Year in review

The year that was

2008 was a turbulent year for all carriers across the world and the national airlines from the former Yugoslav republics were no exception to this.

Adria Airways – On the whole the national carrier of Slovenia has had a good year, particularly in the first 6 months. During this time the country was running the presidency of the European Union and as a result traffic for the carrier increased significantly. In the second half the carrier strengthened its services to key European destinations, introduced new uniforms and received a brand new CRJ900. The airline has been accused of price fixing on the Ljubljana to Brussels line, despite its denial. Overall Adria will end the year with a profit however the airline’s CEO issued a warning stating that the high petrol prices and the economic crisis will take an effect on Adria in 2009. Next year the airline will have to reroute some of its services to Maribor due to Ljubljana Airport development.

B&H Airlines – The national carrier of Bosnia and Herzegovina has, despite the aviation crisis, had a stable 2008. Although the airline only has 2 aircraft its passenger numbers were mostly stable. In June the airline’s privatisation process began. Although many announced that they would bid, including Croatia Airlines, interest was low and only 3 companies remained in the running when the deadline closed. In October it was announced that Turkish Airlines has won the bid. In return the Turkish carrier has promised to provide 2 short to medium haul aircraft, employee training, servicing of aircraft and hiring new employees while all currently working at the airline will keep their jobs. Therefore 2009 will be crucial in seeing what the new owners will do with the carrier.

Croatia Airlines – The Croatian carrier ends the year as the most successful airline from the EX-YU region, having the most passengers and also ordering new aircraft however it’s been a turbulent year for the carrier. This year Croatia Airlines received 2 Bombardier aircraft and a Dash 8 while orders were placed for 4 Airbus A319s and 2 Q400 NextGen turboprops. The airline’s CEO announced that if the financial crisis takes its toll these aircraft orders will be cancelled. Two ATR42s farewelled the airline this year after more than a decade of service. Mechanical problems and emergency landings put a serious stain over the carrier this year which resulted in negative press. A total of 3 serious safety problems took place in a scope of a few months. The airline also has to deal with major losses which have doubled compared to last year. On a positive note, the airline announced new flights from Pula next year and opened its own maintenance hangar at Zagreb Airport.

Jat Airways – One of the most turbulent years in recent history for Jat was 2008. Everything started optimistically with Aeroflot already a certain buyer although there was interest from IcelandAir. Passenger numbers increased as major events such as Eurovision took place in Serbia however all of this was about to end. When Aeroflot announced it will not purchase Jat in the summer the airline found itself in a financial crisis. Five aircraft have been taken out of service, some of which have been leased to carriers in Africa. The airline suspended a few destinations although new flights were established to Milan and for the first time after 16 years regular service commenced to Croatia (Pula). After pleading with the government the airline has been promised it will get a loan of a billion Dinars which will be invested in the current and future fleet as well as a money incentive programme for 600 to 700 workers which must leave the airline. Meanwhile the carrier closed its office in New York and moved its offices in Amsterdam and Rome to the airport in order to decrease costs. Catering has also been reduced. However the airline can report the best passenger figures since 1997. What’s in store only time can tell.

MAT Macedonian Airlines – A Very bad year for the Macedonian carrier started when the airline was banned from flying to Greece due to a political name dispute. The airline has received two B737-500s to accompany the Bombardier aircraft in the fleet. However, MAT’s debt is coming back to haunt the airline. It owes 680.000 Euros to Macedonian Airports (the handling and operational company of Skopje and Ohrid airport). Later in the year the airline was denied landing rights to Düsseldorf, Berlin, Hamburg and Rome because of its unpaid obligations to EUROCOTNROL. If it does nothing about it the airline will be grounded in 16 days.

Montenegro Airlines – The expansion of Montenegro Airlines began in 2008 with the arrival of a new Embraer E195 jet. The airline has ordered 2 new E195s, scheduled to arrive in 2009. The airline began services to London while passenger numbers strengthened. There were some problems such as the airline’s website being offline for weeks due to an attack by hackers as well as a landing fee dispute with Belgrade Airport. The airline can expect turbulent times in 2009, more about this on January 2.

2008 poll results

Top 3

· Best website

1. Jat Airways (52%)

2. Adria Airways (20%)

3. Croatia Airlines (11%)

· Best livery

1. Croatia Airlines (34%)

2. B&H Airlines (25%)

3. Adria Airways (17%)

· Biggest potential

1. Croatia Airlines (37%)

2. Jat Airways (33%)

3. Adria Airways (14%)

· Need to improve most on

1. Destination network (60%)

2. Fleet modernisation (12%)

3. Safety procedures (10%)

MAT in chaos

MAT could be grounded by January 15

The national carrier of Macedonia has had one of its most turbulent years, being plagued both by bans and low passenger numbers. Just a few days before the New Year and Christmas holiday period, when passenger numbers are usually high, MAT could be grounded. The Civil Aviation Authority issued an ultimatum stating that if MAT does not pay 110.000 Euros it owes to EUROCONTROL, the organisation that regulates Europe’s airspace, its aircraft will be completely grounded. Some countries have already taken steps and have banned MAT from their airspace, the latest being Germany and Italy.

