Croatia Airlines to Istanbul in 2011

Soon in Istanbul

Croatia Airlines will commence scheduled flights from Zagreb to Turkey’s largest city, Istanbul, from March 27. Flights will operate 3 times per week every Tuesday, Thursday and Sunday using the Airbus A320. Croatia Airlines rarely expands its scheduled network to the East of the country. Earlier this year it was criticised by its own employees for not focusing more on markets such as Turkey and Russia. Until now, Turkish Airlines has been the only airline operating between Istanbul’s Ataturk Airport and Zagreb’s Pleso Airport.

Along with Istanbul, which will be an all year round service, Croatia Airlines is launching several new seasonal flights this summer including services from Dubrovnik to Athens and Venice, from Zadar to Munich, from Split to Hamburg and from Rijeka to London.

Croatia Airlines has had a disappointing year passenger wise. While in 2010 most airlines (including all other national EX-YU carriers) saw an increase in the number of passengers, Croatia Airlines’ numbers have dipped by almost 7%. All flight details for the Zagreb – Istanbul service can be found on the right hand side in the new route launches section.

Adria could be grounded in 2011

Adria to follow in MAT’s footsteps?

A dramatic month at the Slovenian national carrier continues this week. After revealing that the company is tackling financial problems and facing potential bankruptcy, the Slovenian Government has said it will review the airline’s financial performance which could see the carrier’s operating license revoked, effectively grounding the airline. The news came after the Minister for Transport, Patrick Valičič, held talks with Adria’s management.

A financial body is set to review the airline’s performance, after which it will be decided whether Adria’s operating license will be revoked, extended by 12 months or left as it is. Adria’s demise would have great impact on the Slovenian economy and it is unlikely that the government would let the carrier go. However, with the Slovenian Government owning most of the airline and with strict European Union laws forbidding any sort of aid, the airline will quickly have to be privatised.

On Monday, the Adria’s management cut employee wages by 20%. The airline has accumulated losses of up to 86 million Euros in the past 10 years with banks no longer willing to extend the loan repayment period. The company is expected to end 2010 with a loss of between 8 and 9 million Euros, after a 14 million Euro loss in 2009. More alarming was a statement made by an Adria Airways spokesperson yeasterday, who gave out advice on the actions passengers should take if Adria goes bankrupt and they happen to have booked a seat on one of their flights, published by a local newspaper.

Jat to get 140 million Euros

Ending the Airbus saga

The Serbian Government has announced that it will give guarantees for a 140 million Euro loan to Jat Airways in 2011 for the purchase of 4 Airbus A319s and, as a result, solve the airline’s outstanding 12 year old order for 8 Airbus jets. Both Jat and the government have proposed to revise the original agreement from 1998. Instead of 8 aircraft, Jat would receive 4 and pay a further 140 million Euros, on top of the 17.9 million Euros already given to the European plane manufacturer. If Airbus approves the revised deal, aircraft should begin to arrive in 2012.

In 1998, the Yugoslav Government ordered 8 Airbus A319s for JAT Yugoslav Airlines, a deal worth 580 million American Dollars at the time. However, the order was seen as political stunt by the government at the time and Airbus was criticised for the extremely high price of the order. Furthermore, international sanctions forbid Airbus from delivering the planes and the aircraft did not fit into JAT’s fleet of over 20, mostly Boeing aircraft.

Just last month Jat Airways received a 51.5 million Euro loan. The airline will use part of the cash to finance the lease of 2 aircraft, most likely Boeing B737-700s. Last week, the airline withdrew the first 2 million.

Skopje boom expected in 2011

Skopje’s new terminal under construction

In 2011 Macedonia will fully implement the European Free Sky agreement, which allow airlines to begin flights to Macedonia with ease. The sky liberalisation should coincide with the opening of Skopje Airport’s new terminal. The airport’s management believes that in 2011 passengers travelling from Macedonia will see more carriers, including low cost airlines.

Zoran Krstevski, the head of Macedonia’s Civil Aviation Agency notes that the full implementation of the Free Sky agreement is an important step for the country’s aviation industry. He believes that, as a result, Macedonia will become a more competitive market and passengers can expect new flights to the Middle East. Turkish Airlines is particularly interested in exploiting the mostly underserved Macedonian market, he states.

Several months ago, Skopje Airport’s management said they were negotiating with several low cost airlines to commence flights to the city. New flights have already been scheduled from Ohrid to Amsterdam and Helsinki in 2011. Both airports have seen their number of handled passenger increase this year, although most passengers are using charter instead of scheduled flights. Recently, the Macedonian based charter airline Air Lift Service, which served the bulk of passengers from Macedonia, terminated flights, leaving yet another void in the market on top of MAT’s demise in 2009.

Zagreb – New York from May 2011

From Zagreb to New York in 2011

Tonči Peović, the director of Zagreb Airport, has confirmed that flights between Zagreb and New York will commence in 2011. Peović said that the service will be inaugurated in mid May, although he did not wish to disclose the name of the airline that will be operating the flights. At an end of year press conference, Peović said that flights to New York will operate twice per week. The airline will be exempt from paying landing and handling fees in the first year, with the fees being progressively introduced within the next five years. Peović believes that, with the establishment of the direct US service, Zagreb will become a transit point in the region, which will in turn attract many new airlines and passengers. Rumours suggest that the merged United-Continental airline (simply known as United) will operate the flights, although such claims have not been confirmed.

