Friday, November 25, 2016

"No future" for LCCs at Banja Luka Airport


The Minister for Transport and Communications in the government of the entity of Republika Srpska, which forms part of Bosnia and Herzegovina, Nedjo Trninić, has ruled out the possibility of low cost carriers (LCC) commencing services to Banja Luka Airport. His statements are in contrast to those made by the airport's management who view Bosnia and Herzegovina's second largest city as a future "regional low cost hub". "We can cooperate with no frills carriers but we are burdened by other issues which are not to be made public. Low cost carriers are not our future. We are more focused on serious airlines to whom we can offer fair conditions", Mr Trninić said. He criticised Tuzla Airport, which acts as a base for Wizz Air, noting, "At Tuzla Airport they survive on donations made by the Cantnon and Federal governments. We are not interested in such things. Tuzla Airport would not be in operation if it were not for subsidies".

Currently, Air Serbia is Banja Luka Airport's only customer, maintaining three weekly flights from Belgrade. B&H Airlines, which ran operations between Banja Luka and Zurich, suspended all flights in June last year. Earlier in 2015, Edelweiss Air, a Swiss International Air Lines subsidiary, was to launch flights from Zurich to Bosnia and Herzegovina's second largest city, however, it suspended ticket sales shortly after publicising the new route. "We must offer passengers both attractive and scheduled routes because the population is big enough for the airport to function properly and develop in the right direction", Mr Trninić noted. "Low cost airlines are very demanding in terms of subsidies and airports do not benefit from them", he added.

Banja Luka Airport began talks with low cost airline Wizz Air over potential flights in 2013, however, negotiations have since collapsed. The Entity Minister for Transport at the time, Nedeljko Čubrilović, said, “Unfortunately we were unable to agree to the terms set by the airline. It’s not as it looks. They aren’t coming here to give us anything, they want to come here to take something. During negotiations they were very difficult over handling prices so we would not benefit from them in any single way”. Banja Luka Airport recently unveiled a 3.1 million euro expansion of its passenger terminal and the construction of a new cargo facility, which should commence in 2017. The main focus of the future project is the new cargo storage unit. "With these investments, the airport will become more competitive and we will be able to talk with interested carriers. We will then have an opportunity to increase our passenger numbers and we will specially focus on cargo traffic. Banja Luka will be of interest to many airlines", Mr Trninić concluded. The airport handled 19.152 passengers during the January - October period, down 4% on last year.

101 comments:

  1. Incompetence, hypocricy and corruption at its worst.

    http://www.exyuaviation.com/2016/11/banja-luka-extends-air-serbia-subsidy.html

    ReplyDelete
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    1. Hahaha +1

      How come he sees no point in subsidising low cost airlines but sees a point in subsiding Air Serbia's flights to Belgrade?

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    2. I don't have a problem that Air Serbia is getting subsidies but I have a problem that they are using the subsidies argument for refusing other airlines. Now they are left with 3 flights p/w with a turboprop.

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    3. For the same amount of money they give to Air Serbia they can have based airplane and 300.000 passengers.

      Are they stupid or what?

      So subsidies are OK in case of Air Serbia with tiny plane 3 times per week but are not OK in case of Wizz Air for 3 flights per day with 180-seater.

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    4. We don't actually know how much are the handling costs they are covering for Air Serbia at Banja Luka. I assume it is much lower for an ATR than an Airbus.

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    5. Corruption and mismanagement

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  2. wow just wow. The amount of bull this minister just said is shocking and shows a lack of basic knowledge.

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    1. "Low cost airlines are very demanding in terms of subsidies and airports do not benefit from them"...

      My favorite.

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  3. Lol! Thats why BNX will see no operations after they cut subsidies to Air Serbia one day!

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  4. The funny thing is BNX has very good predispositions for low cost travel. It is the second biggest city, weather conditions are good unlike in Tuzla... such a shame.