According to local press MAT is shocked by the impending ultimatum and has voiced its frustration at EUROCONTROL, stating that it does not understand why the organisation would take such steps to ground the airline at a time when airlines are reporting low passenger figures and are in major financial trouble due to the global economic crisis.

To find out more about the turbulent year MAT has had visit tomorrow for the “Year in Review”. We will keep you updated with the current situation in MAT over the following weeks.

Noise monitoring begins at Ljubljana Airport

Noise pollution monitoring near Ljubljana Airport begins

At three out of four selected locations in the area around Ljubljana Jože Pučnik Airport, continuous measurement and monitoring of noise has begun in the past few days. Previously, in agreement with the local community certain measures were adopted as a solution to the complex issue of limiting and monitoring noise. One of the key measures, continuous monitoring and measuring of noise, which will also enable the identification of violators, has been implemented in the past few days. The system of noise monitoring is part of the integrated approach to the issue of noise in the areas around the airport, and will help in a non-discriminatory way to improve the quality of life in the municipalities that surround the airport. In line with the contract, the company ZVD. has already set up three measuring terminals, which comprise a measuring system and computer as well as wireless connections, and they have been located at Vodice (Lokarje), Lahovče and Šencur. Unfortunately owing to the negative response from local residents and landowners, the placing of a fourth measuring point in the area of the village of Voklo-Voglje has not been completed. The measuring points were selected on the basis of the most exposed settlements or locations under the approach and take-off paths. Ljubljana Jože Pučnik Airport has in this way joined more than 40 other European airports that have already implemented this kind of monitoring.

A new aircraft joins the Adria Airways fleet

Adria Airways CRJ900

Adria Airways' third Canadair Regional Jet CRJ900 joined the airline’s fleet a week ago. These 86 seat aircraft fill the gap between the seven smaller 48 seat aircraft and the large Airbus aircraft. The most economical aircraft in the regional class, the CRJ900 offers passengers more comfortable seats, a better view through the windows and more space for baggage. The new aircraft, registration S5-AAN, entered Slovenia's airspace in the early hours of the morning on December 18. “The CRJ900 also meets our high environmental protection standards”, 'explained Adria chairman Tadej Tufek. “Emissions and noise are well below permitted international limits, and fuel consumption is significantly lower: under optimal conditions, just 3.5 litres per 100km per passenger. For the sake of comparison I should point out that the only other aircraft to achieve such exceptionally low fuel consumption figures are wide-bodied aircraft on transoceanic flights, in other words over significantly greater distances”.

The capacity of the new aircraft is 80% greater than that of the CRJ200, but it is operated by the same four-member crew. The increase in operating costs is just 30%, and the aircraft will be maintained by the Adria servicing centre. The new aircraft is 36.4 metres long, with a wing span of 24.9 metres and a maximum take-off weight of 38 tonnes. It can take off and land in visibility as low as 200 metres, its top speed is 882 km/h and it has a range of 3660 km. “The purchase of the CRJ900 has undoubtedly been cost effective”, added Mr Tufek. “With them we will significantly improve our passenger load factor and reduce operating costs, while their modern technology will represent an important boost to our competitive ability in the future”.

In November 2008 Adria had the second lowest cabin occupancy factor in Europe, making the new addition extremely important in order to increase the occupancy index. The Adria Airways fleet now consists of 14 aircraft, with one more CRJ900 due to be delivered early next year.

Jat gets billion in funds

Jat’s aircraft will be fixed

The Serbian Minister for Infrastructure, Milutin Mrkonjić, which is also responsible for transportation, has vowed that the goal of his ministry will be to revive the ailing national carrier by the end of 2010. The government will allocate 1 billion Dinars (11.6 million Euros) in funds. As reported by this blog in the past, the restructuring process inside the company should begin in February 2009. By this time Jat’s current CEO will be most probably be replaced. Due to strict laws and regulations outlined by the European Union, a national government is not allowed to subsidise its national carrier. As a result the funds for Jat (a loan) will be allocated by a bank.

Meanwhile Jat’s CEO Saša Vlaisavljević said "We need to cut the number of employees from the current 1.800 to 1.100. We have already reached an agreement with unions”. He noted that the company has already undertaken a series of measures to cut costs by 11 million Euros per year. "We have reduced the number of airports we are flying to and we have cut salaries", he said. "We also reduced the catering offer in our aircraft". Parts of the funds that will be provided will go for redundancy payments and part to "fix five planes that are currently not operational because we don't have money to buy spare parts”.

