Slovenia launches €5 million airline subsidy tender


The Slovenian Ministry for Economic Development and Technology has launched tender procedures to provide financial incentives to airlines that have maintained services to the country in 2020 or plan to commence operations in the summer of 2021. The government will divide a lump sum of five million euros, down from the initially announced six million, only among airlines with European Air Operator’s Certificates. A number of conditions and three different deadlines have been set out for the provision of the financial assistance. “The purpose of the tender is to maintain the existing schedule operated by international airlines, to encourage the resumption of suspended flights due to the consequences of the pandemic, and to encourage new airlines to fly to Slovenia”, the Ministry said. It added, “Lacking a national carrier, Slovenia is currently experiencing a very slow recovery and kick-start of air passenger transport. Due to the outbreak of Covid-19, only twelve airlines actually flew to Slovenia in early 2020, then nine in September, and currently only five carriers fly to the country. According to estimates by the operator of Slovenia’s largest airport, air passenger traffic in the country will decline by more than 80% this year compared to 2019. All this has resulted in great damage to the Slovenian economy, especially to the tourism industry, which has already been hit hardest by the pandemic”. 

Carriers that flew to Slovenia between March 30, 2020 and September 30, 2020 must apply for the subsidies by November 9, 2020. Airlines which are maintaining services between October 1, 2020 and May 31, 2021 must apply for the aid by June 10, 2021, while carriers that will serve Slovenia between June 1, 2021 and December 31, 2021 must submit their applications by October 11, 2021. In order to be eligible for the financial grant, the carriers in question must have operated at least two weekly flights for a period of at least two months within the set timeframes. An expert commission formed by the Ministry will decide the amount of money each of the applicants will receive based on the criteria below. Only carriers that score over 35 points will be granted aid. The amount will then be dependent on the number of flights the carrier maintains to Slovenia, and the number of passengers it carried to the country, however, limits will be set on the maximum amount of funds the beneficiary can receive. Airlines operating charter flights are not eligible for the subsidies.


“The tender is set up in such a way that airlines which operate more flights to Slovenia and bring more passengers will receive more aid. The greatest share of the subsidies will be given for the 2021 summer season, when we expect a partial normalisation of the situation in the aviation sector”, the Ministry said. It added, “For Slovenia, tourism is one of the most important industries, as it has so far generated more than 12% of Slovenia's gross domestic product. Slovenian tourism mainly depends on foreign tourists, which generate as much as 75% of all arrivals and 72% of overnight stays in the country. At the same time, neighbouring Italy, which is one of the biggest epidemiological hotspots in Europe, represents one of the three most important foreign markets for Slovenia, which is why we are also recording a drastic decline in demand. Just under half of foreign overnight stays (47.9%) were generated in 2019 by tourists from six countries: Germany (13.4% of all foreign overnight stays), Italy (11.2%), Austria (8.9%), the Netherlands (5.1%), Croatia (4.7%) and the Czech Republic (4.5%). Almost one quarter of all foreign guests arrive in Slovenia by plane in the main (summer) season, so the accessibility of Slovenia by air is crucial for the recovery and strengthening of the tourism industry.

Comments

  1. Anonymous09:06

    Will it be enough?

    ReplyDelete
  2. Anonymous09:09

    Hope it helps with LJU's recovery.

    ReplyDelete
  3. Anonymous09:10

    It's nice support for airlines that fly to Ljubljana. I'm not sure it will attract new ones though.

    ReplyDelete
  4. Anonymous09:13

    Great. This is much cheaper and more effective than setting up a new airline.

    ReplyDelete
    Replies
    1. Anonymous09:14

      Agree. Trying to start a new airline in the middle of a pandemic where things remain shaky and will for some time, doesn't seem like a wise thing to do, no matter whose money it is. Incentives are a better way to try to rebuild traffic until the situation stabilises

      Delete
    2. Anonymous09:16

      +1

      Delete
    3. Anonymous09:19

      I would prefer a new national carrier where locals can get employed and where the airline can serve the national interest.

