Austrian and Jat unite

No easy ride for Niki

Austrian and Jat Airways have united forces in order to protect their monopoly on the Vienna – Belgrade – Vienna service which they have held for years. The 2 will face tough competition from the Austrian based low cost Niki, which will begin services from Vienna to Belgrade on February 1. Austrian has negotiated with Jat and decided to launch 4 extra weekly services. The airline’s new flights will depart from Vienna in the evening and depart from Belgrade at 4.40 in the morning. However, Jat is negotiating to shift the departure time from Belgrade to a more suitable morning hour. Jat Airways will code share on all 4 additional flights.

On the other hand, Jat Airways will increase capacity on services to Vienna. The airline will upgrade 4 of its weekly flights from an ATR72 to a Boeing B737-300. Austrian will also codeshare on these flights.

The 2 airlines will have 31 weekly flights from Belgrade to Vienna from February 1, 2010 when the extra frequencies commence. Austrian and Jat are hoping to extinguish the competition they face from Niki. A return ticket with Austrian/Jat will set passengers back 107 Euros including all taxes.

Meanwhile, Romania’s TAROM will begin services from Bucharest to Belgrade soon. Jat Airways will codeshare on the service.

Crisis not over yet

Zagreb reports greater passenger decreases

Some Croatian airports for the month of October have reported a big decline in passenger figures when compared to last year. Over the past few months the number of passengers handled was lower than last year but the losses were not as great as they were at the beginning of the year, prompting the belief that all the affected airports will stage a recovery by the end of 2009. However, Zagreb, Split, Dubrovnik and Pula continue to see passenger numbers fall while Rijeka is the newest addition to the list.

The number of passengers handled at Zagreb Airport in October decreased by 10.4%. A total of 174.490 passed through the airport this October compared to last year’s 194.747. The number of passengers transiting through Zagreb Airport fell by a significant 71%. Rijeka, which saw a 5.6% increase in September saw a 15.3% passenger decline in October. Continuing with its downward trend was Pula Airport which handled 10.781 passengers, down by 16%. Dubrovnik and Split also reported losses – 8.2% and 2% respectively.

On a more positive note, Zadar continues to report substantial passenger growth with its October 2009 figures increasing by 83.8%. This growth can be largely contributed by the increased number of operations from the airport. Osijek also reported good results with passenger figures increasing by 62.6%.

Passenger figures at Croatian airports in 2009:
· January
· February
· March
· April
· May
· June
· July
· August
· September

Forli flights for Niš

Soon in Niš

On Thursday, after weeks of negotiations, the Italian low cost airline Wind Jet confirmed that it will commence services from Forli to Niš Constantine the Great Airport in Serbia. The agreement was signed between the airport’s and airline’s management in the Serbian city. Wind Jet will operate flights every Thursday, once per week. This excludes the inaugural flight which will operate on Saturday, December 26. A return ticket from Forli to Niš will set passengers back between 83 and 200 Euros (depending if the passenger decides to choose greater flexibility with ticketing) – all taxes included. Fares above or below this price range won’t be found until June next year as the prices have been fixed during the promotional trial period.

Forli is located South-East of Bologna and will take passengers an extra hour to arrive there by bus, if they choose to do so. The management of Niš Airport is hoping that Swiss authorities will issue a license to Montenegro Airlines so that it can begin services from the airport to Zurich. Although, this seems unlikely at this point. The CEO of Jat Airways, which terminated all services from Niš this winter, said that the Serbian national carrier is interested in restarting flights from the city if it is economically viable. After a meeting with the mayor of Niš, Srdjan Radovanović said that the airline will look into possible routes that could be launched during the 2010 summer season.

All flight details for the new Forli – Niš service can be found on the right hand side in the “new route launches” section.

Mat Airways – the story continues

Mat Airways awaits license

As was reported earlier this year, the defunct national carrier of Macedonia will be revived under a new name, Mat Airways, in a combined Serbian-Macedonian business venture. As the Macedonian website “Total” reports, the new owners will allegedly be Serbia’s largest tour operator Kontiki Travel, as well as the Belgrade based Metropolitan Investment Group and Gomeks Financing from Skopje which would take care of finances. Gorgi Čačkirov, a former MAT pilot, has been named the CEO of the airline.

The Macedonian Civil Aviation Agency (ACV), which had been in constant war with MAT Macedonian Airlines until it finally grounded the airline, has not confirmed whether Mat Airways registration papers had been handed inn but warns that any start up airline in Macedonia must have at least 51% of its shares owned by a Macedonian company. The ACV also says that when registration papers are handed inn a commission will have to rule whether r there is a connection between the defunct MAT and Mat Airways.

