The Macedonian Minister for Transport and Communication, Vlado Misajlovski, has confirmed that the government will continue to subsidise low cost carriers, a move which will not sit well with authorities in Kosovo who say the policy has distorted competition in the region. Speaking in an interview, Mr Misajlovski said, "The benefits of the subsidies are visible and will continue. We have generated 34 direct routes, 24 of which are within Europe with very reasonable fares. We are currently negotiating with several other airlines which are interested in entering the Macedonian market, which will open up new destinations. As a result of this policy, passenger numbers at Skopje Airport have grown by 20% each month". The Macedonian government launched a three-year subsidy scheme in 2012. It proved successful with Wizz Air opening a base at Skopje Airport, which has in turn led to significant passenger and traffic growth. A fresh round of subsidies was offered last year, which led to Wizz Air basing a third aircraft in the Macedonian capital, launching a handful of new routes and introducing services from Ohrid as well.
The Macedonian Ministry for Transport and Communication says its incentives policy has been carefully analysed and is in accordance with EU rules and regulations. It adds that in 2012 the Kosovan Ministry for Infrastructure was sent additional information on the subsidy program which, it says, respects all international legal procedures. However, the Kosovo Civil Aviation Authority has filed a complaint with the European Commission, while Pristina Airport says it is unacceptable for the state to provide these subsidies, and argues they should come in form of incentives from the airport operator itself. Mr Misajlovski notes that the policy has proven extremely successful. "In 2015 we had only ten to fifteen destinations. Now we have direct flights to London, Venice, Basel, Malmo, Eindhoven, Dortmund, Milan, Munich, Memmingen, Stockholm, Gothenburg, Brussels, Frankfurt, Cologne, Paris, Barcelona, Oslo, Nuremberg, Hamburg, Friedrichshafen, Berlin, Copenhagen, Bratislava, Zagreb, Geneva, Prague, Dubai, Belgrade, Ljubljana, Rome, Istanbul, Vienna and Zurich", the Minister said, adding that Wizz Air recently launched a new service to Hannover, while Qatar Airways will soon introduce flights from Doha.
Speaking to EX-YU Aviation News last week, a European Commission spokesperson said, "The Commission is aware of concerns raised about the financial incentives' scheme granted by the Government of Macedonia since 2012 to both domestic and foreign airlines to fly from the "Alexander the Great" Airport. It could possibly distort competition between airports in the area and indirectly between the airlines concerned. DG MOVE [Directorate-General for Mobility and Transport] is in contact with the competent Macedonian authorities to get all necessary information to examine this matter. This is taking place in the framework of the European Common Aviation Area Agreement, which was signed in 2006. While this Agreement is not in force yet, it is applied administratively". In its most recent annual progress report on Macedonia in the area of air transport, the European Commission said that "concerns about possible state aid in the aviation sector need to be addressed".

Comments
Completely false that these subsidiez are open to all airlines. They are only open to low cost airlines and that has been a condition from day 1.
False. Link the tender text for all to see. LCC has never been mentioned once. It's however a fact that the terms have only suited Wizz Air - it was way too little money for anyone else.
It's nice that you've shifted the original argument from 'as been criticized by the EU in every progress report in the past 2 years' to 'are you claiming it's false that the EU has not mentioned this in every recent progress report'. Zamena teza much?
Nothing wrong with what you said right there. Still doesn't make it a valid infraction.
I wonder how some people immediately fill with rage if someone proposes subsidies to national airlines, owned by the respective states, but have no problem whatsoever when a country subsidizes foreign company that can tomorrow decide to go somewhere else.
Please Wizz guys help me understand.
Well, well, well...
We were right, and people calling us delusional are actual liars.
I'm sure you will find Wizz vs national airlines cases vary significantly in all of the above categories. If you're really interested in a reasonable debate. I know I am :)
I am not surprised. Wizz likes nothing better than taxpayers money in their pockets.
You know, free market, bla, bla, bla... is good for others. Parasitism is the Wizz way.
You don't say!
Repeating ad nauseam: Only new destinations are supported, 2.5 out of the 3 aircraft are self-sustainable. Is it that hard to remember?
The subsidies are all good, because "free market" Wizz is receiving them. Everyone knows that taxpayers from poor countries like nothing better than giving foreign rich people their hard earned money. There is nothing else in Macedonia that needs this investment.
Mind you, the bang for buck (return of investment) is incomparable to any other deal, even compared to all of Europe.
http://www.independent.mk/articles/10262/Macedonias+Transport+Minister+Announces+New+Call+to+Subsidize+Low-cost+Airlines
https://seenews.com/news/analysis-macedonia-to-rely-on-subsidies-low-cost-carriers-to-improve-air-links-with-europe-199085
http://www.mia.mk/en/Inside/RenderSingleNews/289/133198740
Not SKP.
