No Jat Airways privatisation

Jat Airways will not be privatised, instead the Serbian government will invest a large sum of money in order to restructure and modernise the company as announced the Serbian ministry of economics. The ministry blames the current global economic and airline crisis for the failure of the privatisation tender. The first step now is a meeting between the Serbian Prime Minister Mirko Cvetković and the directors of Jat Airways. They will have to agree on how to restructure Jat in order for costs to decrease and efficiency to increase. Jat’s management and unions are expecting restructuring, a decrease in the number of employees and the company’s modernisation. The Serbian Government will remain the sole owner of Jat.
We will keep you updated.

Who gets the most air traffic?

Eurocontrol is the European Organisation for the Safety of Air Navigation. Created in 1963 by six founding members, this civil and military intergovernmental organisation now counts 38 Member States from across Europe. It is based in Belgium with specialised offices in six other European countries. Not only does it keep Europe’s skies safe, it also compiles information on air traffic. These are the results for countries of the EX-YU:

Bosnia and Herzegovina: In August the total number of departures from Bosnian airports amounted to 698 arrivals and 700 departures while 23.471 aircraft flew over Bosnian airspace. These results are an improvement compared to last year when there were 644 departures, 649 arrivals and 22.804 overflies. Overall Bosnia and Herzegovina has seen an increase in air traffic every month with the number of overflies increasing the most, meaning more aircraft are flying over the country’s airspace.

Croatia: Not only is August one of the busiest months for air traffic in Croatia but the country is also seeing improvements across all months when compared to last year. In August alone there were 4.527 commercial departures, 4.396 arrivals and a total of 38.324 overflies. However the August 2008 results did not see a large improvement in traffic figures as some previous months. In August 2007 there were only 51 departures less nevertheless this number was made up by the large increase in arrivals. A total of 197 more arrivals took place in August 2008 then in 2007.

Macedonia: Despite MAT being banned from Greece, causing a large decrease in charter operations, Macedonia is recording a big improvement compared to last year over all months. August was particularly successful this year when there were 645 departures compared to 527 in August 07, 643 arrivals compared to 527 the same time last year and in August there were a total of 16.107 overflies compared to 14.385 last year.

Serbia and Montenegro: Serbia controls Montenegro’s airspace until further notice and as a result all data is combined with no separated information available. Similarly Belgium takes care of Luxembourg’s airspace. Nevertheless Serbia and Montenegro are recording the largest increase in operations. In August 2008 there were 3.479 departures compared to last year’s 2.787, 3.492 arrivals compared to 2.800 and 50.285 overflies compared to 42.687 in August 2007. The increase in overflies can be thanked to Serbia’s ideal geographical location. The largest increase in passenger operations was seen in May 2008 which can be largely thanked to the Eurovision Song Contest that was held in Belgrade seeing an increase in air traffic.

Slovenia: Slovenia is also seeing an increase in operations particularly in January and February. In August 2008 Slovenia saw 2.054 departures, 2.057 arrivals and 31.134 overflies. This compared to August 2007 when there were 1.930 departures and 1.970 arrivals. However Slovenia has seen a slight decrease this year in overflies when compared to 2007. In August 2007 Slovenia has a total of 31.253 overflies.

When all data is calculated the leading countries in August 2008 are:
1. Serbia and Montenegro
2. Croatia
3. Slovenia
4. Bosnia and Herzegovina
5. Macedonia

Cargo centre delayed again

The tender to find a strategic partner for the construction of the largest cargo terminal in the Balkans to be located at Belgrade Nikola Tesla Airport has been delayed again, 2 years after an agreement with American DynCorp failed. The CEO of Belgrade’s Airport did not determine a new date for the tender. The CEO states that the airport is currently analysing the American and global economic crisis and the effect this can have on air cargo transport. Belgrade Airport is looking for a company which would build a cargo and logistics centre at the airport which would significantly increase cargo operations and make Belgrade Nikola Tesla the largest cargo destination in the region.

After an agreement with DynCorp, signed in 2006, which was employed to build the new terminal failed, the CEO of Belgrade’s Airport is hoping that whenever a new company is found it will already be a cargo centre operator. Meanwhile the CEO announced that the construction of a third terminal would commence in 2010.

Jat Airways privatisationNo bids at tender

Jat Airways Union representatives say that no company has bought the tender documentation for the sale of the national carrier. The Privatisation Agency and the Ministry of Economy officials would neither confirm nor deny these claims. The deadline to buy the tender documentation expired on Friday, September 26 at midnight. The ministry did however say that "technically, it is possible that an offer sent by mail on Friday afternoon could still arrive", as was the case with B&H Air. Aeroflot, Air Berlin, Iceland Air and Air India were all mentioned earlier in the summer as the possible buyers.