Reportedly, several former MAT employees are working on the new Mat Airways project. “It has not been decided when the airline will begin operations. Mat Airways is an independent airline and is not associated with MAT”, Čačkirov says.MAT Macedonian Airlines has still not begun bankruptcy proceedings. When this process commences it ill be determined who exactly will receive the airline’s property, including a Boeing B737-500. Mat Airways is the latest in a string of companies trying to register airlines in the country following the demise of MAT.

easyJet to Priština

Soon in Priština

After Air Berlin created a new base at Priština Airport, the low cost easyJet has requested a license from authorities. From June 19, 2010, easyJet is initially expected to operate 2 weekly services from Geneva, with the option to expand its Priština network further in the future. In markets where easyJet operates, its strategy has been to offer low prices. In the first three quarters of this year, easyJet had an income of 2.6 billion British Pounds and 45.2 million passengers.

easyJet currently has regular flights to some 100 cities in 27 European countries. Following Air Berlin, which began flights to Priština from Swiss and German cities in November, easyJet will be the second major European air carrier to enter the market. However, easyJet will first have to wait for approval before tickets can go on sale.

As a result of the increased number of airlines operating flights to Priština, the airport is one of the rare in the region posting strong passenger growth this year.

Revived interest in Jat?

Deja vu

Serbian media are reporting that Turkish Airlines, Aeroflot and the Greek based Marfin Investment Group, are all interested in becoming partners with Jat Airways. According to media reports, Turkish Airlines is looking for yet another strategic partner in the region and would take over a part of the Serbian Government’s share in Jat, like it has done with Bosnia’s B&H Airlines. Turkish Airlines wouldn’t, apparently, provide Jat with finances but would provide the airline with much needed aircraft.

Russia’s Aeroflot which seemed keen on purchasing Jat in 2008, only to change its mind mid-year, is also interested in a strategic partnership with the Serbian carrier. The Marfin Investment Group, which recently purchased Olympic Airlines (now known as Olympic Air), is also reportedly interested in purchasing Jat and reorganising the airline.

However, in September, the Serbian Government announced that it does not intend to privatise Jat until 2012, by which it expects the airline will be back on its feet. The Serbian minister for infrastructure says that “there are a lot of interested parties willing to purchase Jat. The Government has formed a work group which will evaluate offers and the terms of any possible sale”.

The news should be taken with great caution as often media tend to sensationalise aviation news as was visible during Jat’s privatisation process last year when there were reports of wide scale interest. In spite of this it turned out that no company even purchased the tender documentation for the privatisation of the airline.

Ljubljana Airport transformation

Future of Ljubljana Airport

Passengers and income have significantly declined at Slovenia’s largest airport this year, however development which is taking place is securing Ljubljana’s leading position when it comes to modernity and future prospects.

Figures show that the number of passengers and the amount cargo at the airport has doubled within the last decade. This places it among the most important regional distribution and logistics centres. The opportunities this trend offers were recognised by Ljubljana Jože Pučnik Airport’s management, which has made plans to build a city in its own right next to Slovenia’s central airport. Aeropolis will stretch over 80 hectors of land and will radically change the appearance of the airport. This substantial project aims to develop the airport’s commercial infrastructure and provide hotel accommodation, office space, commercial premises and logistics services, which the airport currently lacks but are in high demand. “Investors have already expressed a considerable interest for the projects”, Zmago Skobir, the CEO of Ljubljana Airport said to the “Slovenian Times”.

Ljubljana’s airport will be transformed into a bustling hub catering to the needs of travellers, those involved in business as well as for the demands of freight traffic. The master plan includes a hotel area, business centre, business park and logistics park. The implementation of these four key projects is about to begin. The project will begin with the construction of a new airport terminal building. The construction of Aeropolis will take place in four phases: the first one, which should be complete in 2012, is decisive and most important because it will dictate the further development of the entire project. Its priorities are a hotel and congress centre alongside the further enlargement of the logistics park. Other milestones in the expected development are the relocation of the existing access road and the construction of a business park by 2015 as well as railway construction in the final stage. The continuous upgrade of the infrastructure is planned, however, the first two stages will dictate its extent.

Other airports close by have recognised the scale of Ljubljana’s project and the transformation it will undergo. The previous CEO of Zagreb Airport said, a few months ago, that Croatia’s main airport must start with the construction of a new terminal otherwise it might loose clients to Slovenia’s Ljubljana Airport. The airport project in Ljubljana has been labelled of national importance by the Slovenian Government.

Serbia invites low cost airlines

Will Belgrade be seeing pink anytime soon?

Ryanair, Wizz Air and easyJet , Europe’s leading low cost airlines have been invited to Belgrade by the Serbian Civil Aviation Directorate. The Directorate will present to them the structure of Serbia’s travel industry and the advantages of doing business in Serbia. The presentations will be headed by the director of Serbia’s Civil Aviation Directorate, Nebojša Starčević (a former Jat Airways CEO). “We want to show that things in Serbia are changing”, a spokeswomen from the Directorate was quoted by local media. Last year, answering to questions posed by a Belgrade newspaper, a Ryanair spokesperson said that “the airline has no immediate plans to begin services to Serbia”. None of the 3 aforementioned airlines have responded to the Directorate’s invitation.

