Market analysis of The Republic of Georgia
The first chapter is based on getting an overall overview of The Republic of Georgia. During this chapter it will become clear why it is a potential location to start up an airline business. Starting with analyzing the background of the country, including the history and its potential location (1.1). As followed the current market situation for an airline will be analyzed (1.2). Several forecasts are made to ensure if the country will stay a potential location, for a start-up airline on the long term (1.3). When taking into account the current situation and the future prospects, a demand is visible, which needed to be bridged (1.4). Before starting a new business, there are rules and regulation that needs to be taken into account (1.5).
Backgrounds
This first paragraph will state all backgrounds of Republic of Georgia. A small summary of the country and the capital where the airline will be operating is stated in 1.1.1. The country has a very lucrative location and geographic composition (1.1.2). The bond with the EU is getting very strong while the country is becoming an EU member (1.1.3). In 1.1.4 the infrastructure of Georgia will be described.
History
Republic of Georgia was part of the Russian Empire since the 19th century. It was independent of Russia for three years from 1918 till 1921. Thereafter the Russian revolution came along and the Republic of Georgia was included in the Sovjet Union until it disbanded in 1991. The country is slowly separating from the control of Russia and is moving more towards the economy and markets of Western Europe and Asia.
Tbilisi is one of the oldest and the capital city of the Republic of Georgia. It became the capital of the country since the sixth century. The city was run over forty times by armies of other countries that plundered and destroyed it while the city was left in ruins. Each time the city needed to be rebuilt from the bottom. Today the city has a population of 1.5 million inhabitants and is about 35 kilometers long along the river of Mtkvari in Russia. In Tbilisi everything can be found from the metro till museums and stadions. Tbilisi is subdivided in ten other regions, which are Chugureti, Didube, Gldani, Isani, Krtsanisi, Mtatsminda, Nadzaladevi, Saburtalo, Samgori and Vake.
Geographic and Location
The Republic of Georgia is located on southern slopes of the Caucasus Mountains that form a natural border with the Russian Federation. The country is about 70,000 square kilometers big and borders with various other countries. Five regions, the south, east, west, and the central and southern region divide the country. The northern region has high mountains while the central and south regions are less mountainous with more forests. In the east and west regions there are more rivers. The Mtkvari is being joined in the east by all rivers to form the Caspian basin. In the west the Rioni and Enguri rivers are the largest and they run into the Black Sea.
At the Republic of Georgia the temperature is mild and humid with at the western coast that is along the navy coasts. In the mountains the temperature varies due to elevations. The regions, which are not next to the sea, have a continental climate with snow and glaciers all year long in the highest mountains. Most of the land is used for agriculture purposes.
EU
Georgia and the European Union (EU) have relations since 1992 when Georgia became independent of the Sovjet Union. The EU helped the country in this though time and opened a delegation in Tbilisi in 1995. In 2003 the relationship between EU and Georgia became stronger after the Rose Revolution when the EU helped the country again in economic, social, and political aspects. In June 2014 the Association Agreement (AA) was signed by the country, which brought the band between the EU and Georgia to a whole new level. In the AA the Deep and Comprehensive Free Trade Area (DCFTA) will let Georgia be more integrated with the EU in political and economic aspects.
The European Neighborhood Policy (ENP) was launched in 2004 to bring the other EU members closer and to strengthen the prosperity, stability and security of all related to it. This helped Georgia to create new bonds in new areas of cooperation and it also encouraged the country to cope more with the European economy and social structures. In 2009 the EU launches the Eastern Partnership to emphasize the region of Georgia to point out how beneficial this region is.
Infrastructure
The infrastructure of Georgia is important because it defines how far the country can develop. The involvement of the EU with Georgia is very important. This bond between the EU and Georgia improves the infrastructure of the country in many aspects, which can create many opportunities. The different aspects are:
Transportation systems
Power and energy systems
Environment
Transportation Systems
In Georgia there are international, secondary and local roads. Most of the roads in Georgia are paved. The country also has railways for trains, which are divided into narrow and broad gauge account. Every railway is electrified. Georgia has in total 22 airports were 18 have paved runways while the largest airport is Tbilisi in the capital city.
