After successful negotiations between the Ministry of Transport, Lithuanian Airports and the airline, Lithuanian airports signed an investment agreement with LOT Polish Airlines, which will operate regular flights between Vilnius (VNO) and London City (LCY) airports. The signed contract will be implemented according to a new flight promotion model, which will ensure the continuity of flights to the strategically important London center for Lithuania, to which flights have been operated for the past few years.
"London is the pilot destination of the new flight promotion model, where we aimed to test the performance of the model. This convenient and common direction for Lithuanians to the very center of London is especially important in ensuring the needs of Lithuanians living in London, business and visitors coming to Lithuania. It is a bridge between Vilnius and London, with which, as we can see, consumers on both sides are satisfied. I am glad that we managed to ensure this direction both in 2019 and now. This is a good example of cooperation between project management and national institutions. We hope that Lithuanian airports will be able to use this model to secure other important destinations for the country", says the Minister of Communications. Marius Skoudis.
Minister of Economy and Innovation Dawn Armonaitė claims that direct contact with priority countries is extremely important both for our business and for foreign investors working in Lithuania.
"The flight to London is also good news for our community. Using the new flight promotion model, Lithuania will become even more attractive by creating new jobs here and growing inbound tourism," says A. Armonaitė.
Vilnius city mayor Valdas Benkunskas states that it is important for Vilnius to have good connections with London.
"Globally important financial centers are concentrated in London. We aim for international companies to be established in Vilnius and even more good jobs to appear, so we will look for ways to contribute to increasing the demand for flights important to the capital city", says the mayor of Vilnius.
Flights at convenient times and frequencies
The contract with LOT Polish Airlines was signed after the international selection of the scheduled flight operator. Among the selection criteria was the requirement that flights in the above-mentioned direction be operated at times and frequencies convenient for business class passengers. Before signing the contract, all the necessary qualification verification and general business plan coordination procedures were carried out. Flights under the new model will start on October 1 this year and will ensure uninterrupted connections in this important direction.
"This route can be said to be a prestigious project and very strategically important in the context of existing regular flights. Starting from October, the flight from Vilnius, which has already been continued according to the new promotion model, will take place at very convenient times, which, we believe, will also contribute to the growth of its popularity. It is very important to understand that the country's investments in the promotion of priority flights are necessary, therefore, together with our partners, we will make every effort to ensure that in the coming years, the state budget includes the necessary amount to effectively continue the development of flights", says Simonas Bartkus, General Director of Lithuanian Airports.
S. Bartkus emphasizes that the new incentive model is not a subsidy or grant for airlines. According to this model, both in this case and in the future, contracts will be concluded only with those airlines with which a business plan of a specific direction that is financially profitable for both Lithuanian airports and airlines will be agreed. The new model is based on a long-term partnership between Lithuanian airports and the airlines operating the flights. Both parties to the contract will assume both the financial risks associated with the flight and share the financial benefits generated by the flight. All conditions for sharing financial risks and benefits are defined in the business plan of Lithuanian airports and LOT Polish Airlines.
According to him, this new practice can provide a solid basis for planning the development of priority routes according to a similar model in the future.
It should also be noted that the capital of the United Kingdom is among the priority destinations for incoming tourism, so a direct flight to the center of London is an advantage in order to attract more tourists to Lithuania. The possibility of a direct flight to London could be used by Lithuanian institutions responsible for inbound tourism, paying due attention to promoting demand.
Communication with London is among the priorities
It is reminded that flights between Vilnius and London City from 2019 from May 1 to September 30 of this year was also carried out by the Polish airline "LOT Polish Airlines". This project was one of the few exceptions to the European Commission's regulation, which allows an airline to receive state aid for the operation of a flight when the flight within the European Union (EU) is recognized as being of special importance. However, after the withdrawal of the United Kingdom from the EU, the financing of flights between Vilnius and London City according to this model can no longer be extended.
Lithuanian Ministers of Transport and the then Economy back in 2018. Vilnius-London City Airport is identified as a vital route for the economic and social development of the country by the signed order.
