RIGA
- The Latvian government on
Aug. 15 approved a series of new
discounts for airlines 's this time for
those carriers that launch new
routes to and from Riga 's in order
to further facilitate the Latvian
capital's ambition to become the
premier passenger hub in Eastern
Europe.
Ministers agreed to grant a 40
percent discount for new flights to
and from Riga International
Airport, although the Transport
Ministry, which proposed the discounts,
had wanted a 50 percent
discount.
The decision allows the
airport to grant the discount to carriers
for two years after the new
route is launched.
The discounts will not go into
effect until approved by the
Finance Ministry.
Prime Minister Aigars Kalvitis
told ministers that the new discounts,
in addition to those already
offered to airlines with high passenger
turnover, are necessary to
foster the airport's development.
He pointed out, however, that
the new discounts must be
approved by the Finance Ministry
and that provisions for granting
them must be clearly specified.
Transport Minister Ainars
Slesers, who was instrumental in
luring bargain airlines such as
Ryanair and EasyJet to Riga in
2004, said that the new discounts
would boost the number of direct
connections with European cities,
such as Stockholm and Manchester.
He added that many European
airports have given similar and
even larger discounts to carriers
for providing new routes.
The minister said Riga's airport
still has a large potential for
further development that could be
achieved both by attracting new
carriers and launching new routes.
The new discounts, he said,
would not be added to the previous
discounts.
Ieva Jaunzeme, chairwoman of
the Competition Council, said that
the council disapproves of the new
discounts, particularly since the
previous discounts are still under
legal dispute.
Riga Airport boasts more than
50 regular flights to destinations in
Europe, Asia, North America and
Africa.
The airport served over 1.7 million
passengers in the first seven
months of the year, up 25 percent
year-on-year. Last year the airport
saw 2.5 million passengers pass
through its gates, a 32.9 percent
increase from 2005.
From January to July,
airBaltic, the state-owned carrier
controlled by Scandinavia's SAS,
accounted for 44 percent of all
passengers, while Ireland's
Ryanair's market share was
slightly over 26 percent, according
to the airport.