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    Replies
    1. True. This airport is such a contrast to Nis and Tuzla and what they have achieved. Amazing. And the funniest thing it has the most potential.

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  5. There is no other saying that is more appropriate than "transfer blama" to describe what I felt after reading what the minister said.

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  6. Wizz Air was interested in turning BNX into something like Tuzla before they were even considering Tuzla. They were chased away!

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    1. How much was Wizz willing to pay to BNX per pax? Was that enough for airport to cover costs and invest in expansion? It was not enough and Wizz does not care. Let them expand at FRA and MUC instead.

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    2. Still being chased away.

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    3. Same like Sarajevo Airport which chases away airlines because they don't want to stay open between midnight and 5AM.

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    4. But, unlike Banja Luka, Sarajevo can finance their existence with traffic they have.

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  7. Let's hear from people from Zagreb on this; if BNX had a decent offering of low cost flights, would you make the one hour, or so, drive to use BL airport?

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    Replies
    1. Of course. We use Bratislava, Vienna, Budapest, Venice, Zadar, Split... which all are 3 hours driving. Why not Banja Luka?

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    2. Wizz is like a vulture waiting for weak legacy airlines to die so they can move in. Not my opinion, that's basically what Wizz said about their own policy during recent earnings call.

      Only an undertaker profits from a vulture. Therefore people who root for Wizz here might have an interest in being Air Serbia's undertaker.

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    3. Burying a smelly carcass is public service .. and an honorable duty.

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    4. Getting rid of vultures is also an honorable duty.

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    5. Spoken like a true parasite.

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    6. W6 is the real parasite. Many airports where W6 is dominant or exclusive are not able to invest in themselves and barely survive. Some will likely go bankrupt and the parasite will move on to another target. W6 is treating CEE as early Wild West.

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    7. Vlasnici su ionako iz Teksasa. Jos mogu malo da stimuju finansijske izvestaje a onda potop.

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    8. Nije ti to Srbija pa da stimuju izvestaje. Crno na belo, drugi najprofitabilniji u Evropi. Vama ostaje da se grebete za mrvice od Arapa.

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    9. Ajde ne lupaj molim te, imaju samo deo operativnog profita, a kada se uracunaju investicije u avione u teskim su bulama. nece izdrzati ako se pritisak FR kao u SOF nastavi. Uzimanje malih linija je islo ok pa cak i u BEG skoro cele zemlje dok nije utrcao Ryan.

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    10. Jest čisti paraziti. Sve gledam kako ih nitko neće i nisu se ubili za njihov dolazak (Temišvar, Sofija, Niš, Tuzla, Podgorica, Skopje, Ohrid...). Sve gledam kako propadoše svi ti aerodromi nakon što su došli na njih. Ni jedan više ne postoji, koncesionari i vlasnici digli ruke!

      No, da nema Wizza (Ryana, easyJeta) onda bi super živjeli sa 0 putnika, ili 20.000 ko Banja Luka. Sa tolkom brojkom ne samo da mogu isplačivati mega-plaće nego i čudo od profita zaradiše!

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    11. Jbt kolko je tu nepismenosti. Idi izguglaj sell and leaseback pa se vrati. Nasao si kome da kazes da lupa.. dno dna.

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    12. Sve citas berzanske izvestaje.

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  8. It is much better to spent money on Air Serbia 3 times per week for 66-seater turboprop?!?!?!?!? And play computer games other days.

    With that number of passengers they can not pay bills and salaries, so RS must spend some more money for workers and other expenses.

    Congratulation for the logic.

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    Replies
    1. I see no point i repeating the same argument in comment after comment again and again.

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  9. "We can cooperate with no frills carriers but we are burdened by other issues which are not to be made public"

    What the hell? Why?

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    1. If I remember correctly from a few years ago, there is some issue with refuelling at BNX which is not up to the airport. I can't remember exactly. Maybe it concerns that.

