Zagreb starts exploring Low Cost Carriers
Zagreb Airport is seeking models which would allow low cost carriers to increase their operations to the Croatian capital. However, it remains resolute in maintaining equal conditions for all airlines, both budget and full fare. Zagreb Airport’s General Manager, Huseyin Bahadir Bedir, said, “We understand the principles by which low cost carriers do business and we are attempting to find ways to cooperate with them. However, as an airport that handles over two million passengers per year, we have certain obligations which are regulated by the European Union. The two main rules we have to abide by are transparency and a non-discriminatory policy for all airlines. Of course, if low cost carriers find some other ways to subsidise their arrival into Zagreb, we are fully prepared to cooperate”.
Zagreb Airport is dominated by full service carriers, which account for over 90% of all seats, whereas LCCs have a share of just over 8%. Late last year, local media reported that Zagreb Airport International Company (ZAIC), which runs Zagreb Airport, was considering asking the Croatian government to lower its annual concession fee. The operator believes that as a result of the concession fee, it has been forced to increase its charges, which have in turn deterred low cost airlines from flying to Zagreb. Last winter season, only one low cost carrier, Eurowings, maintained services to the Croatian capital. However, it too noted that Zagreb Airport’s charges are “significantly higher than most major European airports, making it less appealing for low cost carriers”. Croatia’s busiest airport hiked its fees following the opening of its new passenger terminal in 2017 by two euros per each international passenger for a total of seventeen euros. Similarly, it increased its fees by half a euro per every domestic passenger to seven and a half euros. Europe’s busiest airline, Ryanair, held talks with the Croatian Minister for Tourism, Gari Cappelli, last November over the potential introduction of flights to Zagreb. Commenting on its absence in Zagreb, Wizz Air’s CEO, Jozsef Varadi, said recently, “It is a high-priced airport environment with fluctuating demand. Should the costs come down, I think they would attract us”.
Mr Bedir believes 2019 will be the year the airport consolidates its operations. “We anticipate for passenger numbers to grow over 5% this year and for flight movements to stand at around 3%. This is a consolidatory year for us compared to the previous two”. During the first quarter, Zagreb Airport welcomed 605.329 passengers, representing an increase of 3.4%. Aircraft movements grew 4% to 9.227. “We cooperate with the world’s leading consultancy firms. Their experts and studies show that Zagreb Airport can expect to handle five million passengers per year in 2026”, Mr Bedir noted.
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