      Delete
    4. Anonymous09:21

      I hope the government realizes a new national airline is a waste of money and a pointless idea.

      Delete
    5. Anonymous09:27

      Exactly. No need to burn taxpayers money again.

      Delete
    6. Anonymous09:27

      And I believe that this public tender is preparation to start new national carrier. We will see in the middle of November who applies to that tender (I suppose that there won't be much interest) and after that they will start establishing Air Slovenia. Otherwise I don't know why would they prepare 5 mio EUR for foreign carriers and 70 m EUR for national carrier. That's just excuse for them to say, we tried but there is no interest so we have go on our own. And I fully support that.

      Delete
    7. Anonymous09:31

      Locals can be employed by a foreign airline. Wizz in SKP has launched many careers for pilots, cabin crew, office staff. More than any national airline would have.

      Delete
    8. Anonymous09:36

      @anon 09:31

      LJU is not SKP. Do you have millions of Slovenes living around the world? Not forget that high percentage of passengers in SKP is from Kosovo as there less than one hour between SKP-PRN if you go by car.
      So don't compare those two cities.

      Delete
    9. Anonymous09:55

      @Anonymous 09:31:

      Nobody in aviation is hiring and won't be for years to come. There are thousands of experienced jobless pilots on the market at the moment, so even if the situation improves, the number of available positions will be far less to what it was a year ago.

      Delete
    10. Anonymous09:57

      To all of you cheering for subsidies instead of a new national carrier I say this: you might be (un)pleasantly surprised in the next couple of months when the government decides to launch a new carrier.

      Delete
    11. Anonymous10:05

      @anon 09:57

      upcoming months? I believe that that will be published after this "tender" ends as there won't be much interest of it...

      Delete
    12. Anonymous10:14

      @Anonymous 10:05:

      Even better :D.

      Delete
    13. Anonymous10:21

      For all we know a new airline will be staffed by foreigners anyway. Plenty of unemployed EU airline crew out there.

      Delete
    14. Anonymous10:30

      @09:36 - amazing comment. You just gotta luv those airport comparisons just because the traffic is the same does not mean airports are the same. Plus, skp relies heavily on traffic coming from Kosova and Shqipëria.

      Delete
    15. Anonymous10:41

      @Anonymous 09:31:

      Wait, are you talking about that Wizz, which fired some 1000 staff members in order to rehire a fraction of them under worse terms and conditions? I (an unemployed pilot) hope they go bust sooner rather than later.

      Delete
    16. Anonymous10:52

      Anon 9:36
      Diaspora numbers are totally irrelevant.
      Anon's 9:31 point was that foreing carriers, whoever that may be, also employ locals, and furthermore purchase locas services and produce.

      Delete
    17. Anonymous11:05

      @anon 10:52

      it's important because some are still dreaming about LJU being a base for LCC, that's why it's important to explain what LCC is targeting and what schedule airlines.

      First of all they to have base here, whoever it is and then they can hire locals. But how many unemployed would get job if national carrier is established and how much if foreign place 1 or 2 aircraft in LJU? Much more in case of first option...

      Delete
    18. Anonymous11:09

      @10:52:

      No, they don't (at least not when dealing with such a small market as Slovenia). Do you honestly think that FR or W6 will start hiring Slovenes just to base them in LJU? I used to work for an LCC and they don't give a rat's ass who is based where.

      If an airline brings a lot of passengers, airport shops and other businesses can benefit from it, but the airline itself has no direct influence on local unemployment rates.

      Delete
    19. Anonymous11:33

      @Anon 11:05: So national carrier project would be just a job creation scheme? Create an unprofitable business just to employ people and reduce the unemployment?

      I'm sorry, but most people in aviation tend to be on the smart side. If there's no jobs in aviation in Slovenia and they don't want to work abroad, they will have no problem getting a job in another field/industry.