The Ministry of Economy said in June that the starting price for Jat would be EUR 150 million for 100% of its shares. However, by July 31, when the tender was at last called, the minimal price for a 51 percent stake was set at EUR 51 million. This price was determined on the basis of the data submitted by the company itself, with no independent auditing. The union now blames the world economic crisis and the state's irresponsible behaviour for the drop in the value of Jat Airways. It states that the airline should have be put on sale as planned late last year and early last year when there were strong contenders for the purchase.

The Ministry of Economy promised that if the tender was unsuccessful it would give Jat a financial injection to purchase new aircraft and would wait at least a year until putting the airline on sale again. Meanwhile it is expected that in a few weeks a new CEO will be named by the government ending Vlaisavljević’s one year as head of Serbia’s national airline, having had many critics. Meanwhile the sale for Jat Tehnika looks much better with 4 companies buying tender documentation. Three of these are known the the public while the fourth, still unknown, is now widely speculated to be Boeing following the meeting between the company and Serbia’s heads of state in New York a few days ago.

Belgrade Nikola Tesla Airport privatisationAdvisor by the end of the year

The tender for finding the privatisation advisor for Belgrade Nikola Tesla Airport could be opened by the end of the year announced CEO Bojan Krišto. “The sdvisor will prepare the privatisation of the airport within next year, which will be done through the public sale of shares, implying that the company will until the go through reorganisation and will create a well devised plan of development” he explained. Krišto estimated that airport shares, soon to be enlisted on the stock exchange, “would be a true hit” and will contribute to better operation activities of the company and the privatisation of Serbia’s national airline Jat Airways. He added that the decision on the amount of shares to be sold through privatisation will be reached by the Serbian Government, while some proposals will be made by the privatisation advisor. “I believe that no more than 50% of the airport will be sold, with the most realistic expectations being between 30% and 32%”. He stated that it is difficult to determine the value of Nikola Tesla Airport as the company is not listed on the stock exchange. “After enlistment, the value of the company is assessed on the market”, said Krišto.

Red light for Croatia Airlines from FAA

The American federal aviation administration, the FAA, yesterday, on their Internet webpage published that Croatia does not meet the standards of the international civil aviation organisation, ICAO. The checks were carried out in January 2008 after Croatia Airlines signed an agreement with United Airlines. The deal allowed for passengers to fly with Croatia Airlines to a European destination and then continue their journey to America using United. Croatia has therefore been rated in the “category 2” class. This means that Croatia either does not have the needed laws and regulations for trans-Atlantic flights or employees in the country’s aviation industry are not trained in the areas of technical knowledge, aircraft inspection and so on.

Category 2 means that airlines from Croatia cannot fly towards the Unites States. In 2006 Serbia was placed on category 2 after having a category 1 status for years although many believed there were political reasons behind the decision due to the fact that the FAA gave the country’s national airline a mark of 98 out of a 100 which is more than enough for category 1 raising questions if Croatia deserved the category 2 status and joins nations such as Nauru, the Philippines, Swaziland and Zimbabwe. Both Bulgaria and Romania were part of category 2 until January 1, 2007 when the 2 countries entered FAA CAT1 upon their entry into the European Union.

Jat Airways to introduce flights to Milanas Rome stays in network

Jat Airways will, despite earlier financial troubles, commence flights to a new destination from October 26 to Milan Malpensa Airport. The destination which was just added into the reservation system will be operated using an ATR72. Flight JU416 will be operated three times a week on Tuesday, Friday and Sunday. The flights on Tuesday and Sunday will depart from Belgrade at 13.10 while they will return from Milan at 16.25. Friday will provide a morning flight for passengers, departing Belgrade’s Nikola Tesla Airport at 8.30 and departing back to Belgrade at 11.45. The price of tickets will range from 99 to 259 Euros.

Alitalia operates flights from Milan to Belgrade however the airline is already bankrupt and could lose its license to fly in a matter of days, giving Jat Airways an opportunity to capitalise on its new destination. Jat already operates flights to Rome and Trieste in Italy although Rome was planned to be cut from Jat’s network it has now been decided for it to stay until firther notice.. For now, Milan will be the only newly introduced service in the winter 2008/09 schedule together with Thessaloniki which has been in operation since summer and will continue through winter. All changes to Jat’s winter schedule can be read here.

B&H Airlines privatisationTurkish Airlines confirms bid

It came as a surprise when in late August it was revealed that the much publicised bid by Turkish Airlines for Bosnia and Herzegovina’s national airline – B&H Airlines was not. The Bosnian Privatisation Agency only received a joint bid from the Islamic Bank of Reconstruction and Development and Royal Jordanian Airlines, the national airline of Jordan. However the agency did announce that any offer which arrives by mail within the next 2 days would be accepted as it might have travelled for a longer time. There was one bid sent by mail and it was from Turkish Airlines, already a favourite for the purchase. Tukey and Bosnia and Herzegovina have extremely close economic and diplomatic ties for more than a decade.

