Due to a lack of interest: Slovenia is again offering subsidies for airlines

Portoroz Airport (Photo: Jan Gruber).
Portoroz Airport (Photo: Jan Gruber).

Due to a lack of interest: Slovenia is again offering subsidies for airlines

Portoroz Airport (Photo: Jan Gruber).
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The Slovenian government is once again trying to persuade airlines to start new connections with the help of subsidies. Since the interest in the last call for tenders was kept within very narrow limits, a tender has now been issued again.

Slovenia hoped to be able to attract numerous additional airlines through subsidies. However, the first tender was not exactly crowned with success, as only Luxair and Air Montenegro applied. According to the current state of affairs, the first-named carrier will initially not fly to Ljubljana very often either. From September 2023, two weekly rotations from Luxembourg to be served by de Havilland Dash 8-400 are planned. It goes without saying that they want to show goodwill and put themselves in a good negotiating position in talks with the government. After all, at the end of June 2023, the award for subsidies was received for this route.

But there is still a lot of money in the "pot" that has not yet been allocated due to a lack of interest on the part of the airlines. Now the Slovenian Ministry of Transport is trying to get the "advertising drum" going again with a new call for tenders. Around 16,8 million euros are available, which can be paid out over a period of three years. It remains to be seen whether interest will be greater this time.

The problem for Slovenia is that the three eligible airports for which subsidies can be awarded are all complicated for carriers. Due to its short runway, Portoroz Airport is only suitable for a few types of aircraft. A lot was announced, for example non-stop flights from Budapest, Prague and Brno with Let-410, but almost none of it was implemented. In Maribor, the main problem is that the catchment area is comparatively small, the airport is in direct competition with Graz Airport and due to the fact that there have only been sporadic charter and scheduled flights for many years, there is hardly any previous experience with regard to demand and possible yield available. This is one of the reasons why low-cost airlines such as Wizz Air and Ryanair are reluctant to take the risk without appropriate loss cover. After all, the Irish have been on the road from Marburg for a short time in the past. At that time they wanted to put pressure on Graz Airport, but they quickly withdrew due to the disastrous demand.

The capital's airport Ljubljana is criticized by many airlines for a completely different reason. The carriers claim that since the takeover by Fraport, the fees and handling costs have increased significantly. Although the tenders have always provided for the state to take over 50 percent during the subsidy period, this does not seem to attract many airlines. In contrast to some airports in Croatia, Ljubljana has no sea to offer in terms of tourism. This would be the case in Portoroz, but the slope there is too short. Due to the fact that in Trieste, which is not very far away, there is an established commercial airport that is served by many carriers, the usefulness of Portoroz Airport is repeatedly discussed controversially.

In any case, Ljubljana has a marketing problem. So far, Slovenia marketing and the local tourism associations have not succeeded in making the capital known as an attractive destination for city breaks. Even Zagreb, which also has no sea in the immediate vicinity, is more popular with holidaymakers. However, Ljubljana has a lot to offer and is an exciting destination for a city trip, but the connection by air is suboptimal.

The Slovenian government is now hoping that other airlines will apply by July 30, 2023 and that additional routes will subsequently be added. In view of the very meager interest that there was in the first round, it remains to be seen how the carriers behave this time. In any case, it won't be easy.

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