Slovenia allocates €7 million to improve airline connectivity


The European Commission has approved the Slovenian government’s plan to allocate seven million euros in incentives to airlines serving the country in a bid to continue supporting the recovery of tourism and, more broadly, the economy of Slovenia, which have been negatively affected by the coronavirus outbreak. Under the scheme, the support will take the form of direct grants. The measure will be open to all interested airlines operating flights to and from Slovenia. The level of support per beneficiary will depend on the number of passengers carried and the number of flights performed. The Commission found that the Slovenian scheme is in line with the conditions set out in the EU’s Temporary Framework on state aid, introduced two years ago to help with the recovery from the coronavirus pandemic.

The state aid will not be able to exceed 2.5 million euros per airline and will have to be granted by June 30, 2022 at the latest. The block’s executive branch noted, “The Commission concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a member state”. The Slovenian Ministry of Economic Development and Technology, said, “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. Lacking a national carrier, Slovenia is currently experiencing a very slow recovery”.

Slovenia had previously allocated just over three million euros to airlines through 2020 and 2021 in order to mitigate and remedy the effects of the coronavirus pandemic on the aviation industry in the country. Jointly, Lufthansa, Swiss International Air Lines and Brussels Airlines pocketed just over 1.6 million euros, or some 45% of the total funds. The German carrier was awarded the most aid, followed by Turkish Airlines, Air France, Air Serbia, LOT Polish Airlines, Brussels Airlines, Swiss, Wizz Air and Air Montenegro. Questions remain as to how Swiss was granted 22.050 euros in the first of three rounds of the subsidy allocations as it did not meet some of the criteria. On the other hand, easyJet, which was Slovenia’s busiest airline prior to the pandemic, received no funds and was disqualified from the first round of the subsidy allocation for undisclosed reasons.



Comments

  1. Anonymous09:01

    Will this really solve anything?

    ReplyDelete
    Replies
    1. Anonymous09:21

      Who knows if all these airlines would stay if they haven't made these subsidies available.

      Delete
    2. Anonymous11:31

      Well it is likely to reduce the chances of an airline suspending flights or leaving the market.

      Delete
  2. Anonymous09:03

    At least the amount of money this time is more substantial than in 2020/2021

    ReplyDelete
    Replies
    1. Anonymous11:32

      The amount that was allocated for 2020/2021 was bigger than what they gave in the end. I have a feeling the same case will be here.

      Delete
    2. Anonymous17:54

      Adria was operating with such money per year from slovenia so thus is such a loss for those few flights. While Adria woupd fly to fuc** 25 destinations+charters and it could even extend it's network...

      Delete
    3. Anonymous15:39

      @17:54

      True, but now captain Angela and First Officer Josef are getting Slovene taxpayer's money so there are no hard feelings. With Adria, Captain Janez and First Officer Marija were getting paid by taxpayers and we sure don't want others having higher salaries than ourselves. Except for doctors.

      Delete
  3. Anonymous09:04

    So they didn't give money and subsidies to Adria yet it's ok to give funds to foreign airlines?

    ReplyDelete
    Replies
    1. Anonymous09:31

      Adria didn't receive any subsidies? Really?

      Delete
    2. Anonymous11:32

      I meant when they were collapsing.

      Delete
  4. Anonymous09:04

    Good decision. Desperate times require desperate measures.

    ReplyDelete
    Replies
    1. Anonymous11:32

      It would better if they sat down and thought through what can actually improve Slovenia's airline connectivity.

      Delete
    2. Anonymous12:52

      Everyone who's in airlines business for more than 2 hours know what it the one and only solution for Slovenia.

      Delete
    3. Build a highspeed railway to Zagreb?

      Delete
    4. Anonymous15:45

      Bingo!

      Delete
  5. Anonymous09:05

    Is this only for airlines that currently fly to LJU or will it be open for anyone?

