Belgrade Airport has introduced a new incentive scheme with the aim of attracting carriers and securing new routes. “The incentive plan is intended for airport users that: have a significant share in the total volume of passengers, launch new scheduled routes, increase the number of flights or have aircraft based at the airport”, it said. Airlines introducing new short or medium haul routes are subject to discounts involving passenger service charges and landing fees for a two-year period, while carriers launching new long haul flights enjoy fee reductions over a three-year period. These incentives are only available for the introduction of routes which have not been served from the airport in the previous twelve months.
Airlines increasing frequencies will enjoy discounts over a two-year period if they serve the route on a year-round basis. Furthermore, airlines are eligible for a range of incentives if they carry upward of 50.000 direct departing passengers per year, with the extent of the discounts increasing depending on the number of handled travellers. In addition, airlines can receive price deductions based on the number of departing transfer passengers handled. Only carriers operating scheduled flights are eligible for the fee cuts, with charters not taken into account. The full list of incentives and their terms and conditions can be found here.
Belgrade Airport’s General Manager, Francois Berisot, said, “Our results are very promising. Recovery is on the way. We are now at a level much higher than last year, and we reached almost 70% of traffic in the first quarter on what we had before the crisis. Everything is happening at the right time. It was good to open the new facilities recently because we expect a very strong summer season, and we are sure that all the airlines and passengers will come back in the same volume and even more than we had in 2019”. He added, “We want to attract a lot more traffic and offer much more destinations for the benefit of the Serbian people”.
Hopefully it brings more airlines to Belgrade
ReplyDeleteI think Varadi wasn't in Belgrade the other day without some cause. Fingers crossed we see Wizz expand even more.
ReplyDeleteFingers crossed we see another LCC base a plane at BEG.
DeleteI find these incentives to be much more limited than the one offered in Zagreb that were published here recently.
ReplyDeleteBecause BEG is in a much better position than ZAG was when they launched their incentive scheme.
DeleteZagreb is in much more desperate need of airlines than BEG.
DeleteThis is true but Zagreb's incentive policy is unusually extensive for a capital city airport.
DeleteLJU is more desparate need of airlines than BEG and ZAG yet they are doing nothing.
Delete^ Don't they have some incentive program too?
DeleteWonder which airlines will take advantage of these incentives to launch new long haul routes.
ReplyDeleteWasn't Air Canada interested in BEG?
DeleteThey showed some interest, but then Covid came.
DeleteThere was a Chinese airline interested other than Hainan
AC was unhappy with the number of flights they were allowed to operate.
DeleteXiamen airlines was interested.
Delete^ It wasn't. Don't make up nonsense.
DeleteShut up.
DeleteIs the transfer passenger incentive specifically made for Air Serbia?
ReplyDeleteWell, I don't see any other airline that could have over 50,000 transfer passengers departing BEG. So yes, it seems to be an incentive specifically made to support Air Serbia.
DeleteI don't understand it quite well. Does this mean only airlines that handle transfers at BEG are eligible for this incentive or it means airlines that handle transfers from BEG to onward destinations?.
Delete50.000 direct passengers (I suppose without transfers) is mostly aimed at boosting frequencies on flights to main O&D routes such as Zurich, Paris, Amsterdam, Vienna and so on. Star Alliance can massively profit from this as well.
DeleteAt least they included long haul flights which is a welcome sight.
ReplyDeleteWhen I see a airline launch a new long haul route, it will be a welcome sight, until then, it is a welcome sign.
DeleteUnfortunately, I think the airport is mainly relying on JU for long haul expansion (as evidenced by their many statements) so I don't think they are proactively trying to attract any foreign company for such flights.
DeleteJU is most likely to launch any new long haul route, considering it is the only airline doing so currently. Understandable they would rely mostly on JU there. Belgrade isn't a popular tourist destination, nor a high yield destination. I wouldn't say they are not proactively looking for new long haul routes, but until last week gate space wasn't ideal for additional widebodies.
DeleteIf Air Serbia wanted to launch new long haul services they would have asked the airport for incentives. Are those 100% landing fees and some €8 per passenger incentives going to suddenly get Air Serbia into long haul expansion mode? No!
