Macedonia launches third airline subsidy tender
The Macedonian Ministry for Transport and Communications has, for a third time this year, relaunched a tender for the granting of financial support to an airline for the introduction of new routes. Two previous attempts at awarding the financial stimulus were annulled. On both occasions, low cost carrier Wizz Air, which has benefited from similar incentives between 2012 and 2018, was the only one to apply. However, the Ministry noted that the airline first failed to clearly write its name and address on the submitted envelop, while on its second attempt it refused to introduce new routes from Ohrid immediately and instead planned to do so from next summer season, which was contrary to the tender brief at the time.
The newly offered incentives will be provided to the winning airline between 2019 and 2022. Those applying must have carried at least ten million passengers in 2017 and recorded a net profit of 25 million euros. The selected airline must establish and/or maintain a base with at least one aircraft in Skopje or Ohrid by March 26, 2019 at the latest for the duration of the financial support program. Furthermore, the carrier in question must launch at least two new routes from Skopje by March 26 and four new routes from Ohrid, the first two by late March 2019 and the rest within a year of being granted state support.
The newly launched routes from Skopje and Ohrid cannot be served from the other airport and cannot have been served over the past two seasons. In addition, every new destination introduced at Macedonia's two international airports must be run at least twice per week throughout the year. Applicants are free to introduce additional new services, with the Ministry noting that the winner will be chosen based on the number of new destinations proposed. If two carriers commit to the same number of routes, the winner will be determined based on the number of frequencies.
The financial support includes a one-time payment of 40.000 euros for each new route launched, as well as nine euros per passengers for each new destination from Skopje for the first year, eight euros during the second year and seven during the third. On the other hand, the carrier will receive thirteen euros per passenger during the first year of operations on a new route out of Ohrid, twelve during the second and eleven euros per traveller in the third year. Commenting on the tender, Wizz Air's CEO Jozsef Varadi, told EX-YU Aviation News last week, "If the government decides to launch a bid for a new process, we would certainly consider it and we would likely apply because we are the incumbent carrier".
Interested airlines have until December 21 to submit their bids.
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