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    2. You can use the same sentence to explain why Wizz is not welcome at Zagreb, Vienna etc.

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    3. Alen Šćuric PurgerNovember 25, 2016 at 11:17 AM

      But Zagreb basically can afford not to have LCC. They can finance airport from present traffic and have huge alternative in number of legacy carriers.

      Banja Luka can not afford that luxury.

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    4. zag can't afford not to have more lcc now that new terminal has to be paid

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    5. Alen Šćuric PurgerNovember 25, 2016 at 12:02 PM

      Yes it can!

      Of course it would be easier with LCC (not so much as income on LCC is very low and costs for them are much higher) but it can be done even without LCC.

      Please read my article in Tango 6 about it:

      http://tangosix.rs/2016/15/11/kuda-bi-trebao-ici-zagrebacki-aerodrom/

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  10. Other than employees of Wizz (seems to be a lot of them commenting here), why would anybody want Wizz to make money from BNX instead of Air Serbia?

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    Replies
    1. Maybe travelers would like to have direct links to other European cities than just Belgrade? I hope you were kidding.

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    2. Yeah, Wizz employees flocking into herds to criticize a dumpster. Paranoia rules your world.

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    3. I guess you consider Hahn a city?

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    4. You can be sure I consider Basel and Malmo.

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    5. Alen Šćuric PurgerNovember 25, 2016 at 11:22 AM

      Why not Hahn? It has several huge cities well connected by public transportation in less than one hour driving. Most of airports are in villages around huge cities.

      What is the difference between Hahn and for example Luton, Stansted or Southend which are considered London airports?

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    6. Ja cu morati opet da odrzim predavanje iz geografije za moda i Purgera. Nema nikakvih tu vecih gradova gde je Hahn. Na severu je oblast Rajne, a Frankfurt i drugi veci i znacajniji gradici oko njega na Istoku. Purger jednostavno lupeta i sa tim se moras pomiriti mode. To sto gastosi lete odatle je surova ekonomija.

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    7. Alen Šćuric PurgerNovember 25, 2016 at 2:40 PM

      E stvarno ti je lekcija, svaka čast.

      Unutar sat vremena vožnje (povezano autoputom) od Hahna su

      stanovnika:
      732.000 Frankfurt (124 km)
      210.000 Mainz (89 km)
      179.000 Saarbrucken (112 km)
      155.000 Darmstadt (122 km)
      141.000 Bonn (128 km)
      113.000 Koblenz (68 km)
      110.000 Luxembourg (122 km)

      Samo Frankfurtsko metro područje ima 5,5 milijuna stanovnika, unutar sat vremena vožnje od Hahnna ima preko 10 milijuna stanovnika.

      Unutar 2 sata vožnje (što je target područje aerodroma) ima desetke gradova sa preko 100.000 stanovnika, među kojima i Dusseldorf (202 km), Stuttgart (260 km), Cologne (163 km)...

      I što ga opravi, samo dugmići ostadoše!

      Ajde ljudi da ne gubimo vrijeme na ovakva "predavanja". A još manje na nekulturnu birtijašku konverzaciju tipa "lupeta".

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  11. Can't Air Serbia introduce some flights from BNX? There is a market for direct flights BNX-ZRH.

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    Replies
    1. Not their operating model.

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    2. Air Serbia only operates a one hub system, just like Etihad. Also, even if they wanted to I'm not sure they would get fifth freedom rights especially from the Swiss. Switzerland didn't grant Montenegro Airlines rights to fly Nis-Zurich after Montenegro became independent.

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    3. Air Serbia has to change the model. It is not possible overnight but they must start flying from BNX, INI etc over the next couple of years.

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    4. The issue with that is that your costs start rising. Crew hotel, plane catering etc. Its much less cost consuming when everything is centralized.

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    5. Opportunity cost. Better than having LCCs move in.

