Saturday, April 4, 2015

Pristina Airport launches new subsidy scheme

Pristina Airport to spur passenger growth

Pristina Airport and the Kosovo Civil Aviation Authority have launched a range of new inventive schemes in an attempt stimulate passenger growth. The airport, which last year saw its numbers decline almost 14%, has rolled out seven different incentive programs, including those for new route developments, additional frequencies, high traffic volume, fixed base operation support, marketing support, non-residential premises incentive and off-peak time support. So far this year, Pristina Airport has seen its passenger numbers improve, with the airport handling some 297.600 travellers during the first quarter, an increase of 8% compared to the same period last year. In 2014, Pristina Airport was the former Yugoslavia’s fifth busiest with 1.404.775 travellers, down from third place only a year before.

The new incentive policies come despite the airport’s opposition to similar measures employed by its counterpart in Skopje. In November last year, Kosovo lodged a complaint with the European Commission threatening to take legal action over subsidies provided by the Macedonian government to low cost airlines at Skopje Airport. The Kosovo Civil Aviation Authority argued that the incentives created unfair competition in the region. The Macedonian government initiated a three-year subsidy scheme in 2012, which was recently extended by another three years. The measures have proved successful with Wizz Air opening a base at Skopje Airport, stimulating significant growth. Recently, the low cost airline’s CEO, Jozsef Varadi, told EX-YU Aviation News the carrier was in talks with Pristina Airport over potential flights. “We can confirm talks with Kosovo. However, airport costs are a problem and we have been dragged into long negotiations”, Mr. Varadi said.

Under the new route development incentive, those airlines willing to operate flights to Pristina from unserved destinations will be exempt from landing fees for the first year and will enjoy a 50% discount in their second year of operations. The additional frequency incentive hopes to encourage airlines to add additional flights to their existing schedules. Airlines operating at least one additional frequency will be freed of landing fees for one year. Furthermore, carriers which handle over 50.000 passengers from Pristina during 2015 will be eligible for financial support. Pristina Airport will provide 0.50 euro per passenger to airlines which handle between 50.001 - 100.000 travellers (Austrian, Belair and Pegasus Airlines managed these figures in 2014) and two euros per head to airlines carrying between 100.001 - 200.000 travellers (Adria Airways, Turkish Airlines, easyJet, Germanwings and Edelweiss). Airlines that handle over 200.000 passengers (Germania) will receive three euros per passenger and those carrying over 300.000 five euros. The fixed base operation incentive will provide a 100% discount to all airlines that have at least one aircraft stationed in Pristina. Other incentive arrangements also include free storage and maintenance space for carriers, marketing support and the use of free, less desirable, slot times.

39 comments:

  1. 8% growth still isn't great considering the decline they had last year. If Skopje sees 25% growth during the summer and PRN stays between 5-10% I think we could see Skopje overtake Pristina.

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    1. I don't think so, Skopje cannot overtake Pristina forever.
      Just because of WizzAir Skopje is still young to get there and overtake Pristina.

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  2. Double standards from Pristina but I wonder if they could get Wizz Air with these incentives. They are pretty good.

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  3. So Pristina can have subsidies and Skopje can't

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  4. PRN growth is 7,3 %

    SKP vs PRN 264.213 vs 297.600 so far

    SKP is getting pretty close, but i dont think it will reach PRN

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  5. Just goes to show how quickly things can change

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  6. Najbolje da daju subvencije ASL imali bi najvecu korist.
    INN-NS

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    Replies
    1. Prestani da trolujes.

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    2. Ne trolujem a ne znam ko ste vi da govorite da neko troluje.
      INN-NS

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    3. Najbolje da daju subvencije LH imali bi najvecu korist. Lete iz svojih baza za ceo svet, a em se priznaju njihovi pasosi.

      Delete
    4. INN-NS you get "owned" every time with someone's replies and then then you write some lame comeback. ITS NOT SHAMEFUL TO LOSE AN ARGUMENT WHEN WILL YOU GET THAT?

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    5. INN-SNS Radical Fail

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    6. YYZ
      Ne znam sta je problem.
      INN-NS

      Delete
  7. Are there any new airlines starting flights to PRN this summer. Also is Etihad Regional still flying to Pristina. They started last summer.

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  8. Oh look, both PRN and SKP showing growth at the same time, how can that be? Any word on their lawsuit?

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  9. OT; Today I read an article from from PESCANIK magazine, dated Jan 22 2015. It states that Belgrade airport wrote off 1.5 billion dinars to Air Serbia betewen Jan 2014 to Sep 2014. If someone can paste it to here or even investagate it more I feel it would get some great responses.

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  10. OT:

    http://www.poslovni.hr/hrvatska/air-croatia-uspjesno-odradila-prve-letove-zagreb-dobio-4-nove-linije-293501

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    1. OT: Air Croatia launching ZAG-OMO three weekly from June starting €49 one way.

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    2. Od 1/6-15 Air Croatia uvodi letove iz Zagreba za Mostar i obratno!

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    3. Great news!

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  11. Blogger seems to be confusing concepts of aid by state and non-discriminatory incentives offered by the airport operator. This is a case of incentive by the operator, for which ICAO and EU is totally ok with.

    The CAA has only approved it as called for by ICAO and EU regulation, it is not offering anything. Here it is in plain transparency just like it should be, offered to all airlines without discrimination http://www.caa-ks.org/index.php/en/news-a-press/512-caa-has-approved-2015-pia-adem-jashari-incentive-program.

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    Replies
    1. Yep Kosovo is the bastion of transparency in the Balkans. Wondering when they will publish that concession deal with Lymak.