DeleteSurging inflation is no longer expected to be transient issue. Energy prices are skyrocketing while recession in 2023 looks likely. There is a brand new excuse for not expanding long haul.
I would love a Ferrari but with my finances that isn't going to happen anytime soon.
DeleteLong haul needs alot more investment than short haul. JU stabilised its losses at around 9 million prior to the pandemic. Had that trend continued, and the pandemic not happened, I am certain we would of seen another long haul route by now. JU isn't in the position financially to pull it off just as yet. Let's wait and see the results for 2021 and 2022 to see how they are recovering. Long haul travel is the last thing recovering from the pandemic so there isn't any urgency. Lease rates will be favorable for a while.
You already have a Ferrari in a garage but you take it out only 3-4 times a week.
DeleteAir Serbia does not need that much money to expand. Wet lease another A330 for 3 months in the summer. During that time and with 2 aircraft fly daily to JFK and 2-3 weekly to ORD and YYZ each. Once wet lease is over, reduce JFK to 3-4pw and keep better performing of the other two destinations 2pw, closing the third destination until next summer season, or keep just JFK as it is now.
So it means 4x weekly to somwhere year round. Opening door 4 air canada maybe?
ReplyDeleteAC can only operate 2 pw with the current bilaterals.
DeleteKnowing bussiness mentality in serbia, its already decided who will be choosen. We can just betting and cheering here. I would like to see some operator with many flights 2 africa
DeleteI wonder if Lufthansa will use these incentives to bring back its third daily flight from FRA.
ReplyDeleteI guess Wizz might profit from this as well since it could be a good incentive for them to expand their presence in Belgrade.
I think Lufthansa's decision will be primarily influenced by whether there is actual demand to justify a third daily flight, rather than incentives.
DeleteLufthansa has already boosted BEG-FRA to 14 and they are using A320/321 to BEG. In addition to that they also boosted MUC to 21 from June. One would assume that they are doing well.
DeleteAlso the third daily doesn't have to be operated by A350, they can schedule additional departures on the CRJ. Lufthansa could use an earlier departure from FRA to BEG.
Good news, Hope it produces some results.
ReplyDeleteDo other airports have similar policies?
ReplyDeleteYes, everyone has some incentive policies in place.
DeleteI believe that major airports like BEG should primarily support their national airlines and give them more favorable terms and conditions than to foreign/low cost carriers.
ReplyDeleteIf you look at these incentives, it seems like they are doing just that.
DeleteSo two sets of rules, nice.
DeleteIt's not two sets of rules, the incentives are available to everyone. But some are just unlikely to ever be achieved by any other airline, like the one with incentives for transfer passengers.
DeleteNo. BEG is listed on the Belgrade Stock Exchange which means that the value of their stock is directly linked to their performance. The better their results are, the higher the value of their share will be.
DeleteBelgrade airport is smart to diversify its offer especially after what we've see in January and February when JU massively cut its network. Luckily for BEG, foreign carriers stepped in and maintained a respectable presence. When your major partner cuts flights it means you are about to experience a revenue drop and this is where we have to go back to the value of the stock.
What BEG is doing is trying to find a balance between supporting JU but also making sure that if they go on a cutting spree, the airport's balance sheet isn't terribly affected.
This incentive does exactly that. It's there to support JU but also any airline that manages to carry over 50.000 passengers per year which I suppose is quite a lot of them.
Personally I'd be happy if LO launched KRK and BT resumed BEG. I think these two would make a nice addition to BEG.
@ Nemjee
Delete+1
Very well described linkage of core business performance and its reflection at stock exchange.
I agree with Nemjee, I think they are trying to balance between both JU and foreign operators which is the smart thing to do.
Delete@Nemje: Belgrade Stock Exchange? Haha, nice joke, I really like it :)
DeleteHave you seen trade volume of BEG stock in Belex?
Let me save you some time: it's around 100 euros a day :)))
Talking about the importance of their share price.
Trade volume is not what matters here, it's the business transparency that comes with being listed there. Furthermore, now that Vinci is managing the airport, the value of BEG shares will matter quite a bit as it will be a good indicator of how well they are doing their job. Maybe it won't matter here in Serbia but it will elsewhere ... where it really matters.