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    6. ASL can found a daughter company in Bosnia with with a couple of ATRs and connect Bosnia and Herzegovina with several European hubs.

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    7. To je mogao i Piksi u Nis, ali nece. Nece ni ASL. Lako je tudjom patkom trnje krciti.

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    8. Pitanje je bilo da li bi ASL mogla da uopste leti izmedju Banja Luke i Svajcarske.
      Anon. 12.45 je pokazao da ipak moze, ali mora prvo da osnuje posebnu kompaniju u BiH.

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  12. Since its founding, BNX has been led by bribery and corruption.

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  13. I think the two most despised entities by people who comment on this ite are Montenegro Airlines and Banja Luka Airport :D

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    1. And rightly so.

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    2. There are a lot of similarities between the two.

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    3. That said, I have a feeling they are getting some increased competition from OU.

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    4. yess ever since the talks about selling the LHR slots started, everyone all of the sudden hates OU and expects that it will soon close its doors. Before this story I remember everyone was quite positive about OU. Amazing how things change

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    5. There is always a turning point

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  14. None of the airports in Bosnia are properly managed and that includes Tuzla which does have traffic but is far from being self sustainable. That said, BNX management is a joke.

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  15. "We are more focused on serious airlines", znaci Wizz Air, ne znam tacne podatke - koji prevozi ajde jednu 15-20 miliona putnika i recimo ta brojka raste za svaku godinu nije "ozbiljna" kompanija dok Air Serbia koja ne bi postojala da nije arapa i koja nema mogucnost kupiti jednog aviona bez pomoc arapa (ili leazing) i koja nema ni 3 miliona putnika je po njegovom "ozbiljna" kompanija? Ja bi rekao da je Wizz Air puno ozbiljniji nego sve one nase male kompanijice u Ex Yu, sve je to malo globalno ali kad kaze ovaj neki mljekar ili neki iz BH Airlines (nekadasnji) koja je kompanija ozbiljna i da je BH Airlines "ozbiljna" uporedeno sa Wizz Air (BH Airlines sa jednim propelerom i dok nisu ugaseni 0-1 letom sedmicno je "ozbiljniji" nego Wizz Air sa 15-20 miliona putnika) onda samo sve bude smijesno.

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  16. Koje "nase avio kompanije" . Propalo bratstvo i jedinstvo odavno ne postoji.

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    Replies
    1. Svi smo uglavnom isti narod, jedino vjere su razlicite.
      A sto se tice "bratstvo i jedinstvo", to i dalje postoji medu normalnim ljudima jedino politicari sve cine da okrenu ljude jedne protiv druge to je jedino sto su sposobni raditi i graditi gnijezdo korupcije kao "Aerodromi" Republike Srpske i Aerodrom Banja Luka.
      Nadam se da me nece admin kazniti, moram samo ovom covjeku ovo objasniti, da nismo u sustini "isti" ne bi se ovdje izkupljali svakog dana poslje 9 sati ujutro (Evropsko vrijeme).

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    2. E jarane svaka ti je ka u Njegosa ! Zivjelo bratstvo I jedinstvo !

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  17. If LCCs are indeed bringing losses to many small airports, then maybe BNX loses less money then it would with Wizz flights.
    I am trying to see the silver lining. It is little bit dull to read generic comments that Wizz is a unquestionable force of good and progress.

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    Replies
    1. I think they should close shop and not lose money any more. It's as safe as it gets.

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    2. I think they need to have an air connection for the capital of the entity.

      It is much, much cheaper to support three ATR flights per week than to finance 30 A320 flights, for example. BNX preference for JU is as understandable as is the SJJ favoring of TK or OMO, an actual capital of Croatians in B&H, implicit support for OU.

      I can understand that LCC are furious that a possible host refuses to see that LCC parasitism of poor local airports is the best thing that can happen to them.

      I also understand that leaving 50 similar generic comments trashing everyone who does not accept LCC model is the cheapest way of lobbing.