      Delete
    20. Anonymous11:40

      Anon 11:33 its not only about jobs if you didnt know. Its better to have national airline

      Delete
    21. Anonymous11:52

      @Anon 11:33:

      No, what some of us are trying to say is, stop using employment excuse to justify LCC presence in LJU. Be honest and admit that the only reason why you and the likes want to see LCC carriers in LJU is dirt cheap tickets. People are selfish. They don't care about others.

      Would you mind explaining to me how to get a job as a pilot abroad these days? Apparently you know something I don't. And for your information, Adria's crew were spending far less time at home than abroad (remember all those wet lease contracts - who do you think was on board Adria's aircraft).

      Delete
    22. Anonymous12:08

      What's wrong with cheap tickets, if you all you want is to travel from A to B, as most people do?

      Just because there's no pilot jobs abroad at the moment, it doesn't mean a new airline should be created to create them. It's nor the government's nor the country's job to provide any type of job just for the sake of it.

      Delete
    23. Anonymous12:12

      Nothing wrong as long as you stop lying how LCC will bring job opportunities to local workforce.

      Yeah, keep that in mind when the government decides NOT to give any corona aid to anyone anymore. We sure wouldn't want to see people staying at home getting their salaries, now would we?

      Delete
    24. Anonymous12:30

      It's not about job scheme, it's about improving connectivity in LJU, to be honest that would be really difficult without national carrier.
      Of course I would rather see LH/LX/OS/SN/SK/JU having a base in LJU but we all know that this won't happen. I would not mind LCC base here as well but again, due to known reasons this will simply not happen. So what should we do?

      Delete
    25. Anonymous12:41

      Simple, when you want/need something, you go and buy that thing.

      You want air connectivity? Set up an airline or pay someone to fly. Either way, you pay. Nobody will do it for free.

      Delete
    26. Anonymous13:13

      We agree on that one, we will have to pay which is nothing in comparison how much we were losing after demise of JP

      Delete
    27. Anonymous13:31

      @Anonymous 13:13:

      Well, time will tell.

      Delete
  5. Anonymous09:14

    I hope this finally means we could see more flights from easyjet and Wizz and maybe even Ryanair comes.

    ReplyDelete
    Replies
    1. Anonymous09:15

      This sum of money is quite low. I don't think we will see any major new arrival. We will mostly see airlines that flew to Slovenia return. Which isn't bad at all.

      Delete
  6. Anonymous09:16

    Smart

    ReplyDelete
  7. Anonymous09:18

    Finally some reason

    ReplyDelete
  8. Anonymous09:18

    Hopefully they stimulate some new arrivals.

    ReplyDelete
  9. Anonymous09:19

    The best thing would be for an LCC to open a base in LJU. Even if you paid them. It would secure strong passenger growth and better connectivity.

    ReplyDelete
    Replies
    1. Anonymous09:20

      Without a hub airline operating at LJU numbers will never reach pre Adria levels again, pandemic or no pandemic.

      Delete
    2. Anonymous09:24

      Finally LCC talking head

      Delete
    3. Anonymous09:29

      And LCC is not making your connectivity any better. It just connects two cities. Mainly reason is tourism or ethnic living outside of country, either way Slovenia does not have any of it so forget about LCC.

      Delete
    4. Anonymous09:49

      LCC will fly to hubs if there's a market. They just opened LGW base

      Delete
    5. Anonymous10:06

      can you have connections with flight out of LGW? No..

      Delete
    6. No connections out of LGW?! OK...

      Delete
  10. Anonymous09:19

    Hope it works out.

    ReplyDelete
  11. Anonymous09:20

    Great start but more will be needed.

    ReplyDelete
    Replies
    1. Anonymous09:30

      More is prepared for national carrier...

      Delete
    2. Anonymous09:33

      Really like this mindset
      - Adria needed 4 mil per year sustainment

      - generated 100mil of money flow, from which 50 mil went back to local economy in orders
      - Financed profits of Ljubljana airport
      - Financed Slovenia Control
      - Financed Maribor airport
      - Supported Adria Tehnika maintenance
      - Provided orders to local comapanys
      - Increased the living standard of region around the airports (salaries)

      for 5 mil of yearly investment, 45 mil in return to residents.

