Ljubljana pushes for airline subsidies over new flag carrier
Ljubljana Jože Pučnik Airport believes the Slovenian government should try and offer subsidies to foreign carriers rather than set up a new national airline. Speaking to the Slovenian daily “Večer”, Ljubljana Airport’s General Manager, Zmago Skobir, said, “The relevant ministry told us they are studying the possibility of setting up a national carrier, but officially nothing more than that. Having a reputable carrier, which has various agreements in place, compared to a new airline starting from scratch, makes a huge difference in financial resources. My opinion is that we should try to work on what we have and nurture it”. The airport has submitted an incentive plan to the Ministry for Infrastructure, which is in review.
Croatia Airlines has submitted a plan to the ministry to base aircraft in the Slovenian capital and introduce scheduled services, while talks have also taken place with the Ljubljana-based cargo operator Solinair over the potential launch of subsidised passenger flights or the creation of a new national carrier. “Airport costs account for 4% - 8% of flight expenditure and it is not a decisive factor in establishing a service, regardless of the discounts and charges. If there is no product or demand for the destination and if there is nothing to do in Slovenia, people will not visit, even if we waive all fees and charges. As a result, the planes will be empty, and the carrier will amass losses on the route. Guests come because Slovenia is economically prosperous and attractive for tourists, regardless of whether airport costs are low”, Mr Skobir explains.
Some fifty workers and trade unionists gathered in front of Ljubljana Airport last Thursday to protest against the planned layoff of a quarter of operator Fraport Slovenia’s workforce. The company’s management was again called to take advantage of state aid and wait until the end of the year before taking such drastic measures, maintaining that the situation in the aviation industry will become clearer as time passes. However, Mr Skobir noted redundancies would begin this month as the company can no longer wait. “If we were to strictly look at the traffic forecast for this year, we would have to lay off significantly more people than we plan. We will try to be as socially minded as possible, but it will not work without layoffs. We are currently living off money we accumulated in recent years due to good business. This money, a good 25 million euros, will be spent by the end of the year, including on investments, and we will still have to borrow. That being said, next year, even with an optimistic outlook, we will be far from the numbers we were achieving before the pandemic. This year, we expect to handle between 400.000 and 500.000 passengers.
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