Could you please present Centralwings to our readers? What are your specificities compared to other European LCCs? What do you do better than your competitors?
Centralwings has been operating flights into the UK since February 2005 and into Ireland since October 2005. We operate routes into London Gatwick from Warsaw and Krakow; Edinburgh from Warsaw, Gdansk and Katowice; Shannon from Warsaw; and Dublin from Wrocław, Gdansk and Katowice.  We have carried over 1.9 million passengers since the beginning of our operations. Centralwings operates nine Boeing 737 400s and 300s.  The fleet is serviced and maintained at a certified technical base of PLL LOT.
We offer our passengers all kinds of services to make their travel easier, faster and more low cost. Centralwings gives wide variety of payment methods, by money transfer, cash or credit card. Our passengers are able to choose their seat at the check in and pay less for any excess luggage then in any other low cost airline.
Children aged between 2-16 years old are eligible for a 20 per cent discount when traveling with Centralwings, and there is no charge for infants under 2-years old. Passengers needing to check in excess baggage can pre-book at a discounted rate via the Centralwings website. We also offer two options for travel insurance, group rates, special offers, car rentals, hotels and much more. Our Call Centre is available in five language versions and our Website – www.centralwings.com - is one of the three most popular websites in Poland with more than six million page views per month.
We are the only Polish low cost airline operating from seven regional airports in Poland, carrying people to and from many attractive destinations all over Europe.  We know the market and we know it well. We want to be as attentive as possible to our passengers needs - offering good quality and best standards.

Ryanair, easyJet and Wizz Air have announced the launch of new routes to Polish market. How do you plan to manage such competition in this market? What are your advantages on this market?
In addition to the routes mentioned above, Centralwings has added 11 new routes to its schedule for winter 2006/7.  Centralwings operates the largest number of the flights on the Polish market during this season.  This includes 6 new flights to the UK and Ireland (from Warsaw to London Stansted, Gdansk to Shannon, Wroclaw to London Stansted and Cork, Krakow to Cork and Szczecin to Dublin). This winter we offer a total of 24 connections.
We operate to the UK, Ireland, Italy, France (routes to Lille and Paris launched this winter) and other markets. We also offer charter flights and charter-mix products (in the winter season this year this will feature Grenoble - very popular with Polish skiers last year and a successfully performing route for Centralwings). During the summer seasons we also operate Mediterranean charters to holiday destinations in the Greek Islands and Sicily.  These are extremely popular with Poles. At present we are a major charter operator within the Polish market, with a 33% share of the sector.  We are able to combine ticket sales for tour operators with direct online sales through charter-mix.
Currently the most important strategic markets for Centralwings are the UK and Ireland, due to the large number of Polish nationals choosing to travel for business and occupational opportunities; for tourism; and to visit family and friends.  We also provide visitors to Poland with access to some of the most beautiful and exciting destinations, such as Krakow, Wroclaw, and Gdansk.

 “Islanders” (Ryanair and easyJet) need to find new attractive destinations to maintain their growth; Therefore Central Europe represents an important market for these LCCs.  Who are your most dangerous competitors: ‘Centralers’ (SkyEurope, Wizz Air, Estonian Airlines…) or ‘Islanders’: Now? In near future?
Poland is the second fastest growing air travel market in the world after China. Central Europe is very competitive, with the presence of all the major European players.  Even this year, there have been new entrants. Centralwings has just celebrated a second year of operations during which time it has become third largest player in the Polish LCC market and achieved a 17 per cent share of the market.  Next year, we will build on this strong footing.  Healthy competition is very good for passengers in terms of pricing and the wide variety of schedules and services available. We are able to offer attractive discounts and promotions to our customers, offering tickets sometimes for as little as 1 euro, pound or zloty.

The European Low cost carriers market has reached a certain maturity which leads to its consolidation.  During this transition, what are, for you, the greatest threats to the European Low cost carriers? Fuel rising? Overcapacity? Evolution of airports? Regulation?
As a Polish low cost airline operating from a large number of Polish regional airports, we see operational efficiency as paramount. Some airports struggle to keep pace with the growth of the market and the increased traffic, and monopolies exist between handling companies, fuel providers, agents and airports. Fuel prices and security at airports also have an impact on airlines, particularly the low cost sector, which operates with lower margins. The key for us is to ensure that we are able to react quickly to the slightest changes within the market – resigning routes that are not performing well enough and moving operations to more profitable locations, whilst retaining our standards of quality and service.

Many LCCs look after extra-revenues to offset the low price of their tickets. What are the projects of Centralwings in terms of Extra-revenues?
Extra revenues are very important for low cost airlines such as Centralwings. Ancillary profits derive from the different kinds of activities that the airline undertakes. Our onboard sales are working well and continuing to develop.  We offer a special menu during flights as well as duty free service available during flights outside the EU (charter flights).  There is a special offer for children who fly with Centralwings - the Captain Bear menu.  Toys and gadgets are available to keep youngsters amused during the flight. Passengers also have a unique opportunity to send a postcard from onboard the plane, with greeting courtesy of Centralwings.  Advertisers from all over Europe can use our media products to raise their profile.  Adverts can be placed on tip-up tables, seats, headrests and a range of other surfaces.   During the first quarter of 2007, Centralwings will launch the first issue of its in-flight magazine.

Do you believe that consolidation of the market will lead to 2-3 main LCCs in Europe, or do you think there will always be many LCCs on niche markets?
Consolidation is a very probable scenario in the medium term for the LCC sector.   This may mean that investors choose to collaborate with other investors to streamline their efforts and manage financial risk.

Are you worried about the shortage of pilots and crew hitting LCC market?
There are concerns which all airlines will need to address, due to the dynamics of the growth in the LCC sector.  As the market grows, more pilots are needed.  Centralwings has a highly qualified group of pilots and is in a strong position to deal with this challenge.

What are the options for Centralwings to transform its business model in order to make more costs savings?
Since taking up my role as CEO in June, my goals have been to build the strategy for the airline and focus on cost efficiencies.  Our primary aim is to reach profitability and also to be a low cost, and sustain our market position through dynamic growth.  Early on, I identified short, medium and long term goals for Centralwings.  One of the most important long-term goals is to find an alternative base as Warsaw does not currently meet our needs as a low cost airline.  Medium term goals focused on cost savings in different areas of our activities and in some cases to renegotiate contracts.  The first task was to review the performance of routes and make overall improvements to our flight network.  We are aiming to reach profitability (break even point) in 2008.