Slovenia to subsidise flights to Lufthansa hubs
The Slovenian government is planning on subsidising flights from Ljubljana to key Lufthansa group hubs – Frankfurt, Munich, Zurich and Brussels - in order to increase existing frequencies. Currently, Lufthansa serves Frankfurt twice per day and Munich daily from the Slovenian capital, while Zurich is operated by Swiss on a daily basis and Brussels by Brussels Airlines six times per week. However, the Slovenian state-owned Bank Assets Management Company (BAMC) says there have been complaints regarding the schedule for the abovementioned services. It noted talks were being held with three “European regional carriers” to commence flights to the four cities in return for government subsidies. The head of BAMC, Matej Pirc, refused to name the airlines in question.
The government believes subsidising airlines on these four routes would achieve the same result as launching a new flag carrier. They would improve Slovenia’s connectivity to European airports, but, unlike a national airline, there would be strict cost control. According to the BAMC, the subsidies would only be enforced for a limited time. Mr Pirc noted the state would have lower costs by providing these incentives than obtaining capital for a new home-grown carrier. However, the head of the BAMC warned that introducing the subsidies would not be simple. "We expect for all these issues to be resolved at the start of next year", he said. The Slovenian Ministry for Infrastructure planned to provide subsidies for foreign carriers to fly to Ljubljana in the aftermath of Adria Airways’ collapse in September by making amendments to the country’s aviation legislation. However, the proposed changes were struck down by a parliamentary committee.
The Slovenian government and the Bank Assets Management Company have held talks with Lufthansa’s management on several occasions since Adria’s bankruptcy. In October, the Minister for Economic Development and Technology, Zdravko Počivalšek, said, “Lufthansa is Europe’s most important carrier with whom we want to coordinate our plans. All the conversations I’ve had with their CEO were with the intention of presenting our ideas to them. If we decide against setting up a new airline, Lufthansa will do its best to help cover the aviation sector in Slovenia, in line with their interests”. Last week, the Slovenian Prime Minister said it was “highly unlikely” for a new national carrier to be established. Lufthansa group airlines plan on shifting around their schedule for their Ljubljana services next summer season in order to offer passengers more convenient departure times.
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