The geographical location of Georgia has the key transit for the whole Caucasus and the environment. The country is continuously improving their transport infrastructure to achieve the economic and social aspects. Therefore the EU is involved in this process to help Georgia improve their transport infrastructure. The Transport Corridor Europe Caucasus Asia program (TRACECA) helped Georgia in their transportation systems while supporting the political and economic developments in the Caucasus, Central Asia and the Black Sea Region.
On December 2nd 2010 Georgia signed a common aviation area agreement with the EU with the purpose to associate Georgia with the EU internal aviation market. The Civil Aviation facilitated the standards and laws of the EU and Georgia. European Aviation Safety Agency (EASA) haves a partnership with the Civil Aviation Agency of Georgian air safety rules and system. The TRACECA program also assists the development of the civil aviation to comply with the ICAO standards concerning security, air traffic management and the environment. The Sea project is also being developed by TRACECA to improve the operations of the main seaports.
The airport of Tbilisi can be reached by many ways, which are train, bus, taxi, car and a shuttle service. There is a new train station at the airport that allows the passengers to get to Tbilisi central railway in twenty minutes. This is also the cheapest and easiest way to get to the airport. Taking the bus from the airport also leads to Tbilisi city center but it takes more time than the train. Taxi services are being provided 24/7 and this ride takes up to 20-30 minutes to get to the city center depending on the traffic flow but it is the most expensive type of transportation. Another possible way to get to the airport is by the airport shuttle that is also 24/7 available for the passengers. This shuttle is being provided by the airport itself, which has some popular stops for the passengers. By car is also a common way to get to the airport, which allows the cars to park in the parking lot at a fee per hour. As explained above the airport is very good accessible by many different transportation systems that connects the airport with the city center.
Power and Energy Systems
Georgia relies a lot on the import of natural gas and oil products. The energy issue is an important part in the EU bond. In 2009 the Eastern Partnership was launched to improve the energy efficiency, renewable energy and to support the infrastructure developments. The Black Sea is very important for Georgia because it connects Turkey with Georgia and this makes the future electricity exports easier.
All turbines of the Enguiri hydro power plant has been refurbished by the EU which cost 11.5 million euro. The EU considering the technical aspects has financed numerous projects for power and energy systems.
Environment
The country has a very high diversity in nature and therefore it shall be protected. Management of solid waste is an environmental concern. All waste is currently being dumped in the nature or on landfills. This can be very dangerous for the health of a human being and the environment. A possible solution is recycling and reuse of waste. Georgia is also participating in a program to improve their quality of air. Many disasters can also be found in Georgia and therefore they are trying to decrease their impact. The EU also wants to implement a water protection program in Georgia by managing the river basins. This means that the EU with laboratory equipment to monitor their water supplies the country. Climate change is also an issue in Georgia. The EU is helping them to decrease the amount of greenhouse gas level by a program called Covenant of Mayor.
When considering the environmental rules of Tbilisi airport there are many aspects that they are working on to keep the environment safe when giving a high service quality. The environment aspects that the airport cares for are the water, air and soil. The airport has several project that protects the environment namely, the use of LED lights to save energy, a waste management plan to decrease the waste at the airport, stimulating their suppliers and partners to also operate green and the decrease in the water use. This means that the airport is working on the environment part to save the environment and the surrounding landscape. Airports that take the environment into consideration will get a good reputation by their passengers, nowadays the passengers find it important when an airport cares for the environment and will then come more frequently with the willingness to fly from and to that airport.
Current situation
To view the current situation of Georgia, airline and airport wise, the proposed competitors an analysis (1.2.1) has been composed to determine the market. Focusing on the possible airports to operate from the infrastructure (1.2.2) has been investigated to have a clearer view for this. With the current airlines (1.2.3) operating at Georgia, there is a need to investigate their frequency to plot a possible schedule.
Aviation Market Analysis Georgia
The Georgian government has set its aim to position Georgia as a new, technological and a regional transportation hub, as the location is at the crossroads of Europe and Asia. In 2010 the government signed the Common Aviation Area Agreement, to broaden the opportunities of Georgian aviation through the European Union. They also signed an agreement with several Middle Eastern countries to provide flexibility on routes and fleet. Furthermore, a long term Tbilisi-Seoul service might get launched. All these factors can lead to the conclusion that Georgia wants to expand towards Asia. In 2015, Georgia celebrated their ten-year anniversary of European Open Skies and is able to see the amount of passengers being doubled in less than ten years, there are enough possibilities for Georgia. Since 2012, the first low cost airport in Georgia is opened, Kutaisi Airport (KUT) is located in the second largest city of Georgia and primarily serves East-Central European destinations such as; Vilnius, Kiev, Katowice and Budapest. This can be concluded as a growth of low cost airlines in Georgia, the slow start of long haul flight from Georgia and the improvements on ties to European bodies.
