There is an increase in demand for services between Western Europe as well as the countries of Southeast Europe or Turkey due to economic growth, redevelopment requirements, and the impending accession of many countries to the European Union.
The market requires a greater quality service than the one currently offered.
- Business travelers demand speed, reliability and flexibility that are tailored to their business needs.
- Both government and international visitors require the same elements.
- Individual and leisure travelers in the Southeast Europe/Turkey area who can afford to fly and demand more convenience and service, but at a lower price.
- The “Diaspora,” Personal and leisure travelers originally from the Southeast Europe/Turkey region, but now living and working in sizable numbers in the countries of Western Europe, with the same demands.
- Western European personal and leisure travelers, primarily traveling on the airline’s routes between Western European points.
- Seasonal (primarily during summer, with a few niche markets in the winter) holiday traveler, primarily to Greece, Turkey, the Mediterranean islands and Turkey. They care about safety, reliability, convenience, and destination.
These groups will be attracted to the proposed new airline because it offers better service and in some cases, service where none is currently offered. It also offers a higher level safety, comfort and convenience and lower fares than current options. The new airline will also be focused on niche markets, as indicated in the Service Description section. This will allow it better serve these markets and make itself known as the carrier of choice.
The four primary segments that make up the global airline industry, which operates between Western Europe, Southeastern Europe and Turkey, are:
- 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).
- Regional airlines that are smaller but more established than mainline carriers, mainly from Western Europe and the upper levels of Eastern European countries (primarily Swiss International, Tyrolean and Adria), perform the same function or link destinations in Southeast Europe with their national capitals.
- Home-based Southeastern European carrier (such as ADA Air (Albanian Airlines, Avioimpex), Balkan Air (Hemus Air), JAT and Tarom Airways), often operate older, Soviet designed aircraft or turboprops. They often offer a lower level service (though sometimes lower fares) and are less popular among travelers from Southeastern Europe. These airlines link points in Southeast Europe with other destinations, or may connect Southeastern European destinations to major Western European cities.
- The fourth segment that is worth noting is the substantial charter market that exists in specific niche or seasonal markets. This market includes charter flights between Pristina (and destinations in Germany or Switzerland), as well summer charters from New York City and other North American cities. These charters are often operated by individual travel agencies or airlines, and often are categorized by a low level of service and utilization of older, often Soviet-built, aircraft. You can also find vacation charters from Western Europe to Greece or Turkey, Cyprus, and other destinations throughout Southeastern Europe, the Mediterranean.
It is expected that this new airline would fit most closely into the second grouping. However it would compete effectively in all four main segments due to a combination: safety and service, well-selected routes, niche service, convenient schedules. Competitive fares. Modern, safe, comfortable aircraft. It also will offer service on under-served and unserved routes where little or no competition currently exists.
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.
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