Croatia’s existing PSO arrangement expire on March 28, 2026. The government is expected to begin tender procedures soon. The previous public call, issued in November 2021, awarded the multi-million-euro contracts for the upkeep of twelve domestic routes to Croatia Airlines and Trade Air, which have historically been the only beneficiaries of state funds for domestic flights. Ryanair has expressed interest in potentially partaking in the tender. European Union-based carriers are eligible to participate in the call.
Routes which are currently compensated and maintained as PSO are: Dubrovnik - Zagreb - Dubrovnik, Split - Zagreb - Split, Zagreb - Zadar - Pula - Zadar - Zagreb, Zagreb - Brač - Zagreb, Osijek - Dubrovnik - Osijek, Osijek - Split - Osijek, Osijek - Zagreb - Osijek, Rijeka - Split - Dubrovnik - Split - Rijeka, Osijek - Pula - Split - Pula - Osijek, Rijeka - Zadar - Rijeka and Osijek - Zadar - Osijek. There have been calls to reform the list of PSO routes, with Rijeka Airport arguing that its limited inclusion in the current scheme undermines regional connectivity and limits its potential to develop year-round air services. On the other hand, questions have been raised as to whether flights from Zagreb to Split and Dubrovnik are unprofitable and meet PSO guidelines.
Montenegro formally amended its air traffic law to enable subsidies for PSO routes. The government is now determining which services will qualify under the scheme, with tender procedures expected to begin next year. Priority will be given to destinations that strengthen links with major European administrative, economic and transport centres, as well as those considered essential for citizens, the economy and international cooperation. Among the routes under evaluation are potential services to Brussels.
Slovenia’s new Aviation Act (ZLet-1), adopted in September 2024 and in partial force since April this year, became fully applicable on October 5. The legislation provides a legal foundation for revised air-connectivity support measures, allowing the current subsidy model to be replaced with schemes compliant with ZLet-1. Crucially, it enables Slovenia to designate specific routes as Public Service Obligations. However, despite confirming that it will continue subsidising new air services, the government has sent mixed signals regarding whether it intends to implement a full PSO framework.
I'm 1000% sure that Slovenia will change its tender, but that they have no idea how to do it. It's been almost 2 months, and nothing new came out yet, which means that summer season next year is all but lost...
ReplyDeleteAnd I'm 1000% sure it will remain the same in Croatia. Useless in terms of real improvement of connectivity within the country and intended to provide financial injections to Croatia Airlines, in order to continue providing feeding for LHG
DeleteProbs won't happen in Slovenia, major budget deficits the past 2 years and the government will likely use the money over the coming months on trying to win the election
ReplyDeleteMaybe for 2027, though
DeleteThe clock is ticking toward 2026 and nothing concrete is happening yet.
Deletenothing will happen before elections. supporting airlines has a negative connotation among Slovenes
DeleteAlso better use that money on buying votes than actually supporting economic growth
DeleteWhich routes could be offered as PSO from Slovenia?
ReplyDelete-Brussels
Delete-Stockholm
-Madrid (still not year round)
-Rome
-Vienna
-Berlin (pending easyjet)
-Budapest
-Bucharest
-Athens
-Sarajevo
-Pristina
-Tirana
I don't think routes which are already operating like Brussels and Pristina can be covered by PSO when there is already commercial service.
DeleteThey released the last tender with AMS in the priority so I think they can? They always talk about the morning BRU flight
DeleteBut that's different. For PSO, you can't subsidize a route already operating on a commercial basis. PSOs are there to support routes which can't make a profit.
Deletehave you read the law?
DeleteWhich one? PSO is regulated by EU legislation.
DeleteEU PSOs do not allow more than one airline to operate on the same route as far as I'm aware. Therefore if one airline is already flying there is no basis for PSO money.
DeleteLet's see if the Croatian government makes some reforms to the PSO routes. Unlikely but it is overdue.
ReplyDeleteAs long as Mišetić is really in charge of OU, as long as Mafia whose member he is, continues fulfilling obligations of OU as shameful and humiliated LHG feeder, and as long as aparatchiks and dirty politicians and mafiosos make decisions on OU, on PSO and on entire civil aviation, in their own interest, instead of professionals deciding in public interest, nothing will change.
