SRCE: Government tries to protect Air Serbia by stifling competition

The Srbija centar (SRCE) party has accused the Serbian government of actively protecting the national airline, Air Serbia, by suppressing competition and creating obstacles for other air carriers. SRCE asserts that airlines should build their market standing on the foundation of service quality and strategic network planning, rather than relying on regulatory interventions that undermine fair market play.

"Serbia cannot speak of European integration while simultaneously departing from the fundamental European principles of free markets, competition, and equal rules for all market participants," stated the party. They argue that Europe's increased connectivity, accessible airfares, and greater citizen mobility are direct results of air traffic market liberalization.

SRCE warns that if regulatory measures result in reduced competition, Serbian citizens could face the highest costs through more expensive tickets, a diminished selection of destinations, and weaker connections to Europe. This potential outcome directly contradicts the principles of European integration that Serbia claims to pursue.

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Serbia cannot speak of European integration while simultaneously departing from the fundamental European principles of free markets, competition, and equal rules for all market participants.

The party's statement comes in the wake of changes to regulations adopted in March by the Directorate of Civil Aviation of Serbia. These changes have raised questions about the future of Wizz Air's base in Belgrade, which is the only base operated by a foreign airline in Serbia. Wizz Air has condemned these plans, stating they violate Serbia's commitments to Europe and could force the airline to cease operations from Belgrade by November 2026.

The Directorate of Civil Aviation, however, maintains that no air carrier has been denied the right to operate flights between Serbia and EU member states or to open new routes in accordance with existing international agreements. This assertion stands in contrast to the concerns raised by SRCE and Wizz Air regarding the potential negative impacts on competition and consumer choice.

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If regulatory solutions result in a reduction of competition, the citizens of Serbia could pay the highest price through more expensive tickets, a smaller choice of destinations, and poorer connectivity with Europe.