New routes and frequency possibilities and why these routes would work
Budapest Airport is keen to discuss vacant and viable routes with the airline community to continue to take advantage of the market opportunities which exist to and from Hungary.
Our Commercial Business Unit is committed to developing business in partnership with our customers. We believe we can provide airlines the opportunity to grow at our airport, where we are attracting a faster growth rate in international tourists than ever before and outpacing many near neighbours.
Other Major reasons to serve this airport
- The capital city of Hungary, Budapest is a buzzing cultural and significant business centre. Budapest is the 4th most preferred destination for conferences and meetings worldwide, according to the Global DMC Partners. Budapest Airport has direct connections to almost all regions of Europe and as interest grew in Hungary, the country responded with beautifully renovated upmarket hotels, stunning cultural facilities and huge conference centers.
- Budapest Airport is the most important international airport of the country serving 16.2 million air passengers in 2019 but also offering a landlocked catchment of 14.4 million people within an achievable radius. Hungary is both a full member of the EU and part of the Schengen group of counties thereby providing easy access to the wider European market.
- The ongoing developments at Budapest Airport, spending 800 million Euros by 2024 in expanding and modernising the airport’s infrastructure, assuring the highest service levels for both passengers and business partners. Testimony to the delivery of best-practice in all areas of customer experience, the airport holds the Skytrax Award for ‘Best Airport – Eastern Europe 2019’ for the sixth consecutive year.
- World famous hospitality, food and wine await visitors in Hungary. The tradition of winemaking goes back to the Celts in the 3rd century. Hungary has 22 distinctive wine regions each with their own characteristic wines.
- Hungary has 1,289 thermal springs, 39 thermal baths, five healing caves, 48 different varieties of high-quality mineral water, and 136 healing springs. Budapest is the only capital city in the world with close to 100 thermal springs and 12 medical baths within its boundary, where 19 million gallons of thermal water rise to surface each day. Some of the most famous baths are remains of the Turkish occupation in the 16th century.
- Lake Balaton, “The Hungarian Sea” is the largest lake in Central Europe and holiday resort that draws visitors from all over the world. The summer water temperature is around 20-26C and is recommended for nervous complaints, anaemia and nervous fatigue.
- With the Hungarian economy and tourism improving over the last few years and GDP forecast to grow faster than the expectations of the EU27 in the next 5 years it is an ideal time to consider Budapest for your network development.
- Home to the Hungarian Grand Prix for almost 30 years, Budapest enjoys a growing appreciation amongst sport enthusiasts with its growing range of improved stadium- and swimming facilities.
- Lastly, innovation is in the DNA of Hungary; from the creator of the Rubik Cube to great software programmes such as prezi.com, many multi-nationals are setting up in Budapest with regional centres and R&D facilities to optimise the great talent and good value labour costs in the Hungarian market. While it remains out of the Eurozone more air connections are sought for corporate travel.
In case of a seasonal operation to Budapest two discounts are applicable. On one hand side, landing fee discount, 50 percent in the first and 25 percent in the second year. On the other hand, a 50 percent discount on Passenger Service Charge in the first year.
Marketing and other support
Incentives
The new tariffs package is one of the initiatives launched by Budapest Airport to develop its network. It contains a five-year incentive scheme that supports airlines in launching new flights and expanding the frequency of their existing year-round and seasonal flights with significant discounts.
If an airline decides to add a new short haul destination to the list of cities not accessible from Budapest Airport, it can request a full credit of landing fees after the first year, and receives a 75 percent discount in the second, 50 percent discount in the third year, 25 percent in the fourth and 10 percent in the fifth year of operation . Moreover, 50% of the Passenger Service Charges will be refunded at the end of years 1,2 and 3, if the frequency of the direct air service is between 2-4 flights/week (’thin route’)
Airlines launching long-haul flights (>4.5 hours) will receive an exemption from landing charges in the first and second year, a discount of seventy-five percent in the third and then 50 and 25%.
Beside the discount on landing fee a 50 percent reduction on the Passenger Service Charge in the first year of operation is also applicable for long-haul flights.
Airlines undertaking to increase the frequency of already operating year-round and seasonal flights between Budapest and an existing destination will receive a full refund of landing fees for the additional flights after a full period of operation.
As of summer 2020 the discounts are only applicable for off-peak operation as per the Tariff Manual 2020.