There have been documentation problems with the bid from the Islamic Bank and it is now being considered not allow the bid to be accepted as a result. The Bosnian Privatisation Agency is now determining who has sent in the best offer and this should be revealed on September 29 after which formal talks between the winning bidding company and the Bosnian government will commence with the deal to be finalised in late October. The new owner which will control 49% of the airline will be required to keep the name of the company, its seat in Sarajevo and purchase at least one aircraft with a minimum 100 seat capacity.

Madonna sells out seatson Jat Airways and Montenegro Airlines

Both Jat Airways and Montenegro Airlines have been sold out on flights between their biggest markets – Serbia and Montenegro as the pop star Madonna prepares to hold her concert in Montenegro’s seaside town of Budva, near Tivat on Thursday September 25. A very large number of Serbian and Croatian fans are expected. During this week 52 return flights will be operated from Belgrade Nikola Tesla Airport to Tivat Airport. On Wednesday and on Thursday all tickets have been sold between the two cities on the 19 flights that will be operated (14 by Jat and 5 by Montenegro Airlines) as well as for the 3 flights to Podgorica to be operated before midday. Belgrade Airport’s management expects that due to the concert 2.000 extra passengers will pass through its doors. Serbia’s national airline Jat Airways has sold 544 tickets for Thursday’s 5 Tivat flights, three of which will be operated by a Boeing 737-300 and 2 using an ATR72. For Wednesday’s 3 flights Jat has sold 198 seats. Jat has also increased its frequencies to Podgorica and sold 318 tickets for Thursday while only a handful of tickets to Montenegro remain. These tickets are to Podgorica on Wednesday. Jat will operate a total of 14 flights to Montenegro on Wednesday and Thursday. Due to the concert Jat is seeing an increase in passengers from Banja Luka and Sarajevo. Montenegro Airlines is also increasing its frequencies. Madonna will for the first time hold her concert in the region. It will be located at Budva’s Jaz Beach (pictured above) and has gained widespread media attention across the EX-YU region.

UPDATE: Jat Airways winter 2008/09Farewelling four destinations

On October 25, 2008 Jat Airways, the national airline of Serbia will begin with its winter schedule. For Jat this usually includes the decrease in frequencies which will occur this year as well however the main difference is that the airline will farewell 5 cities from its destination network as it will decrease its fleet to 9 (6 Boeing 737-300’s and 3 ATR-72’s). Two Boeing 737-300 will be leased to an African airline which is a practice Jat commonly employs during the winter although it is unknown what will occur with the other aircraft, however it is expected they will be returned to their original owners since these aircraft are leased.

Jat will after many years cease flights to the Albanian capital Tirana. Flight JU412 was operated using an ATR72 twice a week. Another line operated for many years, Malta (Luqa) will also cease and effectively flights to Tripoli will end which were operated via Malta. Flight JU454 to Tripoli via Malta was operated twice a week using a Boeing 737-300. Jat will not return to Oslo this winter. Flight JU394 to the Norwegian capital was operated twice a week however was only planned as a summer destination and was not expected to return to the schedule in the winter. Finally Jat will also farewell another city in Scandinavia - Goteborg will no longer be served.

Jat will also no longer fly to Prague and Munich. These flights will not be pulled out of Jat’s scheduling. It will be operated by partner airlines ČSA and Lufthansa in a strong codeshare collaboration agreement where the flights will be treated as if operated by Jat. Belgrade – Prague JU8170 will be operated with a B737-500, Belgrade - Munich JU8344 will be operated using an Avro RJ85.

The new addition to this year’s winter schedule will be Thessaloniki which was originally planned to be operated only as summer destination however it will continue throughout the winter. Jat Airways will, despite earlier financial troubles, commence flights to a new destination from October 26 to Milano Malpensa Airport. The destination which was just added into the reservation system will be operated using an ATR72. Flight JU416 will be operated three times a week on Tuesday, Friday and Sunday. The flights on Tuesday and Sunday will depart from Belgrade at 13.10 while they will return from Milano at 16.25. Friday will provide a morning flight for passengers, departing Belgrade’s Nikola Tesla Airport at 8.30 and departing back to Belgrade at 11.45. The price of tickets will range from 99 to 259 Euros. All other destinations operated by Jat Airways, including Dubai, Larnaca, western European destinations, Moscow and North African destinations will continue throughout the year. All destinations within the EX-YU will remain in the schedule (Podgorica, Tivat, Sarajevo, Banja Luka, Ljubljana and Skopje).

Any related updates will be posted. Any question our readers might have regarding the new schedule can be posted by using the “comments” option or contacting us using our e-mail address. Soon Croatia Airlines’ 2008/09 winter schedule will be published on the blog.