Peović revealed that in 2011 the construction of Zagreb’s new terminal will begin, however, the current terminal will also be expanded in order to cope with the number of passengers until the new terminal is open. “Next year is our last chance to start the construction of the new terminal because our competition isn’t resting, especially Belgrade and its airport. The entire terminal project is estimated at some 180 million Euros and as a result Zagreb Airport will become a regional leader”, Peović said. The airport reported a growth in profit, a small passenger increase and the arrival of several low cost airlines in 2010. Last week, the airport opened a new lounge for passengers flying business class.

2011 crucial for Jat

Jat plans 2011 privatisation and 5% passenger increase

In his first media interview, the acting CEO of Jat Airways, Vladimir Ognjenović, has said that 2011 will be a do or die year for the Serbian carrier. Ognjenović said that Jat enters 2011 with a 51.5 million Euro financial injection. “I believe that during 2011 Jat’s privatisation process will be finalised, we will find a strategic partner and secure a long term path for the Serbian national carrier which will become a profitable and safe airline”. The airline’s acting CEO also stated that all of the airline’s employees have their jobs secure for the long run. “I honestly hope that next time this year we will be talking about our business plans”.

Ognjenović noted that with the loan Jat has received, the airline will have its entire fleet “ready” by the 2011 summer season which begins on March 26. “This year has been difficult for Jat as we faced competition like never before. Nevertheless, we managed to carry approximately the same number of passengers as last year. Next year, Jat should see a 5% passenger increase”, Ognjenović concludes.According to sources close to the airline, Jat is likely to lease 2 Boeing B737-700s for the summer season instead of planned Airbus A319s which were meant to arrive in January. This is because the lease of an Airbus aircraft would cause unnecessary expenses such as the purchase of spare parts, pilot training and technician training.

Last week, Jat’s new Finance Director was named. He is an employee of the National Bank of Serbia. Jat’s new Marketing Director was also named, this time coming from the United Serbia party, which is a member of the country’s ruling coalition. She is a former employee of the “Palma plus” channel, a local network in the town of Jagodina, run by the town’s mayor who is also the leader of the United Serbia party.

MERRY CHRISTAMS!

Ljubljana, Slovenia

To all frequent visitors and guests marking the holiday today, Merry Christmas!

Sretan Božić

Vesel Božić

Zagreb, Croatia

As 2010 draws to a close, here are the most read stories from the blog for 2010, according to statistics:

1. Lufthansa eyes Priština
2. easyJet confirms Belgrade plans
3. New airline – Kon Tiki Sky
4. Jat pilot in India crash
5. Lufthansa to Priština

Visit tomorrow for the latest aviation news from the EX-YU!

Zadar terminal expansion begins

New look Zadar terminal

Zadar Airport has been the star performer amongst Croatian airports this year. In 2010, it handled the greatest number of passengers in its history. The bulk of passengers come from Ryanair, which serves the airport from 11 European destinations. Zadar Airport has now begun to expand its current terminal building in order to accommodate the rise in traffic and plans to attract new airlines in 2011.

The terminal expansion project will amount to 11 million Kuna (1.4 million Euros) and will see the expansion of the international departures lounge and the construction of a new domestic arrivals area. Following the expansion, the terminal building will spread over 7.000 square metres. The airport authorities at Zadar have said that they plan to keep current airlines and lure new ones in time for the 2011 summer season. They expect that the upward passenger trend the airport has been experiencing for the past 2 years will continue into 2011. The expanded terminal will be complete in time for the peak tourist season next year.

From Ohrid to Amsterdam and Helsinki

Ohrid awaits new flights and tourists

Flights from Ohrid St. Paul the Apostle Airport to Amsterdam and the Finnish capital Helsinki will commence in 2011. The Turkish based Corendon Airlines will operate scheduled charter flights from Ohrid to Amsterdam from May until the end of October. The airline will use one of its Boeing B737-800s on the route and will carry out 46 flights between the two cities. Corendon operated flights from Antalya to Skopje during the 2010 summer season.

In 2011, Macedonia will see its first direct flights to Finland, the head of Macedonia's Agency for Tourism Support and Promotion announced last week. While the airline that will operate the flights is yet to be named, they are scheduled to run from May until the end September. Both of the abovementioned services are expected to carry Dutch and Finnish tourists to the Macedonian resort town.

Both Skopje and Ohrid airports will end 2010 on a high. The Turkish operator TAV has taken control of both airports and construction on a new terminal in Skopje and the expansion of the existing terminal in Ohrid are underway. Furthermore, both airports have recorded a significant increase in passenger numbers. A month ago, the Skopje based Mat Airways began scheduled charter flights. The airline operates one weekly flight from Skopje to Berlin, Ancona, Verona and Copenhagen, two weekly flights to Rome and Dusseldorf and four weekly flights to Zurich. From Ohrid, the airline serves Zurich once per week.

