Airports development opportunities in Romania

An Expert's View about Air Transport in Romania

Posted on: 5 Oct 2010

Most of the 17 existing airports in Romania are involved in development programmes, financed both from EU structural funds and domestic funds.

Sector briefing Airports development opportunities in Romania Why Romania? Most Romanian airports were built between 1921 ? 1972 and were gradually upgraded between 1962 ? 1980. After 1990, in order to conform to European standards for airports, both in terms of flight and air traffic regulations the Ministry of Transport and Infrastructure drafted a strategic programme for the upgrading and extension of the existing infrastructure, to cover the period up to 2015. As a result, most of the 17 existing airports are involved in development programmes, financed both from EU structural funds and domestic Most of the 17 existing airports in funds. The projects mainly involve basic Romania are involved in development infrastructure upgrading and extension to the programmes, financed both from EU runway, terminals, signalling systems, etc. structural funds and domestic funds. One of the most important objectives for Romania is to adhere to the Schengen area by Find general information about market the end of March 2011. Consequently, Romania conditions in Romania on the UKTI website. has to implement a set of measures for The ?Doing business? guide gives an overview securing country borders in compliance with of Romania?s economy, business culture, Schengen standards; set up the Schengen potential opportunities and an introduction to Information System (directly linked to the EU other relevant issues. database) and create the appropriate conditions for the integration in the European joint visa system, for all types of borders, with a special focus on its 17 international airports. Large investment will be directed to related projects implemented to comply with EU requirements. UK Trade & Investment Sector briefing: Airports development opportunities in Romania Air traffic Background 2007 2008 2009 levels According to the Ministry of Transport and 7,831,258 9,076,566 6,956,193 Passenger Infrastructure, the Romanian airport network consists of international and domestic routes, traffic total: which ensure the flight of Romanian and 3,936,799 4,592,831 3,505,289 departures foreign aircraft, linking international airports to 3,894,459 4,483,735 3,450,904 arrivals the Romanian airports and supporting passengers and freight traffic between the 17 22,268 26,686 17,550 Freight traffic civil international airports existing in Romania: (tonnes) total Bucharest ?Henri Coanda? Airport; Bucharest 7,169 8,928 6,250 sent ?Aurel Vlaicu? Airport; Timisoara ?Traian Vuia? Airport; Constanta ?Mihail Kogalniceanu? 15,099 17,758 11,300 received Airport; Arad Airport; Bacau ?George Enescu? 133,646 150,120 121,116 Flights Airport; Baia Mare Airport; Caransebes Airport; Source: www.insse.ro ? Romanian Institute of Statistics Cluj Napoca Airport; Craiova Airport; Iasi Airport; Oradea Airport; Satu Mare Airport; Taking into consideration the amount of traffic Sibiu Airport; Suceava ?Stefan cel Mare? and general airport activity, Bucharest ?Henri Airport; Targu Mures Airport; Tulcea ?Delta Coanda? Airport is the most active airport in Dunarii? Airport. The ownership of these passengers, 82.81% of freight traffic and airports is generally a combination of national 46.58% of the number of flights. ?Henri and local government. Coanda? Airport is home to the major carriers such as Tarom, British Airways, Lufthansa, Apart from the functional airports, there are a Austrian airlines, etc. On the other hand ?Aurel number of airports planned for future Vlaicu? Airport services lower cost airlines such development: Alba Iulia Airport, Bistrita as Wizz Air, Blue Air, etc. Airport, Brasov Airport, Deva Airport and Galati ? Braila Airport. In figures, 2008 represented a market value of about 600 million euro and 9.1 million In complete contrast with the period between passengers, marking the height of a period of 1990 and 1999, air transportation in Romania ongoing growth. Moreover, remarkable has witnessed a significant growth since 2000. progress was recorded by the increase of low- The activity for all Romanian airports between cost operators, who, in 2008, carried 2.5 2000 ? 2008 increased 3.8 times for passenger million passengers. Although the statistics for traffic (from 2.4 million passengers in 2000 to 2009 are only partially available, due to the 9.1 million passengers in 2008) and 1.7 times economic downturn and the volatility of fuel for freight traffic (from 16.1 thousand tons in prices, a slow decrease is, not surprisingly, 2000 to 26.7 thousand tons in 2008). Similarly, emerging. Despite this, in 2009, numerous new the number of flights increased 2.67 times in airlines were attracted onto the market, as well the above mentioned period, from 58,000 as new routes from already existing operators. flights in 2000 to 150,000 in 2008. It is worth mentioning that an estimated 2 million Romanians are currently working overseas, Opportunities mostly in countries such as Spain, Italy and France, though these numbers are starting to The overall transportation governmental policy decrease due to the global recession. for Romania is covered by two strategic documents: the Sectoral Operational In 2008, four out of the 17 international Programme for Transport (SOPT) ? issued in airports (Bucharest ?Henri Coanda? Airport, 2007- and the General Transport Master Plan Bucharest ?Aurel Vlaicu? Airport, Timisoara (GTMP) ? issued in 2009. ?Traian Vuia? Airport and Constanta ?Mihail Kogalniceanu? Airport) recorded the highest The Sectoral Operational Programme for levels of activity: 7.75 million passengers for Transport is one of the seven operational both departures and arrivals (85.38% of the programmes agreed by Romania and the total passenger traffic), 24.2 thousand tonnes European Union, aimed at allowing Romania to of freight (90.53% of the total freight traffic) comply with EU standards on various sectors. and 118,000 flights (76.12% of the total SOPT is the instrument which defines the number). objectives of the National Strategic Reference Framework (NSRF), establishing priorities, UK Trade & Investment Sector briefing: Airports development opportunities in Romania goals and the allocation of funds for the funding until the end of the qualifying period development of the transport sector in (2013). Romania. The total budget of SOPT over the programming period 2007 ? 