NEWS FLASH
Iberia, which last year introduced limited summer flights between Madrid and Ljubljana following its successful application for subsidies, has not benefited from the allocated funds. The subsidies were issued by the Slovenian government in an attempt to improve the country's air connectivity. According to the daily “Delo”, the Slovenian Ministry for Infrastructure noted Iberia’s service between the two capitals was instantly profitable and, as a result, the Spanish carrier was not entitled to the subsidies. The amount of funds provided to airlines depends on the number of flights performed and passengers carried. So far, the Ministry has spent just under half a million euros in subsidies, distributed across three carriers - Luxair, airBaltic and Norwegian Air Shuttle. This does not include Eurowings, which will commence subsidised operations to the Slovenian capital this summer. The Slovenian government recently issued an eighth tender call to airlines for the introduction of subsidiesed services. Iberia will resume flights to Ljubljana this coming summer, from July 27 until September 7, operating a total of thirteen rotations.
Punishing them cause they were doing good? Only in my Slovenia lol
ReplyDeleteMakes sense why a lot of airlines weren't applying for the tender, the conditions are outright horrible lol
DeleteSo if you're profitable, you get punished??? Slovenia, Slovenia. Absolutely insane!
DeleteWell now we know why they are coming back with just 13 flights for the entire year.
ReplyDeleteExactly
DeleteThis is tragic, what are they thinking? I'm SURE there can be a way of writing the tender in a way that the arilines are paid by pax carried, or by ANYTHING that's not just them paying less for airport taxes
ReplyDeleteYou guys are all so smart, But noone is keen to check the EU regulation limitations
DeleteBravo!
ReplyDeleteMeanwhile Ljubljana airport still has FlyEgypt listed as an airline that's flying to the aiport...they are defunct....
ReplyDeleteBravo Fraport!
DeleteDamn, I was wondering why I never saw their 737s at LJU anymore when planespotting
DeleteLol, we want you to fly but you cant make any money or no incentives for you!
ReplyDelete"ccording to the daily “Delo”, the Slovenian Ministry for Infrastructure noted Iberia’s service between the two capitals was instantly profitable and, as a result, the Spanish carrier was not entitled to the subsidies."
ReplyDeleteHow do they "note" that the service is instantly profitable? Do they have access to Iberia's financials to extract MAD-LJU route's revenues, as well as its cost structure (staff, lease, maintenance, fuel, ground costs, hedge costs etc.)?
Idk but the current Ministry of Transport is incompetent so I wouldn't be surprised if the decision was made with a game of beer-pong
DeleteDuh, obviously.
ReplyDeleteWhy pay incentives for a service that's profitable on its own? If the state paid them for a profitable market service, that would not only breach the state aid and tender rules, but it would also be a complete waste of taxpayers' money. Not to mention that the commentators in that case would scream in a single voice how the state is making foreign companies rich.
Iberia (and other airlines) are made aware of the tender rules in advance, i.e. before they apply. The state did not mislead anyone, least alone Iberia. And yes, under the tender rules and draft contract (if anyone bothered to check prior to commenting), the airlines are required to report to the ministry on a number of circumstances, including profitability. The ministry has the right to claim reimbursement of paid incentives if the route becomes profitable for the airline.
+1 The rules are clear and not set by Slovenia, but by European Commission. I am sure Slovenian government didn't dig into Iberia books, but Iberia transparently reported financial results of the route.
DeleteExactly. And this was part of the tender.
DeleteIB should extend the service from early May until end of September two weekly and focus not just on Spanish passengers but also Slovenians visiting Spain. I dont know why some airlines just focus routes on the very peak of the year. The best months to travel are April, May, June and September and early October, at least in Slovenia or large parts of Spain. ZRH Airport meanwhile in 2024 had the highest passenger volume on a single day on 06OCT2024, topping the July days and this development will continue.
DeleteAnd why would an airline fly anywhere if not to be profitable? Maybe because of an unconditioned love towards a pretty small and geo-strategiacally close to 0 important country?
ReplyDeleteWhat is happening with low costs at LJU? anything else than eurowings?
DeleteLJU is a very small city, quite wealthy and connected to everywhere by a decent road network, with little gasto traffic. The airport has connections via MUC and FRA that open up the word. The ministry is incompetent and lives in the communist past, how can the same tender be released 8 times without someone putting 2 and 2 together and realising it does not work.
ReplyDeleteRyanair is adding flights to KLU. In Summer up to 5 weekly PMI
Delete@23:00 This comment is sponsored by Fraport in cooperation with Lufthansa Group
Delete@23:36 Klagenfurt is also small, wealthy with decent road network. This simply can not be possible!
DeleteWhat do you mean little gasto traffic, Kranj is basically mostly gasto.
Delete