANBUL PEGASUS 94
ISTANBUL TURKISH 198
LJUBLJANA ADRIA 184
LONDON BRITISH AIRWAYS 337
MILAN AIR ONE 146
MILAN BLUE EXPRESS 151
MILAN LIVINGSTON 150
MILAN MERIDIANA 103
MUNICH LUFTHANSA 375
PISA AIR ONE 153
PISA BLUE EXPRESS 150
ROME ALITALIA 217
ROME BLUE EXPRESS 150
VENICE AIR ONE 135
VENICE BLUE EXPRESS 152
VERONA AIR ONE 158
VERONA BLUE EXPRESS 144
VERONA LIVINGSTON 144
VERONA MERIDIANA 103
VIENNA AUSTRIAN 652
TABLE 13 LOW MEAN PRICE
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ROUTE LOW MEAN PRICE PER DESTINATION
ATHENS 194
BARI 117
BOLOGNA 148
BERGAMO 153
GENOA 161
ISTANBUL 154
LJUBLJIANA 184
MILAN 135
PISA 152
ROME 196
VENICE 145
VERONA 134
VIENNA 625
TABLE 14LOW MEAN PRICE PER DESTINATION


FIGURE 9 LOW MEAN PRICE PER DESTINATION
After that the AVERAGE REVENUE PER MILE of track
distance can be calculated for return route (double the miles).
0
100
200
300
400
500
600
700
LOW MEAN PRICE PER DESTINATION
PROJECT TIRANA VER 1 SUMMER 2014
32

ROUTE
LOW MEAN
PRICE PER
DESTINATION
DISTANCE RPM
ATHENS 194
406 0,239
BARI 117 176 0,332
BOLOGNA 148
516 0,143
BERGAMO 153 562 0,136
GENOA 161 572 0,141
ISTANBUL 154 525 0,147
LJUBLJIANA 184
396 0,232
MILAN 135 612 0,110
PISA 152 502 0,151
ROME 196 386 0,254
VENICE 145 483 0,150
VERONA 134 530 0,126
VIENNA 625 473 0,661

TABLE 15 RPM

FIGURE 10 RPM
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
AVERAGE REVENUE PASSENGER MILE
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The RPM fluctuates between 0,110 to 0,661 Euros per mile.
Usually the longer the route the lowest the RPM. This is
because the airline companies charge the passengers also for fix
cost, indirect cost, ground time and cost on ground, passenger
service, marketing and promotional cost and others costs that are
remain constant irrelevantly of route distance. For a constant cost
while miles increase the cost per mile decrease.
Another fact that affects the cost per miles from Tirana is the
competition. If you take into consideration that AIR ONE is in
fact the low cost arm of ALITALIA and the fact that Bergamo
airport is used as Milan secondary airport we can divide the
destinations into two groups. The one that destinations that
served by only one airline company and the destinations served by
more than one airline company. The average RPM of those two
groups are 0,399 Euros for destinations with only 1 airline and
0,137 Euros for destinations with more than 1 airline.

FIGURE 11 AVERAGE RPM
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
MORE THAN 1 ONLY 1
AVERAGE RPM
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34

At routes that only one airline company serve the route they
achieve more than double RPM and this indicates among the
others that other means of transport do not consider as really
alternatives to air transport in Tirana.
Lastly for flights to their hubs the well established large
carriers add a premium with most obvious example the flight of
AUSTRIAN AIRLINES to Vienna.














PROJECT TIRANA VER 1 SUMMER 2014
35

7. ALBANIAN AVIATION
MARKET

The Albanian aviation market considers under development
and the collapse of BELLE AIR was a major get back. The major
factors that will drive the future growth of aviation sector are: the
GDP that while incline to the EU average will create a large
increase of income, the large base of Albanian immigrants around
Europe, the increase of tourism and the decision of Albanian
government to take advantage of mineral wealth.