2013/2015 is The General Transport Master Plan (GTMP) is a approximately 5.7 billion Euros, which strategic document, launched by the Ministry of represents about 23% of the overall allocated Transport and Infrastructure in 2009, for the funds for NSFR for Romania over the above- period 2007 ? 2025, and represents the basis mentioned period. Out of these, 4.57 billion of all future planning activities in the transport Euros represent the Community?s financial sector. The GTMP ensures a balanced support, while national co-financing will distribution between the transport modes, amount to 1.09 billion Euro. Community while referring both to the development and funding will be provided by the Cohesion Fund adjustment of infrastructure capacity to the and the European Regional Fund. European quality standards as well as to the improvement of transport services and all In order to achieve the objective of the SOPT, other regulating and institutional aspects it is proposed to allocate the relevant EU and considered relevant for this sector. state funds for transport towards the implementation of four priority axes and key According to the GMTP, the general objective of areas of interventions were identified for each the programme is to increase airports? capacity priority axis. and at the same time ensuring air transport safety, which is a natural outcome of The operations under key area of intervention modernising infrastructure. Most of the 2.4 - Modernisation and development of projects will focus on areas such as the air transport infrastructure (under Priority extension, upgrading or greenfield construction Axis 2) - are aimed at financing the of airport platforms, access roads, runway modernisation and development of selected repairs, the installation of lighting systems, Romanian airports, with a view to increasing upgrading the manoeuvring platforms. efficiency and attractiveness for users and raising capacity utilisation, as well as If you have any questions about the connecting effectively to internal and opportunities above, get in touch with the international destinations. This objective is contacts named in this report. New consistent with the provisions of the opportunities are added to the UKTI website on Community strategic guidelines for the a daily basis, with leads sourced by our staff cohesion policy in support of growth and jobs, overseas in British Embassies, High 2007 ? 2013, in particular as it applies to the Commissions and Consulates, across all sectors promotion of regional development with a and in over 100 markets. special focus on improving the connectivity of landlocked territories to the TEN-T. Aid will be Search for business opportunities on the UKTI provided to the airports based on proper website, or register to receive regular updates. justification. This will include compliance with a set of minimum criteria, including: traffic, safety, economic viability and sustainability. Priority axis 2 (approximately 21% of the EU allocation) concerns, among others, interventions for the rehabilitation of national and construction of by-passes, rehabilitation of railway stations, bridges, tunnels and rehabilitation of ports and airports. Total envisaged funding amounts to approximately 1.4 billion Euros, out of which 970 million Euros are EU grants and 430 million Euro national funding. It is worth pointing out that to date Romania has only utilised 12% of its cohesion and structural funds allocation since 2007. The Romanian government?s number one priority is to significantly increase its absorption of EU UK Trade & Investment Sector briefing: Airports development opportunities in Romania Major events and activities UKTI contacts Airport Forum Raluca Tudor Contact: Mr. Daniel Dragan, Finmedia Senior Trade Adviser Email: ddragan@finmedia.ro British Embassy Bucharest Date: 17 November 2010 Tel: +40 21 201 7368 Email: raluca.tudor@fco.gov.uk For details of more events, use the events www.ukti.gov.uk search on the UKTI website or register to receive regular updates. New export events are Luiza Gavrila added daily. Trade Development Adviser British Embassy Bucharest UKTI?s Tradeshow Access Programme (TAP) Tel: +40 21 201 7260 provides grant support for eligible Small & Email: luiza.gavrila@fco.gov.uk Medium Sized Enterprises (SMEs) to attend www.ukti.gov.uk trade shows overseas. UK Trade & Investment Sector briefing: Airports development opportunities in Romania Next steps - How UKTI can help ? Arranging appointments British companies wishing to develop their ? Organise seminars or other events for business in the Romanian market are advised you to meet contacts and promote your to undertake as much market research and company in the Romanian market planning as possible in the UK. UKTI?s team in Romania, with its wide local knowledge and This work is available via our Overseas Market experience, can provide a range of services to Introduction Service (OMIS), a chargeable British-based companies wishing to grow their service which assists British-based companies business in global markets. wishing to enter or expand their business in overseas markets. This can include: ? Provision of market information To find out more about commissioning this ? Validated lists of agents/distributors work, or accessing other UKTI services and ? Key market players or potential specialist advice, contact your local UKTI office. customers in the Romanian market ? Establishment of interest of such contacts in working with you Whereas every effort has been made to ensure that information provided through this document is accurate, these Commercial Departments, UKTI, the FCO and BIS accept no liability for any errors, omissions or misleading statements in such information and accept no responsibility as to the standing of any firm, company or individual mentioned. Any party interested in the goods or services provided by any company referred to in this material should undertake their own research and should not consider a reference in this material to be an endorsement of any goods, services or companies mentioned. Published 2010 by UK Trade & Investment. Crown Copyright © UK Trade & Investment Sector briefing: Airports development opportunities in Romania
Posted: 05 October 2010

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