Niš Constantine the Great Airport, in Serbia's Southeast, anticipates handling a record 330.000 passengers by the end of the year with figures expected to almost double by 2021. This year has already become its busiest, with just over 200.000 travellers welcomed through its doors so far, up from the 124.917 passengers handled for the whole of 2016. At a press conference yesterday, the Serbian Regional Development Agency South said strong passenger growth is projected over the following four years, with up to 650.000 travellers expected in 2021. During the first half of the year, Constantine the Great Airport was the second fastest growing in Europe among those welcoming less than five million passengers per year, up 366.3% on the same period in 2016.
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| Niš Airport projected passenger trends, source: Regional Development Agency |
The airport, which had almost no commercial flights just two years ago, is now served by Wizz Air, Ryanair, Germania Flug and Swiss International Air Lines on a year-round basis after lowering its fees to three euros for handling, landing and passenger services. On October 31, Ryanair will introduce its fifth service to Serbia's second largest city, from Stockholm Skavsta, while Swiss has announced plans to boost its operations. Lufthansa Group's Regional Manager for the former Yugoslav markets, Berhard Wodl, said at a press conference on Thursday, "This year we opened up a new destination, which is Niš, through our group member Swiss. We are currently serving Niš twice per week and we will continue flying there during the winter time. As of next summer, we will even increase it to three weekly services". Niš also sees potential in the launch of new routes, primarily Paris Beauvais, Oslo, Geneva, Frankfurt Hahn, Istanbul and Moscow. The Development Agency noted that other destinations with less but sufficient demand from Niš include London, Brussels and the Stuttgart area, while Tivat, Malta and either Athens or Thessaloniki could be operated seasonally. In addition to passenger flights, Niš Airport is also served by scheduled Turkish Airlines Cargo services.
Niš Airport is attracting a growing number of travellers from nearby areas. Currently, Kosovan residents hold the second largest passenger share at Niš Airport, just behind those living in either Niš or Southern Serbia. Kosovans account for 13.6% of all travellers. They are followed by those from either Belgrade or the northern province of Vojvodina (7.1%), then Eastern Serbia (11%) and Western Serbia (6.1%). Those residing in Macedonia account for 5.2% of all passengers, followed by travellers from Bulgaria, holding a share of 1.5%. Based on Ryanair's customer profile, the majority of passengers to and from Niš are young workers living abroad, followed by student backpackers, romantic breakers and business travellers. The majority of Ryanair's passengers on its operations from the Southeast Serbian city are Serbian nationals, followed by German, Slovak, Italian and Dutch citizens.
In order to cater for the significant growth in passenger numbers, Niš Airport recently overhauled its terminal building by expanding check-in and boarding areas, as well as building a new exterior and undertaking roof work. The Serbia and Montenegro Air Traffic Services Agency (SMATSA) will finalise the installation of an instrument landing system (ILS) at the airport this year, which provides guidance to aircraft approaching and landing on a runway during low ceilings or reduced visibility due to fog, rain or snow. Valued at 100.000 euros, the system will be put into operation next year. Other planned investments include the installation of approach lights in 2019, as well as a 3.5 million euro expansion of the terminal building, which is set to begin next year and completed in 2019. That same year, SMATSA will begin construction of a new air traffic control tower and contingency centre valued at ten million euros. It is due to be completed in 2020 and put into use in 2021.
Comments
I always said that INI's greatest advantage is the fact that it's cheap. Their scheme is great and I am sure once they pass 500.000 passengers per year they could slowly become self-sustaining. From the looks of it, that could happen in two years.
LX's success is extremely important as it will send a signal that there is a market for Eurowings. I could see them launching VIE, DUS or STR. Now, if only LX could adjust its schedule so that they can offer decent connections to North America.
A final point, it's interesting that 13% came from Kosovo and Metohija. What would be interesting to know is if these passengers used SKP or PRN in the past.
Just because there is a market doesn't mean everyone can make the most of it.
Air Serbia has enough to deal with at BEG. They don't need more of that in INI.
That said, what JU could have done is to have used Aviolet for some charter flights out of INI during the summer season.
BEG-XYZ-INI-XYZ-BEG
BEG-INI 14.00-14.45
INI-BEG 15.15-16.00
Опет, питање је колико би ова линија била рентабилна имајући у виду куповну моћ на југу и број нискобуџетних авио-компанија које лете из Ниша.
А што се тиче тих милиона, они их нису добили како би их нагомилавали на рачуну већ како би покривали текуће трошкове и остали у бизнису. Мање више исти принцип по ком је аеродром у Нишу преживљавао преко 30 година.
Што се Ниша тиче, обе наведене ставке у вашем коментару су без основе када се сагледа целокупна ситуација.