Montenegro Airlines privatisationStrategic partner soon

By October 1 the government of Montenegro will prepare its national airline, Montenegro Airlines, for privatisation. It has been planned that 30% of the airline will be sold while the remaining 70% would stay in the government’s control. The expected cost of the 30% is at 38.5 million Euros with the cost of each share at 17.7 Euros. Currently, only the European Bank of Reconstruction and Development (EBRD) is interested in the purchase, which is not surprising since air carriers usually purchase another only if they are the majority owners. The government has furthermore created a strategic plan for Montenegro Airlines’ development, although the government has been delaying this plan for months due to the changes in management in the airline. The new part owners will inherit new aircraft orders as well as an older Fokker fleet and a promising destination network. It will also inherit an impending law suit against the airline after its incident a few years ago at Podgorica Airport.

Croatia Airlines orders new aircraft

Bombardier Aerospace announced today that Croatia Airlines has signed a contract to acquire two Q400 NextGen turboprop airliners. The airline has also taken options for an additional four aircraft. The transaction represents the conversion of two options taken for Q400 aircraft which was announced on June 4, 2007 when Croatia Airlines also placed a firm order for four Q400 aircraft. Two of those aircraft have already been delivered.

Based on the list price for the Q400 NextGen aircraft, the value of the order announced today is approximately $57 million US. The value could increase to $180 million US if all four options are exercised. "The Q400 aircraft is at the very top of the global airline industry in terms of flight specifications, technological achievements and cost-effectiveness, said Ivan Misetic, President and Chief Executive Officer, Croatia Airlines. "We are convinced that by acquiring these aircraft, Croatia Airlines will reaffirm its position as a regional leader in Southeast Europe, besides contributing to connecting Croatia with the world and expanding the Croatian economy". "We are delighted that Croatia Airlines has placed an order for Q400 NextGen airliners so soon after the delivery of its first two Q400 aircraft earlier this year," said Gary R. Scott, president of Bombardier Commercial Aircraft. "It's a solid vote of confidence in these aircraft and we look forward to helping Croatia Airlines build a stronger presence in Europe".

Jat denies bankruptcy rumours

The management of Serbia’s national carrier has denied claims that the airline is on the brink of bankruptcy as speculated in some Serbian tabloids after yesterday’s cost cutting measures were announced. The airline’s management has said business is as usual and is reminding that 2008 will, in passenger terms, be the most successful year since 1990. The airline did confirm it will be decreasing its fleet however they remind people that this is done every winter due to the decrease in frequencies and that the 2009 summer season is already in the planning stages. It has been confirmed that 2 B737-300’s will be leased to an airline in Africa.

Some media have also started questioning if yesterday’s announcement of cost cutting measures is genuine and have actually been introduced to decrease costs. They suggest that Jat’s management is actually preparing the airline for an unsuccessful privatisation and that way it will be able to fire as many as 800 people under the explanation it is due to the financial state of the airline. Further adding to the argument is an announcement less than a month ago from Jat’s CEO that the airline will have a healthy profit by the end of December 2008.

“Jat Airways facing biggest crisis in history”

Jat Airways, Serbia’s national airline which is currently on sale has found itself in a financial crisis as airlines around Europe go bankrupt on a daily basis with XL and most probably Alitalia becoming the latest victims. Jat Airways CEO Saša Vlaisavljević has outlined the new cost cutting measures stating that the airline is facing “the biggest crisis in its 81 year history” and is asking the government for help. The new cost cutting measures are outlined below:

EMPLOYEES: More than half of Jat’s employees working in the airline’s offices outside the country have been returned back to the airline’s headquarters in Belgrade. Many offices have been closed with official Jat ticketing agents only staying open only at airports. Jat has a unique network of worldwide offices including Toronto, New York, Chicago, Beijing and Sydney. The office in Dubai recently closed its doors and all sales have been left to Jat’s station manager at the airport. Employees got even worse news today when it was announced that 800 people will lose their jobs which would bring Jat down to 1.000 employees. On top of this employees, including the airline’s CEO and directors will get a 15% pay cut starting October.
FLEET: From October 25, 2008 (when the winter season begins) Jat will ground many of its aircraft in order to reduce costs. Jat will operate with a fleet of 9 aircraft – 6 Boeing 737-300’s and 3 ATR72’s. Jat currently operates with a fleet of 16 aircraft (10 B737-300’s, 5 ATR-72’s and 1 B737-400).

CATERING: Even the airline’s Jat Catering agency will not be speared. Catearing will be reduced by more than 50% meaning that there will be less food and beverages (which are for now still all free of charge) offered on flights. Jat’s CEO is asking for understanding from passengers.