Incentive schemes to reduce airlines commercial risks
| Landing Fee Discounts | |||||
|---|---|---|---|---|---|
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
| New routes (<4.5 h) | 100% | 100% | 75% | 50% | 25% |
| New routes (>4.5 h) | 100% | 75% | 50% | 25% | 10% |
| Routes recovered | 100% | 50% | - | - | - |
| New frequencies | 100% | - | - | - | - |
| New seasonal flights | 50% | 25% | - | - | - |
General principles:
- Off-peak operation is a must
- At least 2 weekly flights, year round operation
- New route: no flights to airport system one season prior to launch
- New thin route: no flights to airport within 100 km at launch, total flights 2-4/week
- Route recovery: route abandoned by another airline plus above criterias
- Retroactive crediting
| Passenger Service Fee Discounts | |||||
|---|---|---|---|---|---|
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
| New thin routes (2-4/week) | 50% | 50% | 50% | - | - |
| New routes (< 4.5 h) | 50% | ||||
| New winter destination | 50% | ||||
| New seasonal flights | 25% | ||||
| Turnaround productivity incentive | |
|---|---|
| Index from | % discount of PSC |
| 3.1 | 4% |
| 3.2 | 6% |
| 3.3 | 8% |
| Over 3.4 | 10% |
Turnaround index = average departing pax number/12-month average (mean) parking time
| Seat load factor incentive | ||
| LF from | LF to | % discount of PSC |
| 90% | 92.4% | 10% |
| 92.5% | 100% | 20% |
- All operational incentives are applicable in case of min. 50 000 pax/annum
- Max. incentive is capped at 4.50 EUR/departing pax
- PSC*: passenger service charge, including bag-fee, is 26.93.EUR (standard gate) or 24.39 EUR (basic gate)
- Please, see the Tariff Manual for more details regarding the basic boarding gate.
Supporting Tools
Budapest Airport identifies and addresses our partners’ needs in order to stimulate and accelerate their growth. To satisfy our airline clients, we run a marketing and airline development team dedicated only to our partners, which can react in the quickest and most effective way to the challenges of the quickly changing market of aviation. Our extensive marketing support is always available to assist airlines in their business development by implementing a wide range of targeted and value-for-money tools.
- Airport research
To ease the work of the airlines, Budapest Airport makes objective surveys amongst passengers quarterly. The surveys are filtered by airlines, destinations and randomly. The results are published quarterly and can be retrieved by airlines operating to Budapest in the password-protected area of Budapest Airport’s website. The survey provides relevant information among others of demography, purpose of journey, ticket purchasing and booking process, flying habits of customers. - Aviation Databank
Traffic statistics are made available on monthly basis to our airline customers in the Aviation DataBank. To access, simply visit the B2B section of www.bud.hu, using your username and password provided. - Charges Calculator
Airport charges as well as incentives can be calculated online using the Charges Calculator. This supports a quicker planning, while also assists in solving the daily operative tasks. To access, simply visit the B2B section of our website, www.bud.hu. - Fare data
BUD have paired up with RDC Aviation which provides online fares on all online flights available on airlines webpages.
Promoting Routes
Corporate work for collective success Budapest Airport believes in collective success achieved together with partners. So we support airlines that perform outstandingly with our unique and efficient marketing assets locally and in the markets of the “catchment area”.
- Airport advertisements
New airlines, new routes and airlines with increasing routes or frequencies are given free advertising places at the airport. - Digital solutions
The airlines of Budapest Airport have the opportunity to advertise at the official homepage of the airport (www.bud.hu) and created especially for showing the specific flying offers from the airlines. The airlines can keep their current offers up-to-date by using their own log-in codes. - Newsletters – B2B and B2C
We deliver current news and information on our flights to our potential passengers via regular e-newsletters. Database already exceeded the 1.5 Mio subscribers - Promotional campaigns in Hungary and in the catchment
We promote the products and services of our partners with targeted media campaigns in the local area and in our wider catchment area. Especially destinations with the so called ‘Destination campaigns’. - Press & communications
We support new services of our airlines with up-to-date PR, press releases and spectacular flight opening ceremonies to achieve maximum coverage online and offline. - Partner events
On gatherings for travel agencies and tour operators we provide the opportunity for our airlines to represent their latest services and offers. With these evening presentations formed in roadshows we would like to support the popularization of scheduled flights among the travel agencies in Hungary and the surrounding countries.
Budapest Airport is also working with the National Tourism Agency to establish possibilities of promoting new services in the foreign markets.
Click image to enlarge
Click image to enlarge
Click image to enlarge
Catchment Area
Hungary is the most frequented country of the CEE region. Because of its excellent situation and progressive, developed infrastructure, it is the most easily accessible area in the region.
