Mostar Airport launches incentives in turnaround bid
Mostar Airport has rolled out an incentives program in a bid to attract carriers to launch flights to the city, after its passenger numbers declined 35% so far in 2018. "Mostar Airport is offering a number of incentives in the form of discounts to encourage airlines and tour operators to develop their services to Mostar, as well as to stimulate greater choice and greater benefits for all airline companies", the airport said. It added, "The proposed incentives do not distort competition among airlines at the airport and are offered for a limited period of time on a non-discriminatory basis". Mostar Airport's sole customer, Croatia Airlines, was previously granted half a million euros in subsidies on an annual basis by local authorities in order for it to maintain year-round services from Zagreb.
Mostar Airport's incentives program includes discounts for handling and landing services, as well as the passenger tax, for a three-year period. Furthermore, the subsidies also target airlines wishing to operate charter flights to Mostar. Eurowings, which maintains seasonal summer services from Dusseldorf and Stuttgart to the Bosnian city, has also benefited from incentives. In April. the government of the Herzegovina - Neretva Canton in Bosnia and Herzegovina approved a five-year subsidy agreement with Eurowings. The low cost airline has been granted just over a quarter of a million euros on a yearly basis until 2023 (inclusive) in order to maintain flights from Dusseldorf and Stuttgart to Mostar.
The General Manager of Mostar Airport, Marin Raspudić, previously said that Turkish Airlines could launch flights from Istanbul, however, the route would also require financial incentives. The new scheme offered by the airport could be taken up by the Turkish carrier. Mostar Airport has struggled to contain its passenger decline in recent months after Italy's Mistral Air, which accounted for the bulk of its traffic, discontinued passenger flights and decided to focus on cargo and freight transport instead. "Mostar Airport requires significant funds and investment. The Federal Ministry for Transport and Communication has allocated some resources which will be of use. However, we have to work harder on marketing and offer services at dumping prices", Mr Raspudić said recently.
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