Airport Infrastructure
Georgia has several airports that are able to facilitate civil aviation. With ten airports in the whole country, the focus lies on Tbilisi International Airport, which is the country’s biggest airport and lies approximately twenty kilometers from Tbilisi. However this is a Georgian airport, the operator is the Turkish TAV Airports Holding. The owner is United Airports of Georgia and has one concrete runway (13R/13L), which is a runway that is able to handle the current landing and depart of mostly A320-family and Boeing 737’s. Since 2007 the airport has been updated to accommodate the forecasted passenger growth of four million passengers a year. In 2015 this number was 2.8 million passengers, which is a gap of 1.2 million passengers a year that need to be accommodated on the airport by expanding airside and landside by investing $65 million in new runways, expansion of the terminal and additional car parking places. The airport has an arrival floor with facilities such as: banks, information kiosks and car rental outlets. The departure floor has access to airside, via landside, that provides several food & beverage outlets, duty free stores and business class lounges. Transport to and from the airport is regulated by buses, trains and taxis and takes approximately 20 minutes. The highways near the airport are providing a link to the city center and there is a direct shuttle service to the center. The current capacity of the runway is twelve aircraft an hour.
Airlines
A scan on the airline list that flies from their home base to TBS, reveals that airlines can be segmented in different geographical areas. East-Central European carriers (LOT, SCAT, Ukraine International Airlines and Yanair) daily to TBS. European carriers such as Alitalia, Lufthansa and LOT Polish Airlines. Due to the placement of Georgia, Russian carriers are also widely represented at TBS with Transearo, S7 and Aeroflot; this is in line with the high load factor on Russian routes. As Middle Eastern carriers increase their operations also in this area, flydubai and Qatar Airways fly from their hub to Tbilisi, aiming on transfer passengers to fill their hub and spoke system, which is mostly applicable for Qatar Airways. Figure wise, the current airline status is over 30 airlines flying towards more than 40 destinations and the longest flight from TBS is towards Amsterdam Schiphol (AMS) by Georgian Airlines. The airport services as a hub for Georgian Airlines, which serves Armenia, Bahrain, Iran, Israel, Austria, Ukraine, Russia and the Netherlands.
Forecast
This paragraph will determine the sustainable future market, based on a twenty-year forecast. The current and expected GDP will be described (1.3.1) followed by the passenger (1.3.2), ATM and Cargo growth (1.3.3). At the end the fluctuating oil prices will be analyzed (1.3.4).
GDP
Gross Domestic Product (GDP) is the monetary value of all the finished goods and services produced within a country's borders calculated over a specific time period. GDP includes all private and public consumption, government outlays, investments and also exports minus imports. Basically, GDP is a broad measurement of a nation’s total economic activities. Usually, GDP is used as just an indicator of economic health of a particular country, as well as a gauge of a country’s living standard.
Currently, GDP for Georgia has never been better than before. As can be seen in figure XX the GDP has been already increasing immensely for almost ten years. The current GDP is $16.52 billion and has an annual growth rate of 1.5 percent. The GDP is expected to be constantly increasing for the next 35 years, for that reason the annual growth rate will also keep increasing. Table XX shows the expectations for the coming years considering the GDP growth. The GDP growth is paired with the positive changes that Georgia is currently undergoing. Mainly the partnership of the EU (in four years) and the independency of the republic are positively affecting the economic wealth of the country.
