Low cost carrier Wizz Air has seen its passenger numbers increase in Serbia during 2018 despite limited network growth throughout the year. The budget airline handled close to 800.000 travellers on flights to and from Belgrade and Niš, representing an increase of 6% on 2017. It held a 13% passenger share and was the busiest low cost airline in Serbia in 2018, ahead of Ryanair in second place and easyJet in third. Furthermore, it was the second busiest airline in the country overall, behind only Air Serbia. In 2018, Wizz Air introduced new flights from Niš to Vienna but also discontinued services from Belgrade to Friedrichshafen and from Niš to Eindhoven. In addition, it downgraded its year-round operations between the Serbian capital and Larnaca to seasonal summer flights.
Wizz Air noted it carried over four million passengers from Serbia since launching services to the country in 2010. It currently has two aircraft based in Belgrade and maintains seventeen routes to eight countries from both the Serbian capital and Niš. The airline says its operations this year will support more than 500 jobs in associated industries in the country. Wizz Air will put just over 900.000 seats on sale from Serbia this year. "We are totally committed to the [Serbian] market and we hope to see some improvements of commercial terms in the marketplace. That would certainly attract us with more capacity", the carrier's CEO, Jozsef Varadi, told EX-YU Aviation News late last year.
Wizz Air has said that high airport costs and government protectionism of Air Serbia are preventing it from developing at its Belgrade base. "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", Mr Varadi said last month. He 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". Airport operator VINCI has previously said it will keep Belgrade's fees unchanged for the first three years of its 25-year concession. However, the operator can make change the airport's incentive plan.

Comments
But again cry, cry, cry. BEG is not SKP where you get all you want plus extra money. You need to earn your money here.
So instead saying that you are commited to Serbian market show it by increasing the traffic, opening new no-gastos destinations (as JU did) and brining one more plane to BEG.
p.s. Few days ago when I was arriving to BEG with Air Serbia JU A320 was parked on old gate A8 while W6 was at new shiny A4. In which city do you have your plane attached to the bridge gentlemen from W6 (in BUD your passengers need to use tent instead of terminal) and where do you get better gates than national air carrier? But still complain, complain, complain...
You make me sick
Everything opposite comparing to U2
BVA,CRL, OSL and CIA. I know many people are makeing connection flights to those destinations on their own, usually with FR, as they have more flights to those cities.
Ha.Ha.Ha.
Yes, why doesn't BEG lower its charges like BUD did, maybe they can record similar losses.
Wizz Air is too passive in Belgrade. Their inactivity on BEG-BSL is best proof of it. Other airlines have shown that BEG's supposedly high charges are not an issue and that they are not hindering growth. Wizz Air can either accept the rules of the game or leave.
Where exactly did you pull that "statistic" from?
It is not 98% but 110% transfer passengers between BEG and WAW!
SMFH
BUD close to 15 million.
OTP close to 14 million.
SOF, KRK and MLA close to 7 million!
Clearly BEG's high costs for all other airlines apart from JU was a great success for the city and the country...
Regulations are set by the Government!!!
So? Non EU airports are experiencing even higher growth rates.
Look at TIA, SKP, PRN, Turkish, Ukrainian, Georgian, Russian airports!
Air travel is exploding all over Europe but we celebrate a 5-6% traffic increase...
As for PRG, no surprise there. It's the only real airport in Czech Republic. Interestingly enough, it's another airport where Wizz Air failed. It's also one of the most expensive airports in eastern Europe.
OTP? Tell me, what's the closest alternative airport? Same for SOF.
MLA is a tiny island and a popular tourist destination.
Clearly, an airport's success is not only due to its charges, it also has to do with demand the market stimulates. BEG is in a country that's still relatively poor. That said, demand is growing each year, best proof of this is the growing number of summer charter flights.
OS in particular is getting attacked at VIE by all the LCCs of Europe.
But hey, BUD didn't made enough profit to subsidize a dinosaur like Malev. LOL!
All airports I listed have explosive growth and they now serve millions of passengers.
But it's all right, it doesn't matter that BEG is now far behind then every major airport in Eastern Europe.
We ares still ahead of ZAG, SJJ, LJU and TGD. That's what counts!
Shame that Budapest and Hungary didn't. Instead they now make billions of Euro's every year from tourism.
But they don't have a state owned national carrier overstaffed with friends of politicians offering louse services to its flyers.
