 |
| Tirana International Airport |
Interview with Shefqet Kastrati, president of Kastrati Group, source: Monitor
Tirana International Airport has carried out over 55 million euros in investments and can expect to accommodate 10.5 million passengers per year.
Over 5.3 million passengers flew to and from Tirana International Airport during January-September of this year. According to INSTAT data, this figure is 37% higher than the same period a year ago, surpassing the total circulation for the entire year of 2022.
A significant portion of the passengers were foreigners, as the country is becoming an increasingly preferred tourist destination.
"Low prices and numerous destinations are what influenced the increase in tourism this year," says Kastrati Group, the largest group in the country, according to revenues, in a special interview for Monitor.
The large influx of tourists did not find the airport unprepared. Mr. Kastrati states that Tirana International Airport has carried out over 55 million euros in investments and can expect to accommodate 10.5 million passengers per year.
An ambitious plan, which has been a long-standing dream of the company, is the direct connection with North America.
"In December, we start the project for the extension and refurbishment of the runway, which is expected to be completed in the summer of 2025 when the airport will be ready to welcome transoceanic large aircraft.
The first planned route will be Tirana - New York, and soon after, it will be followed by the expansion of other routes to the USA and perhaps even to Canada."
How has TIA performed during 2022 and the current part of 2023? If you can provide some summary figures (total revenue, financial result, investments, employees, etc.).
As previously announced, Tirana International Airport has marked a significant growth in recent years, due to numerous investments, a noticeable increase in airline routes, and consequently, an increase in the number of passengers.
The year 2022 was successful, surpassing even our predictions, reaching a figure of 5.2 million passengers, 55% more than in 2019, considered one of the best years and a benchmark in the aviation industry. The increase in the number of passengers has continued in 2023, and we expect to conclude another successful year.
With the recent investments made in this airport by Kastrati Group, mainly for the expansion of the terminal, capacities to accommodate up to 10.5 million passengers per year have significantly increased.
The level of investments until the end of 2023 is expected to exceed 55 million euros, thus fulfilling more than half of the entire investment package stipulated in the concession agreement.
Tirana International Airport has significantly enhanced all services, offering more comfort and better quality for passengers.
As a result, the number of employees has also increased. From 627 employees at the beginning of 2022, this number increased to 849 by the end of the year. The growth continued throughout 2023, predicting that by the end of this year, TIA will have 1000 employees. Adding the maintenance staff who are subcontractors to TIA, the number of employees reaches 1300.
An important factor in the growth was the addition of airline routes. During this year, well-known international companies began operations, such as Iberia with direct flights to Madrid, Transavia to Amsterdam, Air Baltic to Riga, and the giant Air France to Paris. An exceptional success was also the start of operations by the low-cost company, Ryanair, with 17 destinations and over 200 weekly frequencies.
The significant expansion of cooperation with companies of this level is a strong vote of confidence in our work as investors, the efficiency of operations, and the potential of the airport.
The substantial operational expansion and the new services offered by Tirana International Airport have also influenced the extraordinary increase in the number of tourists visiting Albania. The summer season was surprising, bringing a doubling of the number of tourists as well as revenues from tourism to the Albanian economy compared to a year ago.
Albania has recently become a tourist destination that has also increased the volume of airport activity. How prepared were you for this influx, and based on ticket bookings, what do you expect in the coming period?
The increase in passenger volume was not unexpected. We started our work with clear goals. Aviation is an industry that requires prediction and preparation at least 1 year in advance.
We took the necessary time to look at performance statistics and study trends to anticipate this volume, to dignify facing the continually increasing flow of passengers. I believe we have done very well. We understood that investment in infrastructure and technology was necessary, so we did not hesitate to install 20 e-gates, which reduced queues at border crossings.
We also installed state-of-the-art scanners from Rapiscan, significantly easing queues at security checks. This came with an increase in staff and their training in record time. All these steps helped us be ready to face the challenge of peak months.
It is worth noting that Albania has become a tourist destination as a result of the increase in airport activity. This growth came after agreements with low-cost airlines, and Tirana's presence as a destination on the lists of these routes is the most valuable and concrete marketing that can be done for a country.
Airfare prices have increased in 2023 compared to previous periods when they dropped to 20 euros for a one-way trip. Why did this happen, and how do you expect the trend to continue in the future?
Global crises that led to an increase in fuel prices were reflected in the rise in prices for almost everything worldwide. The aviation industry, for which fuel is a significant cost, was no exception.
However, fortunately, Albania has maintained prices much lower than the global level of price growth.
Compared to airports in the region, the average ticket price for Tirana is 30% lower, despite the demand and the number of passengers at Tirana Airport being twice that of the airports in Western Balkans, excluding Belgrade.
Increased competition at TIA, I believe, will affect maintaining prices at lower and more affordable levels for the citizens of Albania as well as for foreigners. I strongly think that low prices and numerous destinations are what influenced the increase in tourism this year.
Prices
Global crises that led to the increase in fuel prices were reflected in the rise in prices for almost everything worldwide. The aviation industry, for which fuel is a significant cost, was no exception. However, fortunately, Albania has maintained prices much lower than the global level of price growth. Compared to airports in the region, the average ticket price for Tirana is 30% lower, despite the demand and the number of passengers at Tirana Airport being twice that of the airports in Western Balkans, excluding Belgrade.
How much of a problem has it been for you to find qualified workforce, and how are you solving (if you are) the issue of staff shortage?
Tirana International Airport has continuously had a qualified staff. Also, the policies of the group and TIA itself for employment are very good.
TIA is a very attractive company for employment. The recruitment process is modern and comprehensive, with financial packages that have been revised three times by Kastrati Group since we took over, positively influencing. Also, we offer valuable training for staff, contributing to our stability.
What are some of the airport's plans for the future?
Kastrati Group has ambitious plans for Tirana International Airport, and I am happy to share them with the public through this interview.
I would start with news that arouses much interest and seems like a dream that we are working to make a reality, the direct connection with North America. In December, we start the project for the extension and refurbishment of the runway, expected to be completed in the summer of 2025 when the airport will be ready to welcome transoceanic large aircraft.
The first planned route will be Tirana – New York, and soon after, it will be followed by the expansion of other routes to the USA and perhaps even to Canada. Direct connection with America will greatly impact the increase in tourism from visitors beyond the Atlantic, but more importantly, it will facilitate the visits of the Albanian diaspora to their home country.
The enthusiasm we have received from Albanians in America for this plan has turned it into a mission to realize this long-standing dream.
We are working in parallel with the Civil Aviation Authority to obtain approval from the FAA, making Tirana finally part of the One Stop Security airports, meaning that when travelers fly from Tirana to another country, they will not need to go through controls again at other transit airports.
Also, with the completion of the new terminal, there is space to add other soothing environments to improve the traveler's experience at TIA. Tirana International Airport aims to offer a positive experience for foreign and domestic travelers through continuous improvements in technology and infrastructure.
Towards the construction is Vlora International Airport. How is its commencement expected to impact the operations of TIA?
The construction of Vlora International Airport will be a further development in the aviation and tourism industries. It is a valuable contribution added to our efforts to elevate Albania to international standards.
The initiation of flights to and from Vlora will increase the influx of visitors to Albania, consequently positively influencing Tirana International Airport. The primary focus of these airports will be the growth and enhancement of the overall market, increasing capacities within the country.