Wizz Air’s decision to open a base in Podgorica next year, deploying two Airbus A321neo aircraft and launching fourteen new routes, is set to significantly reshape the Montenegrin market. The move will primarily put pressure on national carrier Air Montenegro, which has so far relied on limited competition on several key routes in Western Europe. With Wizz Air introducing flights to destinations such as Rome and Ljubljana, both currently served by Air Montenegro, the low cost giant is directly challenging the flag carrier. The Montenegrin airline still has no codeshare or interline partnerships, making the major hubs in its network such as Paris Charles de Gaulle, where it will compete indirectly with Wizz’s Beauvais service, unable to tap into connecting traffic and therefore heavily dependent on local point-to-point demand
The arrival of Wizz Air is expected to lead to lower yields and intensify the need for a strategic response, which will likely involve operations on the country’s forthcoming Public Service Obligation (PSO) program. Under this scheme, the government will subsidise flights on routes deemed strategically important but commercially unviable, ensuring continued air connectivity for key destinations. Authorities are currently assessing which routes will qualify for inclusion in the PSO package, after which a public tender is anticipated to be announced.
Beyond Air Montenegro, regional rivals are also watching closely. Air Serbia, which operates over sixty weekly flights to Montenegro during the summer season also sees a notable portion of transfer passengers on its flights to and from the country. It will now face indirect competition from Wizz Air on several routes to Western European markets. Wizz Air will also go head-to head against Ryanair on several routes to Poland.
This week, the Montenegrin government adopted a proposal to direct part of the profits from the state-owned company Airports of Montenegro, amounting to 4.12 million euros, toward projects aimed at strengthening the country’s air connectivity. According to the Ministry of Transport, these funds would normally return to the state budget in line with the company’s statute, but upon the Ministry’s initiative, the government approved their targeted use to support the development of air transport. The decision, the Ministry added, continues a series of tangible steps aimed at advancing air transport and increasing Montenegro’s accessibility. “I am pleased that the government has supported the Ministry’s initiative to reinvest a portion of Airports of Montenegro’s profits into programmes that enhance the country’s connectivity. Following Wizz Air’s arrival and the agreement to open a base, we are continuing with measures that will enable steady growth in air transport, support tourism development and strengthen the overall economy”, Transport Minister, Maja Vukićević, said. Ms Vukićević emphasised that Airports of Montenegro are yet to decide on potential subsidies for Wizz Air, as well as the level of airport service charges over their upcoming Podgorica base.
LJU is silently becoming a Wizz Air intra ex-YU hub.
ReplyDeleteFirst they launched SKP-LJU and challenged OU's ZAG-SKP. Their numbers suffered after Wizz Air launched flights.
Now they are launching TGD-LJU and are directly attacking Air Montenegro.
Is BEG-LJU next? Will they challenge JU next?
Hope so!
DeleteHow about a BEG-ZAG route?
DeleteMore logical for BEG-LJU as Wizz already flies to both airports and also BEG-LJU has more demand than BEG-ZAG.
DeleteFingers crossed for both!
DeleteI cannot see Belgrade to Zagreb on an A321 being workable, and we have no evidence that Wizzair would want to attempt such a short regional route. The same goes for Belgrade to Ljubljana - there is not sufficient passenger demand to fill an A321 at prices that would be worth it. Skopje to Ljubljana is a different matter given the undesirability to drive such a distance, and the inability to travel around our region by train currently.
DeleteStranger routs have worked so hopefully they will give it a try.
DeleteBEG-LJU is half of the way u need to drive with car if u go SKP-LJU, so JU with the ATRs is doing a good job and the tickets are not expensive. Wizz will not offer 19 euro tickets if they launch that route, the prices for SKP-LJU go as high as 200 euros in busy season and the plane is always full, its not that the tickets are always cheap.
DeleteWhich might I ask from Belgrade have been attempted that could be compared to the 350km it is to Zagreb? A low cost flight between the two would not work with an airline like Wizzair.