      But yes it is better to beg with money and hope they will be so kind to take it.


      Delete
    3. Anonymous09:35

      +100 last anon. People forget this, or don't even know.

      Delete
    4. Anonymous09:38

      "Financed Maribor airport"

      They flew to MBX? When? Twice in the last 20 years?

      "Supported Adria Tehnika maintenance"

      This is a private company. Why should it get any priority over other maintenance providers?

      Delete
    5. Anonymous09:38

      @anon 09:33

      +1000

      Delete
    6. Anonymous09:47

      Rose tinted glasses for Adria. Every business generates income and stimulates an economy, Adria was pretty bad at it when considering the potential. They weren't even filling CRJs.

      Delete
    7. Anonymous10:00

      @Anonymous 09:33

      One of the few who understands things. Bravo!

      Delete
    8. Anonymous10:03

      ^ @Anon:0947

      Delete
    9. Anonymous10:07

      @anon 09:47

      it's sure much better now, LH group and LCCs are fulfilling a320..

      Delete
    10. Anonymous10:15

      Assume you're aware that there's a global pandemic at the moment?

      Delete
    11. Anonymous10:26

      isn't there all around the world? Why is LJU performance the lowest among all ex-yu airports? Was there any pandemic during oct19-feb20? The market will take of itself you said, and what happened? few flights to EU cities and even those in the middle of the day. Thank you very much for such connectivity, we deserve better!

      Delete
    12. Anonymous10:43

      @Anonymous 10:15:

      I assume you are aware that LJU is the ONLY airport in the ex-YU region with such a drastic decline in traffic?

      Delete
    13. Anonymous11:21

      @Anon 10:26: You forget that JP went bust at the end of September, months after winter schedules for 2019-2020 were finalized, and it's not easy for large airlines to step in add a lot of flights.

      Or did you expect LH and the rest to just have keep a spare aircraft or two sitting on the ground, waiting if JP goes bankrupt or not?

      Delete
    14. Anonymous12:30

      You do realize that LH could have established FRA, MUC or any other route years ago, while Adria was still around? Just look at ZAG.

      Delete
    15. Anonymous12:34

      Everyone knew that JP will go bust that year. They (LH group) could only speed up that process with few flights to FRA/MUC/ZRH/BRU. I'm sure that they have more than or two spare aircraft to operate or they could simply reduce flights on some destinations.

      Delete
    16. Anonymous12:57

      Yeah, but that would mean that LJU is such a lucrative market (which some of us actually know is not true) that it would make sense. Just look at how much Slovenes actually travel by air and how much are they willing to spend on board. They want to spend as little as possible.

      Delete
    17. Anonymous13:05

      @Anon 12:34: So LH knew JP will go bust, that's why they used them for wet leased flying, all while having plenty of spare aircraft around to replace JP?

      Logic is strong here, I see.

      Delete
    18. Anonymous13:16

      Actually you already answered your question. What was the main reason for JP bankruptcy? Oh no, it's ACMI for LH group isn't it? When you connect the dots picture is much clearer.

      Delete
    19. Anonymous13:34

      @13:05:

      Lack of logic apparently applies to both sides. LH could have started flying to LJU a decade ago, yet they didn't (I am pretty sure Adria wasn't such a formidable force that scared LH away). One has to ask themselves why. They do fly to ZAG, despite OU still being around.

      Delete
  12. alexis09:24

    what a weird criteria table.. are they being serious about that?

    ReplyDelete
    Replies
    1. Anonymous09:53

      It is written so that this founds go to Croatia Airlines.

      Delete
    2. Anonymous10:08

      all 200k of it? Cost to have crew here will be higher :)

      Delete
    3. No need to base crew in LJU. During the crisis, with low LF's, flights could operate from ZAG via LJU to XXX in the morning, from XXX to ZAG via LJU in the evening, during the day, or on bussiest routes it could be ZAG-XXX-LJU-XXX-ZAG. After the crisis is over, LJU could sustain a profitable base. But I doubt anyone in OU gives a sh. t about it

      Delete
    4. Anonymous17:26

      How do you think CRO passenger would accept that to fly 1 hour earlier than normal and to make intermediate stop LJU? Believe me not well, JP used to that a lot and it was not accepted well.
      Of course technically its possible but it's unlikely to happen. At the end it's just my opinion.