PRIVATISATION: Adding to the crisis is practically no interest in the purchase of the company. The Serbian Privatisation Agency will, in late September, release the list of airlines interested in purchasing Jat while an opportunity for companies to make offers for the purchase of the airline will end in mid October. Reports suggest there have been no offers sent in signalling a failure for the privatisation.

Jat Airways managed to survive the 1990’s when all international services were cut, plenty of aircraft sold and thousands of staff fired as the UN imposed sanctions and war broke out across the Yugoslavia. It even survived the 1999, 78 day, bombing of its country and hub. Will the airline survive the 2009 global economic crisis remains to be seen. The signs for now are not pointing in a positive direction.

Note: Soon the blog will publish Jat’s new winter schedule and all the changes that will come with it. This will be followed by all the other national airlines from the EX-YU region.

Montenegro Airlines places order for new Embraer jet

On Tuesday, Embraer announced the sale of the first Embraer 195 jet to Montenegro Airlines. The agreement with the national airline of Montenegro also includes purchase rights for two more aircraft of the same model. Montenegro Airlines already operates an Embraer 195 under a leasing contract. The value of the deal, at list price, is US$39.5 million, and could total US$118.5 million, if all of the purchase rights are exercised. The Embraer 195 for Montenegro Airlines will comfortably seat 116 passengers in a single-class layout, and delivery is expected in 2009. The company plans to use the new airplane for key markets in Europe, including routes to cities like London and Moscow.

Last June, Embraer delivered the first E195 jet to Montenegro Airlines through a leasing operation carried out by GE Commercial Aviation Services. This leasing contract includes another aircraft of the same model for delivery next year that will increase the airline's fleet to three Embraer 195s by mid 2009. Andrija Lompar, the Minister of Transport, maritime affairs and telecommunications of the Republic of Montenegro, stated, "Next year, with three new Embraer E-Jets in the fleet of this national airline, it will continue the expected passenger growth trend, entering new markets and introducing more destinations, thus making a quality contribution to economic development". The Embraer 195 is the largest and newest aircraft of the modern four- member Embraer 170/190 family of E-Jets, and entered revenue service in September 2006. In June 2008, the E-Jets had logged 847 firm orders and 827 options. Today, over 400 aircraft in operation have surpassed 1.5 million flight hours.

Good results for Macedonian airports in August as MAT gets warning

The two international airports in Macedonia, Skopje and Ohrid, which were recently taken under the management of the Turkish company TAB have reported good passenger results for August 2008. With a total of 84.180 passengers transported, August had the most frequencies this year according to the number of passengers, from which 52.000 (62%) were on departure. Compared to the same period last year, the number of passengers increased by 5% and for the period from January to August a total of 7.2%. On destinations with scheduled lines, in the period between January and August, the most frequent were Vienna and Zurich, while the biggest increase in the number of passengers compared to last year was seen on lines towards Ljubljana, Istanbul, Budapest and Zagreb.

Meanwhile Macedonian Airports (the handling and operational company of Skopje and Ohrid airport) will stop providing services to the national carrier MAT until that company fulfils its current obligations towards Macedonian Airports. MAT currently owes the company a total of 42.028.109 Macedonian denars (MKD) which is approximately 682.700 Euros. Several judicial proceedings against MAT are currently in progress. MAT has in the past been in trouble for not satisfying agreements with Jat Airways (dispute with Boeing 737 lease) and Embraer (dispute with new aircraft delivered which was later seized by Embraer).

Belgrade Nikola Tesla Airport breaks all records 2 million passengers pass through doors

Belgrade Nikola Tesla Airport today, on the 15th of September, welcomed its second millionth passenger for 2008, a record 3 weeks ahead of last year. Figuratively speaking this means that the whole city has passed through the airport’s doors as the city of Belgrade is called home by 1.8 million people. An increase of 10% in passenger numbers has been recorded this year compared to 2007. It is now more than certain that the airport will be able to break last year’s peak record which stood at 2.5 million passengers on December 31.

The current capacity of Belgrade’s Airport is larger than presently needed. The reconstructed Terminal 2 has a capacity of 5 million passengers. Check-in on average lasts 3 minutes per passenger. The airport has improved services by recently introducing E-check in, new television flat screens with flight information, new air conditioning system, greater parking capacity, the taxi system has been regulated and new duty free shops have been opened. The airport has 2 terminals and is used by 19 scheduled airlines although it is expected this will rise to 20 in November with news that Italy’s Air One is holding talks on commencing new services. The airport is also served by a few cargo airlines and is the largest in the EX-YU region.

Adria flies into profit despite fuel prices

Despite gloomy predictions earlier in the year with announcements that Slovenia’s national carrier, Adria Airways was in a financial crisis, the airline managed, in the first 8 months to improve its profit by 20% compared to last year. This was achieved by cutting costs in other sectors in order to allocate expenditure for rising fuel prices which has destabilised the aviation industry. This way Adria managed to bring its operating profit to just over 1 million Euros. In total, without including any expenditure the airline would have achieved a profit of 21 million Euros. Adria’s management was less optimistic a few months ago when it predicted it would finish the year with a loss. Now the management believes the airline will just manage to make a profit by the end of December 2008.

