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- What factors determine the development of the charter flights market?

Over the last few years, the charter flights market has been growing very dynamically (e.g. in 2008 by 40%), regularly increasing its market share in the total volume of air transport. In 2009, almost 3 million passengers were carried on charter flights, which was 15.6% of the total volume of air traffic. The main reason for this is the fact that the air transport market in Poland is still an emerging market, with an anticipated growth of more than 100% in the next decade. It must be noted at this point that charter flights are the fastest growing market because, being a part of holiday packages, it is growing together with the development of outbound leisure travels in Poland. The key to the development of outbound leisure travels is the growth of the purchasing power of people, the affordability of holiday packages (strongly related to exchange rates) and the sense of economic stability (employment in particular). Then, Poles are more and more willing to travel to some more exotic or far away places than their usual destinations (Egypt, Turkey or Greece).

- Are the current changes in the legal regulations contributing to the growth in the charter flights market?

The increased charter flight traffic we have been observing over the last few years, which is an emerging market, determined by the growing volume of outbound travels, is an absolutely natural phenomenon in Poland, not resulting in any way from the so far activities of the regulator. In this area, we are still trying to catch up with Western European countries. Knowing the potential of this market, which is unquestionably the nation's asset, as valuable as its natural resources, the authorities should use this potential as a source of wealth for the citizens and the state (particularly through economic stimuli to create new jobs here, thus generating revenues from levies), which ,in turn, would enhance the purchasing power of the citizens. Then, people would be more willing to buy holiday packages, which normally are not a necessity and which, owing to such projects, would become more and more commonly available.

Unfortunately, the present actions of the regulator aim at completely opposite direction, which may significantly hamper the growth of charter traffic, as well as the entire passenger air transport. For instead of enhancing the development of the market and the related investment projects as the sources of income for the citizens and the state, the regulator is only trying to impose additional levies on businesses operating in this market (i.e. airports, carriers, air navigation service, etc.), in the form of additional taxes or fees, which, by increasing the operational costs of these businesses, must be compensated through higher prices of air tickets. So the regulator's idea is to have the passengers imperceptibly finance the budget deficit. Besides, there have been no studies to evaluate the effects of the new regulations - the impact that the higher price of air tickets will have on the market demand or on the already poor competitiveness of Polish airports and carriers or how many corporate entities or individual passengers will move to the less expensive neighbouring countries. In my opinion, as well as in the opinion of other key players who have signed the appeal of the aviation community to the government, such actions should be immediately abandoned.

- Will the new charter carriers in the marketplace increase the number of flights and destinations?

As I mentioned earlier, the development of charter flights in Poland is the result of growing outbound leisure travels, i.e. holiday packages. It is in fact travel agencies, not charter carriers, which, depending on the situation in the travel market, determine the destinations for charter flights. Only then charter carriers are chosen to operate these flights. The important thing is that carriers should be available in the market on a fair competition basis. The size and the potential of the marketplace is such that there is no doubt it would attract a sufficient number of competitors. On the other hand, the commonly applied principle of reciprocity will ensure a supply of adequately quality-and-cost diversified foreign carriers, licensed in the countries which are holiday destinations from Poland.

Therefore, new charter carriers in the Polish market will not have any effect on new connections or further growth of charter flights. The only difference will be the number of passengers. An important question is whether in return for the access to the marketplace there will be any investment requirement leading to the creation of new jobs and, in long prospect, to the wealth of the society, which, in turn, will translate directly into the number of holiday packages sold.

Looking at the history of charter flights in Poland, charter carriers were started and then went bankrupt. This is because no strategy for Polish aviation has been developed as there seem to be little awareness that by providing accessibility to the country (mobility of people and goods) aviation industry is a strategic part of national economy. Despite all impediments, Air Italy Polska Sp. z o.o. has been operating in the charter flights market for four years now. We'll probably break a record soon. Time will certainly verify which of the charter carriers is going to settle in the Polish market for good. The crucial thing is who will be a dependable and trustworthy partner for travel agents and their passengers. Another important thing is an adequate financial and operational base.

In time, the market will verify all the players. I hope though that more and more flights will be operated by Polish airlines - for the sake of passengers' safety and the best interest of Polish economy. This, however, will depend on the direction of changes in the Polish aviation law.

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Air Italy Polska is a member of Air Italy Group. This carrier operates short and long distance charter flights. Air Italy Polska, with its base in Warsaw, cooperates also with regional airports.

For Air Italy Polska, the principal business guidelines are: keeping high safety standards, on-time performance and quality of services, as well as making sure that our partners do so.