Filenews 24 April 2022 - by Evagoras Prokopiou
Hermes Airports data shows that in terms of connectivity we are approaching those of 2019 before the pandemic turns aviation upside down. For this year, the data that currently exist shows that 50 companies will operate from 140 destinations and 38 countries, to and from Larnaka and Paphos airports, as Maria Kouroupi, Senior Director of Aviation Development & Communication at Hermes Airports, tells Insider.
The loss of the Russian market for Cypriot tourism is a big blow because the second largest market for Cyprus is lost. It was in this light that all those directly related to the tourism industry rolled up their sleeves and went out hunting from other countries with a focus on the European market and beyond. However, in order to be able to do this, they will have to overcome a major obstacle, that of air connectivity, which is perhaps the only way to create tourist flows on the island.
The decision of the EU to close the airspace of the member-states to Russian flights, creates new data in the air transport of the Old Continent and our country. In Cyprus, the air embargo was announced by the Minister of Transport, Yiannis Karousos. The number of airlines of Russian interests has been increasing since April, a period during which the tourist season is actually starting. Based on last year's experience from April onwards, 12 airlines of Russian interests flew to Cyprus.
According to the first estimates of the Ministry of Transport, the air embargo on Russian aircraft will result in a sharp reduction in passenger arrivals from Russia. In numbers and in the hypothetical scenario that the measure will last, it is estimated that the arrivals of 1,300,000 passengers from Russia and another 300 thousand from Ukraine will decrease. These estimates concern only passenger traffic and not tourist traffic, although the second is the one that will be most affected. Those fully responsible for answering these questions are the people of Hermes Airports.
HERMES AIRPORTS: 50 COMPANIES, FROM 140 DESTINATIONS AND 38 COUNTRIES
Based on the planning so far, this summer 50 companies will operate routes from 140 destinations and 38 countries, to and from Larnaka and Paphos airports, numbers that are close to the corresponding connectivity numbers recorded by Cyprus in 2019, which was the best year in the history of Cypriot tourism, notes the Senior Director of Aviation Development & Communication of Hermes Airports, Maria Kouroupi.
When asked if there are any new additions to routes and companies for this year, Ms. Kouroupi replies that, "There are a series of new routes that cover a large fan of destinations. For the summer season, based on the airlines' planning so far, new destinations such as Pisa, Nuremberg, Salzburg and Bern are being added. At the same time, after two years, destinations such as Belfast, Norwich (United Kingdom), Alborg, Aarhus (Denmark), Trondheim, Stavanger (Norway), Orebro, Norseping, Vexie (Sweden) are added to the already existing routes. The total passenger seats for 2022 are estimated at 10 million (arriving-departing passengers)".
He also mentions that, "the available air seats to and from both countries for this year were about 2 million (arrivals-departures). Despite the fact that this is a significant number, we nevertheless consider that it is possible to fill part of the resulting gap from other markets. Key to this effort is the increase of the occupancy of flights to Cyprus. To this end, we are proceeding to intensive promotion of the destination with the airlines to create demand, while we utilize the incentive plan to the maximum extent possible, constantly aiming at the further connectivity of our country."
As for last year, arrivals from Russia and Ukraine amounted to 600 km. Before the outbreak of the pandemic, tourist arrivals from the two countries reached 900 thousand.
He also mentions that "among the contractual obligations of Hermes Airports is the increase of passenger traffic, but also the enrichment of the connectivity of Cyprus, for which we have been working for the last 15 years. We have a generous Incentive Plan that we have been implementing for a decade to attract airlines. This is a plan that is currently under review and our goal is, in cooperation with the Government, to complete the review as soon as possible, so that we have an important tool in our effort to improve the air connectivity of Cyprus. At the same time, we participate in international forum, where we highlight the destination and present the opportunities and benefits that exist for an airline that will include Cyprus in its destinations. In addition, part of our strategy is to promote Cyprus, which is why we invest in online campaigns that "identify" potential visitors, highlighting alternative forms of tourism or placing particular emphasis on the authenticity of the experiences offered in Cyprus."