DeleteBEG-LJU on Wizz Air would work like crazy! JU is expensive on the route, rarely under €150 without luggage on Atr.
DeleteMost Slovenian tourists would switch to flying if W6 enters the market. 90% of them go by car or bus. Why drive 5 hours when you can be in Belgrade in 35 minutes on the state of the art A320neo or A321neo?
35minute flights on an A321s are not (for the most part) within the business model of LCCs such as Wizzair in this region, and there is NO guarantee it would make sufficient money for Wizz, which is after all the reason behind routes. I can't see it happening anytime soon despite people's wishful thinking. Ljubljana lacks connectivity and JU provide a relatively good degree of that which is useful for the country.
DeleteMy bet is that LJ - TGD will be one of those routes that rapidly finds itself downgraded and dropped which would be a shame, but it doesn't scream high-yielding at all.
DeleteAgreed 11.50. Maybe not entirely dropped but turned seasonal. If FR can't make ZAG-TGD year round doubt Wizz can do it in LJU. Especially with 321
DeleteDo you know there is way more demand between LJU-TGD than ZAG-TGD?
DeleteAirMontenegro will probably swap Ljubljana-Podgorica with Zagreb-Podgorica in the summer, while keeping Tivat-Ljubljana. Makes sense
DeleteIt doesn't matter what fits in the usual business model for Wizz Air when there is a market beteen BEG and LJU. Over 100.000 tourists come from Slovenia to Serbia and most take the road. Wizz Air is known to create demand where there is none.
DeleteJU wanted to put E90 to LJU but then cut flights and they will have less flights this winter. I think it's time for W6 to step in and carry passengers JU dont know how to attract. JU won't be affected by W6
Wizz will launch flights between Bratislava and Kosice (9 weekly flights!) which I believe it's shorter than what BEG-LJU would be.
DeleteIt's a PSO route that's heavily financed
DeleteLJU - TGD is the same flying distance as LJU - BEG. Still, they should start BTS - BEG first, as far as I'm concerned.
DeleteThey'll start neither route in the near future is my belief. And defo the Podgorica flight will not be as popular as some think. But good luck LJ
DeleteAhh the "high density" expert again...
DeleteSo many silly comments about the vast demand between LJ and BG that means Wizzair will be rushing to serve the route.
DeleteWe saw how long it took Wizz to launch SKP-LJU and now they have almost 100% LF.
DeleteIndeed, but SK and LJ are really far apart and therefore not of much comparison. If wizzair launched LJ-BG and caused Air Serbia to reduce operations it could hit connectivity something that LJ, as one of Europe's most badly connected capital cities cannot afford. Whilst from a passenger perspective it might be relatively good initially to have competition on the route, the result might counter productive for the city pair. In an ideal world it would be possible to travel by train between the two cities but sadly the rail policy of the region is a shame and an scandal.
DeleteOr maybe W6 launching BEG-LJU will finally force JU to add more flights and capacity to LJU. They became quite lazy, same with TGD.
DeleteIn the last few years, JU has more than doubled flights to Ljubljana. Stop making up nonsense.
DeleteOU's numbers on ZAG-SKP are more or less the same as before the launch of LJU-SKP
DeleteMore choice and competition is ALWAYS good for the travelling public and the country.
ReplyDeleteMore people coming to the country and spending their money, locals have more affordable options to fly abroad and direct flights instead of connecting always boost traffic.
+100
DeleteGood move for passengers but dangerous for the national carrier.
DeleteWhich is a jok of an airline...
DeleteThat was a great move by Montenegro.
ReplyDeleteIt will bring benefits way beyond the subsidies it will spend.
Could JU base aircraft in TGD and offer similar flights to Europe or it needs a different AOC?
ReplyDeleteOnly if the Montenegrin government allows it.
DeleteJU will have 6 ACMI planes in BEG this winter. I doubt they have spare planes or crew for any base outside of BEG.
JU doesn't have enough aircraft and crews to fly its own schedule out of BEG.
DeleteSadly it would be a good business opportunity to get subventions to fly from Montenegro but it just doesn't have the necessary resources.
