New Slovenian carrier's future hangs on EU approval
Plans to set up a new national carrier in Slovenia will ultimately depend on the European Union’s approval of the country’s Recovery and Resilience Plan, which will be funded by the EU through 1.6 billion euros in grants and 3.6 billion euros in repayable funds. The state has completed a draft of the plan, which envisages an investment of 1.1 billion euros into the transportation sector, of which 76 million have been earmarked towards the creation of a new flag carrier. However, according to Slovenian media, initial reactions from the European Commission towards the entire draft proposal have been negative as some of the planned investments are considered inconsistent with EU guidelines.
Slovenia’s Minister of Finance, Andrej Šircelj, expressed hope this week that Slovenia would finalise and formerly submit its plan to the EU, aimed a mitigating the economic impact of the coronavirus pandemic, by the end of the year. He noted the state was working with the block in order to address any issues. For its part, the Commission noted it was looking forward to further dialogue with the Slovenian authorities with the aim of making the best possible use of the funds to support economic recovery, in line with the European Union's priorities. As a result, it is still uncertain whether a new national carrier will receive Brussel’s approval, however, the government is intent on the project.
Prior to Adria Airways’ bankruptcy in September 2019, Oxford Economics estimated that airlines, airport operators, airport on-site enterprises (restaurants and retail), aircraft manufacturers, and air navigation service providers employed 2.000 people in Slovenia. In addition, by buying goods and services from local suppliers the sector supported another 1.000 jobs. On top of this, the sector was estimated to have supported a further 1.000 jobs through the wages it paid its employees, some or all of which were subsequently spent on consumer goods and services. Foreign tourists arriving by air to Slovenia, who spent their money in the local economy, were estimated to support an additional 21.000 jobs. In total 25.000 jobs were supported by air transport and tourists arriving by air during Adria’s last year of existence, according to Oxford Economics.
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| The importance of air transport to Slovenia prior to Adria's bankruptcy |
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