Authorities in Serbia could soon limit cheaper international flights for tens of thousands of passengers from Belgrade and Niš, as well as leave thousands of people unemployed, if a solution is not found to the dispute with the low-cost company Wizz Air.
This company considers the authorities’ measures to be discriminatory and contrary to Serbia’s international and European obligations, writes index.hr.
The problem began after changes in March to the Regulation on granting permits to foreign air operators to perform international air transport with Serbia, which raised the question of whether the state is restricting competition in the domestic market.
At the center of the debate is the ban on the possibility for foreign companies to base their aircraft and crews in Serbia.
This situation puts Wizz Air in an unequal position, as the company has been based in Belgrade for years with four aircraft and crews, operating routes to many European destinations. According to the Hungarian company, the new rules are discriminatory and directly target its “low-cost” model.
The possible closure of Wizz Air’s base in Belgrade would directly affect passengers, increasing ticket prices and reducing the number of flights, as well as traffic at Nikola Tesla Airport, which is managed by the French company Vinci Airports.
Wizz Air warns that a ban on basing aircraft and crews in Serbia could force the company to close its base in Belgrade.
On the other hand, the Serbian Civil Aviation Directorate states that no company has been prevented from operating flights between Serbia and EU countries, or from opening new routes in accordance with international agreements.
According to them, it is not about restricting air traffic, but about “regulating the legal framework that applies equally to all operators.”
According to Wizz Air, the new regulation essentially requires that if an EU airline operates routes between the EU and Serbia, the flight rotation must originate from EU territory. The company also points out that the changes were made without prior consultation and without public notice.
According to data, Wizz Air operates 29 routes from Serbia to 10 countries. Since 2010, the company has transported around 14 million passengers from Serbia, or approximately one million per year.