7.1. STATICS ANALYSIS
Static indicates an increase of passengers in Tirana over the
years. Data from EUROSTAT since 2000 for arriving passengers at
TIA per country and per airport follows, countries with almost
zero are omitted (total passengers are almost double):

PROJECT TIRANA VER 1 SUMMER 2014
36

GEO/TIME2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Belgium : : : : : : : 1.873 : 2.053 7.595 12.856 15.424
Bulgaria : : : : : : : 1.427 1.851 697 34 155 0
Czech Republic : : 0 0 : 359 394 159 677 254 10 243 2.929
Germany (until 1990 former territory of the FRG) 6.406 5.904 6.313 6.907 6.565 7.313 7.603 26.079 38.385 40.831 41.211 45.875 32.619
Ireland : : 133 : : : : : : : : : :
Greece : : : 21.421 28.837 32.645 30.839 32.743 33.522 38.817 40.165 53.062 47.472
Spain : : : : : 6 35 6 : 267 80 2.176 932
France : : 12 : 1 70 0 1 4 453 365 3.253 162
Italy : 53.959 104.333 137.286 154.030 212.007 234.206 296.295 340.942 386.628 467.241 579.132 531.751
Hungary : : 28.024 33.281 31.806 32.812 35.867 30.836 26.000 34.688 27.453 35.843 3.546
Austria : : 20.351 26.529 43.257 49.628 51.637 50.466 51.203 42.391 45.140 60.441 70.767
Slovenia : : : : 4.427 345 5.155 9.476 16.548 17.936 18.082 15.040 13.028
United Kingdom 6 1.644 125 115 : : 18.383 27.199 30.744 33.345 37.062 44.560 49.796

TABLE 16 ARRIVING PASSENGERS AT TIAPER COUNTRY
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FIGURE 12 ARRIVING PASSETNGERS AT TIA PER COUNTRY
0
10000
20000
30000
40000
50000
60000
70000
80000
2006 2007 2008 2009 2010 2011 2012
Belgium
Bulgaria
Czech Republic
Germany
Ireland
Greece
Spain
France
Hungary
Austria
Slovenia
United Kingdom
PROJECT TIRANA VER 1 SUMMER 2014
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FIGURE 13 ARRIVING PASSENGERS AT TIA FROM ITALY

Italy showed separated because is the single larger market from TIA.
The rates of increase per year (when large fluctuations exist due to small passengers numbers results
are omitted) are:

0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
ITALY
PROJECT TIRANA VER 1 SUMMER 2014
39

GEO/TIME 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Germany 6,9 9,4 5,0 - 11,4 4,0 243,0 47,2 6,4 0,9 11,3 28,9 -
Greece - - 34,6 13,2 5,5 - 6,2 2,4 15,8 3,5 32,1 10,5 -
Italy 93,4 31,6 12,2 37,6 10,5 26,5 15,1 13,4 20,9 23,9 8,2 -
Hungary - 18,8 4,4 - 3,2 9,3 14,0 - 15,7 - 33,4 20,9 - 30,6 90,1 -
Austria - 30,4 63,1 14,7 4,0 2,3 - 1,5 17,2 - 6,5 33,9 17,1
United Kingdom 92,4 - 8,0 - - - - 48,0 13,0 8,5 11,1 20,2 11,8

