A combination of austerity programs, high fuel prices and EU restrictions of state aid are combining to limit air travel across Eastern Europe, according to news service Bloomberg. The article leads with story of a business traveler trying to get from Prague to Sofia and facing connecting flights and high prices after Czech Airlines stopped direct connections between the two capitals. According to Bloomberg, it's the same across Eastern Europe as airlines are forced to axe more and more routes due to the current market conditions.

The situation is far from improving, with state owned airlines in the region struggling as public funding dries up. Investors are not exactly beating down the door either, with a combination of poor profitably and inefficient management of the region's carriers keeping them away. The big Western European airlines, such as Air France/KLM, British Airways/Iberia and Lufthansa are also unlikely to buy Eastern Europe's national carriers, as they are busy trying to reduce losses, not make acquisitions, according to Bloomberg.

Analysts quoted in the article predict more airlines in the region going out of business, like Hungary's Malev did in early 2012, and although other airlines may step in, as Ryanair did in Hungary, the less profitable routes are almost certain to be cut.

It all adds up to less options and perhaps less affordable choices for air travel across Eastern Europe. The Bloomberg article makes no specific reference to Romania, but the national carrier Tarom could be included in the list of “vulnerable” airlines. After a few hitches along the way, the Romanian authorities recently installed private management at Tarom in an attempt to turn the company's fortunes around, before privatizing it.

Read the Bloomberg article.

editor@romania-insider.com

(photo source: Tarom)