Наравно, Ер Србија би могла да лети Београд-Беч-Ниш-Беч-Београд али онда би се ред летења пореметио и ЈУ не би могла да нуди преседања из Аустрије даље ка Балкану и Блиском истоку.
It's incorrect to claim that JU is not a stable national carrier. Stability to the company is provided by regular state subsidies, not only during the last four years of ASL, but during JAT period as well. That's how the company reached its 90th birthday - on state subsidies.
In the second comment, you are discussing profitability ("rentabilnost") and business model of ASL. Subsidized economy is not based on profitability. It's goal driven. That means the business model is adjusted to the goals agreed. In case of JU, The National Carrier, one of the primary goals should be development of National Air Transport. With such goal it makes sense to be subsidized. Take the case of EY, National Carrier of UAE, heavily subsidized by the government, with clear mandate to draw as much pax to AUH as possible.
Case of JU: it's subsidized, but no clear goal to fulfill the national interest of developing air transport. Instead, the "business model" roams between "regional airline model", "boutique model", "hybrid model", and who knows what will be the next invention of airline's muddleheaded leadership.
In the meantime, Serbian taxpayers are here, will not go anywhere, and will continue to subsidize the stability of The National Carrier. The problem is not on the state providing stability, but at the airline. It has incompetent leaders with no vision, who simply handed over the INI market to other companies, without even trying to take piece of that pie.
Subsidized economy simply does not work, no matter what your goal is. If this was untrue then Communist regimes around the world would not have all collapsed.
What's the cost of EY? Should Serbia follow that model or should it look at Greece or Latvia which have stable national airlines which actually contribute to the national budget.
Every country needs an aviation strategy, no doubt about that. However, tying it to one airline is unwise. I believe competition is the healthiest thing there is in business. It forces companies to remain vigilant and competitive.
I still don't understand why people are obsessing about JU not having flights out of INI. That airport was saved. They finally became realistic about who and what they are. They no longer have illusions which is why they are no longer running after Air Serbia.
I think the government was right to invest in Air Serbia back in 2013. They needed a fresh cash injection to reinvent themselves and to modernize their business model. However, these handouts should stop at some point.
Every business is there to be successful and profitable so that it can pay taxes which are used to run the country. Why should the private sector be disadvantaged?
The fees at INI are 3 euros as stated:
0.75 for landing and takeoff
1.25 for ground handling
1.00 for passenger service
Here is the full list of fees
http://nis-airport.com/wp-content/uploads/2016/11/PRICE-LIST-OF-AIRPORT-SERVICES-AND-GROUND-HANDLING-SERVICES.pdf
Nevertheless, I have to say that airport procedures and organization have to change if they want new passengers to get a good impression about the airport itself.
Got a Ryanair flight last month to Bergamo, and 1-2 hours before there was a Wizzair flight to Basel too. 2 flights in a 2-hour period, not a big deal for any small airport. Here the situation was chaotic: security check queue across the whole terminal, mixing with queues for checking in, people jumping the queue or not knowing where to go, airport staff yelling and looking for Basel passengers all over the place...
I'll keep on using Nis airport and I hope them to grow, but they have to improve!
LX is demonstrating that the market is there. JU did nothing to help develop the market and it should be reminded of this every day.
I didn't want to critize, just to describe the situation I saw.
Hope they get more connections for the next seasons!
As to where the tax goes, it's anyone's guess. Transit passengers and JU's model are being subsidised by other passengers.
I'm surprised you haven't mentioned how hospitals in Serbia are dilapidated because the state is subisiding JU instead.
The govt gets a pretty good ROI on its investment in JU - look at the value of the airport, the catalytic impact that it has had on tourism and the entire supply chain that lives off JU.
I wonder if anyone has actually tried to calculate that ?
When will you conceed ? Perhaps when Emirates start flying to INI
I wonder how the money is spent on air safety .
Also, I highly doubt the government earns more from JU than what it invests. Far from it.
I still firmly believe that JU has no business in INI unless it plans on launching flights from Belgrade.
Operating from focus cities is hard. Even Aegean is more or less shutting down their mini hub in LCA.
You know what they say: one swallow doesn't make a summer.
Yes, every business is there to be successful, but the question is how long it takes to become successful. In case of Airbus it took over 25 years to reach break-even. Until than they were developing on heavy government subsidies, which provided them with stability over almost three decades.
Air transport is core part of one country's infrastructure, directly facilitating the development of the economy.
Namjee, you can't be serious if you are claiming that just market economy will develop INI, or any other new air-traffic market. It won't. At least not in a short period. Every economist knows that.
Government's task is to develop new and improve existing infrastructure in every country. For that reason it's completely insane that JU is not present at INI.