Dubrovnik AirportHigh European demand

Duborvnik Airport

Every other week European carriers are announcing that they are including Dubrovnik, located on Croatia’s Adriatic coast, in their destinations network. Tourism is the most obvious reason for flight operations with people, particularly from the European Union, wanting to travel direct from their city to Dubrovnik. However with careful planning and management even a long haul service could be profitable on a seasonal basis.

There is no direct air service to Milan and Nice. This, in spite of the increased number of tourists from the region. The number of people arriving by cars from these cities is significant and when translated into figures could become a profitable air service. There are many charter flights during the summer season flying from Dubrovnik to Paris. According to passenger figures, there is high demand for direct morning flights. These passengers use time-consuming intermediate airports to reach Paris. Lisbon, in Portugal, could become a profitable summer destination. Figures show that there are a large number of Portuguese visitors. Since there is no direct connection, they use indirect flights to reach Dubrovnik and the rest of the region. Slovenians are ranked very high on the list of visitors to Dubrovnik according to figures submitted by the Dubrovnik Tourist Board, but with no air service, the only option is to arrive by road. Other destinations inside Europe that can be proved profitable due to high demand include Moscow, St. Petersburg, Salzburg, Venice, Hamburg, Warsaw, Berlin, Athens, Istanbul and Budapest.
More than 3.000 passengers travelled to Dubrovnik from New York in 2008. In the 1980s there was daily direct service between the two cities and this has not resumed despite demand evidence. Due to the fact that the situation in the 80s was much different, today this service could be made profitable with scheduled charter flights during the summer.

Dubrovnik Airport offers an airport charge incentive programme for airlines interested in taking up new routes, additional frequencies, or year-round traffic. Besides financial support, the airport offers assisted advertising as well.

In January you can read more airport analysis that will be published on the blog.

Merry Christmas

Central Zagreb

For all readers celebrating Christmas today we wish you a Merry Christmas!

Sretan Božić
Vesel Božić

Visit tomorrow for an analysis of potential destinations from Dubrovnik, Croatia.

Workers threatening with strike action

Waiting for government - Jat Airways

Frustration is growing at Jat Airways due to the fact that the Serbian government has still not decided whether it will help the struggling carrier after its privatisation process failed earlier in the year. Workers at Jat who found their paycheques slashed by 10% this month are threatening that they will begin protests during the New Year and Christmas holiday period which could derail air transportation in the country. Jat will increase frequencies to popular destinations during the holiday period if strike action does not go ahead.

The Serbian government promised it would provide funds so the airline could compensate 700 excess workers to leave the airline. Jat would return the provided credit by next fall however the government has not provided the funds yet. Due to the fact that the funds were not provided, the 700 workers cannot leave until spring 2009 because they first must use their entire 2009 holiday time. Saša Vlaisavljević, Jat’s CEO, released a short statement stating “We are waiting for the government to react. We no longer have time”.

Profit despite crisis

Crisis in Adria? Not in 2008

Slovenian flag carrier Adria Airways expects an operating profit of 1.9 million Euros in 2008 despite the global economic crisis that the aviation industry has been caught in. This is a good million less than in 2007, although the number of passengers is expected to increase by 17% to 1.3 million by the end of 2008, while European growth is four times lower. High oil prices cost the company an additional 11 million Euros, the flag carrier wrote in a press release after the session of the company's management and supervisors last Friday. Adria's income will exceed 200 million Euros, which is 13% more than in 2007 and 5% above the estimated levels. The company retained operational liquidity throughout the year, while cash flow will finish at 32 million Euros, the press release says. The supervisors confirmed the plan for 2009, which forecasts no increase in the number of passengers due to the financial crisis. The management presented additional measures, which it is preparing to rationalise operations in order to achieve a positive result despite the expected recession, the company wrote.

No license for Malev

Budapest delayed...until further notice

Malev will not gain a license to commence services to Belgrade despite its desires for many years. The Serbian Civil Aviation Directorate rejected the Hungarian national carrier, yet again, due to the impact it could have on the struggling Serbian carrier Jat Airways. Malev is a major threat to Jat due to the fact that it could take over many Serbian passengers travelling to Western Europe as well as further abroad. Realising the success Malev could have on this line, earlier this year it requested double daily flights from Budapest to Belgrade for the 2009 summer season. However it will have wait another year as Jat’s redevelopment is set to begin in February 2009 and the government does not wish to create further pressure for the airline. This also puts in doubt other airlines that requested licenses in order to commence flights to Belgrade – low-cost Wizz Air and Nikki. However there is some good news for the Serbian public. Croatia and Serbia are negotiating a free sky agreement which could see regular services restart between the two countries. Jat Airways operated seasonal flights for the first time this year, after 16 years, to Pula however the new agreement could also see Croatia Airlines in Belgrade. The Serbian Aviation Directorate is also negotiating with China for direct flights to recommence between the two countries after 8 years.

