Slovenia offers €16.8 million for the launch of new routes
Slovenia has issued a third tender call for airlines to introduce new routes to the country in return for subsidies lasting over a period of three years. The previous two public calls garnered mixed results, which the government has labelled as “disappointing”. Luxair and airBaltic were the only two to apply. The national carrier of Luxembourg has since launched operations to the Slovenian capital, with airBaltic to follow suit with services from Riga in May of next year. Only airlines registered and based in the European Common Aviation Area (ECAA) are eligible for the subsidies. The ECAA is made up of states that are part of the European Union, as well as Albania, Bosnia and Herzegovina, Serbia, Iceland, Macedonia, Norway and Montenegro. The Slovenian government is primarily targeting the introduction of flights from Vienna, Copenhagen, Madrid, Prague, Berlin, Rome, Stockholm, Oslo, Barcelona and Lisbon, although all unserved destinations within the ECAA are eligible.
The state has allocated 16.8 million euros in subsidies divided over three years, or 5.6 million euros per year. The subsidies are designed to cover 50% of the airline’s airport costs in Slovenia. If funds are left over following the completion of the ongoing public call, the state will launch a new one. Interested carriers have until November 27, just before midnight, to submit their applications. Their opening will not be public and will be carried out by the Aid Granting Commission within fifteen days of the tender deadline.
Commenting on the subsidies, the Slovenian Ministry for Infrastructure said, “The purpose of the call is to improve Slovenia's air connectivity, with the aim of promoting the establishment of new nonstop scheduled air routes to and from Slovenia. The consequences of the Covid-19 pandemic severely reduced the level of air passenger traffic in Slovenia, together with the negative effects of the pre-pandemic bankruptcy of Adria Airways. The recovery of air traffic in Slovenia has been very slow, and the aim of the call is to increase the mobility of people in Slovenia”.
Ljubljana Airport recently noted it was in discussions with almost thirty airlines over the potential introduction of flights. “In the last month we've been in extensive discussions with 28 airlines, both legacy and low cost carriers, about more than 30 destinations. One recurring reason emerged for some airlines opting out. Market size matters: legacy carriers often find their economic viability in feeding hub airports. These hubs are already well-served, making them less interested in new destinations. Additionally, the demand for "non-hub" routes might not be substantial enough to justify the investment”, the General Manager of Ljubljana Airport’s operator, Fraport Slovenija, Babett Stapel, said.
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