DeleteWonder if ETF will bid now that it is getting an ATR72.
ReplyDeleteMost likely they will be operating the ATR on behalf of Croatia Airlines.
DeleteI'm not so sure. It would make most sense that Croatia Airlines gets one wet lease provider for turboprops. They will need more than one plane so I don't see ETF as an option. We will see.
DeleteIf ZAG-SPU and ZAG-DBV routes are “unprofitable”, then everything is.
ReplyDeleteZAG–SPU and ZAG–DBV should not be subsidised. Market can support those routes on its own.
DeletePSO money should go to islands and underserved regions. That’s the whole point.
DeleteDoes Brac have any PSO route?
DeleteIt has Zagreb. The PSO routes are listed in the article.
DeleteWhat are the fares like on Zagreb-Dubrovnik or Zagreb-Split in summer?
DeleteExpensive
DeleteBrac as an island needs more Pso flights...
DeleteI would also abolish Split Dubrovnik, and replace it with Brac Dubrovnik,
the Brac Zagreb line should be converted into a year-round one, with 2 flights in the winter,
and in the summer schedule there should be 1 daily flight that should be at different times of the day, and include as many connections as possible via Zagreb. I would also introduce seasonal flights from Osijek to Brac, with 2 weekly flights..I would also introduce Pula Brac with a smaller plane, 3 weekly flights during the summer...
Brac as an island could and should get several international Pso flights, such as flights to Brussels, Frankfurt, Vienna and Belgrade.
You might be slightly over-stating demand to Brač here mate.
DeleteOU doesn't care about decent connection, plus Brac does not have this much demand
Delete@10:54 better the Ferry services receive increased attention than paying an airline to fly empty between Pula and Brac. I mean who would use such a route?
DeleteLol listen this doufus, year round Zag to Brac 😂
DeleteBetter to sunsudise Osijek Brac or Osijek Split than any of flights from or to Zag.. who sane would fly from Osijek to Zagreb 😂😂
Maybe unrelated, but just showcases what poor job LJU is doing. They failed to announce Pegasus, or put out a press release announcing it at all...Crazy that this is happening to an airport that desperately needs any route it gets
ReplyDeleteNot surprised at all lol
DeleteAt least they added it to the schedule, even if Pegasus isn't listed on the website
DeleteBravo Fraport!
DeleteWho will fly the routes from Montenegro. Air Montenegro can at best pick up 2-3 routes with their existing fleet.
ReplyDeleteWizz Air?
DeleteMontenegro will probably just list 5-6 routes (Brussels and Zagreb are almost guaranteed to be there, Frankfurt probably as well).
DeleteThose make sense actually
DeleteCroatia Airlines’ PSO routes with 3-4 passengers will be a sight to behold on the A220s.
ReplyDeleteThey definitely won't be able to do this. They will have to think of a solution.
DeleteIt was said in previous articles that they will use the wet leased ATR 72
DeleteIt didn't say that, it said that it is a possibility, not that it is a done deal. In any case even if they wet lease ETF's ATR they need more than one plane.
DeleteWhy does Croatia Airlines still need PSO to fly within its own country after 30+ years?
ReplyDeletewhy does such a small country need PSO for inner flights?
DeleteI see the need for PSO for routes like Brac-Zagreb but definitely not for Zagreb-Dubrovnik.
DeleteIt's a legal way of the government pumping taxpayer money into a sinking ship. It will never change.
DeleteIt will be interesting to see what happens in the Croatian one. I doubt there will be changes to the actual PSO routes but I can't wait to see what OU does considering its fleet changes and the A220 is too big for almost all of the PSO routes.
ReplyDeleteCroatia Airlines loves these guaranteed money routes.
DeleteI have no doubt. I'm actually not sure where they would be without them.
DeleteI could see some airlines like Sky Alps applying to operate PSOs from any of these three countries.
ReplyDeleteMore lucrative than Mostar flights.
DeleteFor sure
DeleteI’m curious whether any foreign airlines will actually apply.
ReplyDeleteHighly doubt it
DeleteLet’s hope PSO tends aren’t written so tightly that only the “usual winners” qualify again.
