Serbian regulator blocks Ryanair’s new Niš service
The Serbian Civil Aviation Directorate has refused to issue a permit to Ryanair to operate its planned new service from Hahn to Niš Constantine the Great Airport, which was due to launch on January 11, 2020. Although the regulator has not commented on the matter, Ryanair has accused the Directorate of protectionism and announced plans to move the service to Banja Luka instead. Air Serbia introduced two weekly flights between Niš and Hahn this summer as part of a dozen new routes designated to be of public interest by the Serbian government but lacking commercial viability. Therefore, the service is subsidised by the state. Under European Union regulations, routes selected to be of public interest and awarded to a particular carrier can not be launched by a competitor, although this only applies for flights within the bloc.
In a statement issued yesterday, the low cost carrier said, “Ryanair’s Niš route, which was approved by the German Civil Aviation Agency, has been blocked by the Serbian Civil Aviation Directorate in favour of Air Serbia’s monopoly. Since the route does not qualify as a PSO [Public Service Obligation] route, nor is it designated as such by the European Commission, it should therefore be open to competition”. It added, “All affected customers have been contacted and offered full refunds or alternative re-routing. Ryanair will switch this capacity to a new route from Frankfurt Hahn to Banja Luka in Bosnia and Herzegovina which will start in February 2020”. Tickets for the new Hahn - Banja Luka service are yet to be put on sale.
Ryanair’s Chief Commercial Officer, David O’Brien, said, “Ryanair regrets the forced cancellation of the Frankfurt Hahn - Niš route due to the Serbian Directorate’s decision to block traffic rights. Ryanair apologises to intending passengers on this route, who will now be subject to the high-fare Air Serbia monopoly. On the other hand, visitors to, and consumers in, Bosnia and Herzegovina will now benefit from a Ryanair new low fares service between Frankfurt Hahn and Banja Luka, which will start in February 2020”. Ryanair is set to introduce services from Malta to Niš next week, while Hahn will become the airline’s fifth destination to be served from Banja Luka.
Niš Constantine the Great Airport noted in June that the subsidised Air Serbia flights were not aimed against Ryanair and Wizz Air, which have been serving the city for several years. The Serbian national carrier will receive some five million euros per year over the next five years for its Niš operations. On the other hand, the two budget airlines enjoy a low three euro fee for handling, landing and passenger services under their current contracts with the airport which run until 2021. "These low cost airlines won't be chased out. Traffic from Niš will continue to develop and there will be more demand and the need for more carriers", the General Manager of operator Airports of Serbia, Mihajlo Zdravković, said at the time.
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