    ReplyDelete
    Replies
    1. Anonymous09:07

      Airlines currently flying.

      Delete
    2. Anonymous11:33

      Lost opportunity...

      Delete
  6. Anonymous09:05

    Just another way to give money to Lufthansa.

    ReplyDelete
    Replies
    1. Anonymous10:29

      Honestly LH group has offered very little to LJU considering how much support they get from the Slovenian government.

      Delete
    2. Well, what is 2/3 million € in comparison how much Air Serbia and Croatia get?

      Delete
    3. Anonymous12:53

      But they have connectivity which brings passengers and those brings money back to state's economy. We don't have connectivity, no passengers, no money...

      Delete
  7. Anonymous09:05

    Smart move

    ReplyDelete
  8. Anonymous09:07

    Shouldn't the airport operator provide incentives for airlines?

    ReplyDelete
    Replies
    1. Anonymous09:09

      It seems that the airport operator will be applying for state aid soon.

      Delete
    2. Anonymous09:18

      I've heard this too. Is it really true?

      Delete
    3. Anonymous11:33

      I believe there are some basic incentives.

      Delete
    4. Anonymous11:37

      No, I don't think so. There is no mention of any incentives on their site and this has to be publicly published. So it looks like they don't have any.

      Delete
  9. Anonymous09:08

    Good luck

    ReplyDelete
  10. Anonymous09:08

    Let the market sort it out...

    ReplyDelete
    Replies
    1. Anonymous09:09

      We saw how well that worked out.

      Delete
    2. Anonymous11:33

      I know, I was being sarcastic.

      Delete
  11. Anonymous09:09

    Good news for Ljubljana Airport.

    ReplyDelete
  12. Anonymous09:09

    5 mio eur per year for Adria was almost criminal act and now 7 mio eur per year (for much less effect)...Another brilliant move from our government!

    ReplyDelete
    Replies
    1. Anonymous09:12

      +1

      Delete
    2. Anonymous09:35

      I doubt EC would approve 5m of state aid every year for a national carrier. It would be a field day for the likes of Ryanair with appeals.

      Delete
    3. Anonymous09:38

      But if it is vital for a country's connectivity, as is the case with Slovenia, I think they would make an exception.

      Delete
    4. Anonymous09:39

      The money required by JP was significantly more than 5-7 million euros ;)

      Delete
    5. Anonymous10:07

      Adria needed maximum of 5 million per year to be sustainable.

      Delete
    6. Anonymous10:22

      Funny how it needed 50m at some point, and went into bankruptcy with more than 80m of debts.

      Delete
    7. Anonymous10:23

      National carrier with high ticket prices is not what most people need.

      Delete
    8. Anonymous11:35

      Now we have foreign airlines with high prices and few flights.

      Delete
    9. Anonymous12:50

      @anon 10:22

      don't compare JP when it state owned and when it was owned by 4k. At time when it was state owned JP did not cancel flight, flying in triangles and so on..And we have to be awared that JP even at that time was not managed how it should be but still much better when Germans took over.

      Delete
    10. Anonymous12:55

      You're right, it wasn't flying triangles, it flew two ferry flights a day with A319 to fly MBX-SEN with less passengers than a full CRJ could take.

      Delete
    11. Anonymous13:14

      If you know that then you also know that those were paid operations so JP did not have any cost with it. And like I said, there are a lot of situations where JP should react much smarter/faster, but in that circumstances with politically appointed management it was quite ok. Much better when it was under 4k!

      Delete
    12. Anonymous13:40

      Company with unlimited state aid was running better than one that had to break even in order to survive.

      I'm shocked.

      Delete
    13. Anonymous13:55

      And I was shocked when I saw what is their intention and that for sure was not to get to break even point.

      Delete
  13. Anonymous09:10

    I still don't think this will encourage new airlines to launch flights.

    ReplyDelete
    Replies
    1. Anonymous09:12

      It's nice support for airlines that fly to Ljubljana but I also don't think it will attract new ones.