Drawn in by the new open sky agreement and a European Union decision to allow Serbian citizens to travel visa free from December 19, airlines from Romania, Hungary, Slovenia and Croatia are set to begin flying from Belgrade in the next 6 months. Romania's TAROM will commence flights between Bucharest and Belgrade on December 7. Croatia Airlines and Slovenia's Adria Airways are due to begin flights to Belgrade next year. The Adria Airways service from Ljubljana to Belgrade is planned from March 1, while flights from Zagreb are expected to commence on May 1. Hungary’s Malev is set to begin flights to Belgrade in mid December.

No go for low cost airlines

No low cost flights to Montenegro anytime soon

Montenegro, a country whose economy is centred on tourism, is yet to attract any low cost airline. It seems that no low cost carrier is interested in beginning services to the country although the Montenegrin newspaper “Vijesti” outlines that the Montenegrin Government has not extended a helpful hand either. The ministry for transportation, maritime affairs and telecommunications says that people should be aware of the dark side of low cost airlines. “Low cost airlines that are interested in commencing services to Montenegro want certain amenities, such as lower airport taxes, reduced airport handling fees and so on. If we allow this to happen we would seriously be infringing competitiveness regulations and equal rights for all”, the ministry outlines. The ministry also added that no low cost airline has been issued permits to operate to Montenegro because no airline has asked for one.

The ministry has rejected claims that the Government is protecting the state owned Montenegro Airlines, which will end the year on a positive note, with more passengers and a break even balance sheet. Many Montenegrins are opting to fly out of Dubrovnik in Croatia with low cost carriers, the newspaper adds. Montenegro’s ministry of tourism says that it is trying to attract high-end tourists and present Montenegro as a luxurious tourist destination for the rich and famous.

Do you think low cost airlines could turn a profit on services to Podgorica and Tivat? Send a comment with your thoughts.

Recovery in sight for Adria?

Adria flying into profits and losses

Adria Airways posted an 800.000 Euro profit in the third quarter, its first profit in 2009. However, the airline expects a full year loss. This is despite the fact that the airline is expected to post another profit in the, current, fourth quarter. Speaking to the Slovenian News Agency, Adria Arways’ CEO, Tadej Tufek, said that the airline saw a decline in revenue due to the global financial crisis, which has led to a passenger decline as well as a financial deficit in other sectors Adria gains revenue from, such as cargo and aircraft maintenance. Tufek also mentions that the passenger structure has changed and that the airline has seen the transition of many business class passengers to economy, which in turn has seen finances tumble.

Nevertheless, the airline maintains that even with an avarage 15% passenger decrease in the first 9 months of 2009, it is still competitive. Adria is one of the rare European airlines which enjoys little competition on most of its services.

In a statement, Adria also confirmed that it will become a full member of Star Alliance in January. The group announced the elimination of the regional member designation (with Finland’s Blue1 and Croatia Airlines being the other 2 members) in June.

Adria removed a Boeing B737-500 from service this month. Next year it will withdraw one Airbus A320 from service and add 2 Airbus A319s. By next summer it plans to operate one A320, two A319s, four CRJ900s, six CRJ200s and one CRJ100.

Croatia Airlines losses swell

Passengers stable- finances trembling

Croatia Airlines has seen its losses soar. On Wednesday the airline reported that it ended the first 9 months of the year with a net loss of 94.2 million Kunas or 12.88 million Euros. During the same period last year, the airline reported losses of 22.2 million Kunas or 3 million Euros. Croatia Airlines’ operating earnings also fell by 18%. This is despite Croatia Airlines’ cost cutting measures, which were introduced earlier in the year. The Croatian national carrier has, unlike most European carriers, managed to keep its passenger numbers stable in spite of the global financial crisis. However, this did little to save the airline’s finances.

The other 2 main airlines in the region, Adria and Jat also reported losses with the latters amounting to 11 million Euros for the first 9 months while Adria has reported some improvement with its figures.

Despite the grim news, Croatia Airlines has announced that it will prolong its seasonal Split to London service until the end of November. After the winter break, the service will recommence in March.

Costly promotion?

5 million Euros for taxi shuttle

Jat’s latest initiative to win back passengers involves offering a free taxi service within Belgrade for all of those passengers that have a return ticket with Jat. While the airline’s management believes the move will lure passengers away from increasing competition, local media are speculating whether the move is financially viable.

The entire project will set Jat back some 5 million Euros in 2010. The airline recently called upon all taxi companies interested to take part through a public tender. Jat is requesting for 250 taxi vehicles to be available to the airline on a daily basis. The current projection is that 1.600 taxi commutes would be carried out to the airport as a result of this measure. This number could rise if the number of passengers increases, as projected by Jat’s management.

The Serbian national carrier did not wish to estimate the cost of the project. They say that the taxi service is being introduced as a new commodity for its passengers and that they expect “only positive effects from this measure which will mean more passengers and a greater profit for Jat”.

