SHS terminates Maribor Airport concession
The operator of Maribor Edvard Rusjan Airport, SHS Aviation, has announced the termination of its fifteen-year concession of the airport, less than two years since taking over in March 2017. Despite not delivering on most of what it promised, including transforming Maribor Airport into a hub for Chinese tourists, the operator expressed its unhappiness with delays by the central government in adopting a zoning plan, which would allow it to begin its massive 660 million euro airport redevelopment project. SHS Aviation purchased the "Aerodrom Maribor" operator for seven million euros and was also obliged to pay an additional 100.000 euro concession fee each month, a condition it struggled to meet in the last quarter of 2018.
SHS Aviation gave a six-month termination notice to the Slovenian government this week, noting that the concession agreement was unsustainable. It added that the Ministry of Infrastructure had rejected financing models which would have made the concession financially viable. Last November, the ministry turned down a request by Maribor Airport's Chinese operator for 3.2 million euros worth of state aid. SHS applied for financial assistance in line with state regulation which stipulates government support for matters of national importance. Maribor Airport planned to utilise 1.8 million euros of the aid in 2018, 1.3 million this year and almost 115.000 euros in 2020. The application was filed due to the airport's negative financial performance in 2016 (35.000 euros) and 2017 (1.7 million euros). The operator previously said it would continue to post losses over the next three years.
The Ministry for Infrastructure has responded angrily to the termination of the concession, noting it was "astonished" by the latest development. "The Ministry of Infrastructure is astonished by Aerodrom Maribor's decision. The contract was signed on the basis of a public call in 2017, for a period of fifteen years, with clearly defined conditions. It anticipated for the efficient and successful operation of the airport, which has excellent potential. Less than two years after signing the contract, they [SHS] requested state aid. For some time they did not pay their obligations as stipulated by the concession agreement". It added that the ministry had cooperated with SHS "to seek out suitable solutions, but it is necessary to find ones that will be most appropriate for all stakeholders involved, not just one side".
Edvard Rusjan Airport has been without any scheduled commercial flights since VLM Airlines, which was formerly owned by SHS, went into liquidation last September. The carrier initially planned to link Maribor with Belgrade, Berlin, Hamburg, London, Podgorica, Zurich, Xi'an, Chongqing and Nanchang, however, none of the routes materialised. In 2017, SHS outlined plans to invest hundreds of millions of euros into Maribor Airport by extending its runway and overhauling its facilities, after which, it said, services to China would commence. The concessionaire was due to officially present its expansion plans to the public last July but cancelled its presentation just half an hour before it was due to begin. The termination of the concession agreement will come into force in mid-June.
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