On Saturday Nebojša Starčević, former Jat CEO, was named as the head of the Serbian Civil Aviation Directorate (that issues licenses to foreign airlines) starting January 2009.

Adria in crisis

Good old days - Inex-Adria 1985

Adria Airways will postpone the scheduled construction of a new maintenance hangar because of the financial crisis, the flag carrier's chairman Tadej Tufek has told a daily. Tufek added that the carrier was preparing plans in the event of a major economic downturn. Adria is not facing difficulties with liquidity since it took out all its main loans in 2006 under favourable conditions, Tufek told Monday's edition of the daily Dnevnik. "Problems would only arise if we were to undertake unnecessary investments this year or the next", he added. This is why the carrier will be shelving plans for the construction of a third maintenance hangar, worth between 3 million and 4 million Euros, at Ljubljana Airport in 2009.

As for plans for next year, Tufek said that the best-case scenario would mean that passenger numbers would remain flat compared to this year. "The worst-case scenario involves a 15% fall in passenger numbers". He said Adria was well prepared to handle a potential fall in demand, because up to 20% of all its capacities were flexible. He also called on Ljubljana Jože Pučnik Airport to lower its prices for the carrier. Adria generates up to 80% of all passenger numbers at the airport and Tufek believes Ljubljana Airport "should adapt its prices for the main carrier. "Given the 80% share, we are only right to expect lower prices than that offered to our competitors", he told Dnevnik. He suggested that from an economic viewpoint Adria would find it best to move all its flights to Maribor, although that is not possible since it is building its hub in Ljubljana. Tufek explained that falling fuel prices have only been felt by Adria in the last month. Adria flew on expensive fuel throughout the main season, he stressed. "But the drop in fuel prices will surely offset some of the drop in revenue caused by falling demand next year". According to him, Adria has expanded at three times the speed of its regional rivals on average in the past three years. Its revenues have gone up over 50% to 210 million Euros and passenger numbers by 60% to 1.3 million.

Officially Turkish

The federation government of Bosnia and Herzegovina yesterday officially handed 49% of the national carrier B&H Airlines to Turkish Airlines. THY Chairman Candan Karlıtekin said yesterday that they expected to get a voice in the European aviation market with the B&H Airlines agreement. He noted again yesterday that they will have an airline company in Europe, stressing that, although B&H Airlines is a small company, this step was nevertheless important for bringing THY closer to its goal of having an effective presence in the global market. Karlıtekin noted that B&H Airlines had significant market potential despite its small size. "The company has a 14%market share in Bosnia and we expect to increase this threefold with the new investments that we plan to make", he said. THY will have three representatives on the B&H Airlines executive board. THY aims to increase flights between Balkan countries and the region, as well as flights to London's Heathrow Airport, the largest airport in the United Kingdom.

Ohrid AirportEurope underserved

Ohrid St. Paul the Apostle Airport is the second international airport in Macedonia. Although the area mainly benefits from tourism it is drastically underserved compared to its counterpart - Skopje.

With only 7 international destinations the airport could benefit from 2 to 3 weekly flights to European cities. With no existing direct flights to many destinations, passengers are currently mostly transferring via Vienna, Ljubljana, Amsterdam and Zurich.

Frankfurt, Munich and Cologne in Germany could all be proved as viable from Ohrid Airport. 62.295 Macedonian citizens were living in Germany in 2006, with the number expected to be similar this year, although Macedonian sources claim the true number of Macedonians to range from 75.000 to 85.000. With no direct lines to their homeland, Macedonians must transfer through other cities. The recent ban on flights towards Germany operated by the national carrier MAT has further made it difficult for the Macedonian diaspora to return home. Lufthansa could, if all necessary licenses are gained, have a complete monopoly over the Frankfurt, Munich or Cologne to Ohrid line that could also be operated via Skopje. Flights to Belgrade have also been proven popular in the past, particularly seasonal flights during the summer although MAT is also not allowed to commence flights to Serbia due to the debt it has. With perfect connections to Dubai, Jat Airways was able to transport the Macedonian diaspora from Australia. However Jat may not return in 2009 as the airline faces a fleet shortage and as its deal with Emirates, for the transportation of passengers to Australia from Dubai, ends. Flights to Istanbul could also be proven popular. 4% of Turks make up the ethnic composition of the Ohrid Municipality. Furthermore investment from Turkey in the Municipality shows a need for business travel.

Due to the small size of the Macedonian aviation market there is currently no need for transatlantic flights. Most transatlantic passengers from Macedonia travel through Vienna.

Tivat Airport – Russian property?