Figure 1: Georgian GDP Overview Source: http://www.tradingeconomics.com/georgia/gdp/forecast
Forecast: 2015: 2016: 2020: 2030: 2050:
GDP ($ Billion): 17.28 17.73 21.41 29.77 46.48
Annual growth rate (%): 1.5 3.88 3.88 3.62 3.03
Table 1: GDP forecast Source: http://www.tradingeconomics.com/georgia/gdp/forecast
Passenger growth
The demand for air travel will likely double by 2035, according to PriceWaterhouseCooper's annual report on the state of the worldwide airline industry. The air travel demand in a country is related to indicators such as the number of persons in a region, their propensity to travel, socioeconomic activities and the availability of service and infrastructure. The GDP growth of Georgia plays a significant role on the air travel demand and so on the passenger growth. The GDP of Georgia will grow with 3.8% for the upcoming years to a GDP of $29.77 billion in 2030. The population of Georgia is shrinking. It is expected that the population of Georgia will drop from 4,476,000 in 2015 to 4,017,000 in 2034 (world bank, 2015). However the capital city Tbilisi is strategically located at the crossroad of trade and is the center of highway & railway networks of the Caucasus region. Tbilisi is populated by 1.5 million inhabitants and is seen as the gateway for the Caucasus. Also within 120 minutes driving time radius of the catchment area of Tbilisi airport lives six million people. Batumi airport is located at the border of Turkey and Georgia and makes it an important commercial center for trade. 48% of the air traffic in 2014 was from Turkey. At last In the first eight months of this year 3,922,376 visitors came to Georgia, which is a 6% increase compared with 2014 (GTNA, 2015).
The amount of air travel passengers in Georgia is divided in to four airports of the past five years (table x). In 2014, Tbilisi International Airport handled 78.4% of all passenger traffic. Followed by Kutaisi David the Builder International Airport that handled 10.9% of all passenger traffic. Batumi International Airport handled 10.6% of total passenger traffic. At last Mestia Queen Tamara Airport handled only 0.1% of the total passenger traffic.
Airports 2010 2011 2012 2013 2014
Tbilisi Int. 822,728 1,058,482 1,219,175 1,436,046 1,575,386
Kutaisi David the builder Int. 7,446 4,527 12,932 187,939 218,003
Batumi Int. 88,562 133,852 168,510 208,937 213,439
Mestia Queen Tamara 45 4,580 2,922 885 1,343
TOTAL 918,781 1,201,441 1,403,538 1,833,807 2,008,171
Table 2 Total passengers (Source : GCAA)
Between 2010 and 2014 the total passenger traffic in Georgia grew with 45.8% and it is expected that the passenger traffic will grow further (TAV, 2014). A regression analysis is needed to forecast the total passengers for the upcoming twenty years. The regression analysis is used to make a forecast more realistic and breaks the linear trend line. For the regression analysis the relation of historical data of the past five years from total passengers, GDP, population, tourism and disposal income per capita of Georgia is been used (table x).
2010 2011 2012 2013 2014 avg. growth per year
PAX 918,781 1,201,441 1,403,538 1,833,807 2,008,171 21.9%
GDP in $ billion 10.77 11.64 14.44 15.85 16.14 10.9%
Population 4,452,800 4,483,350 4,490,700 4,487,200 4,504,100 0.3%
Tourism 2,031,717 2,822,363 4,428,221 5,392,303 5,515,559 30.0%
Disposable income 34,341 36,422 37,229 37,845 39,087 3.3%
Table 3 Regression data
Tourism and GDP have a strong impact on the growth of air traffic in Georgia. The amount of tourist grew 1.37 times faster than the total air travel passengers. When the GDP is growing with 1% the passenger traffic is growing twice as fast.
The regression analysis between the GDP growth and Passenger growth gives the following outcome (table x).
2015 2020 2025 2030 2035
Total pax 2,072,005 2,764,272 3,499,002 4,288,432 5,402,819
GDP 17.28 21.11 25.28 29.77 36.10
Table 4 PAX forecast
The domestic market of Georgia is expected to double over 20 years. In 2014 there were 125,000 passengers flying within Georgia and it is forecasted that in 2034 the total passengers amount will raise up to 272,000 passengers (IATA, 2014). This makes Georgia one of the top domestic markets with the fastest growth in the world.
ATM and Cargo
The total air traffic movements of Georgia shows the flight traffic in terms of number of flights. (1.3.3a). Air cargo is growing in popularity as the medium of choice when it comes to shipping goods that are high value, time-sensitive and perishable from one destination to another. Air cargo operations are also important for the airport to earn money but also for the international trade of the country (1.3.3b).
ATM
The Georgian airspace handled 23,800 passenger flights and cargo flights from Tbilisi International Airport and Batumi International Airport. This was a growth of 1% compared to 2013. Since passenger traffic will be growing more flights need to be served to be able to create more available seat capacity for the prospected passengers. Forecast of air traffic movements can be derived from the forecast of passengers. An assumption of the load factor and average aircraft size defines a formula for calculating the expected air traffic movements (formula x).
