The European Commission this week approved a 14.3-million-euro state measure in favour of the operator of Zagreb Airport, the Zagreb Airport International Company (ZAIC), noting it is in line with European Union state aid rules. The measure aims at compensating the airport’s operator for the damage suffered during the period between March 19 and June 30, 2020, due to the coronavirus pandemic and the travel restrictions imposed by Croatia and other countries to limit the spread of the virus. As a result, Zagreb Airport experienced a steep decline in aircraft and passenger traffic, which resulted in major revenue losses. The public support will take the form of a write-off of the concession fees.
The Commission found that the Croatian measure will compensate damage that is directly linked to the coronavirus pandemic. It also found that the measure is proportionate, as the compensation does not exceed what is necessary to make good the damage. “On this basis, the Commission concluded that the Croatian measure is in line with EU state aid rules”, the block’s executive body said in a statement. This summer, the Croatian government provided further support to stakeholders in the country's aviation sector through a 45.4 million euro package. The beneficiaries have not been revealed, although the government is obligated to make them public within twelve months of providing the aid.
ZAIC's concession fee is made up of a fixed and a variable charge. The fixed charge amounted to two million euros in the first year of the concession and will increase to twelve million in the 29th year. The variable charge fluctuates based on the overall gross revenue. It became payable from the third year of the concession and totals 0.5% of the total gross profit, after which it grows to up to 61% of revenue in the 30th (last) year of the concession. “The concession fee is determined based on the agreement signed between the government of Croatia and Zagreb Airport International Company. ZAIC, as the concessionaire, has met its obligations, not only in terms of making the concession fee payments but also through continual passenger growth and the introduction of new destinations", the Croatian Minister for Sea, Transport and Infrastructure, Oleg Butković, previously said.
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Makes sense
ReplyDeleteYeah of course it does...
DeleteThe job to contain the virus was done really well. It was all worth it... Unprecedented vandalism and devastion, idiotic, hysterical measures unheard off since the middle ages, all in the name of science. Now You writing casually about it normalising this attack on the people and their lives. And what eas the resultmof all that????
We need Nuremberg 2.0
DeleteBravo Hrvatska!
ReplyDeleteSmešno...
DeleteWhat year of the concession are we in now?
ReplyDeleteJust started the 10th
DeleteThanks
DeleteDidn't expect less from TAV.
ReplyDeleteWas this done anywhere else?
ReplyDeleteYes
DeleteWhere?
DeleteAll over Europe.
DeleteFor example in Greece both ATH and the 14 airports that Fraport operates received tens of millions during the quarantine. Also all the state operated airports (HER being the biggest)
LJU got money. It was reported here. Couple of million EUR.
DeleteIs it possible to find ZAIC's financial reports anywhere?
ReplyDeleteNo, it's a private company.
DeleteThe government just keeps giving money.
ReplyDeleteYep, just like every other ExYu country.
DeleteEvery ex-Yu country gave its airport run by a foreign partner company money?
DeleteConcerned commentators about the Croatian taxpayers can protest the EU Commissions' decision in Brussels.
ReplyDeleteAddress: Rue de la Loi 200, 1040 Bruxelles, Belgium
No need, we are just discussing the overall profitability of ZAG as a business entity. Will be fun to see what their financials look like.
DeleteAre we? I thought it was just you complaining about it.
DeleteSo it is not allowed to discuss it on an aviation website?
DeleteInstead of complaining about it you can stage a protest in the Commission building.
DeleteI'm only trying to help you.
EU Commission
Address: Rue de la Loi 200, 1040 Bruxelles, Belgium
You are not really being funny if that is your point. I guess it's best not to be discussed at all so you won't be offended.
DeleteI bet that's Pozdrav being Anonymous at 10.50!
DeleteThis is a worrisome development as it shows that ZAG isn't that profitable and that they couldn't compensate the losses with post covid developments like BEG did for example.
ReplyDeleteMakes you wonder how much money they are making from the FR deal.
Let's not forget that Vinci got €50 million from the Serbian government.
ReplyDeleteWhen exactly?
DeleteI also failed to find this anywhere. Do you have a source?
DeleteThere is no source since it didn't happen.
DeleteIt's a common. He didn't like what he read today so he tried to counter it with a fake story.
DeleteThere is a list of companies on the Serbian government website that received aid as part of the government's economic measures again Covid. Vinci is not one of them. Better luck next time.
DeleteIt's standard measure. The question is did this continue afterwards too, which is possible and we will find out when the EU approves it for the next set of state aid.
ReplyDeleteIs it justified to get your concession fee written off while you reduce your charges for one airline only so it can start flights?
ReplyDeleteEU Commission just said it is.
DeleteGreat.
DeleteIn 2018 ZAIC asked the government to reduce the concession fee so they could reduce fees for LCCs. Basically, they hiked their fees and expected the government to waive the concession fee so they could still keep making a profit from their own airport fees while paying lower concession fee. Of course it was rejected.
DeleteTAV are known for such ideas.
DeleteIs the concession agreement available online?
ReplyDeleteNo
DeleteIs it known who got the 40 million in aid this year?
ReplyDeleteIt is actually 45.4 million. It is not known who got it but according to ex-Yu:
Delete- Both airports and airlines can benefit from the measure, but the funds will be limited to those located in Northern Croatia and the city of Zagreb.
- The beneficiaries of the measure are large enterprises active in the civil aviation sector impacted by the Covid-19 pandemic.
- The Croatian government is set to distribute aid to the country’s aviation sector in the coming days after the European Commission gave its approval for the state to provide 45.4 million euros in the form of subsidised interest rates on loans.
- Under the terms of the financial assistance, a beneficiary may benefit in parallel from multiple support schemes
- Once the contracts are finalised, the Croatian government must publish relevant information on each individual aid granted within twelve months from the moment of granting
Interestingly no other aviation site bothered to report about this.
Source: https://www.exyuaviation.com/2022/06/croatia-to-conclude-aviation-aid.html
Most of it probably went to OU.
DeleteDid it go towards that recapitalization?
DeleteNo because that isn't state aid. It's a recapitalization.
DeleteToday the EU institutions words are quite questionable if you ask me following so much scandals and fiasco. Meanwhile Trade Air are secretly and aggressively operating in PRN while ZAG is sleeping.
ReplyDelete+1
DeleteTrade Air has been operating out of PRN for years and there is no secrete about it.
DeleteTrue dat, Sir. They operate up to 3 daily flights! Interestingly, Bulgaria Air are also operating many gasto routes in PRN. It seems that both airlines including Trade Air are taking advantage of the lack of national carrier or enough LCC gasto.
DeleteVery, very true.
DeleteA word was not published on this_ADP admits fraud and paying of dozens of millions of euros to "consultant" without contracts....https://www.worldbank.org/en/news/press-release/2022/01/04/world-bank-group-debars-adp-international-s-a
ReplyDelete