Russia's Mirax Group is interested in entering a partnership or takeover deal for Montenegro's Adriatic airport of Tivat (pictured above), the country’s second largest airport. Mirax Group is already engaged in a 200 million Euro development project in Montenegro. It is ready to enter any kind of cooperation agreement with Montenegro regarding the airport, including a takeover or a modernisation deal, Besides the airport in Tivat, which is the gateway for the thousands of tourists visiting the picturesque Adriatic coast, Montenegro has another, bigger airport in the capital Podgorica. Both airports are operated by the state-owned “Airports of Montenegro” company. A company official said the government has not launched any privatisation procedures for the airports. Earlier this year the Montenegrin Transport Minister Andrija Lompar said that the government planned to attract private investors to the airports in 2009. In October, Mirax Group and the municipality of the Adriatic resort of Budva set up a joint venture to develop a 200 million Euro tourism complex on the Adriatic coast. Last year Mirax said it would build a 25 million Euro luxury hotel near two of Montenegro's most famous Adriatic resorts - Budva and Bečići. Mirax is 90% owned by Russian billionaire Sergei Polonsky.

easyJet announces Croatia plans

One of the largest low cost airlines in the world, the UK based easyJet, will be launching a new route from London Gatwick to Dubrovnik in Croatia next year. From May 1 2009, easyJet will operate 4 flights per week (Monday, Wednesday, Friday and Sunday). The ticket varies although the average one way ticket stands at 30 British Punds (33 Euros) one way. David Osborne, easyJet's regional general manager for the UK, said the airline has grown dramatically at London Gatwick over the last few years by offering its familiar combination of low-fares with care and convenience. "With our summer 2009 flights also now on sale there has never been a better time to make sure you book summer early and save big. Today's announcement will further strengthen our position at London Gatwick", he added.

New flights recently went on sale between Albania and Croatia, which will operate three times a week. Belle Air, an Albanian airline, will fly between Tirana and Zagreb on Monday, Wednesday and Friday.

New interest in Jat speculated

Serbia’s national newspapers “Politika” have published an article stating that it has received unofficial reports from two “well informed sources” that 2 airlines are interested in becoming a strategic partner of Serbia’s national carrier Jat Airways. The two airlines are Turkish Airlines (which recently became the new owner of Bosnia’s B&H Airlines) and Air India (which had previous interest in the Serbian carrier). The two airlines are currently studying Jat and its potential. The interest on behalf of both airlines can also be explained due to the fact that when Serbia ratifies the Open Skies agreement with the European Union Jat will have cheaper landing fees across Europe and as a result either Air India or Turkish Airlines could enter the European market through code share flights with Jat Airways. For this to occur one of the two airlines must become a minority shareholder (it would be able to buy up to 49% of Jat). Jat’s CEO Saša Vlaisavljević said that the airline is looking to stabilise its financial situation in the next 6 months and that only then can negotiations about a possible purchase begin with other airlines. Jat is looking to stabilise itself through extreme cost cutting measures, currently in place and the exit of 800 workers. Meanwhile negotiations between Jat and government officials have begun in order to find a way to help the airline.

Earlier this year Jat was to be privatised but it failed to do so after no interest was shown despite Aeroflot’s initial enthusiastic interest.

Adria Airways passenger numbers up 16%

In the first eleven months of this year Adria Airways carried more than 1.231.531 passengers, which is 16% more than in the same period last year. The total number of flights was also up by 15% – scheduled flights by 16% and charter flights by 11%. In scheduled services, the most important sector, Adria operated 16% more flights in the first eleven months of this year and carried 1.036.435 passengers, which is 18% more compared to the same period last year. Passenger growth in the second half of the year, if compared it to the first half of 2008, shows that the effects of the recession are already being felt, since growth is slowing down and is over 6% lower than it was at the beginning of the year, when higher growth could be attributed to Slovenia's EU Presidency. The passenger load factor has remained practically unchanged and stands at over 66% despite the fact that Adria is now operating larger aircraft. A new CRJ900, Adria's third, is due to join the fleet in the coming weeks. Adria ends the year in third position compared to other national carriers from EX-YU, behind Croatia Airlines and Jat Airways.

MAT in major trouble

The national carrier of Macedonia, MAT Macedonian Airlines, is no longer allowed to operate flights to Germany and Italy because of its debt to the European Organisation for the Safety of Air Navigation - EUROCONTROL. MAT’s last flight to Rome was last Sunday, according to the Vest newspapers, and the flights to Italy’s capital were turned down on Wednesday and Thursday. About ten days ago, the airline was forbidden from flying to Düsseldorf, Berlin and Hamburg. EUROCONTROL’s press service confirmed that MAT indeed owed money to the air traffic control organisation and that it has the right, granted by a Belgian court to collect what it is owed by MAT, although the amount of the debt was not made public. MAT is a joint stock company established in 1994. Despite the reported halt in service to Germany and Italy, MAT continues to advertise early booking deals on flights to Düsseldorf, Berlin, Hamburg and Rome. MAT is now left with only 4 scheduled international destinations. Meanwhile Serbia’s national carrier Jat Airways is preparing a lawsuit against MAT as the Macedonian carrier owes Jat over USD 10 million.