TABLE 17 RATE OF CHANGE OF ARRIVING PASSENGERS


FIGURE 14 RATE OF CHANGE FO ARRIVING PASSENGERS
-150.0
-100.0
-50.0
-
50.0
100.0
150.0
200.0
250.0
300.0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Germany
Greece
Italy
Hungary
Austria
United Kingdom
PROJECT TIRANA VER 1 SUMMER 2014
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REP_AIRP/TIME 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
BRUXELLES/NATIONAL airport : : : : : : : 1.873 : : : 12.534 15.424
FRANKFURT/MAIN airport 6.404 5.796 6.311 6.907 6.564 7.309 6.239 4.370 3.859 4.529 2.190 165 :
MNCHEN airport 2 25 : : : 4 : 20.619 33.486 33.256 34.340 44.478 31.460
ATHENS airport : : : 21.396 28.829 32.630 30.826 32.665 33.420 38.486 39.820 42.000 37.279
IRAKLION/NIKOS KAZANTZAKIS airport : : : : : : : : 98 308 233 6.671 6.264
RODOS/DIAGORAS airport : : : : : : : : : : 112 4.169 3.455
BARI/PALESE airport : : 14.978 26.346 18.854 19.080 7.778 11.434 11.072 11.271 10.404 10.208 13.924
PESCARA airport: : : : : 1.766 103 128 1.193 3.833 3.821 4.988 5.577
MILANO/MALPENSA airport : 27.144 34.220 48.427 57.435 79.407 77.266 87.545 67.249 61.811 78.221 99.533 107.173
BERGAMO/ORIO AL SERIO airport : : : : 190 6.198 13.452 14.179 21.687 26.277 33.551 44.963 29.722
TORINO/CASELLE airport : 116 : : : 5.660 7.873 9.764 9.340 10.710 16.076 15.423 13.691
GENOVA/SESTRI airport : : : : : 1.194 6.100 11.175 12.733 13.647 15.977 22.220 17.919
PARMA airport : : 2 : : : 125 6.135 6.831 6.896 4.587 : 2.841
CUNEO/LEVALDIGI airport : : : : : : : : : : : 11.129 9.227
BOLOGNA/BORGO PANIGALE airport : : 29.396 31.919 28.038 22.633 20.694 21.541 22.195 30.973 48.066 56.749 34.644
FORLI airport : : 46 : 3.369 225 7.546 12.270 14.902 11.310 8.975 7.304 4.541
TRIESTE/RONCHI DEI LEGIONARI airport : : : 169 : : 3.686 4.763 6.664 7.382 7.490 5.785 5.972
RIMINI/MIRAMARE (MIL.) airport : 2.248 1.034 637 339 5.324 4.571 2.807 3.250 8.474 9.995 9.632 9.589
VERONA/VILLAFRANCA (MIL.) airport : : 329 427 8.996 16.825 21.530 24.254 31.539 33.588 35.766 41.970 35.799
ANCONA/FALCONARA airport : : : : : : 76 2.253 3.869 6.186 10.368 19.328 17.918
VENEZIA/TESSERA airport : : : : 192 4.056 7.649 11.789 97 46 6.080 32.570 35.087
ROMA/FIUMICINO airport : 22.738 22.946 28.889 34.519 33.207 37.513 46.476 77.712 92.633 105.118 114.495 113.777
PISA/S. GIUSTO (MIL) airport : : : : 345 6.788 13.755 16.346 21.611 21.926 27.858 48.025 48.693
PERUGIA/S. EGIDIO airport : : : : : : : : : 6.035 6.078 10.693 9.310
BUDAPEST/FERIHEGY airport : : 28.024 33.281 31.806 32.812 35.867 30.836 26.000 34.688 27.453 35.843 3.546
WIEN/SCHWECHAT airport : : 20.351 26.366 43.257 49.626 51.637 50.427 51.196 42.391 45.134 60.441 70.767
LJUBLJANA/BRNIK airport : : : : 4.427 345 5.155 9.476 16.548 17.936 18.082 15.040 13.028

TABLE 18 ARRIVING PASSENGERS AT TIA PER DESTINATION
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41


-20000
0
20000
40000
60000
80000
100000
120000
140000
2004 2005 2006 2007 2008 2009 2010 2011 2012
ARRIVING PASSENGERS PER DESTINATION
BRUXELLES/NATIONAL airport
FRANKFURT/MAIN airport
MNCHEN airport
ATHENS airport
IRAKLION/NIKOS KAZANTZAKIS airport
RODOS/DIAGORAS airport
BARI/PALESE airport
PESCARA airport
MILANO/MALPENSA airport
BERGAMO/ORIO AL SERIO airport
TORINO/CASELLE airport
GENOVA/SESTRI airport
PARMA airport
CUNEO/LEVALDIGI airport
BOLOGNA/BORGO PANIGALE airport
FORLI airport
TRIESTE/RONCHI DEI LEGIONARI airport
RIMINI/MIRAMARE (MIL.) airport
VERONA/VILLAFRANCA (MIL.) airport
FIGURE 15 FIGURE 15 ARRIVING PASSENGERS AT TIA PER DESTINATION

