Ryanair has said it has no plans to serve Belgrade Nikola Tesla Airport in the near future due to its high costs. Speaking to the “ch-aviation” portal, the airline’s Chief Commercial Officer, Jason McGuinness, noted that regardless of the attractiveness of certain destinations such as the Serbian capital, the budget airline sees no potential until fees are reduced. Speaking to EX-YU Aviation News, Ryanair said, “Belgrade Airport is too expensive and is not an option for us at the moment. We continue to track the [Serbian] market. It is interesting to us and if we can see that we can turn around potential into a profit, we will take the decision to further expand there”. The airline currently serves the Serbian market through its Niš flights.
Ryanair has warned of a continued hit to passenger growth amid Boeing delivery delays. Europe’s biggest airline expects to carry 210 million passengers next year, down from the previous target of 215 million. A shortage of new aircraft is one of the biggest headaches. Ryanair was due to receive eleven Boeing 737 MAX planes in the October to December quarter. Only two are now expected during that period. Mr McGuinness noted, "What the airports and regions can't do is be complacent here. We are allocating our capacity to the airports and bases that are working with us. That's always been our way, but it's even more so now in a market that is constrained. When you look at our cost base, all of our costs are fixed except for one, and that's airport costs. That is the one true variable cost in this business". The Chief Commercial Officer did not rule out the possibility of the closure of some bases or reallocation of capacity away from those bases that do not cooperate with the airline.
Ryanair is one of VINCI’s largest airline partners across its portfolio of airports. The French operator of Belgrade Airport had previously said, “The low cost carrier market represents an important part of Belgrade Airport’s development. There is already a significant number of flights operated by budget airlines at Belgrade Airport. Even so, the decision to introduce flights to Belgrade is up to Ryanair”. Within the former Yugoslavia, Ryanair has a base in Zagreb, as well as seasonal bases in Dubrovnik and Zadar. Among the capital cities, it also serves Podgorica and Sarajevo. Regionally, the airline boasts bases in Budapest, Bucharest and Sofia.
What would have to happen for them to start flights from Belgrade?
ReplyDeleteThey would have to get massive long term discounts
DeleteRyanair has always been the toughest negotiator regarding airport taxes.
DeleteIf they get the shame deal as Wizz they would come.
DeleteAlso how cheaper are all the other airports Vinci operates than BEG? FR as mentioned is indeed a big operator in Vinci operated airports around Europe.
To be honest I doubt that Vinci airports in Edinburgh, London (Gatwick), Lisbon, Belfast, Nantes or Budapest are less expensive than Belgrade.
DeleteAnd Ryanair flies to all these destinations.
Is BEG more expensive than SOF, OTP, SKG, BTS?
DeleteRead the interview on ch aviation. They are very demanding of many airports. They have special long term deals with most airports irrespective of official discounts other airlines get. They are very angry with Fraport and say how they can't grow in Greece over winter because they are not getting enough discounts. You think the world is black and white and that the same rules apply for everyone. Their CCO is literally boasting about blackmailing airports.
DeleteI would rather like to see Easyjet with renewed and new lines...
DeleteEasyjet has stopped expanding from most of continental Europe.
DeleteThat's quite sad.
Delete0904, are you for real?? The entire article is about what would have to happen, yet, you pose such a question??
DeleteNo W6 has already eaten their cake at BEG. Expensive airport is just another FR excuse. We are not in 2007 so FR can do whatever they want. On a flip side, MAX 10 is getting late and inexpensive a321neo is long time gone… Shareholders will happy with stall of their growth!
DeleteIt's not just that. Ryanair knows very well that Air Serbia is no Malev, CSA or Tarom, they can actually put up a fight. They have reformed and adapted to new market realities. In other words, in BEG they would have to fight both JU and W6. They know what happened in Warsaw with LO.
DeleteWhy should BEG give preferential treatment to a new entrant which would only damage the position of the two airlines which have been their main engine of growth over the past decade?
Ryanair is more than welcome to make use of BEG's new subsidy plan and launch unserved destinations from airports they have a long-term relationship like Palanga or Hahn.
They will come to BEG sooner or later
ReplyDeleteI really hope they will eventually start flights from BEG.
