Will Atlasjet Cut Prices for Georgian Market?
17 October, 2013
Will Atlasjet Cut Prices for Georgian  Market?
he third Turkish air-company Atlasjet started flights in October from Tbilisi International Airport to Istanbul, challenging competitors with its cheapest prices at the moment but the question is whether or not the company is capable and willing to hold prices down in a long-term prospect.
Having watched Georgian market for a year, Atlasjet, the number one private Turkish-based company, decided to start flights from Tbilisi International Airport to Ataturk Airport in Istanbul, one of the major transit airports for the
passengers flying to and from Georgia the globe over.
“We have been watching Georgian market for about one year. Considering the growth of the market and prospective growth capacity we have estimated, we decided that we should be on the Georgian market. We are a big tourism group, have 12,000 beds under three different brand names. And we think that it is a good market for cross benefit also in these terms,” President of Atlasjet Murat Ersoy said in the interview to Georgian Journal. According to him, Atlasjet will implement Tbilisi flights from Ataturk Airport with one-way price from EUR 50 including free meals, online check in and 30 kg baggage allowance for EconomiPlus passengers and round-trip tickets starting from EUR159. Business Class one-way prices begin from EUR 150 Euro. Atlasjet started flights on Tbilisi-Istanbul line from 2 flights per week and will implement daily flights starting this November. And as of April 2014, flights on route Antalya-Tbilisi-Antalya [four days a week] will be launched.
Atlasjet is a third company that entered Georgian market after Turkish Airline, an actual monopolist of Istanbul flights, and Pegasus that entered Georgian market in 2010 with prices as cheap as EUR 79 to challenge EUR 450 fixed by Turkish Airlines for almost ten years on Tbilisi-Istanbul flight before. Pegasus prices include all due air-flight-related costs [cost-free 20 kg hand-luggage] except food. However, the prices went high step-by-step and one can get just 5 tickets for EUR 79 by today, Giorgi Kodua, Head of Amalgamation of Civil Aviation Professionals of Georgia and Consultant of Air Caucasus, told GJ. After entrance of Atlasjet, Pegasus spokesperson said his company will keep prices lower than those of Atlasjet to retain passengers but Kodua paints pessimistic picture of price slumps on the expensive Georgian air-market. As a matter of fact, tourist agencies point at expensive air-flights to Georgia as one of the major barriers to tourist inflow and outflow. Cutting prices down might give an impetus to tourism. The President of Atlasjet did not comment on the issue whether or not their company is capable of lowering prices on the Georgian market. Kodua believes low price is just a marketing trick for Atlasjet to win the market against its main Turkish rivals on Istanbul flights and then prices will increase again after a while.
“All companies that entered Georgian market as of yet, started by cheap prices and jacked them up as time went, because economically reasonable prices on Istanbul flights start from EUR 150 and EUR 250 on one-way and round-trip tickets respectively, because the fuel is expensive USD 1000 per ton and both Turks and we buy the fuel plus airport service related and other costs,” Kodua said. “Most probably Atlasjet allocated some money to enter the market by EUR 50 but it cannot last for longer than 3-6 months because it leads to losses and in a long-run the company needs to increase prices to compensate the losses it faced during its first months on a new market.”
To avoid losses, Air Caucasus changed its decision to start Tbilisi-Istanbul flights this fall and will wait until the summer season hoping to see crystallization of market prices by then.
Print
Other Stories
Business Positive – Successful radio program from Radio Positive
Starting point of radio program Business Positive is to meet interesting people, communicate with them and deliver information that is interesting for the audience.
A factory of electric vehicles to be built in Kutaisi
Prime Minister Mamuka Bakhtadze stated that a factory of electric vehicles will be built in Kutaisi at the presentation of the Aigroup business group.
Qvevri-shaped hotel complex to be built in Telavi
A Qvevri-shaped hotel complex is scheduled to be built in the village of Shalauri in Telavi, Kakheti (east part of Georgia).
Georgian designers presented at Fashion World Tokyo 2019
The products of 11 Georgian designers are showcased at Fashion World Tokyo 2019,
Silknet raises $200 million in Eurobond issue
27 March 2019 - JSC Silknet (“Silknet”), one of Georgia’s leading telecommunications operators, has successfully priced a debut $200 million 5-year 11% senior unsecured bonds issue (the “Notes”).