What a failure that is! :D
Just have a look GVA-BEG route. U2 does not have any competition there, but still you can buy the tickets for cca 60 EUR both ways. It would be the same with MLH-BEG
U2 siply follows their own path.
BUD, PRG, OTP, SOF, WAW on the other hand they bring billions of tourist expenditures to their owners every year for little to no operational loses.
I wonder who has the best business model. Us or them?
Even Aegean is adding the 4th flight in early March while the 5th one starts from April.
So as of April, BEG-ATH will have 15 weekly flights compared to, I think, 10 last year.
W6 tried to attack the Greek market and failed, now FR is trying to steal market share of the Israel market.
If FR comes to BEG there will be a bloodbath in the beginning for some of the big markets but at the end there will be a consolidation and a possible split of the markets between the two giants. From all this the passangers will benefit immensely.
I still have the feeling that gastos+Eastern Europeans prefer wizz and Westerners prefer FR, as the brands are more established in the respective regions.
BEG-TLV
BEG-NCE
BEG-PMI
INI-BVA
INI-TRF
INI-ATH
BEG-SKG
BEG-KUT
INI-GVA
Have the prices dropped at all or they still cost as much as flying to LHR?
It goes to show that if you have a serious domestic carrier who is not afraid to compete even FR gets tired of losing money and moves away.
In Greece they are now focusing on international expansion leaving the domestic field to A3 and Elinair.
JU could if focused on punctuality, good scheduling, good services and competitive prices compete even against FR.
On the other hand KUT is offering a lot of subsidies to W6.
BEG-KUT not possible
due to regulations
Bergamo is very successful from Nis on FR.
BEG charges or JU are not slowing down our tourism industry. If you don't believe me then take a look at what happened with Turkish and Israeli tourists.
I had a chance to fly on easyJet and I can tell you that flights to MXP were packed, while FCO was another story, also back than Alitalia and JU were flying 4 daily all together.
TSR-TLV-TSR W6: 57 EUR (small bag)
22-25.02
BEG-TLV-BEG JU: 321 EUR (with luggage)
no need to say more...
At the same time do not forget that departure time from TSR is 06:10h and bus needs approx. 3,5 hours of driving to get to TSR.
So, you are actually losing all night to get there.
So everything has its own price. Some would rather pay 120 eur more and not to arrive on destination in the form of minced meat.
How nice, you have to be at TSR by 05.00, meaning you have to leave Belgrade at 01.00. No thanks.
Obviously if the flight is that early, people will drive 1 day before and leave their car at the airport and visit the city 1 day.
Also, TSR is currently expanding nicely and has destinations NOT served by BEG.
Genuine examples: BLL, SSH, HHN, TLV, BGY and most interestingly VLC with its nice beaches.
When everything is added together the difference is clearly minimal and benefits only backpackers with extremely flexible travel schedules and not people working regular hours who would actually spend more time at their destination (TLV) and not in Timisoara.
After adding fuel cost both ways (cca 400km with very bad roads condition)
After adding parking cost at TSR
After adding hotel cost for 1 night
you still want to say that TSR is better option for TLV?
No way!
I see you are a JU fan, which is fine. But in this case TSR is cheaper.
TLV always had a lot of local demand, even Jat which had zero transfers flew the route three times per week.
Who doesn't want to fly non-stop on JU can connect on Aegean, Turkish Airlines or Pegasus.
Now complain about TSR with W6...
And do you need a suitcase for a weekend, lol
Yes,it's cheaper if you disregard all the other costs. Seems like you are a Wizz fan.
Later on when you calculate all the costs it will be muuuch more, but who cares.
It is important that you were flying for 57 EUR.
Enjoy in cattle class
Better go at midnight so you can go to the first control point at 4am LOL
I think the majority of people is not that boutique-worthy and would rather drive to TSR, leave the car at the parking lot and take the Wizz flight
For a family of 4, this is more than a 1000 € difference. Peanuts.
