September 1 (SeeNews) - SOF Connect, the international consortium running Sofia Airport under a 35-year concession contract, said on Wednesday that it is proposing no increase of its charges in 2022, aiming to support the airline industry that continues to struggle due to the coronavirus pandemic.
The airport in the Bulgarian capital will remain with the lowest charges in Eastern Europe and one of the lowest in Europe, the concessionaire said in an e-mailed statement.
"Driven by the idea of stimulating traffic and building strategic partnerships with our customers, we plan to introduce various incentive discounts that will give more options to travellers and contribute to the economic development of the region," SOF Connect CEO, Jesus Caballero, said in the statement.
All airlines that in 2022 reach at least 70% of the number of flights operated in 2019 will be entitled for a landing fee discount at Sofia Airport, the concessionaire said. The highest discount of 15% will be for those that reach or exceed 90% of their air traffic in 2019. Other incentives offered by SOF Connect include 99% discount of the landing fee for long-haul flights, a discount on parking charges for based carriers, discounts on passenger fees for transfer passengers, and more.
Keeping the low charges unchanged and the incentive programs, however, will result in significant losses for the concessionaire, with the inancial deficit expected to exceed 32 million euro ($37.8 million) next year, SOF Connect said.
"Our shareholder has agreed to cover the projected 2022 deficit. We are hopeful that we will be able to agree with the airlines and the Directorate General of Civil Aviation Administration on a mechanism that will allow SOF Connect to smoothly recover the long-term financial deficit in order to support the investment plan for the airport. This will balance the effect on future airport charges and will not increase the financial burden on our customers," Caballero explained.
In July 2020, Bulgaria's government signed a contract for granting concession of Sofia Airport with SOF Connect. The consortium won the tender with a proposed payment of a concession fee of at least 24.5 million euro per year and planned investments of 608 million euro over the duration of the contract.
The consortium has pledged to invest at least 624 million euro throughout the duration of the concession, including the construction of a new Terminal 3 for the airport within the first 10 years of the concession.
Earlier this year, the government approved a request by SOF Connect to defer the payments of the annual concession fees due for the first ten years of the contract in order to maintain the financial stability of Sofia Airport and to support the concessionaire's large-scale investment programme in light of the coronavirus pandemic.
($ = 0.846205 euro)