An apples to oranges comparison, since INI started from 0 traffic and has had a history of unsuccessful subsidies, but kudos nonetheless.
Some days ago:
ADRIA Airways
LJU - AMS
CRJ900
50/84
LF: 60%
Haplek
At least these building will stay and can serve some purpose.
The money invested in Wizz Air will just fly away one day. Literally.
I wonder if another W6 / FR aircraft is the best next investment. I'd rather if they found a way to connect daily to a big hub (AMS, FRA, others) for a one-stop connection to the world.
It sound illogical and hypocritical, but it is hard to see that if your job depends on not noticing it.
It's not a waste of time. It challenges the misinformation and hypocrisy. I'm happy to spend some time doing that.
This is actually an indirect support to airport owners, who can brag how profitable they are while the government foots their bill.
Now we here hat the Macedonian government does it still.
Crazy.
2nd paragraph: Bull's eye, bro, bull's eye!
And I agree about having proven it. That's why I don't necessarily agree another supported W6/FR aircraft is a step in the right direction. The above response was answering to the logic of the investments made so far.
:(
http://www.exyuaviation.com/2012/05/six-new-routes-from-skopje.html#comment-form
Funny reading some of those comments from today's perspective. Someone mentioned 'Of course JU declined the offer, they don't have aircraft to base there'.
And the taxpayer argument should formally be forbidden to use on this blog.
What happened my friend?
Just few days ago they have to give back some 3 million. In 2015. just in France Ryanair payed back almost 10 million EUR to 3 French airports. This year EC ordered Ryanair to pay back 2 million in Austria. Etc. etc...
Subsidies are OK if they are PSO by very strict rules of EU.
But, like everywhere else, big players find way how to do it anyhow. So it is not subside but paying articles in Ryanair (other companies) web pages and publications. On that way one can not forbid airport, tourist organization or other institution to promote destination. If they can do that in newspaper read by 200.000 readers, for sure they can do that in Ryanair publications read by 50+ million readers. We all know that it is not about advertisement or promotion, but about subsidies, but they find "hole in law".
But to say that there are different standards and that Ryanair is immune to same thing EU want to force in nonEU countries is at least not true. One more time, till now Ryanair have to give back multi-million amount of EUR.
Prime Minister of Serbian has just declared that it's LH's fault that Belgrade airport hasn't hit the 5 million pax milestone in 2016. It's all due to Lufthansa and its strikes this year.
WOW.
http://www.b92.net/biz/vesti/srbija.php?yyyy=2016&mm=12&dd=09&nav_id=1208347
No, of course Serbian PM did not declare anything "LH's fault". What he did say is that BEG would have reached 5M if there wasn't for LH's strikes.
Yes that is an utterly stupid thing to say but it does NOT say that something is "LH's fault". The "fault" is the interpretation and projection of anon 12:44 and this is why he used three exclamation signs to enhance his projection. The original statement of the PM - as stupid as it is - does not sound nearly as aggressive and intimidating as anon 12:44 wants to project with his creative translation and a lot of exclamations.
1. BEG will not have 5 million this year. 100.000 deference is not just few passengers.
2. Lufthansa passengers use alternatives. That is why other carrier, Air Serbia included would have much better LF to BEG this month.
3. Even if non of passenger would fly on alternatives that was not more than 2.500 passengers in that 6 days. And that number is nothing for BEG.
Let me remind you of genial statements of Mr. Vučić:
- Belgrade airport will be bigger than Budapest in no time
- Belgrade is the biggest airport in Balkans (but fact is it was 6th on that time, today it is 7th)
- Even Athens does not have routes to USA and BEG will have those (fact is ATH has 6 routes to USA)
- Air Serbia is bigger than all other carrier from ex YU together (Adria, Croatia, Trade Air, ECA, Limitless, Montenegro), and it is not even near to the truth
etc.
But this one is no 1 in his funny statements.
One can never be wrong with this sensationalist: the more exclamation signs in his posts, the less they have something to do with truth and reality.
The taxpayer argument is widely misused and manipulated on this blog. It does not make any contribution to discussion - it only flames it. Not to mention that the overwhelming majority of the posters who use that argument pay no taxes to the countries they are so much worried about. Hence my idea to ban that quasi argument.
Nothing to do with Kosovan authorities who think the entire galaxy spins around them.
Ali svakako su ostvari i tako dobre rezultate.
INN-NS
You can transfer in LJU on Adrua flights for sure.
Haplek
ATH ima samo sezonske letove a BEG ima preko cele godine letove za USA.
I jos ne zmam zato se stalno mora o tome komentarisati.
INN-NS
Macedonian government invested some money, and now majority (not all) routes from SKP are self-sustainable and they have a lot of routes.
Now, Slovenia invested tens of millions of EUR into Adria Airways and the result is less and less routes from LJU every year.