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AIR TRANSPORT EXPANSION

A ccording to FlyGeorgia chief executive BijanMougouee, when Georgia started ‘open skies’competition broke out and flag-carrier Georgian

Airways lost a big part of the market.“Turkish Airlines, Pegasus and so many others began to

dominate the Georgian market. Georgian Airways, whichhad been privatised, was not really suited to cope with thatcompetition,” said Mougouee.

Rather than taking the airline back under its wing, thestate opted to strengthen the private sector by encouragingnewcomers such as FlyGeorgia.

The start-up’s ownership structure is admittedly hazy, butMougouee stressed that the Government has not taken aholding in the carrier. “The Government only supports us interms of not creating barriers,” he affirmed. “That’s morethan enough.”

FlyGeorgia operates a fleet of two Airbus A319s and oneA320, giving the European manufacturer a foothold in amarket that has traditionally favoured Boeing aircraft. All ofthe Airbus jets are on operating leases of around five yearsand there are no immediate plans to place new orders.

Hub developmentHowever, with FlyGeorgia spying long-term hubdevelopment – “we have a clear strategy of connecting southto north via Tbilisi” – Mougouee said that smaller regionalaircraft might eventually be introduced.

“We are looking into the possibility of 50-70 seaters,” heconfirmed. “In order for us to do the hub concept, thesewould serve regional areas as a feeder for our Airbuses… Butit’s too early to say what type of aircraft we will use. Alloptions are on the table.”

One possibility would be utilising Georgian Airways’smaller Bombardier CRJ100s and CRJ200s under codeshareagreements. Mougouee explained that the two carriersalready have codeshares in place and are firmly focused on“cooperation rather than direct competition”.

FlyGeorgia’s early route development embodies thispreference for complementary traffic. The airline withdrewfrom Amsterdam in order to avoid cannibalising demand forGeorgian Airways’ pre-existing service. It also codeshareswith its older brother on flights to Erbil in Iraq and Sharm elSheikh in Egypt, and will do the same when GeorgianAirways launches flights to Baghdad.

But, while avoiding head-to-head competition with otherGeorgian carriers, it has not been shy about tapping intounder-served markets. FlyGeorgia now flies to Brussels,

Georgia on theirminds

FlyGeorgia began operations in August 2012 with backing from TASC Aviation, the Dubai-based consultancy

wing of Airbus. Though privately owned, the start-up underscores the Georgian Government’s commitment to

transforming capital city Tbilisi into a major hub for the Caucasus. Martin Rivers reports.

Dusseldorf and Kiev in Europe, as well as Dubai, Tehran andCairo.

Other Middle Eastern destinations are being considered,Mougouee said, singling out discussions with airports inSaudi Arabia and Kuwait. But he emphasised that significantexpansion is unlikely to come before the latter half of 2014.

Two possible exceptions are London and Delhi, whichwould strengthen transit flows through Tbilisi. Flights to theBritish capital had been planned as early as this summer, butwere still being considered as Arabian Aerospace went topress. “We know that it’s going to be a very profitable route,”Mougouee said. “We’ve already held talks with Luton andStansted.”

With a population of just 4.5 million, Georgia’s modestorigin-and-destination traffic may strengthen the case for amerger between FlyGeorgia and Georgian Airways.Mougouee admitted that “eventually” that could happen,though he said it is “too premature” to discuss at this stage.

“We have a lot of ideas. The extent to which they can befulfilled depends on the development of foreign relations, themarket, the economic situation and, of course, the politicalsituation as well,” he concluded. “These will all affect ourfuture roadmap. We are targeting a lot of things, but whileyou are developing you should not be too demanding.”

“The Governmentonly supports usin terms of notcreating barriers.That’s more thanenough.”BIJAN MOUGOUEE

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