“We plan to put into normal operation the Kukes airport and build a new airport in southern Albania which will mainly serve the tourism industry,” says Transport Minister Haxhinasto
TIRANA, April 1 – The Albanian government says it is in its final stage of negotiations with the TIA concessionaire over lifting its exclusive rights on international flights to pay the way to the operation of the new United Arab Emirates-funded Kukes airport in northeastern Albania and the construction of a new airport in southern Albania serving the tourism industry.
Speaking at the launch of two new direct flights to Paris and Brussels, Transport Minister Edmond Haxhinasto said Albania needs new airports to develop its economy and especially the rising tourism industry.
“We are in the final stage of negotiations with the Tirana International Airport over the issue of exclusive rights. We plan to put into normal operation the Kukes airport and build a new airport in southern Albania which will mainly serve the tourism industry,” said Haxhinasto.
TIA CEO Rolf Castro-Vasquez, says the concessionaire which holds a 20-year exclusiveness on international flights is positive about allowing international flights from other airports in Albania.
“Tirana International Airport stands on the side of development and the future of air transport. We are open to discussion and we are positive,” he has said in an interview published on TIA’s website.
Almost one year after the bankruptcy of Albania’s Belle Air which controlled more than half of the Albanian market, Italy’s Alitalia and its Air One subsidiary have gained control in the Albanian air transport market.
From a market share of only 9 percent at the end of 2013, Alitalia, which has now phased out its Air One brand, has increased its market share to around 40 percent, reports Italy’s ANSAMed agency.
While several new airlines have entered Albania after the bankruptcy of Belle Air in late 2013, ticket prices to European destinations remain high for a country such as Albania where GDP per capita is among the lowest in the region. The bankruptcy of Belle Air, which had a market share of around 50 percent and was considered a monopoly, temporarily lowered ticket prices especially because of the entrance of new carriers targeting to gain market shares. However, tickets to European destinations, mainly Italy, where most Albanians travel, are back to their previous levels ranging from 100 to 150 Euros for a single ticket.
Experts and airline carriers blame the situation on the high tariffs charged by the Tirana International Airport (TIA) concessionaire, which has been in charge of the airport since April 2005 under a 20-year concession contract.
The tariffs are considerably higher compared to regional countries and even some EU countries.
With ten years having already operated TIA, the concessionaire retains the exclusiveness of international flights in Albania which is barrier for the opening of new airports in Albania.
Since April 2005, the airport has been managed by TIA, a consortium led by Germany’s Hochtief AirPort GmbH (HTA), one of the leading private airport investors in the world, which has won a 20-year concession to be in charge of the airport’s activities.
However, in May 2013, Germany’s Hochtief, which has majority stakes in leading airports in five countries, including Albania’s Tirana International Airport (TIA) sold its shares to Canada’s Public Sector Pension Investment Board (PSP Investments) for Euro 1.5 billion.
Passenger numbers at Albania’s sole international airport, slightly recovered for the second year in a row but stood below their peak level in 2011 soon after Albania was granted visa free travel.
Passenger numbers at TIA slightly rose by 3 percent to 1.81 million in 2014, but was down by 0.4 percent or 6,770 passengers compared to the airport’s most successful performance in 2011 soon after the visa regime in Schengen area was lifted for Albanians in December 2010.
