The European Commission has approved the Slovenian government’s plan to allocate seven million euros in incentives to airlines serving the country in a bid to continue supporting the recovery of tourism and, more broadly, the economy of Slovenia, which have been negatively affected by the coronavirus outbreak. Under the scheme, the support will take the form of direct grants. The measure will be open to all interested airlines operating flights to and from Slovenia. The level of support per beneficiary will depend on the number of passengers carried and the number of flights performed. The Commission found that the Slovenian scheme is in line with the conditions set out in the EU’s Temporary Framework on state aid, introduced two years ago to help with the recovery from the coronavirus pandemic.
The state aid will not be able to exceed 2.5 million euros per airline and will have to be granted by June 30, 2022 at the latest. The block’s executive branch noted, “The Commission concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a member state”. The Slovenian Ministry of Economic Development and Technology, said, “The purpose of the tender is to maintain the existing schedule operated by international airlines, to encourage the resumption of suspended flights due to the consequences of the pandemic, and to encourage new airlines to fly to Slovenia. Lacking a national carrier, Slovenia is currently experiencing a very slow recovery”.
Slovenia had previously allocated just over three million euros to airlines through 2020 and 2021 in order to mitigate and remedy the effects of the coronavirus pandemic on the aviation industry in the country. Jointly, Lufthansa, Swiss International Air Lines and Brussels Airlines pocketed just over 1.6 million euros, or some 45% of the total funds. The German carrier was awarded the most aid, followed by Turkish Airlines, Air France, Air Serbia, LOT Polish Airlines, Brussels Airlines, Swiss, Wizz Air and Air Montenegro. Questions remain as to how Swiss was granted 22.050 euros in the first of three rounds of the subsidy allocations as it did not meet some of the criteria. On the other hand, easyJet, which was Slovenia’s busiest airline prior to the pandemic, received no funds and was disqualified from the first round of the subsidy allocation for undisclosed reasons.
Will this really solve anything?
ReplyDeleteWho knows if all these airlines would stay if they haven't made these subsidies available.
DeleteWell it is likely to reduce the chances of an airline suspending flights or leaving the market.
DeleteAt least the amount of money this time is more substantial than in 2020/2021
ReplyDeleteThe amount that was allocated for 2020/2021 was bigger than what they gave in the end. I have a feeling the same case will be here.
DeleteAdria was operating with such money per year from slovenia so thus is such a loss for those few flights. While Adria woupd fly to fuc** 25 destinations+charters and it could even extend it's network...
Delete@17:54
DeleteTrue, but now captain Angela and First Officer Josef are getting Slovene taxpayer's money so there are no hard feelings. With Adria, Captain Janez and First Officer Marija were getting paid by taxpayers and we sure don't want others having higher salaries than ourselves. Except for doctors.
So they didn't give money and subsidies to Adria yet it's ok to give funds to foreign airlines?
ReplyDeleteAdria didn't receive any subsidies? Really?
DeleteI meant when they were collapsing.
DeleteGood decision. Desperate times require desperate measures.
ReplyDeleteIt would better if they sat down and thought through what can actually improve Slovenia's airline connectivity.
DeleteEveryone who's in airlines business for more than 2 hours know what it the one and only solution for Slovenia.
DeleteBuild a highspeed railway to Zagreb?
DeleteIs this only for airlines that currently fly to LJU or will it be open for anyone?
ReplyDeleteAirlines currently flying.
DeleteLost opportunity...
DeleteJust another way to give money to Lufthansa.
ReplyDeleteHonestly LH group has offered very little to LJU considering how much support they get from the Slovenian government.
DeleteWell, what is 2/3 million € in comparison how much Air Serbia and Croatia get?
DeleteBut they have connectivity which brings passengers and those brings money back to state's economy. We don't have connectivity, no passengers, no money...
DeleteSmart move
ReplyDeleteShouldn't the airport operator provide incentives for airlines?
ReplyDeleteIt seems that the airport operator will be applying for state aid soon.
DeleteI've heard this too. Is it really true?