MAT has also been denied landing rights in Greece due to the ongoing name dispute between the two countries.

Jat breaks record

From January 1 until December 9, 2008, the Serbian national carrier, Jat Airways, transported 1.307.847 passengers attaining this result 22 days earlier than in 2007, when 1.306.301 passengers were carried. Thus, Jat recorded a 5% rise in the number of passengers for this period. Jat Airways aircraft in the January to November period of 2008 logged 35.796 block hours, 1% up on the planned levels and 1% higher than last year's levels. The entire fleet's average daily number of flight hours for the eleven months in 2008 stood at 9:22 block hours (1% over the planned levels), that is 2% higher than the same period last year. The company's priority in the coming period is to enhance regional traffic. In this way, Jat hopes to realise one of its strategic goals – restoring its position as the leading regional carrier. However this title will go to Croatia Airlines in 2008 which will have the most transported passengers. Meanwhile Jat is recording its best passenger results since 1991. Slovenia’s Adria Airways will finish the year in third position, despite an excellent start to the year, when compared to other national carriers from the EX-YU region.

Podgorica AirportEurope and region underserved

The Montenegrin capital Podgorica and its airport (pictured above) are seeing a constant rise in passenger numbers, which has led to the improvement of facilities and services. However, the airport is still largely underserved to some key European cities while regional flights could also be made profitable. Rival Jat Airways from Serbia is still largely profiting from these unserved destinations from Podgorica which exist in Jat’s network. Podgorica Airport is served by 9 scheduled airlines one of which is a low cost carrier and 3 of which are from EX-YU republics (excluding Montenegro Airlines).

Given higher demand and growing interest of Scandinavian tourists in Montenegro, a direct route with Copenhagen would be great opportunity to build a connection between Montenegro and Scandinavian countries. A great number of tour operators find this route interesting as well. In 2007, about 20.000 tourists from Scandinavia visited Montenegro and even higher demand has been reported this year. Thus this direct route should be established and serviced as it could return a profit for the carrier operating the line. In addition to the aforesaid, a great number of ethnic Montenegrins who live and work in Scandinavia would represent a large number of passengers travelling on this route. Among cities in Germany, Munich represents the biggest source for Montenegrin tourism. Every year about 30.000 German tourists visit Montenegro. Moreover Germany, being an important foreign trade partner, contributes greatly to business travelling. On the other side, almost 30.000 ethnic Montenegrins live and work in Germany. All these are good enough reasons for establishing a direct route with Munich. The existing economic cooperation with Turkey and the fact that both countries are tourist destinations implies a need for establishment of the Podgorica – Istanbul line that would connect the two countries and facilitate passenger flows. As Madrid-Barajas Airport ranks amongst the world’s top 10 busiest airports and represents an excellent hub, direct service would enable good connections with the rest of the world. Reasons justifying the establishment of this direct route are exchange of Montenegrin and Spanish tourists, easier and more efficient connections for transit passengers, favourable for business traffic and favourable for Montenegrins who live and work worldwide.

After the breakup of Yugoslavia, the former Yugoslav republics have been trying to intensify economic and political cooperation, which makes reasons for the establishment of flights to Sarajevo and Skopje obvious. There is an evident demand for leisure and business travelling in both directions.

To stimulate new routes, the marketing policy of Podgorica Airport includes an incentive scheme which offers discounts on standard airport charges for handling and landing in the first three years. Additionally, route development and promotion is supported through various advertising tools.

Dear passengersA message from Jat’s CEO

Jat Airways CEO, Saša Vlaisavljević has delivered an end of year message to all “passengers, friends and business partners” of Jat. In his message he analyses the difficult 2008 and gives an outlook for 2009. Vlaisavljević is expected to leave Jat in the following months. EX-YU Aviation blog publishes the complete content of his message below:

Dear Passengers,

I’m pleased to inform you that that in the preceding year Jat Aiways has successfully reached one of the company’s key priorities – enhancing regional traffic. By establishing air traffic to Croatia last summer, renewing former lines and increasing the frequency of existing lines, Jat has approached one of its strategic goals – restoring its leadership in regional air traffic. Despite the difficulties faced by the air industry on a global level, the measures we have undertaken as the Serbian national carrier over the past 3 years have led to a record increase in passenger numbers. For instance, Jat’s millionth passenger in 2008 was recorded as early as September 3, and Jat has transported 1.216.424 passengers in the first 10 months of this year – the largest number since 1991. The company is already working on the 2009 summer timetable and plans to step up charter traffic by an additional 15%, although in 2008 we have already attained a record increase of over 20%.