DeleteIt would be good for passengers and the city's tourism industry but it would be bad for ASL.
DeleteNo it would not be good for BEG, this are cheap (sh*t) pax who do not spend much money on dstination so it would not brinh much to Belgrade
DeleteIt would be bad for almost every carrier at BEG because FR would get unfair terms. They would use them to undercut their competition and to drive them out.
DeleteAdmin, when was this interview made? Was it before or after Belgrade announced incentives designed to attract new airlines?
ReplyDeletehttps://www.exyuaviation.com/2024/11/belgrade-airport-targets-flights-to-new.html
After. Belgrade Airport has had incentive policies for many years but they are revised from time to time, as was the case this year, starting from 2025.
DeleteThanks.
DeleteIt's strange that Ryanair didn't see the opportunity because of the Wizzair flight cuts
ReplyDeleteWell they say why. It's too expensive for them. They want a special deal with the airport.
DeleteIn the text they are literally threatening airports that if they don't fall in line they will leave.
DeleteRyanair in a nutshell. Either pay up or watch em leave
DeleteWe've seen it in Bordeaux, we've seen it in Reus, we've seen it locally in Podgorica, etc.
Well airlines are there to pay dividends to shareholders. Business is business
DeleteBusiness is business, but there is something called fair and sustainable business. Ryan can continue like they do until there are airports willing to band over in front of them. However, this will end up once and they will have to bag the airports to let them in. They are bullies and that's it.
DeleteWell FR is at it for 40 years now.
DeleteMaybe those countries should consider how to set up their own airline and manage it successfully so they are not in such a weak position to be extorted by Ryanair.
DeleteEuropean aviation has changed over those 40 years. Many airlines have adapted meaning they can actually fight and win when faced with FR. Ryanair knows this. Also, that is why some airports out there are actually not bothering with them. That's what happened in FRA for example... or ATH.
DeleteATH is a fine example of what happens when Ryanair doesn't get their way. They were beaten by their competition. Sky Express, easyJet and others can grow there while Ryanair has struggled. Makes you wonder...
" there is something called fair and sustainable business."
DeleteYes, consistently profitable businesses are sustainable.
Not necessarily. Business are profitable as long as they have a sound business plan. So far Ryanair had it. However, they became what they are today by offering low fares. MOL said it himself that the era of dirt cheap fares is over. FR needs to find a new competitive advantage in the coming years. I am not saying they will go bankrupt but they will need to adapt. An increasing number of airports are not rushing to strike a deal with them.
DeleteNEMJEE I don't think Ryanair is struggling in ATH . They have a decent network there and will fly in summer 2025 to 26 destinations while wizz air fly from BEG to 22 and you blame them for these not so good results of BEG airport , while ATH is thriving .
DeleteIt is expensive for them but not for Wizz, Transavia, Pegasus, FlyDubai, easyJet? Of course that it makes no sense and that competition is actually taking big portion of Belgrade market FR could have it for themselves.
ReplyDeleteBelgrade is a price sensetive market. At the same time, it's not that attractive for a city trip to justify high prices for pax from Western Europe.
DeleteSimply, the same planes can be used to add additional flights from Belgium, Netherlands or Germany to destinations that sell well, for a price of a few hundred euros per ticket.
Just have a look on W6 prices from Belgrade...Poisonly expensive, sometimes more than JU or LH. Mind you, Air Serbia has significantly increased their prices recently.
DeleteSo much about "price sensitive market". The market is the same for everybody including LH, OS, LX, LO, KL, TK, A3, CZ, W6, U2, FZ etc. Only FR complained.
Interesting.
Every single airline increased its prices. Across the board. I would not compare FR to legacy airlines. Different business model.
DeleteYes, Wizz is expensive, because the competition is limited. With FR entering the market, the prices would go down for Wizz as well.
All I am saying that people in Belgrade are less willing to pay more for flights than in many other location, so FR can use the planes elsewhere and earn more.
"Yes, Wizz is expensive, because the competition is limited."
Delete"All I am saying that people in Belgrade are less willing to pay more for flights than in many other location..."
Contradictory.
Strongly disagree that this is the characteristics of only Serbia. Every low cost market is price sensitive.