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42

REP_AIRP/TIME 2004 2005 2006 2007 2008 2009 2010 2011 2012
FRANKFURT/MAIN airport -5,0 11,3 -14,6 -30,0 -11,7 17,4 -51,6 -92,5
MNCHEN airport 62,4 -0,7 3,3 29,5 -29,3
ATHENS airport 34,7 13,2 -5,5 6,0 2,3 15,2 3,5 5,5 -11,2
BARI/PALESE airport -28,4 1,2 -59,2 47,0 -3,2 1,8 -7,7 -1,9 36,4
MILANO/MALPENSA airport 18,6 38,3 -2,7 13,3 -23,2 -8,1 26,5 27,2 7,7
BERGAMO/ORIO AL SERIO airport 117,0 5,4 53,0 21,2 27,7 34,0 -33,9
TORINO/CASELLE airport 39,1 24,0 -4,3 14,7 50,1 -4,1 -11,2
GENOVA/SESTRI airport 13,9 7,2 17,1 39,1 -19,4
BOLOGNA/BORGO PANIGALE airport -12,2 -19,3 -8,6 4,1 3,0 39,5 55,2 18,1 -39,0
FORLI airport 62,6 21,5 -24,1 -20,6 -18,6 -37,8
RIMINI/MIRAMARE (MIL.) airport -14,1 -38,6 15,8 160,7 17,9 -3,6 -0,4
VERONA/VILLAFRANCA (MIL.) airport 87,0 28,0 12,7 30,0 6,5 6,5 17,3 -14,7
ANCONA/FALCONARA airport 71,7 59,9 67,6 86,4 -7,3
ROMA/FIUMICINO airport 19,5 -3,8 13,0 23,9 67,2 19,2 13,5 8,9 -0,6
PISA/S. GIUSTO (MIL) airport 102,6 18,8 32,2 1,5 27,1 72,4 1,4
PERUGIA/S. EGIDIO airport 0,7 75,9 -12,9
BUDAPEST/FERIHEGY airport -4,4 3,2 9,3 -14,0 -15,7 33,4 -20,9 30,6 -90,1
WIEN/SCHWECHAT airport 64,1 14,7 4,1 -2,3 1,5 -17,2 6,5 33,9 17,1
LJUBLJANA/BRNIK airport 83,8 74,6 8,4 0,8 -16,8 -13,4

TABLE 19 RATE OF CHANGE OF ARRIVING PASSENGERS PER DESTINATION
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FIGURE 16 RATE OF CHANGE OF ARRIVING PASSENGERS PER DESTINATION
-150.0
-100.0
-50.0
0.0
50.0
100.0
150.0
200.0
2004 2005 2006 2007 2008 2009 2010 2011 2012
FRANKFURT/MAIN airport
MNCHEN airport
ATHENS airport
BARI/PALESE airport
MILANO/MALPENSA airport
BERGAMO/ORIO AL SERIO airport
TORINO/CASELLE airport
GENOVA/SESTRI airport
BOLOGNA/BORGO PANIGALE airport
FORLI airport
RIMINI/MIRAMARE (MIL.) airport
VERONA/VILLAFRANCA (MIL.) airport
ANCONA/FALCONARA airport
ROMA/FIUMICINO airport
PISA/S. GIUSTO (MIL) airport
PERUGIA/S. EGIDIO airport
BUDAPEST/FERIHEGY airport
WIEN/SCHWECHAT airport
LJUBLJANA/BRNIK airport
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The picks on some airports indicates that the demand is
affected a lot by the available service.
LIST OF FIGURES ON CHAPTER 7.1
1) TABLE 16 Arriving passengers per country table.
2) FIGURE 32 Arriving passengers per country schematic.
3) FIGURE 33 Arriving passengers per Italy schematic.
4) TABLE 17 Arriving passengers rate of change per
country .
5) FIGURE 34 Arriving passengers rate of change per
country schematic.
6) TABLE 18 Arriving passengers per destination table.
7) FIGURE 37 Arriving passengers per destination
schematic.
8) TABLE 19 Arriving passengers rate of change per
destination table.
9) FIGURE 16 Arriving passengers rate of change per
destination schematic.









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45



7.2. OTHER AVAILABLE
DESTINATIONS
A plenty of destinations are not served. A list of possible
destinations is following. For the choice the following factors are
concerning:

1) capital
2) major city
3) tourist destination
4) economical center
5) hub airport
And always destinations at a distance of around 600 miles not
served presently or near past.

