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Monday, December 30, 2024

Macedonia to end dependence on Wizz Air with overhauled subsidy scheme

The Macedonian government is preparing to launch a public call this week for the introduction of new routes to Skopje and Ohrid airports under a revised scheme designed to reduce the country’s dependence on Wizz Air. The new three-year subsidy program, effective from January 1, 2025, to December 31, 2027, will focus on subsidising routes rather than specific airlines. Unlike the previous twelve years, this program will be open to all international destinations, not just European carriers and routes, with a particular goal of re-establishing flights to the Gulf region after a five-year hiatus.The Macedonian government estimates the country will handle an additional 200.000 passengers next year as a result of the new measures. The value of the subsidies will also be increased to just over two million euros per year for a total of 6.1 million euros for the three-year period. To attract a broader range of carriers, the tender conditions, which previously required airlines to have handled over five million passengers annually and to have posted a ten-million-euro net profit in the previous year, will be abolished. Since Macedonia introduced its subsidy program in 2012, Wizz Air has been the beneficiary on all occasions, pocketing over forty million euros over the past twelve years.Commenting on the new subsidy scheme, Macedonia’s Deputy Prime Minister and Minister for Transport and Communication, Aleksandar Nikoloski, said, “To prevent future dependence on a single airline, we are shifting to subsidies based on destinations. We have revised the conditions to attract as many foreign travellers to Macedonia as possible, bringing in new tourists and connecting the country with more destinations. A key change in the new program is that support will be provided for incoming travellers, unlike previous programs that focused on outgoing passengers. We are also increasing the amount of financial support to nine euros per arriving passenger in Skopje and to twelve euros in Ohrid. Previously, the subsidy amounted to seven and 4.5 euros respectively. Most importantly, we will no longer limit subsidies to destinations within the European Union; destinations outside the EU will also be eligible, which we expect will bring more passengers and tourists from the Middle East and other regions”.

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