Air traffic movements= (passenger numbers)/((load factor)×(aircraft seat capacity))
According to IATA, the total aviation market had an average load factor of 79.2% at the end of 2014. The strategic location of Georgia assures that with narrow body aircraft a lot of destinations can be served. Airbus A320 and Boeing 737 are the most popular narrow body aircraft in the market. On average the two aircraft of Turkish airline have together an average seat capacity of 151 passengers.
2015 2020 2025 2030 2035
ATM’s 17,326 23,115 29,258 35,859 45,177
Table 1.3.3.a Air traffic movements forecast
Cargo
It is known that Asia-Pacific has the biggest share of air cargo traffic with a market share of 39.5% in August 2015 followed by Europe with a market share of 26.3% (IATA, 2015). Georgia is geographically located in the center of the world and is the ideal logistic location for trade between Europe and Asia.
Tbilisi International Airport and Kutaisi David the Builder International Airport are been used for air cargo operations in Georgia. There was 19,659 tons of air cargo handled in 2014. This was a growth of 2.8% compared with 2013. In 2013 the growth was more significant with a rate of 16.2%. The number of cargo flights grew with 431 flights and a decline in chartered flights. The expectation for air cargo operations is, that the growth will take on further. The two primary indicators of future cargo traffic are the trends in world economies and international trade. Both are forecasted by Boeing to continue growing strongly and lead to a return to capacity balance and profitable yields.
In the CIS region a growth of 3.7% Revenue Tonne Kilometers (RTK) is forecasted (Boeing, 2015). The upcoming 20 years the Cargo traffic between Europe-Asia will have a growth rate of 5.3. Assuming peaceful resolution to regional conflicts, the CIS-Europe combined import and export air cargo market will grow at an average annual rate of 4.8% for the next two decade. Imports from CIS to Europe are forecasted to grow with 4.8% per year, expanding from 188,000 tons in 2013 to 484,000 tons by 2033. The exports from CIS to Europe are forecasted to grow with 4.4% per year to reach 99,200 tons in 2033. (Boeing, 2014).
Oil forecast
Providing a forecast of the oil prices can ensure a company making the right mitigations, whether to invest in newer products or not. Trading Economics is specialized in analyzing data and has done a research on the past behavior of Brent crude oil using vast amounts of historical data. By adjusting the coefficients of the econometric model, the future expectations can be predicted. On Wednesday, October 7, 2015 a forecast has been made till the year 2050, by using an autoregressive moving average model (table 1.3.4).
The analyzed data is in USD per barrel (BBL), which is equal to 159 liters. After five years an increase of 12.9 USD per BBL can be expected. After twenty years from now the total increase is expected to be 25.4 USD per BBL, which is equal to 75.4 USD per BBL.
Forecast Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 2020 2030 2050
USD/BBL 52 48.3 47 50.3 49.22 62.9 75.4 75.4
Table 3.3.x Trading Economics Brent crude oil forecast
The World Bank is another company specialized in analyzing world data. In April 2015 they made a ten year forecast on the price of crude oil in USD per BBL (Table 3.1.4). The results were quite similar to the forecast made by Trading Economics. The different price of both forecasts within five years is just 0.2 USD per BBL.
Forecast 2014 2015 2016 2017 2018 2019 2020 2025
USD/BBL 90.9 54.4 56.8 58.2 59.7 61.2 62.7 70.8
Table 3.3.x2 1 The World Bank Brent crude oil forecast
Gap opportunities
After examining the previous paragraphs the current state and trends are determined. When taking into account the already made forecast on several factors, a gap analysis can be done. This gap analysis can be seen as opportunities for a new to start airline at Tbilisi Airport. This paragraph is divided in three parts.
Current State
Future State
Gap bridging opportunities
Current State
Currently TAV airport operator owns a total share of 76% of Tbilisi Airport. TAV Airport Operator is also responsible for the investments of the improved airport infrastructures. The current airport runway is able to handle twelve aircraft per hour, for mainly A320 and B737 aircraft. The fire and rescue service level is seven. This means that the aircraft is currently not able to handle large aircraft such as the A380. Tbilisi airport wants to become a vital hub as it connects Europe to Asia via its flight network. The low cost flight operations in Georgia are currently increasing their profitability as it become more popular. The Republic of Georgia handles around two million passengers a year, with around 17,000 air traffic movements and 20,000 tonne of cargo handled. This year the oil price per BBL has reached its lowest point of $48.3 per BBL.