      I was hoping to read a bit different take. Or better yet, few different takes.

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    3. Ne, moras da shvatis da Tuzlanski kantona sufinansira putovanje gastosa koji nisu ni drzavljani tog kantona ako su u Becu ili Nemackoj takvi su tamo propisi. Ono sto ti i student iz NS ne kapirate je da koristite neciji tudji trud i rad da bi ste jeftinije putovali. Racunica kantona je kao dodju gastosi i potrose pare. Sta vi trosite osim para po Berlinu i ostalim malim aerodromiam. Vrhunski lesinari ste. Na takvom transferu novca opstaju LCC, a gradonacelnici takvih rupa mogu da se hvale kako imaju "uspesne" aerodrome koje finasiraju novcem od poreza. Za razliku od ASL gde je to bilo vremenski ograniceno ovo nema ogranicenja. Znaci svako ko podrzava LCC model podrzava presipanje novca poreskih platisa. Ti i student verovatno i ne placate porez.

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    4. The market has put a price on these regional airports located bang in the middle of Europe's most failed economies. It's peanuts. I understand why the locals are angry and are trash-talking on a regional website - nobody likes finding out they are the bottom of the pit. What is even worse is that the prevailing wisdom is to divert attention with lies and fabrications instead of figuring out the best way forward for everyone involved. I wish there was one of these LCC bashing posts here that I could look at and say - ok, this one actually has some actual knowledge about how things operate in reality, let's talk business. But that's not gonna happen since the agenda is clear, and you project your own methods to everyone else. This approach will only work in a fenced and controlled environment like the Balkans. It's just a sad state of affairs.

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    5. A kolko košta aerodrom koji je cele godine otvoren radi tri leta sedmično? Plate, režije, administracija?

      Pa kad se već to plaća što se ne dovedu prevoznici pa i gratis, samo da putnici ostave neku paru u prodavnicama, restoranu, dutifri, na parkingu?

      Ovde se radi samo o preferiranju "domaće" Er Srbije, a ekonomske logike nema.

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    6. Haha. "Gastozi ne troše ništa". Jesi li bio u Loznici, Požarevcu, Kostolcu kad dođu gastozi? Troše za zubarske usluge, žurke, restorane, gde god stignu, da bi se pokazali. Da li ti poznaješ mentalitet naših balkanskih naroda?

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    7. A da li ti znas da sabiras koliko je to novca i da li znas kakav je to kvalitet zubarskih usluga kada ti sve uradi za sedam dana, a onaj u Dojclandu te muci za sve to barem dva meseca. Zna onaj u Pozarevcu za koliko to treba ali gleda da te uradi i naplati ti svoju uslugu a ti se posle hebi. Eto takav je mentalite vas krezubih balkanaca. Tamo u Tuzli retko popravljaju zube samo vadi.

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  18. This comment has been removed by the author.

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    1. Upravu je Gospodin Trninic i slazem se u potpunosti sa tim .
      Jos bi dodao bolje je platiti duplo full Service Carrier nego dovesti pojedine LCC na Aerodrom.
      I naravno nije Drzava duzna da subvencionise Letove Gastarbeiterima .
      Najbolje resenje bi bilo dovesti HV/KL i OS uz ASL sa nekoliko nedeljnih letova.
      INN-NS

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    2. Tako je! Ziveo gospodin Mile Ronhil!

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  19. Investing 3 million EUR in the terminal and cargo capacity for a 3x weekly ATR flight? Brilliant. This guy is a visionary. Ruling out all the LCCs at once for the future means his airport is good as dead. Maybe he did not wacth the news on TV in the last 15 years to know what happened to aviation with Easy, Ryanair, Norwegian, Vueling, Wizz and the likes. Or he did not get a telex from Belgrade about it yet.