      Delete
    5. I am not proposing one stop flights to /fm ZAG as permanent solution. If operating to /from London, Frankfurt, Copenhagen, Zurich, where OU at the moment is the only solution, one hour more is no problem at all, and everybody is aware we don't live in normal times and one hour longer flight with one stop instead one hour shorter nonstop could be problem just for very spoiled and very unadaptable person. And if the flight's LF's from ZAG are low, and there are no flights at all from LJU, it could be win-win combination. If needed, with higher LF's, flights could be upgraded from Dash to Airbus. Of course when situation gets back to normal, after covid, flights could operate from LJU as base, separately from nonstop flights from ZAG, I clearly stated it at the end of my post. What I agree with you, it's unlikely to happen, which I said as well, actually that was the entire idea of my post, stressing, OU is losing one more chance due to inertness and incompetence

      Delete
    6. Anonymous09:06

      Flights from ZAG with stopover in LJU? What is this? The 80s?

      Delete
  13. Anonymous09:27

    Realistically speaking, what other airlines could we see come to LJU with some incentives?

    ReplyDelete
  14. Anonymous09:28

    Can put my money on Lufthansa being the biggest beneficiary of the aid.

    ReplyDelete
    Replies
    1. Anonymous09:45

      Well they do operate the most flights...

      Delete
  15. Anonymous09:37

    But do not expect lower price of tickets for you.

    It means that you are directly paying for the pressure that they show their aircraft in Slovenia on German airport :)

    So indirectly you will be paying twice for the ticket :)

    ReplyDelete
    Replies
    1. Anonymous09:58

      Before the pandemic it was regularly commented on how reasonable ticket prices had become when new airlines took over JP routes.

      Delete
    2. Anonymous10:28

      Yes the ticket prices went UP when others did take over the JP routes.

      Wishing and happening are two different things.

      Delete
    3. Anonymous11:19

      I think SN flights to BRU were cheaper than JP...

      Delete
    4. Anonymous13:18

      That's same as you would compare prices W6 to CRL and JP to BRU, completely different segment of passengers on those flights. That's why more than 90% of public tenders to BRU were bought on OU tickets out of ZAG and not on SN from LJU.

      Delete
    5. Anonymous14:11

      yup. BRU was 110 EUR with SN. flew with them. JP government tickets were 450 out&return.

      Delete
    6. price wasn't an issue with SN. the bureaucrates wanted same day out and return. that's why some flew from ZAG.

      Delete
    7. Anonymous14:37

      Some? Those who are actually working with public tenders know that majority is using flight out of ZAG.

      Also with SN you had to stay in BRU two days more as you actually needed (departure one day before a meeting and return flight next day). So 110 eur + 2 additional nights at hotel. Still think that SN had cheaper tickets?

      Delete
  16. Anonymous09:40

    Good. LJU will bounce back.

    ReplyDelete
  17. Anonymous09:40

    A chance for Wizzair to base aircraft(s) at LJU, like at SKP?

    ReplyDelete
    Replies
    1. Anonymous09:43

      I doubt it. The sum is just too small. They are giving 1.5 million for the first deadline (so for airlines flying in 2020) and 3.5 million in 2021. I'm sure all of the airlines flying to LJU will apply for this, which does not leave much money among them. Also, this tender is being organised in line with state aid rules so I don't think any single airline will be able to get more than 200,000 euros. So I don't see Wizz Air opening a base with these funds. They will probably apply for it for their seasonal Charleroi route.

      Delete
    2. Anonymous09:46

      and SKP-LJU finally :)

      Delete
  18. Anonymous09:43

    Focus on LCC

    ReplyDelete
    Replies
    1. Anonymous09:45

      highest score is for having an intercontinetal network ...