The average occupancy of the aircraft last year, based on data from Hermes Airports, was 70% and if this year we manage to raise the percentage to 85% and 90%, this alone without any increase in routes will bring about an additional 200 to 250 km. positions in relation to what we expected and noted that if we manage to increase the occupancy rate by around 10% we may be talking about 300,000 to 350,000 passengers, in tourist arrivals, that is, 30-40% of the traffic we lost from Ukraine and Russia could be "saved". The increased occupancy can also be helped by the energy crisis, since, as Mrs. Kouroupis mentioned, due to the large increases in oil prices, it will be difficult for the companies to add new flights and try to maximize the existing flight schedules, filling the planes.
INCENTIVES FOR AIR TRANSPORT
The purpose of this plan is the reintroduction of air connections, which will contribute to the development of the aviation sector, will support the tourism sector and the economy of the Republic of Cyprus in general. The programme is a reintroduction of an aid measure originally approved by the Commission on 1 July 2020 (SA.57691), which expired on 31 December 2021. Under the programme, the support will take the form of direct grants. The measure is addressed to all interested airlines operating routes to and from Cyprus. The amount of the grant will depend on the occupancy rate of the aircraft (i.e. the number of persons on board divided by the capacity of the aircraft expressed in number of passengers), starting from an occupancy rate of 41% and reaching up to 70%, and will be paid per passenger transported. The aim of the programme is to support airlines in an integrated and impartial manner, in order to restore air services to and from Cyprus and thus achieve the recovery of air connectivity and tourism.
The total cost of the project is estimated at €6.13 million. by the end of June 2022 and is expected to be exploited by 60 airlines. The amount of the grant will be granted on the basis of the criteria set out in the incentive scheme, which is published on the website of Hermes Airports Ltd.
"WANT" CYPRUS SCANDINAVIANS AND BRITISH
The favourite holiday destinations of Europeans for next summer are Greece and Spain but on the high ground for Scandinavians and Britons is also Cyprus, according to the "Holiday Atlas" of TUII the largest travel group in the world.
This year, British holidaymakers prefer Dalaman on the Turkish Riviera, followed by Cyprus, Antalya, Tenerife and Rhodes. As in previous years, the Greek islands are the number one destination for Finns, Danes, Norwegians and Swedes, followed by Mallorca, Antalya and Cyprus.
The omens from the Scandinavian countries and Switzerland are good, said Deputy Minister of Tourism Savvas Perdios, noting that these countries are among the markets that are expected to significantly strengthen the Cypriot tourism industry this year, compensating for some of the losses from Russia and Ukraine.
In statements from Switzerland, Mr. Perdios said that the five markets, namely Denmark, Sweden, Norway and Finland and Switzerland, were in any case among the objectives of the national strategy for tourism, but also qualified as compensation for part of the lost ground due to the loss of the markets of Russia and Ukraine. This means, he added, "that both the demand and the schedule of tour operators are much higher than last year, at levels approaching the levels of 2019 and under some conditions are likely to surpass 2019".
Saying that in Sweden at the end of March Cyprus was the first in bookings from all destinations, Mr. Perdios added that "these reinforce some of our own measurements which say that compared to the first two weeks of the war when internet searches were slightly reduced this has now been reversed by all our markets, except for Russia and Ukraine, there is again an increase in searches for Cyprus. Asked about this, the Deputy Minister of Tourism, said that the number of flights from these countries exceeds the corresponding flights of 2019. As he said, for example Finnair has put flights from Helsinki, while the last time this company had flights with Cyprus was 5 years ago. He added that Norwegian has direct flights from all the capitals of the Scandinavian countries to Cyprus. As far as Finnair is concerned, it announced on March 24th that as of April 10, 2022, direct flights between Larnaca and Helsinki will begin, according to a press release issued by the Embassy of Finland in Cyprus.
At the same time, as he said, Eurowings has direct flights from Stockholm to Cyprus for the first time, while for the first time, we also have charter flights from Bern, Switzerland. According to Mr. Perdios, these flights will be operated between two and three times a week, depending on the company. It is worth noting that in 2019 arrivals from Finland amounted to 24,661, from Norway to 60,782, from Denmark to 40,568, from Sweden to 144,605 and from Switzerland to 67,534.
Finally, Gulf Air expressed its desire to use our country for further expansion to Europe and other destinations. Gulf Air already connects Cyprus with Bahrain, while it also operates flights on the Larnaca – Athens route.
*From the April issue of Forbes magazine