In keeping with the company’s imperative to continually improve services for our passengers and to strive to equal the world’s top carriers, Jat introduced electronic booking in 2007, and as of May 10, 2008 has begun issuing electronic tickets. Soon you will be able to join our new Loyal Passengers Club called Flying Dots and obtain information about all our promotional rates by accessing http://www.jat.com/. Along with sincere wished to passengers, business partners and friends of Jat for a successful 2009, I would like to promise in addition to the already considerably improved offer, you will soon discover a series of other amenities when flying by Jat worldwide. The main goal Jat has set in 2009 is to remain a modern, competitive, flexible and stable airlines.

Saša Vlaisavljević

Adria Airways denies price fixing

Adria Airways denied the claims made by the Slovenian Consumer Association that the airline abused its position on the market on the line Ljubljana – Brussels. On Monday, the Association invited the Competition Protection Office to investigate potential abuse of the dominant position of the airline because the tickets on the mentioned line were cheaper before the Slovenian presidency but heavily increased in the few months after the presidency was complete. Adria Airways claims that they have a business agreement on a joint sale of tickets with Brussles Airlines. The price of the ticket depends on the duration of the flight, available capacities, flight occupancy, and the time of the purchase. Lower prices before and during the presidency were the result of increased demand, adds the airline.

Hackers strike again

Kosovo Albanian hackers which have been attacking websites from various countries in the region over the past few months have claimed its latest victim – Belgrade Nikola Tesla Airport. Earlier this year the website of Montenegro Airlines was paralysed for weeks, its content replaced with Albanian flags and slogans such as “Free Kosovo”, alluding to the disputed region still formally a part of Serbia. Belgrade Airport has reported that yesterday, in the morning hours, the Kosova Hackers Group (KHG) attacked the website with timetables and airport information replaced with various texts about the “Republic of Kosovo” and Albanian unity. Belgrade Airport was unable to stabilise the entire situation as many parts of its website were left blank yesterday. Today the website is once again working as per usual. The group also attacked the popular portal “Serbian Cafe” and various ministry websites.

Earlier in the year Montenegro Airlines was attacked and its webpage unusable for weeks. Although the airline announced an entirely new look web page it is yet to publish it although it is expected to be online early next year.

Award winning Sarajevo Airport

Each year British Airways, the national airline of the United Kingdom, through its quality control department, releases a list of airports and handling agents whose performance of working tasks have significantly contributed to the realisation of targeted goals in this industry. Upon a detailed review of all the flights taken through the Sarajevo Airport in respect of the ground handling of aircraft, passengers and baggage, as well as a inspections conducted by authorised experts of this reputable carrier, Sarajevo International Airport was given the Gold Award for Best Performing Airport in the 2007/08 winter season. This is just another, like many previous awards the staff of Sarajevo International Airport have received. The airport states that this award puts pressure on staff to keep such level of quality in the future, providing to the utmost secure and reliable services to its customers. Ironically the British carrier has ceased services from London to the Bosnian capital.

Official airline 22 years later

Serbia’s national carrier Jat Airways has been named the official carrier of the 2009 Summer Universiade Games which will take place in Belgrade from July 1 to 12. This way Jat will become the official carrier of a major sporting event after many decades. Jat has already been the official carrier of the Universiade Games. To be more exact it was 21 years ago (1977) when the event was held in Zagreb and Jat was a powerful European airline. Universiade is the second biggest sporting event after the Olympic Games. It comprises of younger athletes which will become future Olympic competitors. It comprises of more than 15 sports and will be held in 5 cities across Serbia, with the opening taking place at Jat’s hub – Belgrade.

As a result of the upcoming event Jat will start a promotional campaign. The airline will place a special sticker on its aircraft displaying it as the official carrier. Furthermore its 2009 calendar photos display a mix of sports and its fleet interacting with each other. However Jat has a much more important problem to worry about, mostly about its survival until July. Many suspect that a major change in management and a major change in attitude on behalf of the government will have to take place. Nevertheless Jat is hoping that Universiade will reel in many passengers.

Passenger numbers rise despite trouble

Serbia’s national air carrier, Jat Airways, has reported good results in the first 11 months of this year despite the airline’s major financial troubles. From January to the end of November Jat Airways carried 1.289.242, which is a 5.4% rise compared to last year. The Cabin Load Factor (CLF) stood at 64%, which is a 2% increase. The Weight Load Factor (WLF) also rose by 2%. Traffic bound for Montenegro, Jat’s biggest market after Serbia, recorded a 3% increase in passenger numbers, while cargo transport dropped by 19%. The CLF stood at 62%, a 5% increase. The Euro-Mediterranean traffic recorded a 3% increase in passenger numbers, while cargo transport fell by 11% in this sector. The CLF stood at 62%, a 2% increase. Charter traffic recorded growth in the number of carried passengers – 22%, while the CLF, which was 78%, remained unchanged compared to the preceding year. Jat Airways aircraft from January to November logged 35.796 block hours, which was 1% up on the planned level and 1% above the level recorded last year.