      Delete
    2. Anonymous09:50

      @anon 09:45

      don't bother, it seems that one person is typing on every post LCC, LCC, LCC. LJU will never be a base for LCC, never!

      Delete
    3. Anonymous09:55

      LCC talking head strikes again :)

      Delete
    4. Anonymous10:09

      We will have a problem to decide with which one to fly..omg :)

      Delete
    5. Anonymous11:19

      Anon 09:43
      Go have your LCC, but not on tax payers money. If they figure out LJU is profitable enough to base aircraft(s) here and hire locally, good for them. Maybe they even stay for a few years. But if they were paid to fly from LJU, they'll be gone the moment they are not getting tax payers money.

      Delete
  19. Anonymous09:48

    Deadline is very short for the first one, for the airlines that are flying in 2020.

    ReplyDelete
  20. Anonymous09:49

    Why exclude non European airlines?

    ReplyDelete
    Replies
    1. Anonymous09:51

      Well are there any non European airlines flying to LJU?

      Delete
    2. Anonymous09:56

      No but the ministry says the aim of the tender is also to stimulate the arrival of new airlines and they could apply for the subsidies for the summer of 2021.

      Delete
  21. Anonymous10:36

    I understand JU will definitely get some money here... having good scoring according to table given, so far...

    ReplyDelete
    Replies
    1. Anonymous11:15

      @Anon 10:36 agreed. It look like JU gets full points on this scale. Truth be told, it is the only airline in the region that would be able to provide full service and open a sub-base in LJU rather quickly.

      Delete
    2. Anonymous11:16

      How exactly would JU operate intra-EU flights from LJU?

      Delete
    3. Anonymous13:37

      @11.16 nikako

      fanboys :)

      Delete
  22. This looks like JU tailor made.
    I just don't get the point 1.3
    Does it require that applicant already has that timetable with LJU or is required to maintain after getting the job?

    ReplyDelete
    Replies
    1. Anonymous13:42

      JU currently does not fly 5 times a week to LJU so they can't get most points. LH does.

      Delete
  23. Anonymous16:56

    Does that mean there is room for long-haul included in those 5 million? I hope EK try bidding for LJU-JFK. Slovenes do not need a visa for Amerika.

    ReplyDelete
    Replies
    1. Anonymous17:02

      Read the article

      "The government will divide a lump sum of five million euros, down from the initially announced six million, only among airlines with European Air Operator’s Certificates. "

      Delete
    2. Anonymous17:21

      LJU-JFK? Is this a joke?

      Delete
    3. Anonymous19:06

      I guess it's about as realistic as an LCC basing an aircraft in LJU. But people can always dream about flying from LJU for 4.99 EUR to all sorts of destinations, including intercontinental.

      Delete
    4. Those fanboys everywhere LOL

      Delete
    5. Anonymous22:22

      @19:06

      €4,99 are usually prices you would pay with W6 or FR. Although, LJU can parallelly opt for long-haul travel. One of the most important destinations is definitely Japan:

      https://www.exyuaviation.com/2019/06/slovenia-moves-to-secure-japan-flights.html

      Those are the best tourists in the world. Civilised, with more economical opportunities and eager to stay for at least 1 week.

      Delete
    6. Anonymous08:07

      Are you joking? It's more likely that LJU will have flights to Mars then to Japan...

      Delete
    7. Anonymous08:28

      Its more likely to have flights to Japan, 35 000 people from Japan visits Slovenia each year. Thats enough for 2 or 3 flights per week. And if there are flights demand will be increased

      Delete
    8. Anonymous09:08

      Enough for 2 or 3 weeakly flights? Are you real or you do not understand aviation at all?

      Delete
    9. Anonymous09:16

      Demand for 2 or 3 flights p/w in summer is there, but it looks like you dont wanna understand

      Delete
  24. Hopefuly not for FR!!!

    ReplyDelete
  25. "National" carrier with high ticket prices is not what most people need.We need national LCC and time when the oil prices are low and the prices for renting the aircraft are low are very positive to start with.

    ReplyDelete

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