Under the tender rules, several taxi companies can bid jointly in order to win the job. However, the 250 vehicles that will be used on a daily basis must be equipped with a GPS system, receipt printer and the cars must be of a higher standard. Do you think Jat’s new service is a waste of money or a good way to appeal to passengers? Send a comment.

“Catastrophe” in the making

Zadar unhappy with proposed regulations

The vice mayor of Zadar has described the new Croatian airport regulations as a “catastrophe”. Speaking to the “Slobodna Dalmacija” newspapers, Dražen Grgurović says, “It is a real catastrophe, not only for the airport but for Zadar and the county. We will seek help from the Government and if they don’t listen we will go to Brussels ourselves and fight for our rights”.

Under the new regulations, which will be in force the day Croatia becomes part of the European Union (if the law is passed), Zadar Airport will loose its status as an international airport and will no longer be able to handle traffic coming from non-Schengen countries, which includes the United Kingdom and Ireland. Zadar Airport, which was on the brink of financial collapse only a few years ago, has improved dramatically with the arrival of the low cost Ryanair which primarily transports holiday makers from the UK on services to Zadar. The airport is going through a renaissance this year as it expects to handle some 200.000 passengers and is Croatia’s biggest airport improver.

“This is a question of survival for us. If these plans go ahead it would be best for the Government to close our roads and ports as well. Why would such an insignificant little town and its insignificant people need them? We don’t need anything”, the vice mayor comments sarcastically.

Due to its large passenger increase, Zadar’s terminal is being extended to a total of 7.500 square metres. The airport parking is also being expanded while plans are being put into place to extend the airport’s runway.

More passengers – greater losses

B&H to have more flights to Istanbul

In an interview to the Internet portal beta.ba, Nudžeim Rečica, the CEO of B&H Airlines, said that the airline will finish the year with a financial loss although he can not precisely say how much it will amount to. Rečica blames the loss on the global financial crisis and the significantly lower ticket prices the airline is offering in order to fend off competition. He reminds us that B&H has had 2 difficult successive years. In the first half of 2008 the airline made a profit of 800.000 Convertible Bosnian Marks (410.000 Euros) but ended the year with a 1 million Euro loss.

Speaking about the airline’s future plans, Rečica revealed that B&H will operate daily flights to Zurich, Frankfurt, Istanbul and Vienna while it will continue flying to its destinations in Scandinavia – 2 to 3 times per week to Copenhagen, Stockholm and Gothenburg in 2010. “We plan to reduce the number of flights we have but concentrate on our key markets”, Rečica says. So far this year, flights to Prague, Berlin and Skopje have been terminated.

“Currently we are drafting our future strategy. There is a plan to replace the 2 current ATR72 turboprop planes”, Rečica says and adds that the airline will receive 2 Boeing B737-700s, the first one arriving in January and the second in March of 2010.

So far this year B&H Airlines transported some 80.000 passengers, well ahead of last years total which amounted to 63.000. Rečica believes the airline will reach 100.000 passengers by December 31.

Aeromak on track

Skopje awaits Aeromak

The launch of Jat Airways’ subsidiary in Macedonia, Aeromak, seems to be on track. The airline is awaiting a license approval from the Macedonian Aviation Directorate but is expected to receive it soon. On November 3, the airline registered its website http://www.aeromak.com.mk/, which is currently under construction. The airline has also revealed its logo, which comprises of the word “Aeromak” written in capital letters. The first half of the word, “Aer”, is in dark blue while the second, “Mak,” is in light blue with the “O” having outlines of what look to be mountains within it.

Aeromak is owned 100% by Jat Airways and the airline has registered its headquarters at Partizanski Odredi Street, number 17, in Skopje in Macedonia which is where Jat’s, recently completely renovated, headquarters can be found. Stanislav Zaharieski has, according to registration documentation, been named as the airline’s commercial director for sales and marketing. In its registration papers it says that the company will have 150 employees.

In September 2009, Mile Janakieski, Macedonia’s Minister for Transportation and Communication, said that Aeromak will begin services in Macedonia. An operating license is believed to be issued to the airline in return for the millions of Euros owned by the bankrupt MAT Macedonian Airlines to Jat Airways. Aeromak was registered as a Macedonian company in 1999 but has now applied for on operating airline license. Aeromak is scheduled to launch in late March and is part of Jat Airways’ 2010 recovery plan.

No break for Niš

The good old days at Niš Airport

The fairy tale ended before it even started. A month ago the optimistic CEO of Niš Constantine the Great Airport in Serbia announced the arrival of many new airlines which would see the revival of the airport as Serbia began applying the European Union’s open sky policy. Montenegro Airlines announced flights from Niš to Zurich while the Swedish MCA Airlines announced flights from Stockholm.

However, nether of the two airlines are set to begin services from Niš. The Swiss authorities have refused to issue Montenegro Airlines an operating license for all flights from Niš. Although Montenegro Airlines still hopes there is a possibility for the flights to begin, it is highly unlikely. The Montenegrin carrier will, as a result, also ditch the planned Podgorica to Niš service. There is even more bad news. The Swedish based MCA Airlines declared bankruptcy on November 11 and has ceased all operations. Its planned 3 weekly service to Niš was supposed to commence in mid December.