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    Replies
    1. Nema nas dragi mljekar ili seljak (seljak koji se bavi se poljoprivredom po selima u Republici Srpskoj pojma o avio industriji i vjerujem da nije nikada ni cuo za Easyjet ili Vueling, to je previse velik nivo za njega. :-)

      Ja bi rekao da su i politicari a i obican narod blesavi nazalost, politicari znaju samo za nacionalizam i za korupciju a za ostalo kao ovo trziste i industrija koja je u pitanju nisu u toku.
      Narod je glup sto svake 4 godine da povjerenje onima a nazalost je rat unistio ljude psihicki i unistio im mozak jer ne vidim drugi razlog.

      Banja Luka aerodrom je vec "mrtav", nece niko letiti za Banja Luku cak i Air Serbia nece da leti zato sto ima putnika i profita vec zbog politicki razloga i zbog subvencija.
      Ovakvi aerodromcici mogu samo opstati i raditi ako je tu Ryanair ili Wizz Air. Bukvalno, nece niko uvesti let za Banja Luku, jos jednom to ponavljam.
      Pogledaj region, Adria Airways, Croatia Airlines i Montenegro Airlines. Niko nece doci u Banja Luku.
      Nece ni u Mostar, ali to je vec druga prica. Buducnost avio industrije u BiH je u Sarajevu i u Tuzli. Mostar nece imati nista vise osim carter a Banja Luka siri terminal zbog 3 propelera sedmicno. :-)

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    2. OT: Iberia povećava broj tjednih letova iz Madrida za Zagreb u sezoni 2017g na 5 letova tjedno

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    3. @Anon 4:03pm >> brilliant news dragi
      Hopefully they remember about BEG.

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  20. OT

    I flew at 18th of this month BTS-INI. Standard RyanAir metal en route. A/C almost full house, maybe 4-5 sits left empty from what I could have seen.
    Must admit, that I was very surprised realizing that some 15-20 Erasmus students from Brno were on board.
    Flight time: 0110
    Very fast and organized disembarkation a INI. It took max 10 minutes to manage it through all procedures.

    That's all for now folks. Cheers.

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    Replies
    1. Of course, you simply play their easy game and stick to the rules, you will end up having no problem.

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    2. Anyone know why are transfer flights from INI with Swiss not possible?

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  21. OT - Why doesn't Air Serbia schedules the A330 to LHR or some other place the days it isn't flying to New York?

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    1. Because it would be below 50% load factor and you would be burning too much fuel per pax. Also handling cost at LHR would be higher

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    2. because it is expensive

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    3. +1000000!!!!! ZRH, SVO and even TGD on some dates. Increase the capacity just like W6 does with FR. A321 vs B738.

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    4. Well, they won't be selling 128 seats but 254. I'm sure it'd work on some days. They're burning huge money by having a big bird sitting half days of the week. How stupid.

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    5. +1. I think they were way too optimistic on maintaining 5 weekly frequencies to JFK throughout the whole winter season. Hopefully next winter - 2 weekly JFK and 3 weekly PEK.

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    6. Everyone can miscalute and misjudge the market. But the real problem here is they were unable to improvise once shit hit the fan. So the a/c is just sitting in BEG instead of making money somewhere else. They could easily dump prices to BEY/LHR/SVO/ZRH and fill it easily, get some great marketting points.

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  22. Бања Лука can be easily connected to ZRH, LTN/STN and SXF, maybe they can persuade FR or U2 instead? Now that Iran is also very popular, they can copy Uzbekhistan Air stop in RIX and fly to JFK. So, a possible route IKA-BHX-JFK it is right in the middle between Zagrab and SJJ. Sadly, they will not apply this.

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    Replies
    1. Banja Luka can be connected to Цирих or any other city, the issue is demand and can the airline make money on the route.

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  23. OT: flew today JP 311 ZRHLJU CR7. Pretty much full flight. No new inflight magazine. Last one was ending October. So another bad sign that there is not enough cash around. Flight on time
    Good night fm LJU

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