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    2. PPP Agreement has been public since 2010 http://pppkosova.org/repository/docs/PPP%20PIA%20Agreement%20Web.pdf

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    3. @Anon. 2:11
      It's not important you talk facts.
      Majority of them here are not interested in facts.
      They follow simple dogma :
      ASL, BEG - good, perfect, fantastic,
      all others, especially CTN, ZAG, PRN - bad, stinky, small, lousy, irrelevant

      Delete
  12. I found on airliners.net a chart of pax loads of LH, BA, EY, EK on the Dallas route. I know that Chicago and New York are completely different market from Dallas, but take a snap and this loads and persuade me that ASL could sustain transatlantic flights all year round. Lufty has around 60% load with all the connections. Our good old Etihad has 32% LOL

    http://www.airliners.net/uf/view.file?id=58069&filename=1428089452sy5ZgR.gif

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    1. Im not an Etihad advocate, but they launched the route in dec. 2014... You cannot expect high lf after only 3-4 months, and given the competition...im not saying they are doing good, but also it is not a LOL material..who knows maybe in 6 months they get up to 50%ish which is similar to what LH and EK are having on the route..

      Cheers

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    2. Yes I am aware of that and I agree that the route might improve from very poor to fair, but I was trying to make a point that EY with numerous connections in the world, UAE ( one of oil capitals)+ extensive Pakistani and Indian market struggles to fill those flights. What would be the outcome with ASL? Is it worth starting flights to US just because 3-4 months might be profitable? What will ASL do with A330 when it is not being flown across the pond?

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    3. @VaskeApril 4, 2015 at 7:37 PM

      Belgrade - Nis flights with A330 might be very profitable :)

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    4. Vaske
      Is it worth starting flights to US just because 3-4 months might be profitable? What will ASL do with A330 when it is not being flown across the pond?
      Ta izjava je toliko smesna .
      INN-NS

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    5. @Vaske, Anon 7:08Pm here

      I do not know how Dallas is interesting to Pakisatnis and Indians, but it is to say the least concering that the LF is in the 30% range, but i hope that their performance on the route picks up. They are flying their 3 class 77L there i believe, and if they are filling the front seats they might not be bleeding too much money on the route, but still.. I cannot resist the thought that they had to launch it just in order to compete with QR and EK that have more significant presence at DFW.

      But i agree with you that it is questionable how will JU keep the A330s profitable or at least "at 0" during the slower months. From a tax payers standpoint i can only hope that hey do not rush the decision and launch the routes( if they launch them ) after some serious analysis.

      Cheers

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    6. INN-NS, those are logical questions which it seems you do not have an answer to, and there is nothing funny about those two very important factors when it comes to transatlantic flights.

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    7. Ali od nas niko ne zna kako ce se pokazati letovi mozda bude lf 80-90 % mogu letovi i u losim mesecima da budu na 0 ili profitabilni zbog jako velike zapremine Kargo tereta koju moze da ponese A 330.
      INN-NS

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    8. @ Vaske

      Keep in mind you are comparing a flight of 14 hours to that of one that is 9. JU intend to use the A330 compared to EY use of B77L on the route to DFW. EY has 2 strong competitors on the route, EK and QR which also have a massive seat and cargo capacity. JU doesnt exactly have that. EY isnt flying to DFW because of large O&D demand. AUH is also a much smaller airport compared to its competitors (3 x smaller to DOH, 7 x smaller to DXB).

      Honestly, my opinion is that JU will have an issue in filling its premium cabin as well as cargo. As seen with Air Swift who attempted to launch BEG and ZAG, not much advertising is needed to attract pax, their first flight was full. JU has a fully functioning site, some brand recognition in the Balkans, and some form of advertising could follow in the US to attract more pax, but even still JU had its commericial 'The new wings of Europe' on world wide tv, which im sure we could see more of. JU strength and weakness is its regional network. While it does hold a nice variety of destinations, frequencies is what is lacking.

      JU seems to be more focused this year in working on its product rather than expanding its network, which is good. Small frequency upgrades have seen positive results so far. Im hoping some regional frequency upgrades to follow before the launch of US flights. Lets wait and see. It is all talk as of now.

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    9. JATBEGMEL, if I remember correctly Air Swift was planning to start their flights somewhere in beginning of June. I am not talking about peak summer months (June-September) which I am sure would be full in economy and maybe even decently filled in premium cabin, I was just trying to make a point out that it would be very difficult to sustain flights during the other 7-8 months. Anyhow, I am sure there will be interesting developments when it comes to ASL in the next few years. even if they don't start transatlantic flights.

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    10. @ Vaske

      I think in the slow months there wouldnt be a significant drop in pax numbers due to regional connectivity and good O&D numbers. Cargo is still showing dramatic increases which too is a positive sign, as cargo can bring more revenue than pax.

      Lets not forget that JU has the advantage to TK, LH and OS for cheaper workforce and JU would still be receiving 'subsidies' during the first critical months of the flights, meaning a smaller percentage will be needed to bring flights to profitability in comparison to its competitors. Also the A330 is an economical aircraft to operate.

      Hypothetically these flights do start next year, I do see a regional upgrade in frequencies will follow. Double daily OTP, SOF and SJJ. SKP needs to remain double daily all year, DBV and SPU from seasonal to all year, as well as OHD to be seasonal. PRN i see being all year and daily. Rome was not built overnight and neither will JU, as you say interesting developments will come in the next few years. Im just happy that things are finally normalising for our national airline.

      Delete
  13. Air Croatia flying Zagreb-Mostar three weekly from 1 of june

    http://dnevni-list.ba/web1/uvode-se-letovi-zagreb-mostar/

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  14. Urime dhe shum suksese per Aeroporti i Prishtines! :)

    Its rare to read about PRN, and its good to read something positive. May more good news come.

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