The management of the airport has not commented about these losses. Last month the airport’s CEO announced that the Italian based Windjet would commence services from Bologna some time in the near future although no firm dates were given and the airline has not released any information regarding possible flights to Niš.

Until further notice, Niš will be left without any flights and passengers. Serbia’s Jat Airways cancelled its only service from Niš (to Zurich) at the start of the winter season sighting low profitability.

Lobbying

Rijeka Airport passenger terminal

After the Croatian Government announced its support of new air regulations, which are expected to be in force some time in the future (if the regulations, part of a wider law, are passed), lobbying by politicians, airports and other organisations has begun.

Rijeka airport’s CEO said to the “Novi List” newspapers that he is firmly against the new regulations which will see his airport unable to handle non-Schengen traffic. “As Croatia’s main port city, Rijeka is a place of business and thus needs an international airport”, he says. The county of Primorje-Gorski Kotar and the City of Rijeka, which hold a 50% stake in the airport (the other 50% belonging to the Croatian Government) also oppose the Government’s current proposal. Officials say that they will request for the regulations to be adjusted so as to include Rijeka with the other big 3 – Zagreb, Dubrovnik and Split. The officials from the county say that Rijeka has a port, highways, rail and economic zones and needs an airport which can handle traffic coming from non Schengen countries.

Istria county prefect Ivan Jakovčić said to the “Glas Istre” newspapers that he believes that no airport in Croatia will loose its status as an international airport and that meetings are being held with the Ministry of sea, transport and infrastructure to work out the current difficulties.

According to the Croatian Ministry of sea, transport and infrastructure, Croatia has a total of 10 international airports. The largest are Zagreb, Dubrovnik and Split. This year Zadar marks the greatest improvement in passenger numbers while Pula reports the greatest decline. The Ministry is yet to comment about the proposed regulations.

Swiss rejection

No go for Montenegro Airlines

Montenegro Airlines faces the possibility of delaying or ditching the launch of its services from Niš Constantine the Great Airport in Serbia to Zurich after the Swiss authorities declined to issue a license to Montenegro’s national carrier. Recently, Montenegro Airlines received fifth freedom rights to operate flights from a country other than its own (Serbia) to another country (Switzerland). The Serbian Aviation Directorate issued the all clear to Montenegro Airlines and even put together Montenegro Airlines’ license request to the Swiss authorities. However, the Swiss are not interested. Montenegro Airlines used to operate flights from Niš (and Belgrade) to Zurich when it was flying the flag of the State Union of Serbia and Montenegro. After the break up in 2006, Montenegro Airlines was forced to end all flights between Serbia and countries other than Montenegro. Montenegro Airlines hoped to escape this problem by registering a new airline in Serbia called Master Airways. The airline never took off to the sky and a wide scale corruption investigation is being carried out against all of those involved in the project.

The Swiss authorities are set to give their final decision within a month. The Swiss do not wish to issue fifth freedom rights to Montenegro Airlines whose country is not part of Europe’s open sky policy, but intends to benefit from it on the count of other countries.

Visit tomorrow for latest developments regarding Croatia’s controversial new airport regulations

Uproar at Croatian airports

“The winner takes it all”

Alarm bells are sounding across Croatian airports as new regulations are set to strip all airports in Croatia, with the exclusion of Zagreb, Dubrovnik and Split, from their status as international airports. As a result Pula, Rijeka, Osijek and Zadar airports will no longer be allowed to handle aircraft arriving from countries outside of Europe’s Schengen Zone.

The new regulations, which have received their blessing from the European Union, will see Pula Airport loose a third of its passengers. Rijeka faces even greater problems. The airport is on the verge of financial collapse and the airport’s CEO has said that the airport could soon be closed if a financial solution is not found quickly. The airport did receive a cash injection from the government earlier this year. The new regulations are yet another problem for Rjeka Airport. In order for the airport to make a profit it needs to handle approximately 450.000 passengers per year. However, the airport is expected to handle only 120.000 passengers this year. Rijeka’s CEO says that the airport is now turning to cargo traffic and is hoping to make a profit in that sector.

The proposed new regulations have infuriated tour operators across Croatia. Pula has launched a petition against the new regulations.

All countries that form the European Union are part of the Schengen Zone, with the exception of the United Kingdom, Ireland, Bulgaria, Cyprus and Romania. Non-EU members Iceland, Norway and Switzerland are part of the Schengen Zone.

The new regulations still have to be passed but they have strong backing from the government. Rijeka Airport CEO still has hope that the regulations will be dismissed and describes them as completely “illogical”.

Winners and losers

Can Adria stage an end of year comeback?

It has been a difficult year for the aviation industry which has been hit by the global financial crisis. The crisis came before the airline industry could recover from the fuel price hike and experts predict the industry won’t see any signs of recovery in 2010. An added deterrent for passengers in Europe is the recent wide scale outbreak of the H1N1 virus.