1 ПУТНИК
ЛЕТОВИ 288 RON
МАЈ
18
Темишвар – Тел Авив
6:10 – 9:10 (W6 3593)
Основна цена
1 × Авионска карта 96 RON
1 × Административна накнада 38 RON
МАЈ
28
Тел Авив – Темишвар
10:10 – 13:25 (W6 3594)
Основна цена
1 × Авионска карта 116 RON
1 × Административна накнада 38 RON
ТЕМИШВАР – ТЕЛ АВИВ
1 × Чекирани пртљаг од 20 kg 166 RON
ТЕЛ АВИВ – ТЕМИШВАР
1 × Чекирани пртљаг од 20 kg 166 RON
УКУПНО 16.667,55 дин
approx. 140€
-----------------------
Полазни лет
Београд до Тел Авив
18 May (Суб)
ПолазакБеоград (BEG) 00:10
ДолазакТел Авив (TLV) 04:00
Economy Standard
JU816
Директан | 2 hrs 50 mins
Обавља Air Serbia
Тип превоза:
Airbus A319
Основна цена карте:ECS03RRS
Повратни лет
Тел Авив до Београд
28 May (Уто)
ПолазакТел Авив (TLV) 13:40
ДолазакБеоград (BEG) 15:40
Economy Standard
JU811
Директан | 3 hrs
Обавља Air Serbia
Тип превоза:
Airbus A319
Основна цена карте:ECS03RRS
Укупна цена пута
Укупна цена пута
Ставке у корпи Цена Листа ставки
Карта
EUR 208.00
Листа ставки
Таксе
EUR 113.91
Листа ставки
Укупно за наплату
EUR 321.91
Both fares include small, hand and checked luggage.
As you can see JU arrives in the middle of the night, making things worse. The price is more than double.
So even if you pay a hotel in TSR it will be 15-20€ + transport 20€ return = 40€
140+40=180€
Still much much cheaper.
I mean even much smaller CRA has very very good prices to TLV:
КРАЈОВА – ТЕЛ АВИВ
1 ПУТНИК
ЛЕТОВИ 258 RON
МАЈ
17
Крајова – Тел Авив
6:10 – 8:55 (W6 3985)
Основна цена
1 × Авионска карта 66 RON
1 × Административна накнада 38 RON
МАЈ
24
Тел Авив – Крајова
9:45 – 12:40 (W6 3986)
Основна цена
1 × Авионска карта 116 RON
1 × Административна накнада 38 RON
ПУТНИЦИ 274 RON
КРАЈОВА – ТЕЛ АВИВ
1 × Чекирани пртљаг од 20 kg 137 RON
ТЕЛ АВИВ – КРАЈОВА
1 × Чекирани пртљаг од 20 kg 137 RON
КРАЈОВА – ТЕЛ АВИВ
1 ПУТНИК
ЛЕТОВИ 258 RON
МАЈ
17
Крајова – Тел Авив
6:10 – 8:55 (W6 3985)
Основна цена
1 × Авионска карта 66 RON
1 × Административна накнада 38 RON
МАЈ
24
Тел Авив – Крајова
9:45 – 12:40 (W6 3986)
Основна цена
1 × Авионска карта 116 RON
1 × Административна накнада 38 RON
УКУПНО 14.301,83 дин
Approx. 120€ with baggage and everything!!!
Imagine how bad these flights must be performing if they are dumping like this.
What I was trying to say, that if W6 could´ve had this silly AOC then both BEG and INI could have benefited. Even DEB has flights to TLV.
Basically, for some people time is better spent earning money and enjoying their destination than saving money.
Also, TLV is a very specific case. They've been subsidizing LCC since the prices in the country are extremely high. Flights could be found to OVD for as little as 10 Eur.
JU links two capitals which have business/diplomatic demand (none in Temisvar, sorry) and one of them is very well-off. The market can take such prices, similar to Beirut. While the LCC prices are simply bringing tourists in, who'll spend 50 Eur. on a flight but 100 Eur. for accommodation/food and everything else in Tel Aviv.
Besides, they're a private entity so why do you care?
That brings Serbia/BEG into an even more precarious position.
Their profitable airport is sold while the subsidized airline (whose losses are probably greater than BUD's) isn't bringing nearly as much tourists for whatever reason.
I'd rather have a loss-making 13 million airport than a 'profitable' 6 million one.
Also, i would really like to have some number and reference you pulled that from.
In all cases concerned, Hungary much smarter invested their 'losses'.
http://srbvoz.rs/page243.html
It would have been ideal to connect BEG and TSR and both JU and W6 can take advantage of various travel possibilities.
I mean the distance is barely 175km!! After all, it´s Romania´s 3rd busiest airport with a traffic of 1,6 million.
There are things I don´t understand.