DeleteI believe there are some basic incentives.
DeleteNo, I don't think so. There is no mention of any incentives on their site and this has to be publicly published. So it looks like they don't have any.
DeleteGood luck
ReplyDeleteLet the market sort it out...
ReplyDeleteWe saw how well that worked out.
DeleteI know, I was being sarcastic.
DeleteGood news for Ljubljana Airport.
ReplyDelete5 mio eur per year for Adria was almost criminal act and now 7 mio eur per year (for much less effect)...Another brilliant move from our government!
ReplyDelete+1
DeleteI doubt EC would approve 5m of state aid every year for a national carrier. It would be a field day for the likes of Ryanair with appeals.
DeleteBut if it is vital for a country's connectivity, as is the case with Slovenia, I think they would make an exception.
DeleteThe money required by JP was significantly more than 5-7 million euros ;)
DeleteAdria needed maximum of 5 million per year to be sustainable.
DeleteFunny how it needed 50m at some point, and went into bankruptcy with more than 80m of debts.
DeleteNational carrier with high ticket prices is not what most people need.
DeleteNow we have foreign airlines with high prices and few flights.
Delete@anon 10:22
Deletedon't compare JP when it state owned and when it was owned by 4k. At time when it was state owned JP did not cancel flight, flying in triangles and so on..And we have to be awared that JP even at that time was not managed how it should be but still much better when Germans took over.
You're right, it wasn't flying triangles, it flew two ferry flights a day with A319 to fly MBX-SEN with less passengers than a full CRJ could take.
DeleteIf you know that then you also know that those were paid operations so JP did not have any cost with it. And like I said, there are a lot of situations where JP should react much smarter/faster, but in that circumstances with politically appointed management it was quite ok. Much better when it was under 4k!
DeleteCompany with unlimited state aid was running better than one that had to break even in order to survive.
DeleteI'm shocked.
And I was shocked when I saw what is their intention and that for sure was not to get to break even point.
DeleteI still don't think this will encourage new airlines to launch flights.
ReplyDeleteIt's nice support for airlines that fly to Ljubljana but I also don't think it will attract new ones.
DeleteFully agree. Adria during Yugoslavia was fantastic company. After the country disintegrated, both Adria and Croatia Airlines were also OK companies. Some things could have been better, of course, but generally both were healthy companies with good standards, satisfied passengers and decent connectivity, even profitable, or with losses not that big and not problematic to be covered by governments. Until thieves and crooks took over in the both. Both domestic and from the Cartel.
DeleteThis was supposed to be answer to @An.13.14, few posts above
DeleteMore money will be needed.
ReplyDeleteRealistically speaking, what other airlines could we see come to LJU with some incentives?
ReplyDeleteI don't think we will see any new airline coming as a result of these.
DeleteDoes LJU have an incentive policy for arrival of new airlines?
DeleteAnon 10:24
DeleteLJU incentive policy:
"Launch flights to Ljubljana Airport and get a free cookie!"
I was hoping we could see Air Baltic and Luxair launch flights. I was also hopeful KLM might start flights too.
DeleteGood one :D @anon 11:42
DeleteI would add coffee or tea to cookie. Fits well 😃
DeleteThe best decision would be - to create a new national airline!! And the money/taxes from subsidies would "go back" to Slovenia and not to other countries!
ReplyDeleteCreating an airline when jet fuel price is approaching record high, and with a war just couple of hundreds of kms away.
DeleteWhat a great idea. Nothing can go wrong.
Nothing then, guess Venice and Zagreb will keep being our gateways to the world.
DeleteSo we should just remained locked in our country and wait that every world problem is solved and then we can act? Smart move...
DeleteAko JU vrati 17 pre pandemijskih letova,može lepo da zaradi. Pretpostavljam da će nešto dobiti i za letove iz Niša.
ReplyDeleteLH will get the most money without doubt.
ReplyDeleteWell they are LJU's biggest airline
Deleteeasyjet was the biggest airline at LJU two years ago and they got nothing..
DeleteThey send them clear message.