This year Croatia Airlines is once again set to secure its position as a regional leader, when it comes to passenger numbers. The airline, despite previous predictions, did not suffer greatly from the crisis even though the country’s tourist industry did. Over the previous 10 months, on average, Croatia Airlines has seen a 4% passenger decrease on a monthly basis. However, as the New Year approaches the airline is reporting greater passenger losses when compared to last year.

Despite a change in management and a 5 day strike which paralysed the airline, Jat Airways is still ahead of its Slovenian counterpart Adria and is set to finish the year in second place, passenger wise. The decline in passengers has not only been caused by the financial crisis but also because of the excessive loss of passengers travelling between Serbia and Montenegro, which, under an agreement made by Jat’s previous management, have been handed over to rival Montenegro Airlines. The airline is expected to have just over 1 million passengers by the end of the year.

Adria Airways is perhaps the biggest looser because without any major internal crisis it has seen an average 15% passenger decline each month. During the first 6 months of last year the airline enjoyed the benefits of being the flag carrier of a country residing over the presidency of the European Union. A year later, the airline no longer has so many business passengers to count on and combined with a recession has seen a passenger decline, although a late comeback is still possible. The airline’s passenger decline rates have been decreasing steadily as the New Year approaches.

It should be noted that all 3 airlines will end the year with big financial losses.

Out of the smaller EX-YU carriers, Montenegro Airlines has pulled off a good year, reporting an increase in passenger numbers (in part due to its new found glory on services to Belgrade) and will financially end the year break even. B&H Airlines has also had a good year passenger wise but is set to post a financial loss.

B&H to get Boeing B737-700

Boeing B737-700 ... soon in B&H livery

The CEO of B&H Airlines has revealed that the airline will be receiving 2 Boeing B737-700 aircraft, the first of which will enter the fleet in January. A second aircraft of the same type will arrive in March 2010, just prior to the start of the summer season. As a result, the Bosnian national carrier will return its current sole jet engine aircraft, the Boeing B737-400, to its owner Turkish Airlines. The B737-700s, which will be registered in Bosnia and Herzegovina, will be approximately 4 years old.

Speaking of new services B&H’s CEO, Nudžeim Rečica, said in an interview on Saturday that the airline will begin operations to Amsterdam which will allow its passengers to connect to flights to the United States and Canada. Rečica also announced that the airline’s management is working on improving its schedule and frequencies to Istanbul, Vienna, Frankfurt and Zurich and is hoping to sign code share agreements with Austrian and Lufthansa on flights from Sarajevo to these cities.

Unlike previous announcement by Rečica, that the airline will operate with 3 jet engine aircraft by the end of 2010, it now appears the airline will operate with 2 ATR72s and 2 Boeing B737-700s.

Trebinje ahead of schedule

Trebinje

As reported earlier, Trebinje is set to become Bosnia and Herzegovina’s fifth international airport. Previously, it was reported the airport would be operational by 2011 however, now, the Prime Minister of the entity of Republika Srpska, Milorad Dodik, believes aircraft will be arriving and departing from Trebinje by the end of 2010.

Dodik says that if a concessionaire is not found, the government of the Republic of Srpska would finance the airport’s construction out of its own funds. He says that 2 feasibility studies have been carried out and both show that an airport in this area, despite its close proximity to Tivat and Dubrovnik, would be a success. The Prime Minister also says that construction should begin in April of 2010 and that the first phase of the project should be completed by December that same year. The first phase of the project will cost approximately 30 million Euros.

The airport’s CEO, Zoran Okilj says that Trebinje would have intense traffic 10 months per year. “We are looking to attract tourists from Eastern Europe, Serbia and business passengers at first”, he says. He also states that the entire project will take 3 years to be complete and that the airport will have 400 employees.

The airport’s CEO says that despite the likes of Dubrovnik and Tivat being so close, Trebinje will have passengers because, “Unlike Dubrovnik we don’t have strong winds coming from the sea and our airspace is not as busy. Tivat on the other hand can not expand due to its geographical location. Also, we do not have snow and the climate is perfect”, Okilj says.

Adria applies for Belgrade

Adria Airawys … soon in Belgrade

Slovenia’s Adria Airways has applied for a license to commence flights from Ljubljana to Belgrade on March 1, 2010. The Serbian Civil Aviation Directorate confirmed the news on Friday. It is expected that Adria will receive the license. It usually takes up to 90 days for an airline to be issued a license. For years Adria has tried to commence services to Belgrade. However, due to a bilateral agreement between Serbia and Slovenia, the carrier of each country is only allowed to operate flights to 1 city in the others country. Since Adria operates flights to Priština, the airline could not receive necessary permits for Belgrade flights, until now.

