Officials claim they have reached an agreement with Tirana airport's shareholders to end their monopoly on international flights - but some experts are sceptical.

Fatjona Mejdini
BIRN
Albania

Albania officials says that they have reached an agreement with the shareholders in Tirana International Airport, TIA, to end its exclusive right to host international flights and build new airports that will host low-cost flights.

Tirana Airport | Photo: BIRN/ Ivana Dervishi

The centre-left government led by Edi Rama pledged in the 2013 election campaign to reconsider the concession with TIA shareholders and liberalize the market to open up the way for low-cost flights.Under a concession agreement signed in October 2004, TIA holds the right to manage Tirana's Mother Teresa airport for 20 years with a monopoly on all international flights to and from Albania.

The Minister of Economy, Arben Ahmetaj, told a meeting on Tuesday with tourist operators that they had agreed with TIA concession holders to end the monopoly on international flights and open the way for building airports in southern Albania that will carry low-cost flights.

"We have agreed with the TIA concession shareholders to liberalize international flights and we have concrete offers to build airports that will carry low costs flights from Vlora and Saranda [resorts in southern Albania]," Ahmetaj said.

He added that the agreement with TIA will soon be passed by the government and parliament, opening the way for lower flight taxes that will make tickets cheaper.

Some economic experts detect a lack of transparency in the agreement that the minister claims to have achieved with the TIA shareholders, led by AviAlliance company of Germany, however.

Zef Preci, director at the Albanian Center for Economic Research, told BIRN that the government has a duty to tell Albanians about the negotiations and the exact terms.

"If the minister claims he has found an agreement to end TIA's exclusivity in flights we have to know what the terms are," he said.

"It doesn't make sense for a foreign company to give up its revenue so easily. Citizens have a right to know the details of what is going on," Preci added.

Although Preci said the concession agreement with TIA is considered one of the best, since it had given the Tirana airport a new face, Albanian citizens have paid for it the hard way through expensive flight tickets.

He said that despite its promises this government has done nothing to liberate Albanian markets generally from monopolies, and no success had been reached in establishing free and fair competition.

Albania Claims Deal Will Allow Low-Cost Flights

Officials claim they have reached an agreement with Tirana airport's shareholders to end their monopoly on international flights - but some experts are sceptical.

Fatjona Mejdini

BIRN

Albania

Albania officials says that they have reached an agreement with the shareholders in Tirana International Airport, TIA, to end its exclusive right to host international flights and build new airports that will host low-cost flights.

Tirana Airport | Photo: BIRN/ Ivana Dervishi

The centre-left government led by Edi Rama pledged in the 2013 election campaign to reconsider the concession with TIA shareholders and liberalize the market to open up the way for low-cost flights.Under a concession agreement signed in October 2004, TIA holds the right to manage Tirana's Mother Teresa airport for 20 years with a monopoly on all international flights to and from Albania.
The Minister of Economy, Arben Ahmetaj, told a meeting on Tuesday with tourist operators that they had agreed with TIA concession holders to end the monopoly on international flights and open the way for building airports in southern Albania that will carry low-cost flights.
"We have agreed with the TIA concession shareholders to liberalize international flights and we have concrete offers to build airports that will carry low costs flights from Vlora and Saranda [resorts in southern Albania]," Ahmetaj said.
He added that the agreement with TIA will soon be passed by the government and parliament, opening the way for lower flight taxes that will make tickets cheaper.
Some economic experts detect a lack of transparency in the agreement that the minister claims to have achieved with the TIA shareholders, led by AviAlliance company of Germany, however.
Zef Preci, director at the Albanian Center for Economic Research, told BIRN that the government has a duty to tell Albanians about the negotiations and the exact terms.
"If the minister claims he has found an agreement to end TIA's exclusivity in flights we have to know what the terms are," he said.
"It doesn't make sense for a foreign company to give up its revenue so easily. Citizens have a right to know the details of what is going on," Preci added.
Although Preci said the concession agreement with TIA is considered one of the best, since it had given the Tirana airport a new face, Albanian citizens have paid for it the hard way through expensive flight tickets.
He said that despite its promises this government has done nothing to liberate Albanian markets generally from monopolies, and no success had been reached in establishing free and fair competition.

- See more at: http://www.balkaninsight.com/en/article/albania-aims-to-liberalize-international-flights-12-23-2015#sthash.a4F5isrS.dpuf