TALLINN - Estonian Air, the national carrier, showed that it has weathered the economic storm so far by opening new domestic routes and announcing increased passenger numbers.
The airline began selling tickets on the Tallinn-Kuressaare route in all its sales channels, including 13 sales representatives all over Europe, on Sept. 8. Estonian Air will start operating between Tallinn and Kuressaare Oct. 10.
One-way fares from Tallinn to Kuressaare start at 484 kroons (31 euros). Tickets in the opposite direction start at 461 kroons (30 euros).
"We do believe if we are strong at domestic and regional flights, we are stronger on international flights. Also, as an Estonian national carrier, we want to develop our own aviation market by offering convenient air connections," said Ilona Eskelinen, a spokesperson for Estonian Air.
Estonian Air operated 7,293 flights in the first seven months of the year, which is 39 percent more flights than in the same period in 2007. In July, 2008 996 flights were operated, which is 20 percent more than 2007.
Meanwhile, the airline saw an increase in passenger numbers. In the first 7 months of 2008, Estonian Air carried a total of 445,706 passengers, 405,844 of whom were on regular flights as opposed to chartered flights total number of passengers increased 9.9 percent.
In July, Estonian Air carried 71,076 passengers, 66,266 on regular flights. The number of passengers on regular flights increased 3.2 percent while the total number of passengers decreased 5.1 percent year-on-year, mainly due to a drop in charter operations.
In the first seven months of the year, the market share of Estonian Air in the regular flights segment at Tallinn Airport was 45 percent, which is 3 percentage points higher than in 2007. The overall market share (regular and charter flights) was 4 percent, which is 1 percentage point higher than 2007.
The airline has also introduced family-friendly products like a flight log for children. "Kids can spend interesting time with the log book, learn about aviation and traveling, record kids experience about traveling. We see kids as our future clients," Eskelinen said.
This success may not translate into increase revenue for the company, however, a fact that the airline's bosses readily acknowledge.
"The rising fuel prices affect us the same way as other airlines. Costs on fuel are forming the biggest cost element. … The rising fuel prices are quite [a] big challenge to the whole aviation industry," Eskelinen said. The company's CEO, Andrus Aljas, expects demand to slow in autumn and winter.
"In the first half of the year the demand for air travel was high, but the economic recession and the overall price increase in latest months have significantly decelerated the growth of passenger numbers. The decreasing number of incoming tourists also has an impact," Aljas said.
"According to prognoses, the numbers remain modest also in the coming months," Aljas said.