      Delete
    2. Fully agree. Adria during Yugoslavia was fantastic company. After the country disintegrated, both Adria and Croatia Airlines were also OK companies. Some things could have been better, of course, but generally both were healthy companies with good standards, satisfied passengers and decent connectivity, even profitable, or with losses not that big and not problematic to be covered by governments. Until thieves and crooks took over in the both. Both domestic and from the Cartel.

      Delete
    3. This was supposed to be answer to @An.13.14, few posts above

      Delete
  14. Anonymous09:13

    More money will be needed.

    ReplyDelete
  15. Anonymous09:14

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

    ReplyDelete
    Replies
    1. Anonymous09:16

      I don't think we will see any new airline coming as a result of these.

      Delete
    2. Anonymous10:24

      Does LJU have an incentive policy for arrival of new airlines?

      Delete
    3. Anonymous11:42

      Anon 10:24

      LJU incentive policy:

      "Launch flights to Ljubljana Airport and get a free cookie!"

      Delete
    4. Anonymous11:44

      I was hoping we could see Air Baltic and Luxair launch flights. I was also hopeful KLM might start flights too.

      Delete
    5. Anonymous11:50

      Good one :D @anon 11:42

      Delete
    6. I would add coffee or tea to cookie. Fits well 😃

      Delete
  16. Anonymous09:16

    The best decision would be - to create a new national airline!! And the money/taxes from subsidies would "go back" to Slovenia and not to other countries!

    ReplyDelete
    Replies
    1. Anonymous09:45

      Creating an airline when jet fuel price is approaching record high, and with a war just couple of hundreds of kms away.

      What a great idea. Nothing can go wrong.

      Delete
    2. Anonymous09:55

      Nothing then, guess Venice and Zagreb will keep being our gateways to the world.

      Delete
    3. Anonymous12:57

      So we should just remained locked in our country and wait that every world problem is solved and then we can act? Smart move...

      Delete
  17. Anonymous09:17

    Ako JU vrati 17 pre pandemijskih letova,može lepo da zaradi. Pretpostavljam da će nešto dobiti i za letove iz Niša.

    ReplyDelete
  18. Anonymous09:18

    LH will get the most money without doubt.

    ReplyDelete
    Replies
    1. Anonymous09:19

      Well they are LJU's biggest airline

      Delete
    2. Anonymous09:21

      easyjet was the biggest airline at LJU two years ago and they got nothing..

      Delete
    3. Anonymous09:37

      They send them clear message.

      Delete
    4. Anonymous10:29

      They carry the most passengers to/from LJU. Makes sense.

      Delete
  19. Anonymous09:20

    They should give money to Austrian Airlines. Even though it does not fly to Ljubljana, it would be a shame for a member from the Lufthansa Group not to get some support. Swiss got money for not flying for almost 1.5 years, why wouldn't Austrian?

    ReplyDelete
    Replies
    1. Anonymous10:29

      Don't give them ideas...

      Delete
    2. Anonymous11:47

      But would be nice if Austrian started flights from Vienna. We haven't had flights to VIE since Adria went belly up.

      Delete
  20. Prepelica09:20

    Mama Lufti likes this

    ReplyDelete
  21. Anonymous09:22

    Should have paid new airlines for opening new routes... What are they thinking?

    ReplyDelete
  22. Anonymous09:22

    Will be interesting to see who applies.

    ReplyDelete
    Replies
    1. Anonymous09:41

      It will be interesting if LCCs apply considering how easyjet got treated.

      Delete
    2. Anonymous09:45

      Transavia didn't even bother applying last time around.

      Delete
    3. Anonymous11:38

      And ironically, Transavia is the one adding new flights to Ljubljana with Paris Orly launching next month.

