Opportunity
Market
Economic growth and the requirements of redevelopment, not to mention the impending entry of several countries in the region to the European Union, are creating increased demand for air services between Western Europe and the countries of Southeast Europe and Turkey.
Markets combine a number of elements, all of which require a better quality air service than is often available.
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- Business travelers requiring convenience, reliability, speed, and schedules built around business needs.
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- Both government and international visitors require the same elements.
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- Personal and leisure travelers from the Southeast Europe/Turkey region who have the money to travel by air and who increasingly demand a higher level of service and convenience, but at an economical cost.
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- The ‘#8220’ Diaspora is a collection of personal and leisure travellers originally from Southeast Europe/Turkey. However, they now reside and work in substantial numbers in Western Europe and have the same demands.
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- Western European leisure and personal travelers travel mainly on airline routes between Western European points.
- Seasonal (primarily summer, with some limited niche markets in the winter period) holiday travelers, primarily destined for Greece, Turkey, and the islands of the Mediterranean. They care about safety, reliability, convenience, and destination.
All these groups will benefit from the new airline proposal. The airline will offer better service, including in certain cases offering service where none currently exists, at a higher standard of safety, comfort, convenience, and fares that are more affordable than what is currently available. The new airline also will focus on the niche markets identified in the Service Description section of this plan, enabling it to better serve and to become identified as the carrier of choice for those markets.
Competition
There are four segments that make up the entire airline industry in Europe, Southeastern Europe, Turkey.
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- Established European mainline carriers (primarily Swiss International. Lufthansa. Alitalia. Malev. Turkish) used their Southeast European routes for spokes connecting to main hubs within Western Europe (or Budapest. Istanbul in the cases of Malev.) They also served to feed traffic on their primary intra-European or trans-Atlantic routes (or domestic Turkish routes, in the instance of Turkish).
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- Regional airlines are small, but well-established and operate mainly from Western Europe or the higher level of Eastern European nations (primarily Swiss International or Tyrolean), which perform the exact same function as mainline carrier.
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- Home-based Southeastern European carriers such as ADA Air. Balkan Air. Avioimpex. Balkan Air. Hemus Air. JAT. and Tarom Airways. These airlines often fly older aircraft or turboprops and are generally less well-respected by travelers from Southeastern Europe. These airlines connect destinations within Southeast Europe to other major destinations in Western Europe.
- A fourth segment is also worth mentioning, which is the significant charter market that exists in certain niche markets or seasonal markets. This market includes charter flight between Pristina, destinations in Germany and Switzerland as well as summer charters between New York and Southeast Europe. These charters are usually operated by independent travel agencies or airlines and are often characterized by low service levels and the use of older aircraft, which are often Soviet-built. Vacation charters can be operated from Western Europe via Greece, Turkey, Cyprus or other locations in Southeastern Europe.
It is predicted that the proposed airline would best fit into the second category above. However, it would be able to compete effectively with all the main segments because of its combination of safety and quality, carefully chosen routes and niche-market services, convenient schedules, competitive fares, reasonable fares, modern, safe, and comfortable aircraft. It will also offer service on unexploited routes, where there is little to no competition.
Why Us?
Air Leo fills a niche in growing air-travel markets and cargo markets to Southeastern Europe and Turkey. Air Leo will establish and maintain a high standard of professionalism and service, as well as identify and serve key routes or city pairs which are not currently served, under-served and poorly served.