HUB Georgia founder Giorgi Kodua says plans for Air Georgia are at an advanced stage with both British and Arab investors said to be on board.
In an interview with Palitranews TV this week, Kodua said 80% of the negotiations had already been completed for the project which, if finalised, could see two Airbus narrowbodies being based out of Kutaisi, the third-largest city in Georgia and the capital of the western region of Imereti.
"We have a plan to create a national low-cost carrier and negotiations are underway with the investor," he was quoted by Caucasus Business Week.
"In the event the negotiations turn out positively, Georgia will again see a budget airline. We hope that our service will meet international standards. There are all the resources for that. The planes are new and are currently in the United States and are ready to fly to Georgia and start flights from Kutaisi airport."
"Based on this, we turned to potential investors to finance the project with USD50 million. Now we are negotiating with the Ministry of Economy, and they have already completed 80% successfully. The investors are ready to finance the project. The planes are already there. We want to start cheap flights from Georgia, as the country is not rich. Therefore, prices are of great importance."
"We will surprise the population with low prices and compete with Wizz Air (W6, Budapest). This requires the united will and efforts of the investor and the state. The company alone will not be able to do that by itself. We will offer better prices than Wizz Air if the remaining 20% of the negotiations are resolved positively."
Kodua said Air Georgia has singled out several routes to Germany, Italy, Greece, and Ukraine as lucrative and viable. As such, it plans to launch with two aircraft and adding two more as demand dictates. According to HUB Georgia's projections, if all goes to plan, Air Georgia could hit 500,000 passengers/annum by Year II.
Kodua also said that negotiations are underway with Tbilisi International Airport, but not for low-cost flights. According to him, there is a proposal for longhaul flights to Toronto Pearson, Canada, using A330 widebodies. It is uncertain if this development is related to Air Georgia or separate.