DeleteI don't know where you got €100 per day since yesterday alone it was €280.542.
Of course it matters, as it shows the importance and depth (in this case shallowness) of the stock exchange and is absolutely irrelevant ever since 2008. crisis.
DeleteThis applies to Belex, of course prices at other stock exchanges do matter.
No, yesterday turnover was 14.5k RSD, check it better :)
Nemjee has right.
DeleteIt is not about volume, it is about transparency.
The truth is that at Belex it is Aerodrom Beograd which is listed, and not Vinci Belgrade Airport.
So, since concession took place, AERO shares behaves more like bonds, rather than shares, since they have single income: concession fee and expanditures for a dozen of employees, more or less.
However, it is still about Aerodrom Beograd transparency, rather than volume of trading!
You are missing the point here. Overall turnover of the Belgrade Stock Exchange doesn't matter in this discussion as it has no bearing on the value of the BEG stock.
DeleteFor Vinci the stock will matter because of their own overall performance and credibility. If BEG stock collapses then it will negatively impact Vinci on a wider scale.
I checked and this is the link where I found €280.542.
https://www.belex.rs/trgovanje/dnevni_podaci
That is total turnover, of whole Belex - tunrover of AERO (ticker for BEG) is 14.k RSD :)
Delete@ Anon 11:06
DeleteAre your sure that stock turnover doesn't matter?
How come we do a litle experiment here, invest 200 euros and drive this stock by 40% in two days?
Because, with this turnover it's completely doable :)
What will then stock price tell us about the performance of the airport?
It will tell you nothing unless people keep on investing €200 on a regular basis. Without those regular 'injections' their stock will fall. However, BEG's overall performance is what defines the basic strength of the stock especially after their financial performance is announced.
DeleteGood move Belgrade Airport!
ReplyDeleteAirlines should use this opportunity to grow in BEG.
ReplyDeleteI'm afraid these incentives don't go far enough to lure too many new airlines. We will see.
DeleteRight call
ReplyDeleteI would like to see European legacies in Belgrade: British Airways, ITA, TAP, Iberia, SAS...
ReplyDeleteITA planned to launch flights this summer but then they decided to do a codeshare with Air Serbia. I think they will eventually launch their own flights next year as they start getting new planes and build their network.
DeleteWith current UK visa regime and competition from JU and W6, I don't see BA coming any time soon.
DeleteVINCI has brought with them some new legacy airlines. Air France, Luxair, El Al...
DeleteIn my opinion there are two major legacies that are still missing: TAP and SAS.
DeleteBA is unrealistic as long as there is the visa regime in place. That said, I am not too sure how well TP would do here but I am sure SK would do really well especially with their transfer options via CPH.
TP would make a killing from BEG if they maintained the same pricing for EU-US flights that they have from elsewhere in Europe. Two months ago I flew MXP-EWR and back for €1.300 in Business, that's just ridiculous.
DeleteI don't think TP could make Belgrade work in winter though.
DeleteDidn't they operate Lisbon-Budapest-Belgrade-Lisbon that one winter they did fly?
DeleteI think the BUD link was added when their operations started to fall apart. They actually did ok in terms of loads in BEG. They operate out of a very slot constrained airport, I am sure they have bigger priorities than BEG ... unfortunately.
DeleteIs this also invitation for FR to come to BEG?
ReplyDeleteWith these sort of incentives no. There is a reason the ones in Zagreb are much more generous and extensive.
DeleteI would rather see easyjet expand in BEG.
DeleteSame, best LCC in terms of service
DeleteIs the long haul part done for AirSerbia and China/Canada flights?
ReplyDeleteMost likely.
DeleteAnd more flights to the US.
DeleteYes please!
DeleteI notice that they exclude counting charters. If they did, Air Serbia would be eligible for even bigger incentives considering they have over 1,000 charters per year and handle over 100,000 passengers on these flights.
ReplyDeleteWell we are being constantly reminded here that JU doesn't have anything with those flights except it provides the plane. It's up to tour operators to find the destination.
DeleteThey still operate under JU code ;)
DeleteEL AL would be excellent option and to codeshare with JU
ReplyDeleteYes and yes!
DeleteFingers crossed they come back, especially now with JU out of the picture on this route.