All of which for what? So they could fly 2 or 3 routes more?
Anyway, your comment doesn't make much sense. You said it yourself, BUD is a private company so why should they care about the greater good or how much they are helping Hungary out? Majority owner is a German company, they are there to make a profit, not to engage in philanthropy. I am sure their board of directors wouldn't want to subsidize Hungarian tourism.
As for your other point, I still believe it's up to each government to attract tourists, not the airport. The airport is there to handle their arrival and to make their entry and exit from the country as pleasant as possible. That is why I gave the example of the Turks and Israelis. Look at their arrivals! Belgrade is full of them yet BEG didn't give a massive discount to any of the airlines that fly between the two countries.
In the end, it's not Hungary that invested in these losses, it's the companies that run and own BUD. I am certain they are not too happy with the pathetic financial performance. All companies are there to make money, BUD included.
As for the numbers, a simple Google search would have done the trick. Regardless, here is a reliable link:
https://www.reuters.com/article/uk-hungary-airport/budapest-airport-expects-first-significant-profit-in-10-years-idUKKBN1F024N
https://www.danas.rs/ekonomija/vec-dva-meseca-vozovi-ka-rumuniji-stoje/
If you'd knew anything about business, you'd know that business isn't ran on a day to day or year-to-year basis but having in mind a plan that covers the next 10 years or more.
As such, limited losses are acceptable if to look at the larger picture.
What Budapest achieved is astonishing and they're doing it with the implicit support of both the HU government and EBRD as it can be seen in your text.
The last 5 years BUD got connected with all the cities in the Balkans subsidized by both HU government and BUD indirectly. Result, tourists are flocking to Budapest from all over. They've even got two routes to China.
Now those links are established they may even raise fees, it doesn't matter.
What we see on one hand is a strategy with the complete absence of it on the other hand.
BEG so far had no development strategy and same goes for Serbian tourism as you said it yourself.
Airport, country and main airline form a triangle and only within it real profits and losses might be calculated. None of those entities can be looked at it per se.
There again, i don't see why you're worried about the loss of a single entity (private Canadian fund) and refuse to see the wider profit of both the airlines and country it covers if not to mask the dismal performance of both BEG and JU that are lagging even behind Sofia and ahead only of Zagreb in the region.
Look at PRG's financial results for 2017:
Profit before taxation:
2016: 2.062.183.000 CZK
2017: 2.543.244.000 CZK
Tax on profit in 2017: 497.000.000 CZK
Net profit after tax:
2016: 1.659.640.000 CZK
2017: 2.046.186.000 CZK
If we convert these into Euros, we can see that the Czech government earned €19.287.362 from the airport in 2017. PRG itself recorded a net profit of €79.407.506 while passenger numbers grew to 15.415.001 (+17%). I am sure their financial performance in 2018 will be as fantastic as their passenger numbers grew to 16.7 million.
Meanwhile, Prague kept on being an extremely popular tourist destination. In 2017 the city was visited by 7.652.761 tourists, up from 7.127.558. If we look at February as one of the worst months in air travel, Prague had more tourists than BEG passengers (Prague 407.837 in 2017, 386.410 the year before).
So you see, this is where we can see all the flaws in BUD's business model. Naturally we can't compare Belgrade and Budapest as the latter has positioned itself as a popular holiday destination while the former hasn't (yet).
Even OTP managed to have a phenomenal 2018. Their full financial report isn't out yet but they did report this which seems promising:
'The Bucharest Airports National Company, CNAB, said its gross profit rose 45% year-on-year to 389.7 million lei ($100 million/84 million euro) in 2017.'
My point is that you can develop an airport without dumping prices. If Serbia does a better job promoting itself as a holiday destination airlines will come on their own. After all, the market is still relatively small due to widespread poverty. Someone who earns €400 a month and lives in Belgrade can't really afford to travel by plane. Hopefully our standard of living improves in the coming years so that more Serbs can travel abroad more often than before. Prague and even Bucharest have shown us that sustainable growth is possible and that airports can grow both their passenger numbers and profits. BUD needs to do some soul-searching to see where they went wrong.
p.s. I don't care about BUD but the first comment under my posts mentioned them so I am merely replying to them.
+ Nemjee. If BUD is a loss making business, how came airlines which are in Hungarian business keep upgrading aircraft, increasing flights to/from Budapest?!
I think you should get your info right.
Csaba
Hungary