Low cost carrier Wizz Air has said that high airport costs and government protectionism of Air Serbia are preventing it from developing at its Belgrade base. Speaking to EX-YU Aviation News, the airline's CEO, Jozsef Varadi, said, "I think the significant issue in Belgrade that has hindered our development there is the cost of the airport relative to its peers. It is a high price airport and we need to see costs coming down. As we are bringing in more passengers and operations to the airport, we need to be at least in line with what we are paying at similar places. I think that is one issue. We will see what VINCI will bring into the party. I don't know".
The CEO added, "I think the Serbian government has taken steps towards protecting Air Serbia's business and I think they are trying to put some pressure on competitors like ourselves. These two factors are really holding us back in Belgrade. Nevertheless, we are totally committed to the market and we hope to see some improvements of commercial terms in the marketplace and certainly that would attract us with more capacity". Wizz Air carried 745.000 passengers on its flights from Serbia in 2017 and put some 900.000 seats on sale from the country this year.
The low cost airline expanded its operations from Belgrade last year when it based a second aircraft in the city and launched four new routes. The expansion came three years after it decided to significantly slash its services from the Serbian capital following a public spat over fees. This resulted in the airline relocating one of the two aircraft it had stationed in Belgrade. At the time, the carrier said the city had become one of the most expensive in its network and accused "wannabe monopolists" Air Serbia and Etihad Airways of being behind the surge in fees. Since last year, Wizz Air has discontinued flights from Belgrade to Nuremberg and Friedrichshafen, and turned its year-long service to Larnaca into a seasonal summer route.

Comments
W6 is lucky because FR did not start flying to BEG, otherwise their crazy expensive prices would surely go down.
As soon as easyjet opens the base in BEG they are going to sing different song.
It looks like that W6 would be the happiest if BEG offers to them the same as SKP.
Malo morgen :-)
1 AC - list price
2 AC - list price
3 AC - list price
4 AC - list price
5 AC - list price
...
9 AC - list price
10 AC - 50% discount
Not dodgy at all, right?
Their time for expansion in BEG will come very soon!
Wizz gets the same as easyJet which is growing at BEG. W6 had years to do something here but it didn't. You snooze you lose.
not paying airport taxes (last time 2015, if i remember correctly) and getting discounts are two different things.
The discounts are tailored at 50% for Air Serbia and 0% for everyone else, as per 9:15 posting. That's not a commercial volume discount which would scale at different levels, it's an outright state sponsored protectionism.
It's even done through APD - not even contracted so subject to change at the whim of the operator. Unreliable at best, bound to get changed the minute there's a chance W6 catch up.
Also transfer one coming from and to ZRH.
Ponuda/potraznja=cijena
2 poslovna subjekta, svaki gleda svoj interes.
Take RO, FB & PS as good examples.
In OTP W6 is a monster compared to FR, but RO is still surviving even being a complete legacy airline. It focuses on domestic travel and now heading towards the Causcasus.
In SOF W6 stepped a bit, as FR are being very agressive on pricing still dominating the German and UK market. FB focuses on other more profitable markets such as PMI, PRG and VAR for instance.
In KBP, PS is doing quite well even with the arrival of FR (although still early as they recently stepped it).
In INI, LX is still enjoying high LF and even frequency increases even though you have flights from INI-BSL.
So, BEG needs to lower its pants for once and allow W6 to expand and to please stop protecting JU for once!
Both Berlin and Milan are business cities with industry and IT centres.
Surprisingly this "market orientated company" did not complain about the money the keep getting from SKP or subvensions for the flights from BUD to SJJ for example.
Or is it just wishful thinking?
Most business travel agent do not even list those companies.
VY should be kicked if they can't compete. Nothing wrong with it especially taking in consideration how awful their flying times to BEG are and how often they are delayed.
Delays of up to 10-16 hours! Really unreliable and it's a pity because they have a nice marketing campagin and super cool logo and name.
The only good thing is that it's part of IAG and have a nice Frequent Flyer programme too.
JU and Wizz should take lessons from VY when it comes to marketing and advertising.
BEG-MMX (up to 5 weekly!)
BEG-MLA (who would have thought up to 3 weekly)
BEG-EIN (4 weekly permanent)
Should they base another aircraft, then the should launch:
BCN, LIS, SXF, TFS, BOD, BHX, LED, PMI, RAK and eventually VKO
We should all assist by flying with JU more often.
If your journey starts or finishes in Serbia then yes, they are usually expensive.
It would be interesting to see if Vinci continues with this subsidy masked as 'volume discounts'. Wizz could have called the bluff, but they knew gov't would have moved the goal posts.
Wizz is throwing a tantrum because if they accept higher fees in BEG then other airports might follow them. Look at what's going on in BUD. They have a massive fortress hub there but the airport has been unprofitable for a decade now. Only goes to show that someone has to lose when it comes to cheap air travel- either the airline or the airport.
If Wizz is annoyed by high charges, well, they can pack up and leave but I am sure someone else will rush in to fill their void- as easyJet is slowly doing.
For ages now they were lazy and unimaginative when it came to BEG. They only launched random gasto routes and now they complain they don't get preferential treatment? Sure.
Thanks but no thanks.
I think this Varadi dude needs to go back to a drawing board and figure out how to compete in BEG if that's a priority. Or otherwise bail and be cool with that.