No it can not. Bilateral does not allow it, they would need to change that and get permits from every single country they would want to fly to. Same way Montenegro Airlines was unable to keep flying from Serbia to European countries when Montenegro became independent
DeleteIf JU was to get a Montenegrin AOC or even better an EU country's AOC it certainly could.
DeleteNow if MN politics would allow it to get subsidies to do so in another matter altogether.
If JU gets the AOC then they would fly from TIV, not TGD.
DeleteAir Montenegro has been sleeping for years. If you still can't have a single codeshare or partnership with any airline then something is not well at that company.
ReplyDeleteApart from not having codeshare with anyone, but they still do not sell connecting flights via TGD!
DeleteI thought that they had a code share with JU?! If not, why not? It makes sense to have one. Then again, with so many flights from TGD and TIV we would expect JU to open a couple of lounges at those airports.
DeleteNo, they don't have a codeshare or interline agreement with anyone. They also don't sell connecting flights.
DeleteWizz Air will destroy Air Montenegro in no time if the government doesn’t react. They can’t compete with two A321neos and 14 routes with their two Embraers.
ReplyDeleteAir Serbia won’t like this at all. They have been earning a lot from transfer passengers from TGD and TIV via Belgrade. Wizz might steal part of that Western Europe traffic.
ReplyDeleteTrue dat. I can't but think this move by W6 is also aimed at weakening JU's position in BEG by reducing the transfer traffic they get from Montenegro market.
DeleteWhat do you guys think?
JU will suffer because they refused for years to have overnight flights to TGD. They only offered afternoon connections to Europe.
DeleteAn early morning departure from TGD arriving at BEG in time to offer connections to the morning wave flights to Europe would be full! And I'm talking about an Airbus, not just ATRs.
Delete+1
DeleteTrue, now the flight arrives after 09.00 missing all morning departures. JU ignores night flights to TGD but flies half empty planes to TIA in the middle of the night.
DeleteNight flights to SJJ and TGD are needed YESTRDAY!
So many experts.
DeleteUnless people are required to register one will always get as you say "experts" thats the nature of public forums for good and bad. Get over it.
DeleteAir Serbia will have to become more serious and thoughtful about the Podgorica market.
DeleteCompetition will force them to do so.
That early morning flight would be a first step.
^ Could they park an aircraft there overnight for that early morning flight?
DeleteAustrian offers quite a useful morning departure as OS730. Looking a JU's morning departures from Belgrade it seems like they would have to offer a 4am departure (like they do from Tirana and several other overnight routes) in order to offer that extra connectivity. As I understand this is impossible as Podgorica airport isn't open for night time operations.
DeleteFrom anecdotal experience I've often seen a lot of passengers from the morning flight from Podgorica to Belgrade connect onto the Heathrow flight as it times very well for that.
To catch the early morning wave out of BEG, the TGD flight would need to depart around 4 am....
DeleteSo TGD would need to be open in the middle of the night.
Wizz can't impact Air Serbia at all with this move in the following areas:
DeleteAll BEG-Montenegro flights
All transfers to long-haul destinations
All transfers to Russia
Transfers to ExYu airports except LJU
Transfers to many destinations and markets not covered by Wizz
Overall, Wizz base won't have much of an impact on Air Serbia
I also dont think that JU has much to loose.
DeleteO&D is not touched at all.
Quite the opposite-Air Serbia and Montenegro Airlines could even expand the market three or fourfold by massively increasing frequencies. In the begin their profit would decrease but after some time prices would crawl back.
It always does.
Possibilities and chances are manifold!
Both fly just five times a day to Tivat and to Podgorica.
Delete15 to 20 times daily would be possible !
The more they reduce frequencies the more they can milk them with high prices.
DeletePrices are abnormally high. The Serbian government needs to liberalize this market so that it can grow even more . I can't even tell you how JU is expensive in summer to TIV. They put the ATR in high season!
DeleteFuny how no one mentions impact on LOT with so many routes to Polish cities being added, and even Warsaw itself.
ReplyDelete