Budapest Airport is located along the M0 Motorway. This circular connects the airport with every other motorway (M1, M3, M5, and M6). In addition to having direct access to a first class road network, bringing seven immediate neighbouring countries (e.g. Slovakia, the Ukraine, Serbia, Romania and Croatia) to within easy reach, Budapest also has access to a further 20 European markets within 1,000 km.
Budapest Airport is the most significant airport of Central and Eastern Europe: no other international airport can be found within 1,000 km east of Budapest. The catchment area of Budapest Airport goes beyond the boundaries of Hungary and reaches many cities in Slovakia, Serbia, Croatia, Romania, the Ukraine and even the eastern corner of the Czech Republic.
Budapest Airport is in the very heart of Central and Eastern Europe with the catchment area of:
- 3.2 million people within less than one hour
- 4.7 million people within 90 minutes
- 7.9 million people within two hours
- 14.4 million people within three hours
- 19.4 million people within four hours
Budapest Airport has started an extensive market research collecting information about the profiles of air travellers (this first-hand market information would be available to potential airlines).
According to the four catchment areas the following cities hold the most business entities:
- 60 min: Kecskemét and Cegléd
- 90 min: Szolnok, Kiskunfélegyháza, Jászberény
- 120 min: Szeged, Eger, Szentes
- 180 min: Debrecen, Nyíregyháza, Hódmezıvásárhely, Orosháza, Hajdúböszörmény and Makó
- 240 min: Békéscsaba, Gyula, Kisvárda, Nagykőrös
Under-served freight opportunities and other economic impact factors
Budapest Airport Cargo
BUD – the ideal cargo heart of Central Eastern Europe
- Great geographical location in Central and Eastern Europe to be regional distribution hub
- Extensive road (highway) network to 20 (EU and non EU) countries in trucking distance, the airport has direct highway connection
- Developing local air cargo related industries
- EU and Schengen zone membership,
- 24/7 operation with ability to handle all, Category D, even E and F aircrafts; two independent Runways, always available apron capacities,
- Flexible and co-operative Airport Operation Team and Air Control Authority, 24/7 customs clearance, bonded warehouses
- Favorable cargo handling prices and professional handlers, low operating costs
- Very favorable incentive scheme for landing charges (e.g. 100% discount in the first year of operation for a new cargo route)
- Continuously expanding freighter, belly cargo and integrator network
The Industries in Hungary
The combination of a perfect geographical location within Central Eastern Europe and existing and rapidly growing electronics, automotive, pharmaceutical and biotech industries is the cornerstone of the successful development of the air cargo business. International brands with air cargo relevant manufacturing or logistic distribution units in Hungary:
Contact
Jozsef Kossuth / Cargo Manager
Budapest Airport Zrt.
Telefon: +36 1 296 6264
Fax: +36 1 296 5578
E-mail: jozsef.kossuth_pu@bud.hu
Geography
- Budapest Airport is 20 kms from Budapest city centre. Terminal 2 is located right next to Motorway 0.
- Motorway 5 – linking Budapest with Szeged, the largest city of Southern Hungary – is about 25 minutes from the airport.
- Budapest Airport is served by the public transportation (100E, 200E) and public bus company, a minibus service and an official taxi partner.
TERMINAL EXTENSION: PIER B
AIRPORT HOTEL
CARGO CITY
PIER 1
Infrastructure & Operations:
- Airport size: 1515 hectares
- Runways:
- 13R-31L: 3010×45 meters
- 13L-31R: 3707×45 meters
- Runway capacity: 60 ATMs/hour.
- Current aircraft movements: 24/hour in peak period.
- Terminal 2:
- Check-in counters: 74 pc
- CUSS kiosks (self-check-in): 30 pc
- Departure gates: 31
- Passenger bridges: 10
- Bus gates: 25
- Walking departure gates: 15
Important infrastructure developments
BUD:2020 Development Plan
Keeping pace with exceptional passenger growth and fantastic results, Budpest Airport has launched its large-scale modernization program called BUD:2020. Important elements of the program include the so-called Pier B terminal extension, and airport hotel, car parks, cargo and logistics facilities and environmental projects.
Vital statistics (2016)
- 16.2 million passengers, 60% increase compared to 2015
- 11 months in 2019 with more than 1 million air pax
- 81% load factor in 2019
- 122,814 movements, 6.8% increase compared to 2018
- 135,521 tons cargo