Jat Airways serves Ljubljana and has had success on the route as travel between the 2 countries has significantly increased over the past few years. Only a few weeks ago Jat signed contracts with Slovenian tour operators allowing them to transport Slovenian tourists heading to Belgrade during 2010. The airline is also negotiating with Slovenian hoteliers in order to bring Serbian tourists to Slovenia during the 2010 summer. Jat is also planning to begin charter flights to Portorož, in Slovenia’s west in 2010.

Trebinje gets the all clear

Trebinje awaits airport

Trebinje, located in Republika Srpska in southern Bosnia and Herzegovina received the all clear from the government on Thursday for the construction of a new airport, which will be the second, after Banja Luka, in the entity and the fifth international airport in the country.

On Thursday the Government of Republika Srpska approved funds and allocated 1.6 million Convertible Bosnian Marks (820.000 Euros) for the Trebinje Airport project documentation. The airport is expected to be operational by 2011. The Prime Minister, Milorad Dodik, said that building an airport in Trebinje is one of the strategic projects of his government. He expects the construction of a 2.6 kilometre runway to begin in the spring of 2010. The Government plans to seek a strategic partner for the project.

A future concession holder will be expected to build the runway and accompanying facilities, and create conditions for normal operation. Trebinje Airport CEO Zoran Okilj said the airport will initially have a capacity of 250.000 passengers on an annual basis, while the number will grow to 1 million by the time the project is completely finalized. Trebinje will welcome all low cost operators, he says.

Earlier this year the Austrian based consulting firm “Airport Consulting Vienna” carried out a feasibility study regarding the economic viability of Trebinje Airport which is being built so close to Dubrovnik Airport in Croatia and Tivat Airport in Montenegro. The results of the study show that Trebinje could become a major rival to the other two well established airports. The report states that Trebinje should strive to attract low cost carriers. The report also states that while the airport might not be able to turn a profit in the first few years of operation it could become an extremely competitive airport within Bosnia and Herzegovina. Due to its natural beauty, Trebinje could attract sizeable amounts of tourists. Bosnia and Herzegovina currently has a total of 4 international airports – Sarajevo, Mostar, Tuzla and Banja Luka.

Montenegro delays Niš launch

The waiting game ... Montenegro Airlines

Montenegro Airlines has delayed the launch of its flights from Podgorica to Niš and from Niš to Zurich by over a month. As reported earlier, Montenegro Airlines was to originally launch flights from Podgorica on November 13 and flights to Zurich, from Niš, on November 14. The flights are now scheduled to be launched on December 17 and 18 respectively. The CEO of Niš Constantine the Great Airport has said that the flights have been delayed as Montenegro Airlines is yet to obtain necessary licenses from the Swiss authorities. Montenegro Airlines has not issued any official statement on the matter. The airline has not put tickets on sale for either route.

Jat Airways suspended flights from Niš to Zurich due to a lack of interest, despite the airline lowering ticket prices and allowing 40 kilos of baggage per passenger (above the industry average). The Swedish airline MCA is expected to begin flights to Niš on December 14 with a return ticket amounting to 290 Euros. The airport’s management has previously announced that other airlines are planning flights from Niš to Moscow and Bologna, although no airline has to date applied for a license.

Preparing for passengers ... and taxis

Busy times ahead for Belgrade Airport

The largest airport in the former Yugoslavia, Belgrade Nikola Tesla, is preparing itself for a large scale passenger increase as European visa travel is abolished and Serbia’s sky becomes liberated.

In December the airport will have 2 new customers – Romania’s TAROM and Hungary’s Malev. The two companies will operate a total of 10 new weekly flights from the airport. In February, the low cost Nikki will bring in new competition on the Vienna – Belgrade service while from May next year Croatia Airlines is expected to touch down with scheduled flights from Zagreb. As a result of these newcomers, and more that are expected, the airport is quickly polishing itself. Terminal 1 will, after 2 years, once again be used by airlines. From January 1, 2010 all passengers flying with Norwegian Air Shuttle, Germanwings, Jat Airways (on charter destinations), Nouvelair, KoralBlue Airlines and Nikki, from February, will check in at terminal 1. At this terminal the passenger taxes will be cheaper by 2 Euros and this way the airport hopes to establish terminal 1 as a low budget terminal.

Other development at the airport includes the expansion of the terminal 2 gates area as well as a planned business lounge renovation. Over the summer the airport renovated its arrivals hall. The airport welcomed recent news from its largest customer, Jat Airways, that it will introduce a free taxi service for all its passengers in Belgrade with a return ticket. However, the airport says that this will be a logistical nightmare. It is expected that there will be a total of 4.000 – 6.000 daily taxi commutes only as a result of this service. The airport says it will not be up to them to regulate traffic at the airport, instead, Jat Airways, the City of Belgrade and the taxi companies involved will be running the project.

Belgrade Airport is reporting a reduction in passenger numbers this year but hopes that with new customers soon arriving it will have large scale increases next year. Belgrade Nikola Tesla Airport has the capacity to handle 5 million passengers per annum.