The positive financial result comes as the airline transported 907.761 passengers in the first 8 months of the year. Adria is hoping for good financial results as next year expenditure will rise with the airline forced to redirect some of its flights from Ljubljana to Maribor due to an airport construction project which means Adria will have to provide free transportation between the two cities.

Good result and new aircraft order for Montenegro Airlines

In the first 8 months of 2008 Montenegro Airlines (MGX) transported 345.000 passengers which is a 7% improvement compared to last year. The airline’s management expects that this year it will transport half a million passenger. Yesterday Montenegro Airlines also transported its third millionth passenger since operation began in 1994. The lucky passenger, Tatjana Marinović, purchased a ticket from Podgorica to Belgrade and gained a special present ticket for two people from Podgorica to Paris. The management of the airline states that it had problems this summer with operations due to the high price of fuel. A total of 10.8 million Euros was spent on fuel. The expenditure for fuel makes up 43% of all funds spent. The total number of flights in the first 8 months was increased by 17%, thanks to new lines to Paris, Moscow and London. The overall cabin occupancy rate rose by 2% to 68%.

The Montenegro Airlines board as well as the government are holding talks about a possible purchase of another Embraer 195 jet. Talks should conclude next week and a new order is imminent. This would mean that during the 2009 summer season Montenegro Airlines will have three Embraer aircraft in its fleet, with one already in operation and a second one arriving in May next year. Therefore the MGX fleet would consist of 3 Embraer aircraft and 5 Fokker 100’s.

Adria and Brussels Airlines sign agreement

The largest airline in Belgium – Brussels Airlines and Slovenia’s Adria Airways have began a special partnership on their line from Brussels and Ljubljana with an agreement to offer their passengers 3 flights per day. The agreement was signed due to the large cost of fuel and therefore this expenditure will be decreased as the airlines code share on their flights, a tactic most airlines in the EX-YU region will employ from the winter schedule. Adria operates flights to Brussels from Ljubljana using a CRJ200.

Meanwhile Adria has revealed a temporary promotional livery on one of its CRJ200’s, registration S5-AAF (as pictured above). The jet is promoting the Mini car.

Montenegro Airlines and Sky Srpska hold talks on future cooperation

The new found airline of Bosnia and Herzegovina’s entity Republika Srpska, Sky Srpska, is expected to launch flight next year with the help of the government and Serbia’s Jat Airways. Montenegro Airlines will now join the two. Following a meeting between ministers from Republika Sprska and Montenegro Airlines’ CEO the two agreed that flights between Banja Luka and Tivat should be established which would operate at least 4 months per year, since there was satisfactory aircraft occupancy between the two cities when flights were operated on a continual basis in 1999 and 2000. The management of Sky Srpska also spoke with Jat Airways a few days ago regarding potential flights to Tivat, if all necessary licenses could be received. Currently Sky Srpska, with its base in Banja Luka, plans to open services to Belgrade, Pula and Tivat – all of which would be in code share opeartion (once operated by Sky Srpska the other time by a partner airline). It is expected that Sky Srpska would bring back life to Banja Luka Airport. For a few years Republika Srpska had its own airline under the name of Air Srpska, operated by Jat Airways. However when Jat decided to return the two aircraft given to Srpska back to its own base in Belgrade, operations ceased.

Another emergency on Croatia Airlines

A week after its emergency in Barcelona, a Croatia Airlines aircraft has had another serious emergency. Yesterday the new Dash 8 Q400 was forced to return to Zagreb’s Pleso Airport a few minutes following its departure after flames were seen from the aircrafts engine however the management of Croatia Airlines is denying the allegations from Croatian media. The incident sparks a major debate within Croatia concerning the purchase of the Dash 8’s and their reliability since the aircraft type has been plagued by incidents and mechanical failures across Europe for years.

In Croatia Airlines, the management states that there was no fire and that there was no emergency landing. The management claims that the pilot noticed on his instruments that the temperature of the fuel was higher than normal and decided to return the aircraft back to Zagreb a few minutes after departure. The aircraft which was transporting passengers from Zagreb to Zadar had 33 passengers onboard and the management is persistent in highlighting that none of the passengers were in danger. Croatia Airlines currently has 2 Dash Bombardiers which arrived this year and a further 2 will arrive next year in order to replace the aging ATR42’s. One of Croatia’s Dash 8’s has already experienced mechanical problems this year. Croatian media have criticised the national carrier for purchasing the “unreliable” aircraft referencing the fact that Scandinavian Airlines (SAS) withdrew the aircraft model from its fleet after the much publicised incident in Copenhagen in 2007.

