newstodate.aero

Sep 26, 2023 (newstodate): Incentive schemes to attract airlines to serve specific airport route needs come in many forms..
   One example is the new route to connect Oslo and Eindhoven and to be operated by Transavia from February 29, 2024, with three weekly rotations.
   This route opening is facilitated by Eindhoven Airport's implementation of a new tool, “New Route Support”, granted to airlines opening flights to specific destinations as selected by the airport - and Transavia is the first airline to operate new routes under this scheme.
   However, certain conditions apply, such as the destination not being currently served by an airline at Eindhoven Airport, and the airline committing to operate flights to the destination at least twice a week for a minimum of three years throughout the year.
   Another example is provided by Lithuanian Airports that has now secured the continued operation by LOT on a key route connecting Vilnius Airport and London City Airport through the implementation of a new incentive program built on a risk-sharing model.
   The model implies that the airline agrees with  Lithuanian Airports to share, first, the risk, later the profits generated by the operation.
   Following a tender process, the route was first launched on May 1, 2019, as the first route operating under a unique EU-approved PSO contract where the actual state aid is contingent on number of bookings - more seats sold, less state aid, and when bookings exceed 92 percent of available seats, state aid will be zero.
   In effect, the Lithuanian state paid LOT for operating the route - which was, however, unfeasible to maintain after Brexit, forcing new negotiations on a new model of promotion, which has now been implemented to secure the most challenging route on the airport's priority list.
   A tender was opened for airlines to apply for operating the route with a deadline by June 9, 2023 - and following negotiations between Lithuania's  Ministry of Transport and Communications, Lithuanian Airports and the airlines, Lithuanian Airports landed an investment agreement with LOT Polish Airlines that has been operating the route under the earlier agreement expiring by September 30, 2023.
   The route is today operated six times per week by the Polish carrier with Embraer 190 aircraft leased from Nordic Aviation Capital - one of the few aircraft types to meet the strict operating requirements of London City Airport's short runway.