The Macedonian Deputy Prime Minister and Minister for Transport, Aleksandar Nikoloski, detailed yesterday the “impossible” demands set out by Ryanair to launch flights from the country, which led to the collapse of talks between the two sides. According to Mr Nikoloski, one of the main sticking points was Ryanair’s demand for subsidies amounting to 25 euros per seat, significantly higher than the current level of state support for airlines. At present, the government provides nine euros per passenger at Skopje Airport and twelve euros per passenger at Ohrid Airport as part of its programme to encourage new routes and increase inbound foreign traffic. “I’ll be direct. I don’t believe that would be good for the Macedonian market because the conditions they are setting are impossible”, Mr Nikoloski said.
In addition to financial incentives, the Deputy Prime Minister said the airline also sought operational concessions. These reportedly included priority treatment for its aircraft during airport handling, as well as exemptions from certain services typically used by airlines, on the basis that Ryanair has its own equipment (stairs) for passenger boarding and disembarkation. Furthermore, the minister said discussions also touched on the possibility of reviewing some existing routes operated by other airlines, which he described as another contentious issue in the negotiations. The ministry said there is interest in attracting new airlines, but stressed that the state has no intention of accepting conditions that would create an uneven competitive environment in the aviation sector.
Ryanair has been considering services to Macedonia for the past decade. In 2015, it announced plans to launch flights to Skopje and confirmed it was in talks with the Macedonian government over a number of routes. Shortly after, Wizz Air responded by unveiling several new services from the Macedonian capital to existing Ryanair bases. Despite the initial momentum, Ryanair ultimately shelved its entry into the market. The airline revisited the idea in 2018, but no routes were launched. Talks between the two sides resumed in 2025, but failed. Wizz Air, which dominates the Macedonian market with an annual passenger share of over 50%, will have seven aircraft stationed at its Skopje base this summer and has launched a number of new routes over the past twelve months.
What a surprise....
ReplyDeleteRyanair can fly from SKP to P-MAterinu for 25€
DeleteWhat is SKP by that marker?
DeleteIs the 25 euro tag what Ryanair is demanding everywhere they are asoed to fly or they are not that interewted to fly to Macedonia and set a bit higher asking 0rice per passenger?
ReplyDeleteIt likely depends or the market, airport and competition. They set the price that allows them to make a profit and that depends on the market.
DeleteIn Macedonia they evidently need 25 euros to make a profit. In Western European countries they get nothing and they still make a profit.
Delete"they get nothing". Sure.
DeletePlease list which capital city airport pays Ryanair 25 euros to fly there. I will wait.
DeleteThe real issue is airport costs and market size. If Ryanair can make secondary airports in neighbouring countries work but not Skopje or Ohrid, maybe the structural economics just aren’t there.
DeleteI agree with last Anon, there must be a reason why they are avoiding SKP and OHD and that they are not fighting for them. If FR really wanted they would have launched flights under normal conditions. I think this has to do with the government being bullied by W6 in order not to allow FR to fly there.
Delete@anon 09:11 Zagreb, Athens, Warsaw....
DeleteFor sure Ryanair is not getting any subsidies to fly to Spanish, French, Italian and Greek airports. They have moaned and cried about it to all of them but these countries did not backed down. So Ryanair kept flying there without any subsidies.
Delete^ That's right. They are trying to bully everyone and are are just happy if someone falls for it.
DeleteAt the end of the day they will fly to where they see that demand exists.
Google or AI assistants are your friends.
DeleteSimple search provides many data that contradicts your statement that is least to say Hear-Say.
In Spain, top 3 airports with largest incentives to Ryan are:
Compostela, Zaragoza and Castelion. Yes, they are not in Barca or Madrid, but they pay.
On top of that in Italy, even bigger incentives come from: Bergamo, Bari and Trapani..
Mic drop.
Ryanair’s business model is built around extracting every possible concession. If Macedonia gave in to these demands every other airline would be knocking on the door asking for the same treatment. The government probably made the right call.
ReplyDelete+1
DeleteIt's good that the government stood firm and did not cave in to the demands of Ryanair.
Delete€25 per seat is enormous, especially when Wizz is already operating under a much lower subsidy framework. Why should one airline get preferential treatment just because it’s Ryanair?
ReplyDeleteThis comes from mouth of a politician.. Truth is somewhere in the middle.
DeleteMaybe he gets some bonus from Wizz to block somehow Ryan from entering Macedonian market, make our travel more complicated. Nevertheless 10EUR is still a lot, 25 is huge.
They just wanted to kick Wizz Air out. That was the whole point of their interest.