No crisis for Priština

Priština Airport terminal

This year, Priština Airport is profiting from low cost airlines which have commenced flights from the city, the latest being Air Berlin. While Belgrade Airport is seeing a 12% passenger decrease, Zagreb and Ljubljana 11% and Skopje 7%, Priština is bucking the trend with a 5% passenger increase.

On October 25, Priština welcomed its millionth passenger, which is 20 days earlier than in 2008. “In 2008, for the first time in the history of this airport 1 million passengers passed through our doors within a year. This year, if it were a regular year, this achievement would not be as significant. However, having in mind the global financial crisis and the reduction of passenger figures at almost every airport in the region, this year’s result represents an optimistic statistic and a considerable increase in the number of passengers”, Agron Mustafa, Priština Airport CEO said.

During 2008, the airport handled 1.137.000 passengers plus a further 100.000 military personnel which are not included in the official statistic. This success also has a lot to do with the increased flight offer from Priština. The number of flights rose by 17% compared to 2008. This year the airport began to operate 24 hours a day and heavily reduced handling prices in order to lure airlines, particularly low cost ones. Air Berlin holds the greatest share of arrivals and departures in Priština.

New flights across EX-YU

From Sarajevo to Tripoli

Foreign carriers have already announced the introduction of new services from various cities of the former Yugoslavia. Many airlines have announced their plans for new flights from Croatia, Bosnia and Herzegovina and Serbia.

Starting May 2010 Swiss International Airlines, through its subsidiary Edelweiss, will begin flights from Zurich to Split. Flights will operate every Saturday using the Airbus A320. It is the first service Swiss has introduced to Croatia after the bankruptcy of its predecessor Swissair in 2002. The airline used to operate flights from Zurich to Zagreb but never returned after its downfall. Norwegian Air Shuttle has confirmed its return to Croatia during the 2010 summer season from its Polish base. The low cost airline will operate flights from Warsaw to Split and Dubrovnik twice per week. Norwegian operated these services during this summer as well but terminated the flights before scheduled, due to low interest.

The Libyan based Buraq Air has commenced scheduled flights from the country’s capital Tripoli to Sarajevo. Flights are carried out every Wednesday. Various charter airlines have announced several special charter flights for Bosnia and Herzegovina’s upcoming football World Cup qualification game with Portugal. The Tuzla based Icar Air will be operating flights to Lisbon from Tuzla using its Boeing B737-300, while Dubrovnik Airline will also hope to profit from the game and its fans by operating flights to Lisbon from Sarajevo via Split.

Finally, the Egyptian charter airline KoralBlue has begun services from Hurghada (via Cairo) to Belgrade using its Airbus A320. Flights will be operated several times per month.

Jat reveals fleet plans

The old guard

Jat Airways’ CEO, Srdjan Radovanvić has revealed information regarding the airline’s short term fleet plans. Currently, 4 aircraft (all Boeing B737-300s) are leased to other airlines, in Africa, one is stored in Belgrade while the aircraft involved in a runway incident at Istanbul Ataturk Airport has been repaired and returned to the fleet. Radovanović says that all 4 aircraft that are currently leased will be returned to Jat by the start of the 2010 summer season, in late March. Radovanović states that Jat’s sole Boeing B737-400, which the airline is leasing, will be returned to its original owner in early 2010 as the lease will expire, nevertheless the airline plans to immediately lease another B737-400, as a substitute.

Radovanović confirmed that the lease of a Boeing B737-700 is on track and the aircraft is expected to enter the fleet in March 2010. The airline has tried to negotiate with Airbus and turn its 1998 order for 8 Airbus A319s into an ATR order. However, Airbus is not keen on the idea but will allow Jat to purchase 1 Airbus aircraft for the 23 million Euro deposit Jat has given for the entire order.

Radovanović also announced that Serbia’s national carrier is negotiating with the Macedonian government in order for it to receive all necessary licenses to commence flights from Skopje to other European cities by late March.

B&H strikes gold

A reason to smile

The start of the year did not start that well for the national carrier of Bosnia and Herzegovina. The introduction of many new routes failed to produce a big increase in passenger figures, but the end of the 2009 summer season changed the airline’s fortune dramatically. B&H Airlines, which is owned partly by Turkish Airlines, has for the elapsed 9 months of the year transported a total of 65.517 passengers, an impressive 30.4% passenger increase compared to the same period last. This means that the airline managed to lure 15.260 passengers more than the same period last year. During this crisis year, B&H Airlines operated a total of 1.317 flights (up 24.2%), of which 1.235 were scheduled regular flights (up 23.7%) and 82 were charter flights (up 32.3%). Within these figures, B&H Airlines has not included it’s numbers from Banja Luka Airport, from which it operates two weekly flights to Zurich.

B&H welcomed its first jet engine aircraft earlier this year. The airline is expected to receive a second jet engine aircraft in the near future.

Meanwhile, for the same period, Sarajevo Airport has managed to profit from B&H’s success and itself post a 3.5% passenger increase, compared to the same period last year. That means that the airport handled a total of 408.925 passengers.