Highlights of aviation industry in 2008

1. Record price for petrol. Fuel supply costs - budgetary sinkhole for airline carriers

The biggest blow for the airline carriers was the skyrocketing price for oil, in the context of sagging demand concerns. The top threshold was 147.27 dollars/barrel and was registered on July 11.

In the context of a rallying fuel price, over 30 airline carriers in the world faced serious problems. Some of them called upon bankruptcy protection while other competitors reduced their activity, in an effort to remain on the floating line.

The subsequent series of bankruptcies unfolded and swirled round the world’s markets: in Europe, large companies, such as Alpi Eagles from Italy, Coast Air from Norway, City Star Airlines from Scotland and Sterling Airways from Denmark, and in Asia, Taipei-based Far Eastern Air Transport carrier were unable to keep up with the high price of the oil, and in Africa, competitors such as Cameroon Airlines or Air Mauritanie have completely relinquished their operations.

Not only small and low-cost companies have been affected by the crisis, but also the large airline operators as well. “The costs for fuel in first half amounted 1.5 billion pounds, 52% more than a year earlier”, Emil Delibashev, country manager of British Airways told Wall-Street.

He added that this was the first time when the costs with fuel exceed workforce expenses.

“This year, 35% of the total costs were earmarked for fuel supplies, while only 20% were allocated for the staff”, the representative of the British airline carrier added.

2. My Air teams up with Sky Europe to become No 1 carrier in Europe

Given the struggling economy worldwide, and the fiercer competition in the European low-cost market, airline carriers My Air and Sky Europe teamed up, in an attempt to become the biggest low-cost operator in Europe, and in Romania.

3. Baboo, the newcomer in the Romanian aviation landscape

In the midst of probably the most difficult period in the world’s aviation industry, Swiss airline operator, Baboo has decided to expand in Romania, where it plans to tap into the business and leisure segment.

On October 2008, the company took its first flights on Bucharest-Geneva and Bucharest-Nice (via Geneva). The flights will be available four times a week, every Mondays, Wednesdays, Fridays and Sundays.

For Baboo, the winter season will be a trial period for the market in Romania, because starting with the spring timetable, the operator plans to have an aggressive presence in the domestic market, targeting a 65% occupancy level.

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