Future State
TAV airport operator is assigned to continue managing the operations at Tbilisi Airport till November 8, 2037. Tbilisi Airport is expected to have a runway capacity Code F, which means that the airport will be able to handle the largest aircraft, such as the A380. In able to do this, an increase of the fire and rescue service level is required. It is expected that the GDP of The Republic of Georgia will annually increase with at least 3%. This means that the GDP will grow with 24% till 2020 and 72% by 2030. The amount of passengers handled is expected to be doubled within five years, and is expected to be 2.7 times more by the year 2030. The ATM is forecasted to increase with 33% within five years, and would probably be 2.6 times more by 2035. When taking into account the expected demand of cargo handled, it seems that 2.4 times more cargo handling would be required by 2033. The oil prices would not increase more than recent years, when taking into account a fifteen-year forecast.
Gap bridging opportunities
When examining the current state and the forecasted state of The Republic of Georgia, there is a capacity gap visible, to be able to serve its future demands. Due to the investment on the infrastructure made by TAV airport operator, the airport will increase its runways, taxiways and terminal capacity. This can create space for a new airline to start operating at this airport. In case of sufficient demand, it will allow airlines to operate with large aircraft such as the A380. When taking into account the increasing amount of GDP of The Republic of Georgia, it can be expected that more and more inhabitants will be able to fly more often. This can be linked with the forecasted amount of passengers traveling. Within five years a doubling of passengers handling and 33% more ATMs can be expected. This requires almost a double amount of capacity at the airport. Current airlines would be able to adopt this gap by increasing their capacity. However, there would be an opportunity for a new airline to fulfill some of this required capacity. The growing demand of cargo handling, with around 7,5% per year, can also be seen as an opportunity for a new airline. The oil price is expected to increase in the next twenty years. However, this increase should not lead to an obstacle of offering more flights. The oil price would probably not increase more than it was in the year 2014.
Policies and Applicable Laws
Starting up an airline has to do with many policies and applicable laws that should be taken into consideration to acquire all permits for the start of operation in Georgia. The Air Operator Certificate (AOC) is needed to perform the operation (1.5.1). In 1.5.2 some environmental laws on aviation will be discussed to measure the impact of the operation. The involvement of the government is important to know how the airline can operate (1.5.3).
AOC
The AOC is an important part of starting up an airline because it authorizes the airline to perform some commercial air transport operations according to ICAO Annex 6. This AOC is submitted according to all procedures that fall under the Article 78 of General Administrative Code of Georgia and Annex 1. The application must show the applicant’s ability to perform safe air transportation and maintain the high level of aviation security. The documentations that are required for the application are described in Appendix X. To supplement all regulations the ones of the EU will be applied to it because Georgia will be affiliated in the coming four years to the EU (Appendix X).
Environmental Laws
The environment is very important for Georgia and therefore it is stated that the environment was taken into consideration when the aviation policies were implemented. In the agreements between the EU and Georgia, all parties must recognize that global, regional, national and local action is needed to minimize the aviation impact on the environment. The parties must act according to the air transport legislation in Part E of Annex III.
A good teamwork is necessary between the parties to achieve a multilateral discussion that leads to a discussion on the effects of aviation on the environment. They must ensure that all taken actions does comply with the objectives of the agreements. This agreement should not be conceived to decrease the power of the current authorities to take actions in a situation to prevent the damage on the environment. The measures must be consistent with all rights and obligations that fall under the international law which will be applied without distinction of nationality of the authority.
Governmental Laws
The government in Georgia has some benefits of all laws in the aviation sector, meaning that they have some involvement in it. The power that the government has is not big. However they have some regulations that protect them and the country.
No ticket price limitations are set for operating in Georgia meaning that this is based under a free and fair price competition. Airlines do not have to notify or ask permission for their prices. The government wants to create a safe competition environment by implementing this model.
For the start of a new business in Tbilisi there are two steps that should be completed. The first step is to pay the registration fee, and then register the company to the entrepreneurial register to obtain the identification number, tax registration and the state certificate. The second step is very simple which is opening a bank account at no