Namjee, it is very disappointing that your comments are supportive of the incompetent management of Air Serbia. They managed to ruin the company in a very short period - in only two and a half years after a great start with the new brand. Because they didn't have in focus that Air Serbia is The National Carrier, not just another private company. It is not a question of disadvantaging private sector. Do you believe that Lufthansa would care about national interest of an underdeveloped country such is Serbia, or it would use the market for its own benefit?
Another example: Kondic was against flights to NYC. But it was a strategic and important decision pushed through by the government. Real effects of the line will be seen maybe in 5-6 years. Do you think that Lufthansa, or anyone else dominant in market economy driven sky over Serbia, would bother to think about Serbian long-term interest?
Air Serbia should be present at every active airport in Serbia, in this case INI, and subsidized for that presence if necessary.
Do you think it's normal that Air Serbia doesn't have rep office in Nis anymore? Just because of market economy driven factors?
Well, if 15 percent of Air Serbia's revenue is state cash poured in (read: taxpayers gift), you can't claim market economy rules. Additional two-three million expense at INI wouldn't change much, but could help JU to generate more growth, be present at South of Serbia, and many more indirect benefits, including developing relations with Kosovo residents (second largest group at INI) that will be the first to fly from Pristina once the line is established.
All I said was that every business must be profitably run and that there has to be a return on investment, regardless if you are a private investor or a government. Pouring billions into a state project never helped anyone.
What happens if one day a local businessman wants to set up his own airline? Does the government refuse him the permit just because we have a government funded airline?
Why should Air Serbia be considered a company of national importance but not some large private company that's actually managing to compete efficiently and to survive without government handouts?
You are supportive of Air Serbia management, and I found that wrong.
And yes, Air Serbia is a company of national importance because there is no other Serbian airline. If one day "a local businessman set up his own airline" it might become company of national interest. Until then Air Serbia will keep that position.
It's not about a particular company, but about development of air traffic in Serbia as core infrastructure. For that we need national airline, but properly managed. Unfortunately Air Serbia is today improperly managed by incompetent people.
And Kraljevo - Morava Airport is next to opening operation. Soon...😀🌐🇷🇸🌐🇭🇲
Rodney Marinkovic
Kraljevo.🗺 let fly
There is no sub-category as diaspora, just the visitors. They may not spend as much as Chinese tourist, but every little counts.
I forgot, BEG is the only tourist destination.
Centavia was setup by a "local businessman" who had no clue (and still has no clue) about aviation management and aviation in general. No thanks, Air Serbia will be that airline of national importance in Serbia.
Merkel went to Abu Dhabi recently to effectively dismantle Air Berlin. Not because Germany is not large enough market for two national airlines, but because they wanted to reduce any risk for LH from LCCs etc. Lufthansa is a choosen one in Germany, Air Serbia in Serbia.
Check out JU's financial reports.
Ako je drzava potpisala blanko ček da izdrzava JU 4-5 godina onda je to valjda OK prema nekima na forumu.
JU's financial reports show ~ eur 164m in direct subsidies. Add BEG fees write-off and discounted jet fuel and you get the better picture.
Don't discredit the claim just because it was published in Kurir.
Check it yourself.
BTW, anything on my statement "Diaspora = Tourists" that I need to clarify?
And just in case you were wondering, it isn't on a per pax basis like what Nis charges. it varies by aircraft type
Same for diaspora = tourists nonsense. Fundamentals of marketing call for knowing your customers and segmenting the market. Airlines know it very well, but you just pi**ed on all that. Ignorance is bliss, enjoy it! We need people like you as a sanity check for the rest of us.
Can anyone shed some light ?
Where does this money end up, on BEG's top line or is it being passed through to CAA ?
Can anyone shed some light ?
Where does this money end up, on BEG's top line or is it being passed through to CAA ?
Now, let me lower myself to your level.
You must be a JU fanboy (or a bot) seeing JU everywhere around you, as if you are in JU bubble.
Also there is no need to have “maintenance centre”, a licensed enginer with a toolbox is all you need for a daily check. And even without that, most airplanes can have 48 hours between checks, which means you can swap them with a different base every other day. Not optimal, but possible.
I'm Anon @ 6:52 , 7:10 and 8:18
I do not discredit a claim a priori, I was just wondering how come 40 mil € appeared out of blue.
Someone with decent accounting background should take a look at Bilans stanja and on http://pretraga2.apr.gov.rs/docRepo/download?xbcd=7100038998225&xrnd=CDF18142FB6A158D209CC0BC5CAE164E614E503F (Section 6.) and try to explain what that really means
Rodney Kraljevo.😀🇷🇸
If running an airline was based on rhetoric alone ...
Competance / incompetance - very easy to make that call by sitting in front of a computer without any responsibility whatsoever
Are you JU CEO?
LX2512/27 01/083
LX2513/27 03/172 (-4)