Low fares airline Blue Air which is based at Bucharest Baneasa airport is to launch scheduled flights from Cyprus to Romania next March. Blue Air new service from Larnaka to Bucharest will commence on Sunday 30 March 2008 with direct flights operating three times per week on Tuesdays, Thursdays and Fridays. Flights from Bucharest to Larnaka are also planned on Mondays, Wednesdays and Fridays.

Florentina Ivan, Marketing Director for the Blue Air, commented: “Wishing to offer to its passengers as many reasons of joy as it can, Blue Air, the low cost leader in Romania, introduces its 28th destination, Larnaka. Following numerous requests received from Blue Air passengers, we have decided to operate flights to and from Larnaka, one of the most attractive destinations in the east Mediterranean.”

Henry de la Monneraye, Acting CEO for Hermes Airports Ltd said: “We are very happy to welcome to the Lanarka International Airport this Romanian low cost airline. We strongly believe that the new service of the Blue Air will also be very welcomed by travellers”.

An international airport with an annual capacity of one million passengers will be constructed in two years, at the most, in the central locality of Ghimbav, close to the city of Brasov. The investment will total 100m euros. The registration act of the company International Airport Brasov Ghimbav was signed last week at the Brasov County Council. The works are likely to start in 2007 and will take 18 months. “The airport, having a capacity of one million passengers a year, is designed for the landing and take-off of medium size aircraft,” said Ioan Toma, representative of the Canadian company
“Intelcan,” holder of 64.3 per cent of the airport’s administration company. Both the passenger and the cargo terminals will have a modular structure, allowing further extension in the coming years. The airport will cover 65 hectares that were made available by the purchased of the lands placed at the Canadian Company Intelcan Technosystems Inc. disposal. This one is also the majority shareholder of the company that will administer the Brasov-Ghimbav International Airport, holding 64.3 percent of the shares. Other stakeholders include Brasov County (20 percent), the city of Brasov (10 percent), and Covasna and Harghita counties as well as the city of Ghimbav, which each hold a five percent stake.
According to a decision of the Brasov County Council, Intelcan is responsible for implementing the project for a fixed cost of 76 million euros within 18 months from the time works begin. Moreover, the Canadian company is responsible for obtaining the necessary financing. Intelcan will operate the future airport together with Ottawa International Airport. Local authorities from the three counties will coordinate infrastructure and utilities works for the airport. The airport location was chosen due to the local economic development and the need for companies to ship export goods by air.

Moreover, the distance from Brasov to other international airports in Romania is relatively far.
Intelcan is a world leader in air traffic management systems and has clients in 60 countries. On Monday, 14th November 2005, the papers were signed for the turning up of the administration society for the new Airport in Brasov. A delegation of IntelCan Company, managed by its president, Mr. Roland Weinsberger, arrived in Brasov on 14th November in order to sign up the papers for turning up the administration society for the Airport in Brasov. For the 1st phase, the Canadians will
own 51% and the District Council will own 49%. The president of DC Brasov, Aristotel Cancescu announced that, after a while, they will make over part of the stocks to the District Council from Harghita and Covasna or to the Local Council Ghimbav. Cancescu also underlined that, at the moment, Brasov needs a medium airport, the costs being estimated at 100 million dollars. Mr. Cancescu affirmed that they would lend the necessary money without governmental, district or
local guarantees. The expectations are to start the works for the airport by the end of his mandate and to be over by 2009, as the Canadians say.

Ford is buying a majority share in a car plant at Craiova, Romania. The plant is expected to become one of its biggest plants in the European Union. The factory was previously operated by Daewoo of Korea.

John Fleming, president of Ford of Europe, said last week that its due diligence had been completed and a price agreed

The factory, which started life making versions of Citroën cars and was taken over by Daewoo in 1994, has a capacity of 300,000 cars a year and the attraction for Ford is that it can make engines and transmissions as well as cars and has a fully trained workforce.

The size of the bid has not been declared but Ford is expected to invest €675m (£457m) in the factory.

Fleming said it would take 12 to 15 months from completion of the sales agreement to adapt the plant to produce a series of Ford models.

Carmakers are flocking to Romania to take advantage of labour rates.

Wizz Air has announced the launch of a new service between Liverpool John Lennon Airport and Bucharest.

Flights to the Romanian capital will start on October 1 and operate three times a week, joining the existing service from Luton Airport that launched earlier this year.

At the same time Wizz Air will begin services to Palma and Valencia from Bucharest, as well as increasing the frequency of flights to Romania from both Luton and Rome in the summer.

Wizz Air, the largest low-cost operator in Eastern Europe, has looked to establish itself in the UK and is set to bring a number of new routes to Poland from Coventry, Durham Tees Valley, Bournemouth and Doncaster Sheffield airports.

Dutch group Unilever South Central Europe (USCE), known in Romania for the Dove, Rexona and Rama brands posted a domestic business worth 173 million euros in 2006, an increase of around 26% against the 136.9 million-euro turnover reported in 2005.

The company’s net profit margin stood at around 6% in 2006, a slight decline on the previous year, when the profit margin was around 7%. In 2006, the increase in profit in real terms was around 9% (from 9.9 million euros to 10.8 million euros). However, if calculated in RON, the profit stagnated at 36 million RON. USCE representatives did not wish to comment on any of the results.

The domestic branch of Michelin group, the world’s biggest tyre producer, estimates its turnover will amount to about 325 million euros this year, 25% higher than the 260 million euros turnover it made last year.
The regional retail market last year accounted for around one third of the company’s turnover, according to company data. “Our sales in the region (i.e. Romania and the Balkans) account for 30% of our turnover, with exports making up the remaining 70%,” stated Jean-Marc Gebhart, CEO of Michelin Romania.

In terms of market share, the Michelin group estimates it holds around 20% of the market of car, van and truck tyres in Romania and the Balkans.