DeleteDoes any other foreign airline have more than 50,000 pax at BEG, other than Wizz Air? I'm wondering if Air Montenegro or Lufthansa make it and are eligible for these passenger volume based subsidies?
ReplyDeleteMontenegro Airlines had over 50,000 pax easy. Air Montenegro didn't last year (they launched in June). We will see if they manage this year although I'm confident they will. Lufthansa for sure has over 50,000 passengers per year to Belgrade and Swiss/Austrian might too. Also with two daily flights Flydubai might have as well.
DeleteFZ had over 50.000 passengers to/from BEG in 2017, 2018 and 2019. Probably last year too and certainly this year.
DeleteTurkish Airlines as well especially now that they are also flying from ESB. However I am sure they would love to add flights but they will be blocked by JU.
DeleteIs beg capable to handle a380
Delete@dee
DeleteNo
@10,16
They would be blocked by bilaterals, not JU. TK codeshares with JU, so TK increasing seats is also good for JU. But JU would also need to increase its scheduled flights to Turkey as the bilaterals is based on reciprocity.
why do I have a funny feeling that we are about to see FR basing 3 planes
ReplyDeleteWrong. Fr is an archyenemy of ju
DeleteI am sure CGN will happen. Let's see who gets it, Eurowings or Wizz Air.
ReplyDeleteWith Eurowings' renewed focus on BEG, I would not be surprised they launch it sooner rather than later.
DeleteThey should put a bit more focus on Africa. Other than flights to Egypt there is nothing.
ReplyDelete+1
DeleteAfrica is generally ignored by ex-Yu states and markets which is a shame. It holds huge travel potential.
For transfers or? I don't expect much O&D demand anywhere outside of Egypt or Tunisia to BEG.
DeleteDa li je realna inijaciva za carter saobracaj za Daleki Istok,
ReplyDeleteAustraliju, Severnu i juznu Ameriku sa Aerodroma Beograd? Sigurno ne sada, vec kroz pet i vise godina.
Davno, takav saobracaj je postojao. Sada se posluje drugacije. Stvaranjem uslova dobijaju se putnici.
Kao sto pogodnostima, aerodromi dobijaju vise avio kompanija. Frekvencija, putnika i karga, porazumeva se.
Svejedno. Koncesionar VINCI AIRPORTS CORPORATION,
ulagajuci ogroman kapital, zna da stvara, prvavi mogucnosti i izbor. Nama ostaje da letimo sa tog buduceg lepotana medju aerodromima Centralne i Jugoistocne Evrope. Aerodrom Nikola Tesla Beograd. 😀🛫🌐✈
Rodney Marinkovic
Winston Hills NSW AUSTRALIA
I hope this means a Wizz expansion and basing more planes in BEG. It also got me thinking about the optimism back during the VINCI takeover that EasyJet would expand its network from BEG. Such a shame, the market would boom with two LCCs expanding
ReplyDeleteEasyjet is one of the best LCC's. I am always glad to fly with them.
DeleteEasyjet is cutting Belgrade for months now: routes, frequencies... Doesn't look good.
DeleteEasyjet is also cutting over 100 flights from the UK each day for weeks now.
DeleteEasyjet is increasing BSL-BEG to 4 weekly starting from December
DeleteThat's a long way away. Who knows what will happen by then.
DeleteActually if you look at their website, their fares are everything but affordable. The past month many of their BSL flights were sold out on the A320. I still believe they are experiencing problems with their operations rather than lack of demand.
DeleteDo we know until when is this available? When can we find out who got what?
ReplyDeleteIt's available until further notice. No, information on who applies for incentives is not made public anywhere.
DeleteLet's see if they manage to attract some new customers with thse incentives.
ReplyDeleteFrom the top of my head, so far Vueling has boosted BCN to 4 in July and August while Eurowings has added another flight from STR. Maybe these are the first effects of this policy.
DeleteThey are quite basic fee reductions, nothing major.
ReplyDeleteHonestly, I think that's what most airlines are after. Also if you notice, you will see that discounts increase the more passengers you carry (over 50.000 per year minimum).
DeleteCan this bring Ryanair to Belgrade?
ReplyDeletekoja budala dozvoljava da se wizzair siri
ReplyDelete