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Rzeczpospolita - Poland | Friday, August 10, 2012

Budget airlines not profitable in Poland

The failure of the budget airline OLT Express has sparked a discussion in Poland about the profitability of domestic flights. Cheap flights basically don't pay off in Poland, writes the conservative daily Rzeczpospolita: "Hundreds of thousands of Poles snatched up the tickets for 99 złoty [roughly 24 euros] offered by the insolvent OLT Express. This offer by the high-flyer among the airlines was no doubt fantastic for customers. However the company's quick bankruptcy should now confirm the message that representatives of the sector have been endlessly repeating: budget carriers simply can't get off the ground in Poland. According to expert analyses, a domestic ticket has to cost at least 200 złoty [roughly 50 euros], to be profitable. That is significantly more than the price offered by OLT, and is more or less comparable to railway prices."

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