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46


FIGURE 17 RANGE MAP
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47


DESTINATION COUNTRY IATA ICAO DISTANCE NOTES
BELGRADE SERBIA BEG LYBE 219 CAPITAL
BRATISLAVA SLOVAKIA BTS LZIB 481 CAPITAL
BRESCIA ITALY VBS LIPO 540 CITY
BUCHAREST ROMANIA OTP LROP 382 CAPITAL
BUDAPEST HUNGARY BUD LHBP 431 CAPITAL
FORLI ITALY FRL LIPK 501 CITY
GRAZ AUSTRIA GRZ LOWG 407 CITY
IZMIR TURKEY ADB LTBJ 490 HOLIDAY
MYKONOS GREECE JMK LGMK 431 HOLIDAY
NAPOLI ITALY NAP LIRN 290 CITY
OHRID FYROM OHD LWOH 77 CITY
PRAGUE CZECH PRG LKPR 622 CAPITAL
PRISTINA KOSOVO PRN BKPR 154 CAPITAL
SALZBURG AUSTRIA SZG LOWS 558 CITY
SANTORINI GREECE JTR LGSR 478 HOLIDAY
SKOPJIE FYROM SKP LWSK 134 CAPITAL
SOFIA BULGARIA SOF LBSF 207 GAPITAL
SPLIT CROATIA SPU LDSP 257 HOLIDAY
THESSALONIKI GREECE SKG LGTS 230 CITY
TORINO ITALY TRN LIMF 637 CITY
VARNA BULGARIA VAR LBWN 461 HOLIDAY
ZAGREB CROATIA ZAG LDZA 341 CAPITAL
ZAKYNTHOS GREECE ZTH LGZA 273 HOLIDAY
ZURICH SWITZERLAND ZRH LSZH 681 CAPITAL
TABLE 20 DESTINATIONS ON PROXIMITY OF TIA
As we have see above routes that served by only one company
have at TIA are offered for high revenues. Moreover due to the
geographical position of Tirana the routes to Italy which is the
main market is not worthy to be overlapped by connected flight.
The same applies also to the routes around Balkans due to
absence of hubs.

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48

7.3. ORPHAN ROUTES

After the collapse of BELLE AIR some routes stays without
service. There are good potentials and low risk for these routes.

DESTINATION CODE DISTANCE
ANCONA LIPY 369
ANTALYA LTAI 717
CUNEO LIMZ 635
FLORENCE LIRQ 467
HERAKLION LGIR 534
PARMA LIMP 544
PERUGIA LIRZ 440
PESCARA LIBP 312
PRISTINA BKPR 154
RHODOS LGRP 557
RIMINI LIPR 408
TRIESTE LIPQ 446

TABLE 21 ORPHAN ROUTES
7.4. TIRANA AIRPORT
Tirana airport has release a limiting data.
Year Passengers
%
INCREASE
Aircraft
movements
2003 560 ?
2004 650 ?
2005 785 15400
2006 906103 15856
2007 1105770 22,04 18258
2008 1267041 14,58 19194
2009 1394688 10,07 20064
2010 1536822 10,19 20768
2011 1817073 18,24 22988
2012 1665331 -8,35 20528

TABLE 22 TIA DATA
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FIGURE 18 RATE OF INCREASE OF PASSENGERS
AT TIA

50,1% BELLE AIR
9,6% ALITALIA
8,1% AUSTRIAN
17,1% OTHERS
9,1% AIRONE
5,5% TURKISH

-10.00
-5.00
0.00
5.00
10.00
15.00
20.00
25.00
2007 2008 2009 2010 2011 2012
% INCREASE

FIGURE 19 FIGURE 19 MARKET SHARE AT
PROJECT TIRANA VER 1 SUMMER 2014
50

With exception of 2012 TIA have constant increase
above European rate.
Finally Albanian economy growth fast according to UN
statics. Some basic items are follows:
GDP: Gross domestic product
(million current US$)
2011 13000
GDP: Gross domestic product
(million current US$)
2010 11954
GDP: Gross domestic product
(million current US$)
2005 8159
GDP: Growth rate at constant
2005 prices (annual %)
2011 2.0
GDP: Growth rate at constant
2005 prices (annual %)
2010 3.9
GDP: Growth rate at constant
2005 prices (annual %)
2005 5.8


0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
2000000
2004 2005 2006 2007 2008 2009 2010 2011 2012
PASSENGERS AT TIA
FIGURE 20 FIGURE 20 PASSENGERS AT TIA
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51

With GDP growth of around 2% an increase of around 4% of
airline passengers is expected.

Tourist arrivals at national
borders (000)
2011 2932
Excludes
nationals
residing
abroad.
Arrivals of
non-
resident
visitors at
national
borders.
Tourist arrivals at national
borders (000)
2010 2417
Excludes
nationals
residing
abroad.
Arrivals of
non-
resident
visitors at
national
borders.
Tourist arrivals at national
borders (000)
2005 748
Excludes
nationals
residing
abroad.
Arrivals of
non-
resident
visitors at
national
borders.