Pistachio trees will be planted in Georgia
Dozens of hectares of Pistachio are planned to be planted in Georgia this year.
Toyota Safety Sense and Hybrid Technology
Toyota Caucasus, has presented two new models the 5th generation RAV4 and the 12th generation Corolla at Rustavi International Motorpark, several days ago.
Bidzina Ivanishvili “became number one oppressor of businesses in Georgia” - ICC Georgia chairman Fady Asly
Mr. Ivanishvili promised the business community to protect them from harassment and pressure, unfortunately his words died with the sunset of that day
The best brands of Belarus will be exhibited on a large-scale exposition in Tbilisi
"The Belarusians like to come to Georgia to relax near the sea in Batumi as well as to stay in sunny Kakhetia."
Don’t treat business like a hooker! - Georgian businessman Vasil Soprpmadze addresses politicians
Businessman Vasil Sopromadze, founder of the company "Fresco", addresses politicians
RAV4 No Compromise and Corolla Set to Impress – Two New Cars Presented by Toyota
Toyota Caucasus, the company constantly aspiring to greatness, has presented two new models the 5th generation RAV4 and the 12th generation Corolla.
Mamuka Khazaradze quits TBC bank, does not sell the TBC Bank share
I made a decision to leave TBC bank where I spent 27 years of my life
10 Reasons to buy an apartment in the suburbs
There is a tendency for Tbilisi dwellers to move from central parts of the capital to the suburbs.
Georgian citizens are granted the right to work in France
The French Embassy in Georgia made remarks on granting Georgian citizens the right to work in France
The New York Times: Bitcoin declines but Georgia still bet on it
The New York Times has recently published an article about reasons, challenges and causes of generating Bitcoin in the former Soviet country Georgia.
EU to allocate € 13 billion for Eastern Partnership countries, including Georgia
The European Union together with the World Bank plans to allocate investment worth € 13 billion for infrastructure projects in the Eastern Partnership countries.
Anaklia Port and its importance for Georgia
In 2016, Anaklia Development Consortium was authorized to launch the construction of Anaklia Port.
Cryptocurrency mining threatens electrical network in Abkhazia
In the breakaway region of Akbhazia rampant cryptocurrency mining is threatening the shaky electrical network, reports an article of the news portal EuroNet.
Caucasus Wine University to be opened in Gurjaani
In the Kakheti region a new viticulture campus of the Caucasus University is in the process of planning.
Photos describing life of the poorest in Georgia
Fight with poverty should be among top priorities of every government in every country.
Training farmers to rescue the organic hazelnut production in Georgia
Even drizzling rain and unpleasant gusts of wind can’t prevent the farmers from coming and participating in the agricultural training.
Bleak times for organic farmers in Georgia – but there is hope
Organic hazelnut production is a delicate plant in Georgia that has emerged just a couple of years ago. Various pests, among them the Asian stink bug Parosana, trouble hazelnut farmers and menace their livelihood – even before their businesses could really take off.
Hybrid car imports are going through the roof in Georgia
Thanks to their fuel economy, the popularity of hybrid cars is increasing in Georgia, where fuel affordability is low and prices for fuel are unstable.
The New Year offer from MAQRO Construction - Apartments with unbelievable discounts and the parking spaces for FREE!
Location, green yard, spaces for various needs, experience of the construction company and parking space are the main important criteria for potential buyers of apartments.
Interview with the co-founder of Kiwi Vegan Café – the first vegan place in Tbilisi
Behind the Kiwi Vegan Café stands a group of activists who wants to raise Georgian’s awareness for animal rights and welfare.
PHOTO OF THE DAY
GEL Exchange Rate
Convertor
21.04.2019
22.04.2019
USD
1
USD
2.6935
2.6935
EUR
1
EUR
3.0291
3.0291
GBP
1
GBP
3.5021
3.5021
RUB
100
RUB
4.2126
4.2126
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange
USD
1
USD
2.6935
EUR
1
EUR
3.0291
GBP
1
GBP
3.5021
RUB
100
RUB
4.2126
April 2019
Mon Tue Wed Thu Fri Sat Sun
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30