Croatia Airlines’ answer to financial crisis

The Global Economic Crisis has had a devastating effect on the aviation industry with multiple airlines going into bankruptcy and once powerful carriers such as Alitalia on the brink of collapse. The Global Financial Crisis is yet to have an impact on the aviation industry in the former Yugoslav republics although Jat Airways’ failed privatisation is largely blamed for the crisis. Croatia has seen a drop in tourist numbers and Croatia Airlines is preparing for 2009 which could see a further decrease. Croatia Airlines CEO, Ivan Mišetić (pictured above, to the right), said that if passenger numbers decrease in 2009 Croatia Airlines would push back its order for new aircraft (4 Airbus A319s and 2 Dash8s). Due to the price of fuel in the first half of the year, Croatia Airlines ends November with a total net loss of 21.5 million Kuna (approximately 2.990.000 Euros). Even though fuel prices have significantly declined in the last few months Croatia Airlines is still not benefiting from it. The airline says it could feel some relief from the decreased fuel prices in the first quarter of 2009. The airline has also confirmed it will not decrease its ticket prices as it has never increased them during the fuel crisis. The question of Croatia Airlines’ aircraft order could be in jeopardy next year but only time will tell. Economists predict that the world will see a stabilisation in the world economy in late 2009.

Adria in trouble

The Slovenian Consumer Association suspects that the Slovenian flag carrier Adria Airways has a cartel agreement with Brussels Airlines, it was announced yesterday. The Belgian carrier and Adria, the only carriers flying between Ljubljana and Brussels, both charge nearly 800 Euros for a return ticket. Code sharing between the two airlines began during Slovenia’s presidency of the European Union that lasted from January to June 2008. This week both companies, for a return ticket from Ljubljana to Brussels, charged slightly less than 800 Euros. As a result the Slovenian Consumer Association suspects that there is enough proof to show that price fixing is being carried out between the two airlines. It is interesting to note that a return ticket from Ljubljana to Berlin via Brussels costs only 500 Euros. The Association believes that the regular return ticket to Brussels from Ljubljana should cost approximately 300 Euros. On flights where there is significant competition (most notably Paris and London), Adria’s ticket prices are much more reasonable and competitive.

Due to the high price of Adria’s tickets many passengers are choosing to drive to Zagreb, Vienna or Trieste and depart from those airports. Adria Airways could be found guilty of price fixing by Slovenian law. Recently British Airways admitted to price fixing.

New flights to Split

Although the global financial crisis should have a serious impact on tourism across the world, Split Airport, located on the Dalmatian coast in Croatia does not seem to be feeling the effects. Although Croatia Airlines ceased operating many services from the city this winter, airlines operating on a seasonal basis should return next year. As a result airlines have announced new services to Split. This includes the French charter airline Axis Airways as well as the Finnish Blue 1 that will operate from Helsinki to Split twice a week. The low cost Jet2.com will begin flights from London Gatwick Airport but will only operate once per week. The German Lufthansa will begin flights from Munich to Split twice a week during the summer of 2009. Split will also, for the first time, be connected to the Slovakian capital Bratislava via Vip Air. Jet2.com will have added competition as British Airways, after a long break from Split, will return operating flights from London Gatwick three times per week.

By the end of this year 1.200.000 passengers are expected to pass through Split Airport, which is a mild 2% increase when compared to last year. Split is one of the rear airports in Croatia that should report a year end rise in passengers.

Sunny outlook for 2009 summer at Dubrovnik

Dubrovnik Airport and tourists are already receiving positive news from major world carriers regarding new flights which will be introduced from the coastal Croatian city of Dubrovnik (pictured above). British Airways is introducing flights from London Gatwick Airport to Dubrovnik starting from the 2009 summer season. From March 29, 2009, British Airways will operate flights between Dubrovnik and London Gatwick daily. On Monday, Wednesday, Friday and Sunday flights will be operated twice daily. From June 2, 2009 the national airline of Spain, Iberia, will introduce flights from Madrid to Dubrovnik. Flights will be operated 3 times a week (on Tuesday, Saturday and Sunday). From July 2, frequencies will be increased to 5 flights per week (added flights on Thursday and Friday). These flights will be welcome as the airport is currently underperforming with passenger numbers, reporting a slightly smaller number of passengers in comparison to last year. A new terminal is currently under construction and should be complete in 2011 according to the current construction schedule.