Croatia and Montenegro plan to launch tender procedures for the operation of Public Service Obligation (PSO) flights in 2026, while Slovenia’s recent amendments to its aviation law pave the way for similar measures. PSO schemes provide financial support for routes that are commercially unviable yet considered essential for regional connectivity and economic development.
Croatia’s existing PSO arrangement expire on March 28, 2026. The government is expected to begin tender procedures soon. The previous public call, issued in November 2021, awarded the multi-million-euro contracts for the upkeep of twelve domestic routes to Croatia Airlines and Trade Air, which have historically been the only beneficiaries of state funds for domestic flights. Ryanair has expressed interest in potentially partaking in the tender. European Union-based carriers are eligible to participate in the call.
Routes which are currently compensated and maintained as PSO are: Dubrovnik – Zagreb – Dubrovnik, Split – Zagreb – Split, Zagreb – Zadar – Pula – Zadar – Zagreb, Zagreb – Brač – Zagreb, Osijek – Dubrovnik – Osijek, Osijek – Split – Osijek, Osijek – Zagreb – Osijek, Rijeka – Split – Dubrovnik – Split – Rijeka, Osijek – Pula – Split – Pula – Osijek, Rijeka – Zadar – Rijeka and Osijek – Zadar – Osijek. There have been calls to reform the list of PSO routes, with Rijeka Airport arguing that its limited inclusion in the current scheme undermines regional connectivity and limits its potential to develop year-round air services. On the other hand, questions have been raised as to whether flights from Zagreb to Split and Dubrovnik are unprofitable and meet PSO guidelines.
Montenegro formally amended its air traffic law to enable subsidies for PSO routes. The government is now determining which services will qualify under the scheme, with tender procedures expected to begin next year. Priority will be given to destinations that strengthen links with major European administrative, economic and transport centres, as well as those considered essential for citizens, the economy and international cooperation. Among the routes under evaluation are potential services to Brussels.
Slovenia’s new Aviation Act (ZLet-1), adopted in September 2024 and in partial force since April this year, became fully applicable on October 5. The legislation provides a legal foundation for revised air-connectivity support measures, allowing the current subsidy model to be replaced with schemes compliant with ZLet-1. Crucially, it enables Slovenia to designate specific routes as Public Service Obligations. However, despite confirming that it will continue subsidising new air services, the government has sent mixed signals regarding whether it intends to implement a full PSO framework.
