Here is how another airport is incentivizing airlines for flights.
"New incentives for airlines at Zagreb Airport
Zagreb Airport (ZAG) is hoping to build on its past successes by launching yet another program of incentives with which it hopes to counter relatively negative performance trends in passenger numbers both during the pandemic and before the pandemic.
Last year, Zagreb Airport offered a discount on the Passenger Service Charge of as much as 80% for each passenger carried on a route that was launched in 2021 and not operated in 2019 or 2020. This discount had a five-year horizon and it required that 20% of the passenger traffic takes place in the winter schedule." ...
Eight Models of incentives
The eight incentive Models all kicked in on 1st January 2022. Airlines need to apply with just 30 days’ notice at any point in time. The Models are as follows:
1. Year-round new destinations
- For routes that operate at least twice weekly for 12 months on an uninterrupted basis.
- To qualify as “new”, the route must not have been operated in the 12 months prior.
With this Model, airlines receive a Landing Fee discount of 100% in the first year, 50% in the second, and 25% in the third.
The Passenger Service Charge discount is 40% in the first year, 20% in the second, and 10% in the third.
2. Year-round frequency increases on existing routes
- For routes that operate at least twice weekly.
- After the frequency upgrade, the route must operate for 12 months on an uninterrupted basis.
- The incentives are only applied to the incremental flights, so only for the frequencies that were not previously operated.
With this Model, airlines receive a Landing Fee discount of 50% in the first year and 25% in the second.
The Passenger Service Charge discount is 10% in the first year and 5% in the second.
3. Seasonal new destinations
- For routes that will see 36 non-stop rotations in any six-month period.
- To qualify as “new”, the route must not have been operated in the 12 months prior.
With this Model, airlines receive a Landing Fee discount of 100% in the first year. No further discounts are available.
4. New charter destinations
- For charter offerings that will see 13 non-stop rotations in any three-month period.
- To qualify as “new”, the route must not have been operated in the 12 months prior.
With this Model, airlines receive a Landing Fee discount of 50% in the first year. No further discounts are available.
5. Incentives for seasonal routes becoming year-round
- For routes that operate at least twice weekly.
- After the upgrade from seasonal, the route must operate for 12 months on an uninterrupted basis.
- The incentives are only applied to the incremental flights, so only for the season that was not previously operated.
With this Model, airlines receive a Landing Fee discount of 100% and a Passenger Service Charge discount of 10%, both in the first twelve months only.
Ryanair is expected to jump on this opportunity and add even more flights to Zagreb.
6. Supplement for long-haul routes
Airlines that operate flights that last longer than seven hours can benefit from Models 1-5 as well as this additional Model 6.
The Model is a Passenger Service charge discount of 30% valid for as long as the Model 1-5 period is valid.
7. Supplement for based aircraft
Airlines that have an aircraft based in Zagreb Airport and which benefit from any of the Models 1-5 can also benefit from Model 7 if one of the following applies for their based aircraft:
- At least 300 rotations in any six-month period
- At least 500 rotations in any 12-month period
- At least ten scheduled overnight rotations in any given week
The Model is a Terminal Fee discount of 100% and a Ramp Fee discount of 100% for the same duration as their Model 1-5 discount.
This is the most significant discount as it is the only 100% discount that does not decrease over time.
8. Parking fee discounts for based aircraft
Lastly, all airlines that pay a Parking Fee to Zagreb Airport are also eligible for a 25% discount on this fee too.
The requirement is for the aircraft subject to the parking service to meet the same criteria as for Model 7. The aircraft must operate one of the following:
- At least 300 rotations in any six-month period
- At least 500 rotations in any twelve-month period
- At least ten scheduled overnight rotations in any given week
Most interestingly, this incentive is a permanent discount with no time period attached to it.
Also, unlike Models 1-7, Model 8 is credited immediately. With Models 1-7, the 12-month period has to pass in full before Zagreb Airport issues the qualifying airlines with a credit note to honour the incentive.
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