ReplyDeleteOf course they will. That's the whole point.
DeleteGood luck!
ReplyDeleteWhen does the PSO contract in Serbia end?
ReplyDeleteDecember 2028.
DeleteSorry meant to write December *2027
DeleteThanks
DeleteThe Serbian PSO was purely designed to prevent LCCs from jumping in and launching flights from Nis on these routes.
DeleteTrue. I remember when they launched the tender there was a list of routes. The next day, Ryanair announced a new route (from Germany) and then the Ministry of Transport came back saying how that is a designated PSO route, even though it wasn't in the original set of routes, and that Ryanair can't operate it because its PSO. I think it was for Cologne.
DeletePSO in Croatia has essentially become an instrument to preserve the status quo rather than optimise connectivity. If the 2026 tender doesn’t seriously reassess which routes are truly “of public interest”, we’ll just see another four-year cycle of politically comfortable but economically questionable subsidies.
ReplyDelete+1
DeleteTheir only chance is to proclaim all OU routes PSO. OU is decimated like ITA which went in hands of LH for now.
DeleteTGD needs year round flights to places like Frankfurt and Amsterdam. Brussels is just a political route.
ReplyDeleteOf course is political but very much needed for a country in accession negotiations to join the EU.
DeleteThey are first in line to EU, of course they want Brussels route.
DeleteIt's crazy that a country that will enter the EU next can't make Podgorica-Brussels profitable without subsidies.
DeleteWhy is it crazy? Slovenia also subsidised Adria on the Brussels route. Do remember that Montenegro is one of the smallest countries in Europe with one of the smallest populations.
DeleteI actually think many airlines get subsidies on Brussels line. I think I read recently that Luxair does too.
DeleteOne problem with current PSO design in the region is the lack of integration with other modes. Before renewing subsidies, governments should compare total travel time, cost and reliability against rail and road. Some PSO routes might be justified in winter only.
ReplyDeleteHow are you going to reach the islands in Croatia?
DeleteThe only island in Croatia with commercial flights is Brac. I'm obviously talking about airports and cities on the mainland.
DeleteIn my opinion, PSO should not be used for international routes.
ReplyDeleteI agree. If the seats cant be sold on the open market there is a clear reason.
DeleteI'm really hoping there is some positive development from the new law in Slovenia.
ReplyDeleteDon't get your hopes up
DeleteSo it seems the rest of the region has discovered PSO besides Croatia.
ReplyDeleteSerbia discovered it 6 years ago.
DeleteWhen did Croatia have the first PSO?
DeleteMid 2000s
Delete"On the other hand, questions have been raised as to whether flights from Zagreb to Split and Dubrovnik are unprofitable and meet PSO guidelines."
ReplyDeleteFrom when is the rule that flight should both be a PSO if it's profitable?
it says unprofitable
DeleteLapsus, I meant unprofitable. Putting such sentence in a text is full unprofessional!
DeleteLapsus, I meant unprofitable. Putting such sentence in a text is full unprofessional!
DeleteWhy? You believe Zagreb-Dubrovnik is actually unprofitable?
DeleteJust because it's profitable, doesn't mean it shouldn't be PSO.
DeleteLast time the Croatian government made such a mess of this tender that Trade air had to suspend domestic flights for months.
ReplyDeleteAnd the government delayed it by 2 years. Original PSO tender ended in early 2020.
DeleteIf PSOs can be introduced under the new framework in Slovenia, maybe we’ll finally get year round service to key European hubs.
ReplyDeleteLJU already has service to most of key European hubs, except VIE and LHR (winter).
DeleteThere are still many missing. In winter no MAD, ARN, OSL, HEL, CPH, FCO...
DeletePSO for DBV is really not needed especially in the summer.
ReplyDeleteTo Zagreb but there are other destinations from Dubrovnik where it is needed.
DeleteThey should really start the tenders for these in Montenegro and Croatia.
ReplyDeleteIs it not odd that Slovenian government has not issued a call for the 10th subsidy tender. I hope they replace it with PSO.
ReplyDeleteMaribor Airport deserves a chance too
ReplyDelete