The sector of air transport can contribute significantly to the success, progress and profitability of a country. What is important is the preparation of a specific strategic and the adoption of a policy that will allow the survival of the air companies in an competitive environment. The private Greek-Cypriot air company Aegean Airlines is a tangible example, as it managed to take advantage of the liberalization of air transport after the Cyprus accession in the EU on May 1. It is noted that until April 30, itineraries between Cyprus and Greece were exclusively carried out by Cyprus Airways and Olympic Airlines.

At a Press Conference held on Tuesday in Nicosia, Aegean Airlines announced that it managed to attract 20% of the total volume of passengers since the start of operation of the new routes from Larnaca to Athens and Thessaloniki. Aegean Airlines Vice-Chairman, Eftihios Vasilakis said that the total volume of the air transport increased by 15%, which shows that the company has “created a market”. Aegean Airlines together with the private company Helios Airways hold a stake of 35% to 36%.

Mr. Vasilakis, however admitted that there are margins to increase the occupancy ratio of the Company’s aircrafts in the flights to and from Cyprus, which stands at 50% and 56%, while profitability requires an occupancy ratio between 60% and 73%. For this reason, the company is considering changing the hours of its routes.

The secret of the success is based on the restraining of the operating cost. The Company has developed the ‘book-online’ system, saving up to 6 euros per ticket issue, a representative told StockWatch, stressing that this is expected to save €20 million in 2004. It is noted that Aegean Airlines had profits of €6 million in 2003, despite the war in Iraq and SARS. The restraining of the operating cost is also attributable to the reasonable salaries submitted to the staff, which are 40% of the salaries offered by the problematic national carriers of Greece and Cyprus.