Subsidies with which the government would attract low-cost airlines (low-cost companies) that previously canceled some of the lines to Montenegro cannot be expected from the executive power, but the state will try to find a model to return these canceled air routes. This will also require the involvement of all institutions responsible for the preparation of the summer and winter tourist season.
This was officially told to "Vijesta" by the ministries of transport and maritime affairs, with the message that care should be taken not to create unfair competition for the national air carrier "Air Montenegro".
Airports of Montenegro (ACG) emphasized that they do not plan to change incentive schemes for low-cost airlines.
"The current incentive scheme provides additional benefits to all air carriers who meet the traffic criteria, with a special category for the whole year", said ACG to "Vijesta".
The lowest fees in the region
Low-budget airlines "Wizzair" and "Ryanair" announced the suspension of year-round flights from Podgorica this spring. Thus, during the coming winter, their lines to Barcelona, Brussels, Manchester and Zagreb will be suspended, and they will not operate on the "Wizz Air" lines to Vienna and Rome either. The winter flying season started at the end of October and will last until the end of March.
These two airlines did not respond to the questions of the editors about whether they have permanently shut down these routes or will return them and what is needed to return them. "Ryanair" said last spring that they decided to shut down the lines due to the increase in the price of services at the Podgorica airport.
Low costers are welcome, but the importance of the national carrier "To Montenegro" should not be lost, because that company, as they said, contributes to the strengthening of the Montenegrin brand on foreign markets, the Ministry of Tourism said.
Last year, ACG calculated discounts on the price of services to its partner airlines in the amount of 7,4 million euros, of which more than 2,5 million were set aside for low-cost airlines. The state-owned company said that the previous price list had been in effect since 2014 and that after the increase in the security fee, the price is still the lowest in the region and that they managed to maintain price competitiveness. Security fees per departing passenger have been increased by one and a half euros, that is, from 1,75 to 3,25 euros.
Among the low-cost flights that will go from and to the capital city this winter, "Ryanair" will connect citizens with Berlin, Gdańsk, Krakow and London, while the Hungarian "Wizz air" will transport on the line with Budapest, Dortmund, Cologne, Memmingen and Milan. From Podgorica to Istanbul, the low-budget "Pegasus Airlines" will also fly in winter.
According to ACG data, there will be no flights to Tivat airport this winter. Two new summer routes to Tivat in 2024 were announced by the Norwegian airline "Norwegian Air Shuttle" and the British "Jet2". In addition to the lines from Oslo and Helsinki, the Norwegian company will introduce additional ones from Copenhagen and Riga, while the British company, in addition to the existing Manchester, also announced a flight to Birmingham and London.
There is no strategy for air transport
The Ministry of Transport and Maritime Affairs said that they will try to find a system so that low-cost carriers will return their lines to Montenegro in the future. The department headed by Filip Radulović pointed out that the state does not have a strategy for air transport, so the development of that transport is carried out through the Strategy for all types of transport until 2035, and that they will use the mechanisms of the existing plan to develop that sector.
"In view of the departure of loukost companies from the Montenegrin market, unfortunately, there is no mechanism for their return in 2023," the department pointed out.
The Ministry of Tourism, headed by Vladimir Martinović, emphasized that they insist on strategic partnerships that are not only reflected in financial support and that all decisions are made and considered at the inter-institutional level. They added that low costers are welcome, but that the importance of the national carrier "To Montenegro" should not be lost, because that company, as they said, contributes to the strengthening of the Montenegrin brand on foreign markets.
"It would not be optimal to create unfair competition for state resources, which is often speculated about in the public. It is important to include in all subsequent decisions all institutions whose mandate includes the preparation of both the winter and summer seasons," the department's response reads.
When it comes to subsidies for low-cost airlines, they pointed out that they cannot give a concrete answer because that decision is made at the inter-institutional level. They claim that the next steps must be followed by a serious analysis of the comparative advantages of that approach and an insight into the plans of the state-owned airline, so that there is no overlap on the lines operated by that company. For such an approach, as they said, it is necessary to establish where the greatest passenger potential is.
They add that the models for animating low-cost carriers and airlines are different, and that each must be defined at the national level. In addition, they pointed out that this year they gave support to low-budget companies from the Emirates and Saudi Arabia, in order to increase tourist revenues, which was done through visa liberalization for a limited period. As they say, they also did this for those who are not low costers from Kazakhstan, Uzbekistan and Egypt.
"In addition to insisting on strict selection procedures for passengers entering the country, so as not to come into collision with the EU", they emphasized.
The cancellation of some lines did not disrupt the operations of the Airport
The state ACG did not clarify what they specifically did to keep low-cost airlines and their lines, but emphasized that they are focused on expanding air availability, communicating with companies and that they served 33 percent more passengers compared to last year.
When asked how their business is affected by the cancellation of some lines of loukost companies, they said that their traffic is higher and the results are better than last year and that from the beginning of 2023 until November, they served 2,3 million passengers.
According to the earlier writing of "Vijesti", more than 1,18 million of the discounts calculated by ACG last year belonged to the Irish "Ryanair", i.e. to its two sub-companies "Ryanair Limited" (762.152 euros) and "Ryanair UK Limited" (421.858 euros). which makes the company second on the list of airlines that achieved the greatest benefits in the prices of ACG services in 2022.
The Hungarian "Wizz Air" came in third place for discounts that amounted to more than 1,08 million euros, of which 903.854 euros went to the parent company and to the daughter company "Wizz Air UK Limited" (176.241). The British lowcoster "EasyJet" achieved a discount on services of 386,13 thousand euros last year.
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