DeleteIf it wasn't price sensitive BEG would have at least TIA's level of traffic at current prices.
DeleteFR coming and the subsequent Ryanair effect on the other airlines fares would increase pax numbers very quick.
@9:53 - contradictory only on the surface. Let me elaborate.
DeleteWizz is expensive (for a low cost), because there is no competition from FR. In the markets / airports where both airlines are present, the Wizz prices are lower. Pure marekt economy...
Ryan is not coming, because it can earn more on other markets. The price people pay sometimes in Belgium or Germany would not be acceptable in Serbia. On the other hand, if Ryan would like to enter the market, it would have to start with really low prices. So would they do that if they can earn decent money somewhere else.
Wizz air is expensive but not only for a LCC. They are very often in the price range of JU showing that market does accept their price policy. The same would happen to FR.
DeleteYes, the reason for W6 expensive tickets is their LCC monopol in Belgrade, but who stopped FR on the first place to have that position in Belgrade 14 years ago when W6 came? Only their stubbornness and nothing else.
How do you know that there would be no duopoly between W6 and FR in BEG? For example both of these companies fly from HHN and the prices are surely not that cheap anymore.
Sure, Ryanair can earn more in TGD, BNX and SJJ than in BEG. No way, even if you calculate all incentives they keep having there. Number of passengers in Belgrade is far the biggest in ex Yu and if they earn 2 eur on 1 million passengers (numbers are only provisory) is much more than earning 5 euro on 100.000 passengers. Economy of scale, pure market economy...
But they want to earn in Belgrade 10 eur on 1 million passengers and BEG is not so desperate to have them on their tarmac as some other regional airports are.
Wizz Air is expensive BECAUSE THEIR PLANES ARE FULL. Almost all of their flights are over 90% full. Why should they charge peanuts when they can get a premium? People are still paying for it. I am not saying BEG is a high yielding market but I wouldn't call it a low yielding either.
DeleteI mean, if it were then wouldn't most avoid expensive BEG and would fly out of INI, TSR, OSI, TZL etc?
Air Serbia would soon go bankrupt if Ryanair was allowed into Belgrade. It's best to keep them out!
ReplyDeleteYeah. The likes of you also said they would soon go bankrupt if Wizz Air came yet here we are.
DeleteIf lethargic OU didn't go bankrupt due to FR, JU certainly wouldn't either.
DeleteAnd what happened after you woke up?
Deletebankrupt is an over exageration. But it would hurt Air Serbia. Raynair could steal 10% of their market.
DeleteFR competition would indeed be very bad for JU's ticket pricing.
DeleteI wonder if they pay special, reduced price in Budapest.
ReplyDeleteWould love to see Ryan in BEG.
ReplyDeleteI think we will be flying with Ryanair from Niš for a long time, and I don't mind that at all.
ReplyDeleteBelgrade should not accept Ryanair's ridiculous business terms.
ReplyDeleteBEG is not ATH , so if they want Ryanair to come they should accept some if their terms .If not , there is no point to discuss anything .
DeleteI don't see that the airport's management is chasing after Ryanair or that it wants Ryanair.
DeleteHas it crossed your mind that maybe, just maybe BEG and Vinci did their math and they came to the conclusion that getting FR would not make them enough money?
DeleteAfter all, they have JU whose growth obviously generates far more revenue and profits.
they can always expand from INI
ReplyDeleteSay they come one day. Which destinations do you think they would launch first?
ReplyDeleteLondon, Prague, Budapest, Athens, Rome, Barcelona...
DeleteItaly, Spain, Cyprus, Poland, Belgium for sure as well.
DeleteTenerife, Seville, Pisa, Lamezia, Hahn, Cologne, Nantes, Paphos.
DeleteDublin as well.
DeleteWell they can launch PFO-BEG, they could get all the subsidies and whatnot. They are being petty.
DeleteThey are already too, too late in BEG
ReplyDeleteAgree.
DeleteWay too late.
Air Serbia will be happy
ReplyDeleteAnd Wizz Air
DeleteEven less of a reason for Wizz to get it's act together with all these engine reductions.