Jat Airways and Republika Srpska to launch Sky Srpska in 2009

The Government of Republika Srpska (RS), a Serbian entity in Bosnia and Herzegovina with its main base in Banja Luka is undertaking efforts lately to expand passenger volumes at Banja Luka Airport and launch new services with Jat Airways, the national airline of Serbia, being the main sponsor of its projects and initiatives. The RS transport minister Nedeljko Čubrilović held talks with the general director of Serbia’s national airline, Saša Vlaisavljević today, about the purchase of two aircraft for the recently formed carrier Sky Srpska which would be based in Banja Luka.

The Government of RS recently invited offers for this procurement deal. Čubrilović reminded that RS has had very good collaboration with Jat Airways so far, and the two will discuss the potential for its expansion. There are plans for Jat Airways to lease the two aircraft from Sky Srpska and operate both on their (Jat’s) behalf as well as the behalf of Sky Srpska. Jat Airways is further hoping to completely take over the aviation market in Republika Srpska by commencing new flights from Banja Luka to Pula, Croatia as well as to Tivat, Montenegro from March 2009 if all necessary licenses are gained. Currently Jat Airways operates daily flights from Belgrade to Banja Luka with its ultimate goal being to operate two daily flights. At present the load factors are average with 32 passengers on each flight with the aircraft having a capacity of 72 seats. All seats that are not sold are subsidized to Jat by the government of Republika Srpska. It is expected Sky Srpska will launch in 2009. On Wednesday, September 10, Čubrilović is scheduled to meet with representatives of Montenegrin airports.

Turks new owners of airports in Macedonia with ambitious plans

The Turkish company TAB is the new owner of Skopje and Ohrid airports (as well as all other airports in Macedonia) and will operate the two bases until 2028. The Macedonian government determined that TAB made the best offer and expect the company to bring the two airports to world standards within the next 20 years as well as increase the capacity of the airports and improve infrastructure.

The Turkish company will also build a new cargo centre at Štip Airport located in Eastern Macedonia. It is planed for Štip to become an alternative airport for public use with the chance for it to become the main airport in Macedonia. At Štip Airport a new runway, 2 hangers for cargo and hangers for aircraft will be built. At Macedonia’s main airport, Alexander the Great, in Skopje, TAB plans to build a new airport terminal, parking spaces, extend the existing runway so the airport could have the capacity to serve aircraft of all types, install a new navigation ground system, build a new cargo terminal and build a new fire prevention centre. Meanwhile at Ohrid Airport TAB plans to reconstruct the parking, renovate the cargo terminal and administrations building and will install new systems so the airport can be brought up to world standards.

Jat reports impressive August figures

The Serbian national airline, Jat Airways, reported yesterday that in the month of August it has transported 201.073 passengers, which is an 8% increase compared to the same period last year. More than 2.500 flights were operated on which 191 tonnes of cargo was transported and 41 tonnes of mail. The largest growth was achieved in the charter flight sector where the number of flights was increased by 14% while the number of passengers increased by an impressive 21% when compared to last year. On lines to Montenegro (Tivat and Podgorica – Jat’s largest regional market) passengers were increased by 36% while special charter flights to Montenegro recorded a 29% jump in passengers compared to 2007. Because of large interest on behalf of tourist agencies for charter flights Jat added 117 flights compared to last year. Most charters were operated to Greece, Turkey, Tunisia and Egypt while there were a few charters to Spain as well.

Jat Airways just recently transported its millionth passenger for the year. August is the busiest month in Jat’s calendar.

Adria Airways passenger numbers up 21%

In the first eight months of this year Adria Airways carried more than 907.761 passengers, which is 21% more than in the same period last year. The total number of flights was up by 17% (scheduled flights by 17% and charter flights by 22%). In the case of scheduled services, the number of passengers per flight rose by 6% in comparison to last year. In scheduled services, which is the most important sector, Adria operated 17% more flights in the first eight months of the year and carried 757.721 passengers, which is 24% up on the same period last year. In the month of August alone, Adria carried 150.233 passengers, which is 12% more than in August 2007. Adria operated 2.197 scheduled flights – 18% more than in August last year – and a total of 2.676 flights – 16% more than in the same period last year. The number of passengers on scheduled flights in August stands at 105.753, which is 19% more than in the same period last year.

In August, Adria completed its successful season of charter flights as it carried 13% more passengers than planned. Adria's summer charter services covered 24 Greek islands, the Spanish islands and destinations in North Africa (Sharm el Sheikh, Hurghada and Tunis). Amongst the national airlines in the EX-YU region Adria comes in third after Croatia Airlines and Jat Airways.

