Scientific paper ID 1450 : 2017/3

Low cost carriers already claim a significant share of the Bulgarian aviation passenger market. Facts show that owing to the advent of the low cost carriers the number of the passengers via the airports has increased significantly. This could be explained by the low transportation prices offered by these carriers. The measures to reduce the operating costs and the successful tariff management policy result in such prices. At the same time some non-market approaches are applied for a de facto subsidizing of air carriers’ operations. Development funds have been set up or intentions to set up such funds have been announced in order to redirect some public funds as carrier aid. To attract low cost carriers the Bulgarian government allows airport fees that are lower than the actual costs to cover the provision of such services. Fee discounts are introduced meaning that airlines which are not eligible for these discounts have to bear unjustified additional financial burden. The study examines the policy related to the low cost airlines operation on the Bulgarian market. Included are examples of dumping, passenger discomfort as regards the passenger rows pitch (service quality which being justified by the low prices is not monitored by any institution). Some guidelines are provided so as to resolve the issues raised.