DeleteIts never too late in business, look at aviation history to see how fast companies can shrink or fail. Ryanair will come, when its right for them and their bottom line. And that is how solvent and efficient business works - and Ryanair is both of those things.
DeleteI just wonder if they calculated how much money they lost by not covering Belgrade in last 10 years even with these "expensive" prices.
DeleteSolvent - yes. Stupid - even more!
How can an airline be 'stupid' when it is the largest and most profitable around. They answer to shareholders. Stupid is lanuching routes for political reasons etc. Ryanair are extremely effective. And that is far from stupid.
DeleteIt is extremely stupid to let the competitor earning the money where you could have done it.
DeleteAnd it has nothing to do with your business results on other markets. There is no doubt they are very successful in negotiations or call it correctly blackmailing, but there is also no doubt they lost huge money in Belgrade only by playing their stubborn game.
Since 2010 (when W6 came to Serbia) Belgrade has grown from 2,7 million passengers to 8,4 million expected in this year. They allowed to themselves to ignore it. Very, very smart.
And, yes, no matter how big their profit is or how big they generally are, they are not imune on stupid moves. And not coming to Belgrade is certainly one of them.
Total rubbish argument. They have a set amount of aircraft and fly them to the most efficient locations to generate profit. It might have been an 'error' to miss some money, but not stupid. There are many examples of stupid planning and decisions in the European aviation sector, but FR is top of the pile for planning and fiances.
DeleteRepeating the same "error" year after year is certainly not the sign of cleverness.
DeletePeople calling Ryanair's business practices stupid really need a reality check. Went from just over 200 to 600 aircraft in 15 years, and only made loss in 2020 and 2021 - and even that was covered fully by next year's profit.
DeleteThey must be doing something right, despite all the experts here claiming otherwise.
I will try for a last time to explain that we are talking about their local ex Yu approach and not wider than that. Repeating the same, empty phrases won't surely help.
DeleteIgnoring the biggest airport in ex Yu with 8.4 million passengers where LCC competition has already flown to in last 14 years is extremely stupid. I do not care if they make good moves in Portugal, Ireland or Finland. We are talking here about their stubborness to make a profit in Belgrade where it has been proven that profits are being made.
In last 3-4 years companies that came to Belgrade are KLM, A-Jet, airBaltic, China Southern, Luxair, Nouvelair, Sun D'Or, Hainan and all of them are making profit in Serbian capital despite having "expensive BEG price list".
From the other side many companies increase the frequncies like Lufthansa, LOT, Austrian, Swiss...I wonder why they do it if they could earn much more in Western Europe?
The only stupid thing is thinking a private company woth shareholders is ignoring 'the largest market'. When they can make money they'll come. Far from stupid i'm afraid. Rather its just business as it should be. A lesson that is often missed by the 'stupid' moves made by some airlines, airport operators and especially governements in the region
DeleteWell, I don't know how to tell it to you and not to hurt your feelings..The reality is that they do ignore the largest market in ex YU no matter if you like that expression or not.
DeleteGo to www.beg.aero and try to find their flight there...I think you will be surprised by the outcome.
You can find there only the airlines that lose money of their shareholders by flying to Belgrade.
My point is that you forget they 'ignore' places up until the point comes they can make money in the way they want. Belgrade will get Ryanair if and when it works for them. That is not stupid. Its business. Stupid is thinking the most successful airline in Europe ignores what is actually a relatively small market.
DeletePersonally i really wish they would come. But as a shareholder i also want them to make sound business decisions.
It seems that only they from LCC big 3 in Europe can't make money in Belgrade.
DeleteHow interesting. Clever business.
Still, fact remains that while BEG has grown, airports in their catchment area have shrunk or have faced total collapse. What became of OSI, TZL, INI or TSR? How did they perform since BEG's rapid growth started? They are all located in the same catchment area as BEG.
DeleteDidn't Ryanair completely pull out of TSR and TZL? In OSI they have a single route and in INI they seem to be struggle to generate any meaningful growth.
Meanwhile their main competitor, Wizz Air has grown quite a bit in BEG. So did Air Serbia since 2013.
They should build an airport in Novi Sad, and Ryan would instantly start flights, covering Belgrade market. That would be a win-win.
ReplyDeleteBuilding whole airport only for Ryanair that could leave in a minute?
