NEWS FLASH
VINCI, the future operator of Belgrade Nikola Tesla Airport, will keep fees and charges for airlines unchanged for the first three years of its 25-year concession, the Serbian government has said. The obligation will be part of the concession agreement, which is to be signed by the end of March. The French concession and construction company has said it will aim at improving Belgrade Airport's operating conditions to enable Air Serbia to offer new long haul routes as part of its hub strategy and will build on its partnerships with over 200 airlines to further increase the airport’s traffic and connectivity.
Charges in BEG are almost the same as ZAG, there is no need to increase further. But tricky point is the massive volume discount presented as incentive, where JU receives 40-80% discount on all airport services except passenger service charge, which is also discounted by 7 EUR per passenger. I assume the new operator will progressively remove this discount in three years, in order to keep JU alive.
ReplyDeleteGood luck to Vinci, it'll be difficult to balance the unsustainable environment in BEG, while protecting the based carriers.
WOW, that is a massive subsidy to ASL!
DeleteWhy is it unsustainable if the airport is making profit? Interesting how 'unsustainable' charges at Budapest or Sofia do not worry you.
DeleteWhy is it unsustainable if the airport is making profit? Interesting how 'unsustainable' charges at Budapest or Sofia do not worry you.
DeleteSOF is a cheap airport. For sure their income isn't sustainable. BEG's is far more realistic.
DeleteAirports, just like airlines, can't be that cheap. I am sorry but flying costs. Airlines like Wizz Air can afford to be cheap because they are backed by investment funds.
DeleteBUD charges around 23-24 EUR per departing passenger and the volume discount is 2.5 EUR max.
DeleteThe problem is not with the profitability, but with providing a service below its cost level. BUD may claim that it is not providing the service below its cost levels, as the discount amount is around 10%. But I find it difficult to defend 42% discount (7/16.5), unless the airport acknowledges 75% profit over cost level.
Air Serbia gets discounts not subsidies based on the number of passengers it carries as is the case at any airport in the world. These discounts are available to other airlines as well. Go check the discounts Lufthansa gets in Frankfurt based on volume.
DeleteYou should be rather worried about Emirates getting subsidies in Zagreb or Wizz Air in Skopje. Why are you so obsessed about Belgrade?
DeleteYou should be rather worried about Emirates getting subsidies in Zagreb or Wizz Air in Skopje. Why are you so obsessed about Belgrade?
DeleteThe problem is not with the profitability, but with providing a service below its cost level.
DeleteYou must be concerned with INI providing service below its cost. Thank you for your concern and let's continue this conversation once FR and W6 declare they will stop flying to airports providing service below cost level as part of their new ethics guidelines. After all if some diamond dealers decided to stop selling non-ethical diamonds and offer only conflict free diamonds, so can W6 and FR in their area of responsibility.
BEG is thriving and that's what's bothering some people on here.
DeleteBut the charges at BEG are already high... They need to decrease them, not to increase...
ReplyDeleteWell it says they won't increase them.
DeleteYeah, I know what it says.
DeleteThey can do whatever they want, their money, their loss or profit ... I am sure they will evaluate the situation and do what they think is the best for them.
DeleteBelgrade is not expensive as an airport.
Delete17 eur per passenger isn't expensive?
DeleteI was referring to the charges airlines pay.
DeleteOne thing not addressed by anyone in all of the conversations posted in relation to this topic, is the monopoly that NIS has in providing jet fuel to ALL airlines. It is one of THE most expensive airports in S.E.Europe - topped only by Tirana.
ReplyDeleteFuel constitutes one of the biggest cost components for airlines and by allowing more competition at BEG, it is one way of defraying the airport charges and in so doing, stimulating more airlines to fly into BEG.