DeleteThey carry the most passengers to/from LJU. Makes sense.
DeleteThey should give money to Austrian Airlines. Even though it does not fly to Ljubljana, it would be a shame for a member from the Lufthansa Group not to get some support. Swiss got money for not flying for almost 1.5 years, why wouldn't Austrian?
ReplyDeleteDon't give them ideas...
DeleteBut would be nice if Austrian started flights from Vienna. We haven't had flights to VIE since Adria went belly up.
DeleteMama Lufti likes this
ReplyDeleteIndeed
DeleteShould have paid new airlines for opening new routes... What are they thinking?
ReplyDeleteWill be interesting to see who applies.
ReplyDeleteIt will be interesting if LCCs apply considering how easyjet got treated.
DeleteTransavia didn't even bother applying last time around.
DeleteAnd ironically, Transavia is the one adding new flights to Ljubljana with Paris Orly launching next month.
DeleteWhat a surprise
ReplyDeleteThe last tender was an absolute shambles with short deadline and rules made up and changed as the ministry felt like it.
ReplyDeleteBusiness as usual in Slovenia.
DeleteThese sums are peanuts!
ReplyDeleteSeven million is not that small.
DeleteConsidering the number of airlines serving LJU. At this point they can give one million to each airline.
ReplyDeleteWould it not be more beneficial to offer incentives and subsidies for the launch of NEW routes? That way you might even get new airlines opening up a whole lot of new connections.
ReplyDeleteI agree. At least in most countries subsidies are given to stimulate new routes, not keep existing ones that have been in operation for years.
DeleteI don't agree, see OU for example. They were bringing passengers all those years to OU and not newcomer get much better conditions as loyal/local airlines. This is not right..
DeleteSlovenian ministry definitely stabbed U2 in the back. I just don't understand the logic. And those amounts are really laughable coming from the richest ex-Yu country.
ReplyDeleteAviation in Slovenia is becoming a joke unfortunately.
DeleteEasyjet showed the most promise and potentially could have had a base in Ljubljana some day.
DeleteIt's nice support for airlines that fly to Ljubljana. But it didn't attract new ones though.
ReplyDeleteMuch more money is needed for this to have any sort of impact on LJU's performance.
ReplyDeleteOriginally they said how they would offer 2 million this year so this is an improvement in terms of the amount they are offering.
ReplyDeleteLet's see how much money they actually give. Last year they also announced a much bigger sum than they actually provided. What happened with the rest of the money god only knows.
DeleteFraport should offer simmilar subsidies to the one offered at Zagreb Airport.
ReplyDeleteIt won't work. Fraport Slovenija cares primarily about profits (as any airport should). They are looking at financially stabilizing. Offering everything for free to an airline like Ryanair won't help improve your finances. We see this at Zagreb airport which has a lot of debt and constantly takes out new loans. Zagreb Airport's move is great for a quick recovery and increasing passenger number but their bottom line won't improve at all. And unlike on other airlines LCC passengers rarely purchase duty free, spend money at airport restaurants or spend money at the airport at all.
DeleteLie number one - offering everything for free
DeleteLie number two - LCC passengers rarely purchase duty free and spend money
How much money did each airline receive from the last tender?
ReplyDeleteIt was published here a few weeks ago.
DeleteAll in EUR
Lufthansa - 1.297.530
Turkish Airlines - 664.560
Air Serbia - 414.780
LOT Polish Airlines - 233.190
Brussels Airlines - 192.180
Swiss - 186.870
Wizz Air - 178.350
Air Montenegro - 72.630
so they received money incentive NOT TO LEAVE LJU! And they still leave it! Brussels Airlines is probably loosing money with A319, that's why they stopped flying to LJU for whole month. Lufthansa operates only FRA, there is no sign of MUC anytime soon. LJU is currently connected only to London, Paris, Brussels, Belgrade, Warsaw, Niš, Amsterdam, Dubai, Zurich, Podgorica and Istanbul. That's it. Helsinki and Munich in May for god knows how long (probably few months only).
Delete