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52

Even more promising is the increase of tourist. With tourist
already reach 3 million and rate of increase near to 20% great
potentials of air traffic growth is forecasting.

7.5. MARKET ACCESS
Tirana international airport has a promotional package to
attract new airlines. Most important are the reduce of airport fees
up to 100% for the first year but also assistant on marketing and
other kind of aids offered to help new airlines to start flights to
TIA.

7.6. SEASONALYTY
Tirana international airport shows moderate seasonal
variation. For the years 2007, 2008 and 2009 the moth with the
less passengers was always February and the month with highest
passengers traffic was August. Moreover for all those 3 years the
passengers numbers follows the same pattern with a steady
increase. The factor of the month with the higher passengers
traffic to this with the less passengers traffic is 2.6 for 2007, 2.15
for 2008 and 2.3 for 2009. In order to flatten any high variation of
traffic on a specific month 3 month average is a more accepted
method to determine the seasonal variation. With this method
the factors of the top 3 to bottom 3 months are 1.9 for 2007, 1,7 for
2008 and also 1,7 for 2009 (all values are rounded). As a
conclusion the factors for seasonality are within an acceptable
range for market variation with the peak season has less than
double passengers than the low season. Moreover the 3 months of
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53

traffic peak are concentrated allowing for more easy resource
planning. Lastly by using Anna.aero SVID calculator
vi
we take a
result of almost 9 which is on the upper limits of GOOD allowing
for a quite comfortable route planning.

FIGURE 21 TIRANA SEASONALITY











vi
http://www.anna.aero/databases/
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8. CONCLUSIONS

After the communist era of Albania the aviation sector of the
country suffer from stagnation on the past practice and remain
underdeveloped for years. This situation change with two decisive
steps.
The first was the new terminal and the operation of the
airport from HOCHTIEF AirPort GmbH. Together with new
equipment, training of staff and generally up trim of air
navigation agent get the Albanian aviation in line with European
standards.
Soon after the establishment of BELLE AIR take off the
Albanian aviation! BELLE AIR was the only the only modern
Albanian company. By creating new markets, by offering to the
locals the first touch with modern practices on aviation
marketing and by boosting tourism BELLE AIR had a major
impact on local economy, an impact that is even more obvious by
its absence.
The gap left after BELLE AIR bankrupts is only partially
replenished by other airline companies. Only the trunk routes
replaced and limiting competition on some routes driving prices
at very high levels. Moreover the revolution started from BELLE
AIR has been left incomplete.
The most important is that the rate of increase of GDP in
connection in the increase of tourism in Albania promising a
continuous growth for the next years and this makes Albania an
island of opportunities in contrast with the mature markets of the
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55

rest of Europe. An important advantage of Albanian market is the
fact that there are a lot of routes still not served by any airline.
Taking into account that those routes have an established volume
of candidate passengers and are known to the public by their
previous operator makes those routes a perfect start with the
necessary volume of passengers to break even at low risk. As it
proofed, routes served by only one airline from TIA enjoyed more
than double on revenues than the routes served by more than one
company.
On the other hand some special treatment must be used in
Albania due to some specialties. One of them is that the internet
and the use of credit cards, two important tools on aviation
marketing are not spread over the population on the same level
as Europe. Moreover bureaucracy, old fashion habits on the way
of acting the government power and some periods of political
instability may create obstacles on the way that someone could
make business in Albania. In addition the low income of general
population is on around of 25% of EU average makes the market
very price sensitive. Lastly must be taken on the account that
Albania is not yet a full member of EU, so people and companies
may not have the same rights like on the rest of EU.
As a conclusion immediate initiation of flights to TIA is
suggested. The start could be this summer with a selection of
routes that not served by any other company after the collapse of
BELLE AIR and some charters flights to leisure destinations. After
the first step more routes to unnerved destinations could be
added initially at low frequencies in emphasizing on high load
factors in order to keep prices low. Of course close cooperation
with local agents must be established in order to bypass the
initial problems.
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After the completion of the first round of market research
and when having more accurate data and after take decisions
about routes and aircraft type another more detailed study must
be held.

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