ReplyDeleteExactly!
DeleteZagreb Airport also should tell Ryanair to get lost!
ReplyDeleteWhy? It is the best thing they did.
DeleteZagreb Airport earns money from Ryanair, it does not pay the airline anything.
DeleteMuch less than from other airlines considering all the payments Ryanair is not required to make.
DeleteIs ZAG really making money from FR? Aren't they a loss making business?
DeleteI don't see that Zagreb with 4.3 EUR per passenger earn any money from Ryanair.
DeleteQuite opposite.
Zagreb Airport has been having poor financial results ever since Ryanair came in
DeleteZAG airport operator is ADP and I'm sure they are not paying concession fees plus having build a new terminal in order to be a loss making business for the sake of O'Leary.
Delete9:09
DeleteHow yes no. If airport doesn’t pay, someone else does. City, government, tourism organization… If they ask money from SKP, they surely are already getting similar amount at ZAG. They also asked from BEG, but get same as at SKP
They are right. The terms are ridiculous.
ReplyDelete+1000
DeleteThe thing abour stairs is standard for them. They have them inbuilt into their planes. Why would they use air bridges. Not entirely sure I believe everything the minister says.
ReplyDeleteYou need stairs for the back door, and Lauda A320s need stairs for both front and back doors
DeleteThe irony is that Ryanair could have helped diversify a market heavily dependent on Wizz Air. But replacing one dominant player with another demanding special treatment isn’t exactly progress.
ReplyDeleteIf Ryanair had entered in 2015, the Macedonian market might look very different today.
DeleteIf little Johny went to police station all of this wouldn't happen.
DeleteI wonder how much of this is negotiation theatre. Ryanair is known for asking for outrageous terms and then settling for less. Maybe this was just the opening move.
ReplyDeleteMacedonia has been talking to Ryanair for over ten years with no result. At some point you have to conclude the economics simply don’t work for either side.
ReplyDeleteWhy? The point of negotiations is to keep trying until you reach a deal.
DeleteNext time FR will ask for 15-20 eur.....
DeleteRyanair is being naughty as usual
ReplyDeleteWizz Air must be delighted.
ReplyDelete+1
DeletePriority treatment for one airline would be unacceptable. Airlines should compete on fares and service, not on who negotiates the best political deal.
ReplyDeletePassengers lose out here. More competition means lower fares even if Ryanair itself never became dominant.
ReplyDeleteEspecially since Wizz fares are far from cheap anymore on many routes.
DeleteDiaspora travelers and tourists would surely benefit.
DeleteLocals on the other hand would not as they would have to pay FR millions of Euros every year.
They pay millions for wizzair. However it is worth it. Without intervention Skopje would not have the kind of links it nowadays has.
DeleteTotalni bezobrazluk!
ReplyDeleteRyanair being Ryanair.
ReplyDeleteYou mean a highly profitable business without a single Euro of debt?
Delete+1
DeleteThe most proftiable airline we have in Europe.
DeleteThey’re done. Their business model is dying, they are retreating from airport to airport every month. Within 1-2 years, they will be flying from TIA to TIA, where they don’t pay any taxes
Delete''They're done'' I'm actually done with reading comments here.
DeleteLOL
ReplyDeleteWhat is funny?
DeleteHow come both airlines operate without issue in Tirana?
ReplyDeleteBecause TIA is handling like 11 million passengers and SKP is barely at 2.5.
DeleteThe market in Albania is there.
Because everyone wants to visit the Albanian Riviera.
DeleteBecause they are both paid to fly to Albania. Someone is heavily financing them, probably tourist maffia. But that baloon will deflate once funding is stopped. You can’t fly for 10-15 euro and be profitable, no matter how strong demand is.
DeleteThe evil tourist maffia is keeping tourists away from the greatest country on earth, North Macedonia and taking them to poor Albania
DeleteWould love to hear Ryanair's response to these claims.
ReplyDeleteThey can go to PRN instead
ReplyDeleteWould be great if they did!!
DeleteI mean FR dont really give a toss about the North Macedonian market as things stand. If Wizzair ever contracted they will defiantly want a slice of the cake, but its not that great a loss for them not to operate from there.
ReplyDelete25 euro seems excessive and hard to believe.
ReplyDeleteTo "encourage new routes and increase an inbound foreign traffic", Macedonian government should just lift up visas for Russian tourists. This will fill up existing flights from SAW & IST, and probably can lead to opening of BEG- OHD route
ReplyDeleteI saw an interview yesterday where O'Leary said their cost per passenger is $40. A subsidy of 25EUR seems insane in comparison.
ReplyDelete