Macedonia delays airline subsidy decision

The Macedonian Ministry for Transport and Communications, which was today to unveil which airlines have applied for financial support for the launch of new routes out of the country, has pushed back the decision without any further explanation. The public opening of the bids was due to occur at midday. The incentives are to be provided to the winning airline between 2019 and 2021. The Ministry annulled a previous tender held this summer after it received only one bid, believed to be from Wizz Air. It said the bidder did not clearly write its name and address on the submitted envelop as outlined in the tender documentation. Carriers had a month to apply for the latest round of incentives.

Ryanair and easyJet are also said to have shown interest in benefiting from the subsidy scheme. The head of the Macedonian Civil Aviation Agency, Goran Jandreoski, said recently, "The Ministry for Transport and Communications has adopted a decree that is aimed at attracting low cost airlines. It is not just Wizz Air, there is also interest from Ryanair and easyJet. The Agency is always at hand to provide support so everyone can enjoy the benefits of low cost travel for a long time to come. Wizz Air did not accidently station four aircraft at our airport". In 2015 Ryanair confirmed it would introduce flights to the Macedonian capital and noted it was negotiating with the government over a range of routes. Wizz Air quickly followed with the announcement of several new services to Skopje from Ryanair bases. Ultimately, Europe's busiest budget carrier shelved its plans to enter the Macedonian market. On the other hand, easyJet has said it is unfazed by Wizz Air's expansion on the Macedonian market and will only launch flights to the country if there is sufficient demand.

The selected airline must establish and/or maintain a base with at least one aircraft in Skopje or Ohrid by January 10, 2019 at the latest for the duration of the financial support program. Furthermore, the carrier in question must launch at least two new routes from Skopje by January 10 and four new routes from Ohrid, the first two in January 2019 and the rest within a year of being granted state support. The newly launched routes from Skopje and Ohrid cannot be served from the other airport and cannot have been served over the past two seasons. In addition, every new destination introduced at Macedonia's two international airports must be run at least twice per week throughout the year. Applicants are free to introduce additional new services, with the Ministry noting that the winner will be chosen based on the number of new destinations proposed. If two carriers commit to the same number of routes, the winner will be determined based on the number of frequencies. The financial support includes a one-time payment of 40.000 euros for each new route launched, as well as nine euros per passengers for each new destination from Skopje for the first year, eight euros during the second year and seven during the third. On the other hand, the carrier will receive thirteen euros per passenger during the first year of operations on a new route out of Ohrid, twelve during the second and eleven euros per traveller in the third year. A similar policy was enforced on two previous occasions, in 2012 and 2015, with Wizz Air being the sole beneficiary.