Montenegro Airlines privatisation: EBRD most serious candidate

The Montenegrin ministry of transportation is preparing to sell shares and therefore privatise the country’s national airline – Montenegro Airline. Currently the most serious candidate for the privatisation of Montenegro Airlines is the European Bank for Rebuilding and Development (EBRD). This bank has hired a US consultancy company, which will provide forecasts on the dynamics on the company’s privatisation by October. According to the “CG Economist”, the ministry has chosen a US company “SH&E”, which will provide analysis of business strategy for the needs of this privatisation.

The privatisation of Montenegro Airlines will be conducted in three stages, first being the selloff of 5% of shares, second being recapitalization and the third one being the selling of a majority share-package. “The 5% of shares, which will be sold at the market, are ‘a test balloon’, which will be used to estimate the value of the company’s shares. This experience would serve as the basis for the company’s recapitalization, for which the EBRD has expressed interest”, said an official in the ministry of transportation. EBRD is also interested in the privatisation of companies “Aerodromi Crne Gore” (Airports of Montenegro) and “Luka Bar” (Port of Bar), which are also to be restructured and privatized in the near future.

Montenegro Airlines is the only airline in Montenegro. 99.97% of the company is owned by the state. With recapitalization, EBRD would become the owner of, at most, one third of the airline’s property. Montenegro Airlines recently purchased a new Embraer aircraft, the first one in its fleet of Fokker’s.

UPDATE: Jat Airways hits million

On Wednesday September 3, Jat Airways, the national airline of Serbia, transported its millionth passenger this year, 20 days earlier compared to 2007. For the fourth year in a row Jat is managing to transport over 1 million passengers annually, with each year the millionth passenger being transported earlier. In 2007 the millionth passenger flew Jat in late September, in 2006 in October while in 2005 Jat managed to transport its millionth just prior to the end of the year, in December. Jat management has announced it hopes to improve this result next year by transporting the millionth passenger earlier and announced that the airline has committed itself to improving inflight service drastically. The millionth passenger (pictured above) is Jelena Vasić from Loznica traveling on a Jat charter flight to Greece. She received a return ticket for teo to any destination operated by Jat of their own choice. Croatia Airlines transported its millionth passenger in early August. The Croatian and Serbian airliners will most probably only be joined by Adria from the EX-YU region when it comes to +1 million transported passengers by the end of the year.

Jat faces privatisation this year which could potentially fail due to low interest, according to Serbian media. More detail on the bidding airlines will be known in late September while the final list will be announced in October. If the privatisation fails the government has promised it will invest into Jat, particularly in the purchase of new aircraft, and will not put the airline on sale in the near future.

New arrival for Dubrovnik in 2009

Jet2.com, a popular British low-cost airline, has today announced the launch of four new routes starting May 20, 2009 with one of them including the Croatian Adriatic town of Dubrovnik, to be operated from their base in Leeds Bradford.Speaking about the announcement, Philip Meeson, boss of Jet2.com, commented: "At Jet2.com we are committed to ensuring that holidaymakers in the UK have unprecedented choice when it comes to their holiday destination. These new route launches really underline this commitment to our customers and we are confident that they will be an extremely successful addition to our schedule. Dubrovnik is an especially exciting addition for us as it is the first time that we have flown into Croatia. With its Italian influences and miles of clean, sandy beaches, it is a destination which is fast becoming one of Europe’s leading holiday hot spots".

With this addition a total of 16 scheduled airlines now operate to Dubrovnik Airport. Croatia Airlines and Dubrovnik Airlines are the only airlines from the EX-YU region to operate flights to the holiday town. Jet2.com does not operate any flights to any former Yugoslav republic.

Jat Tehnika privatisation: Deadline closes - four companies in the race

Three companies have bought tender documentation for the privatisation of Jat Tehnika, the largest aviation maintenance company in the EX-YU based in Belgrade. The interest for the purchase of the maintenance company, which was made independent from Jat Airways in 2005, has been more than encouraging. The tender commenced on June 16 and closed on Friday August 29. Two Israeli companies are in the run – El Al and Israel Aerospace Industries (Bedek Aviation) while the third compay comes from the neighbourhood, more precisely from Hungary – Malev. A fourth company has also purchased the tender documentation however its name has not been published although some it is rumoured to be either Lufthansa Technik from Germany or ST Engineering from Singapore.

Jat Tehnika is 100% owned by the Government of the Republic of Serbia. Tehnika has hangers at Belgrade Nikola Tesla Airport with a capacity to service 100 aircraft per year. In 2007 it had a profit of 22 million Euros while it is expected it will have a profit of 45 million by the end of this year with Jat Tehnika servicing jets from ČSA, Transaero, Jet2.com, Jat Airways and many others. The company employs 1.000 people while the company’s purchase price is estimated at 100 to 200 million Euros. The four companies have until September 26 to send in their offers.