      Delete
  23. Anonymous09:41

    What a surprise

    ReplyDelete
  24. Anonymous09:42

    The last tender was an absolute shambles with short deadline and rules made up and changed as the ministry felt like it.

    ReplyDelete
    Replies
    1. Anonymous09:48

      Business as usual in Slovenia.

      Delete
  25. Anonymous09:44

    These sums are peanuts!

    ReplyDelete
    Replies
    1. Anonymous10:01

      Seven million is not that small.

      Delete
  26. Anonymous09:44

    Considering the number of airlines serving LJU. At this point they can give one million to each airline.

    ReplyDelete
  27. Anonymous09:51

    Would it not be more beneficial to offer incentives and subsidies for the launch of NEW routes? That way you might even get new airlines opening up a whole lot of new connections.

    ReplyDelete
    Replies
    1. Anonymous10:01

      I agree. At least in most countries subsidies are given to stimulate new routes, not keep existing ones that have been in operation for years.

      Delete
    2. Anonymous12:59

      I don't agree, see OU for example. They were bringing passengers all those years to OU and not newcomer get much better conditions as loyal/local airlines. This is not right..

      Delete
  28. Anonymous09:52

    Slovenian ministry definitely stabbed U2 in the back. I just don't understand the logic. And those amounts are really laughable coming from the richest ex-Yu country.

    ReplyDelete
    Replies
    1. Anonymous10:00

      Aviation in Slovenia is becoming a joke unfortunately.

      Delete
    2. Anonymous10:01

      Easyjet showed the most promise and potentially could have had a base in Ljubljana some day.

      Delete
  29. Anonymous10:02

    It's nice support for airlines that fly to Ljubljana. But it didn't attract new ones though.

    ReplyDelete
  30. Anonymous10:07

    Much more money is needed for this to have any sort of impact on LJU's performance.

    ReplyDelete
  31. Anonymous10:35

    Originally they said how they would offer 2 million this year so this is an improvement in terms of the amount they are offering.

    ReplyDelete
    Replies
    1. Anonymous11:37

      Let's see how much money they actually give. Last year they also announced a much bigger sum than they actually provided. What happened with the rest of the money god only knows.

      Delete
  32. Anonymous11:37

    Fraport should offer simmilar subsidies to the one offered at Zagreb Airport.

    ReplyDelete
    Replies
    1. Anonymous11:43

      It won't work. Fraport Slovenija cares primarily about profits (as any airport should). They are looking at financially stabilizing. Offering everything for free to an airline like Ryanair won't help improve your finances. We see this at Zagreb airport which has a lot of debt and constantly takes out new loans. Zagreb Airport's move is great for a quick recovery and increasing passenger number but their bottom line won't improve at all. And unlike on other airlines LCC passengers rarely purchase duty free, spend money at airport restaurants or spend money at the airport at all.

      Delete
    2. Lie number one - offering everything for free
      Lie number two - LCC passengers rarely purchase duty free and spend money

      Delete
  33. Anonymous11:46

    How much money did each airline receive from the last tender?

    ReplyDelete
    Replies
    1. Anonymous11:49

      It was published here a few weeks ago.

      All in EUR

      Lufthansa - 1.297.530
      Turkish Airlines - 664.560
      Air Serbia - 414.780
      LOT Polish Airlines - 233.190
      Brussels Airlines - 192.180
      Swiss - 186.870
      Wizz Air - 178.350
      Air Montenegro - 72.630

      Delete
    2. notLufthansa21:54

      so they received money incentive NOT TO LEAVE LJU! And they still leave it! Brussels Airlines is probably loosing money with A319, that's why they stopped flying to LJU for whole month. Lufthansa operates only FRA, there is no sign of MUC anytime soon. LJU is currently connected only to London, Paris, Brussels, Belgrade, Warsaw, Niš, Amsterdam, Dubai, Zurich, Podgorica and Istanbul. That's it. Helsinki and Munich in May for god knows how long (probably few months only).

      Delete

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