DeleteBuilding new airport that is 1 hour drive from another one with 8.4 million passengers?
Success guaranteed...not.
Well, it would have a potential to hurt Air Serbia`s interests to a lesser extent, comparing to Ryan starting flights from Belgrade. So it makes sense: in overall, we`d have more people using our airports than in the present situation, and that means more travel options, more foreign tourists, etc.
DeleteThe alternatives are activating existing airports, like Batajnica, or Kovin. Even Kraljevo with a new runway could serve Belgrade (although not equal well as Novi Sad, or so).
Niš, on the other hand, has noothing to do with the Belgrade region.
I thing ZAG is the most expensive in former YU/
ReplyDeleteNis, 2 hour drive from Belgrade. could this be a realistic alternative to Belgrade?
ReplyDeleteBelgrade South Airport please!
DeleteNo.
DeleteIf the price is right. I flew for 5.99€ o/w to Berlin from Niš in the LCC heyday. With minivan shuttle straight to INI for 12€ o/w, it made sense to 'lose' 2+ hours to INI. It's a comfortable ride and you get straight to INI airport, small airport = quick check-in etc. I understand that the days of 5.99€ flights are over, but low cost customers are interested in just that..low cost. If the ticket saves me for one more night in hotel at my destination, yes I'd scarify 2 hours to INI.
DeleteNo, it cannot serve it adequately. Timisoara is as good an option. Kraljevo/Čačak just might be "Belgrade-South", if it had a proper runway.
DeleteIt's not alternative for spoid people from krug dvojke and wannabes. They would rather fly from Budapest still.
DeleteOtherwise, it's fairly good alternative and it will be even better once fast railway is built
But, it should never be Belgrade South, but Niš only.
No, high speed rail and low cost flights make a nonsensical pair... as the train journey to Niš should be as expensive as the flight to Vienna (it is so in Europe, and yes, that will also be the case in Serbia, as current prices for SOKO trains are not sustainable in the long term).
DeleteAnd no, it does not make any sense, from the common interest's point of view, not to have a cheaper airport option for the Belgrade region, as that would boost air travel and bring us a lot of money.
Instead of Ryan, bring more Easyjet to Belgrade. Love their service and options like Speedy boarding. With right incentives they could grow to become number 3 in Belgrade.
ReplyDeleteI fully agree with you, but it seems that easyJet is not East Europe friendly especially with the cities that are not on sea coast. For me it is still unbelievable that easyJet does not fly anywhere in Romania, not even to OTP, from SOF they have only 3 destinations in UK, no flights at all from ZAG or SJJ...
DeleteFor me it is still amazing how they lost BSL-BEG against W6. For easyJet it was not possible to make this route profitable with 2-3 weekly departures (mostly with A319/320). When W6 took over completely this route they flew 5 weekly with A321 or last summer even daily with A320.
Great. BEG does not need to be 0 connectivity airport like some in EXYU with Wizz or FR.
ReplyDeleteEh, not a big deal considering they fly to the most remote airports. Yes, you'll pay 50e for a ticket, but you'll probably pay double to actually get to the place you want to get to.
ReplyDeleteTotally wrong.
DeleteMorava would be ideal for Ryan base, when they extend the runway. 1:45h trip time from Belgrade sounds reasonable for low coster, so, with good shuttle connection, I think it could easily be served. Not to mention all the other closer cities that have or will have highway/motorway connection (Krusevac, Kragujevac, Cacak, Pozega, Uzice, Novi Pazar...).
ReplyDeleteI was thinking same.
DeleteNis will be bungo, once fast railway is finished. New railway and bus stations will be near the Nis Airport. In 100 minutes from Belgrade centar to Nis Airport
DeleteNo, that woun't be the case.
DeleteIsnt Ryanair suppose to announce 5 new routes out of Sarajevo this month? Will that still be happening?
ReplyDeleteI would prefer to see more flights by Easy jet here at Belgrade :)
ReplyDeleteWell, I sincerely hope, if Ryanair don't want start fly to BEG, Eurowings would boost flights to mentioned airport. :)
ReplyDeleteEven better! Bye bye RYR - Cancer Airline.
ReplyDelete