Dubrovnik Airline plans 2011 expansion

Flights from Dubrovnik to Belgrade and Ljubljana in 2011

The second largest Croatian registered airline, Dubrovnik Airline, has announced that it will purchase 2 new aircraft next year and introduce new destinations. The charter airline’s CEO, Zeno Singer, told a press conference last week that Dubrovnik Airline will end 2010 with a profit of up to 2 million Euros. Singer told the media that the airline plans to sell 3 of its MD82s and purchase 2 new Airbus A320s in 2011. The remaining 2 MD83s will remain in the fleet.

Singer revealed that the airline is planning on introducing new flights from Split, Dubrovnik and Pula to Astana, the capital of Kazakhstan. The airline also plans to connect Dubrovnik with Belgrade after almost 2 decades as well as Dubrovnik and the Slovenian capital Ljubljana. As a result the airline’s management believes that it will increase its passenger numbers by 15%.

Belgrade expects 2.7 million passengers

Belgrade Airport ends 2010 on a high

Belgrade Nikola Tesla Airport has announced that with just over a week to go until 2010 becomes history, it expects to handle 2.7 million passengers, the record number of passengers since 1990. Thus, the airport expects to end 2010 with a 14% passenger increase. December has been particularly strong for the airport, with a recorded increase of 30% compared to the same month last year. “In 2010 we handled more passengers, more aircraft and have recorded a better financial performance”, the airport’s director Velimir Radosavljević told the Serbian media over the weekend. He revealed that from January 1 the airport will be decreasing handling fees by 7% for all carriers.

Several new routes have already been announced from Belgrade in 2011. Wizz Air will commence flights to Gothenburg, Stockholm, Charleroi, Eindhoven and Memmingen. airBaltic will resume flights from Riga on March 27 while Albanian Airlines has announced it will commence services from Tirana to Belgrade in 2011. Although planed for January 13, Jat Airways is unlikely to commence flights from Belgrade to Portorož due to low interest.

easyJet announces new flights to Zagreb

Exit Wizz Air, enter easyJet

The low cost airline easyJet has announced yet another new service to the Croatian capital Zagreb in addition to the recently launched Paris service and the soon to be initiated flights from London Gatwick Airport. easyJet will commence flights from Dortmund in Germany from February 17. The flights will operate twice per week with all the flight details available on the right hand side in the new route launches section. The national carrier, Croatia Airlines, will be less than pleased with yet another new low cost service. Croatia Airlines has been feuding with Zagreb Airport over special fee waivers given to low cost airlines serving the airport.

Meanwhile, Wizz Air will end its operations to Zagreb on February 4. The airline will suspend its 3 weekly service from London Luton Airport.

Last week, Zagreb Pleso welcomed its 2 millionth passenger for 2010. The lucky customer, travelling on a Croatia Airlines flight to Sarajevo, was issued 2 free return tickets to a European destination. Zagreb managed to handle its 2 millionth passenger 7 days in advance to 2009. The airport has so far managed to see an increase in passengers by half of a percent.

Adria considering bankruptcy!

Uncertain times for Adria

The Slovenian national carrier Adria Airways may go into receivership or even file for bankruptcy, Maks Tanjikar, the chairman of the company’s Management board told Radio Television Slovenia. According to Tanjikar, Adria has accumulated losses of up to a whopping 86 million Euros in the past 10 years with banks no longer willing to extend the loan repayment period. Adria’s CEO, Tadej Tufek, was more moderate with his words telling Reuters on Friday that the company is expected to end 2010 with a loss of between 8 and 9 million Euros, after a 14 million Euro loss in 2009, but hopes to return to profit in 2011 by cutting costs, including a 20% cut in employee wages. "Talks with possible strategic partners are ongoing but are still at the initial stage", he said. Slovenian media are reporting that Lufthansa is interested in taking over the carrier which would give it unprecedented access to the Balkan market. However, the German giant might once again come under scrutiny from the European Commission’s competition watchdog. "In 2011 we need to decide whether to become a part of a larger air carrier or change our business model to become competitive with low cost airlines”, Tufek concludes.

Tanjikar, on the other hand, said that if the company failed to find a strategic partner within the next 6 months it could declare bankruptcy. On top of the 86 million Euros debt, the airline owes a further 29 million Euros to suppliers.

Adria Airways is owned mostly by the Slovenian Government although a certain number of shares are held by minority stock holders. These stock holders wrote a letter to the Slovenian Government last week, urging them to sack the current management team stating that they have brought the company in a dire financial state.

Montenegro privatisation fails

No one willing to commit to Montenegro Airlines

Despite the fact that three international carriers purchased tender documentation for the acquisition of a 30% Montenegro Airlines share package, no carrier has put in an offer for Montenegro’s national airline. The Montenegrin Tender Commission announced that the tender had failed on December 15, when interested parties were meant to put in an offer. Etihad Airways, Arkia Israel Airlines and El Al all purchased tender documentation.

The Montenegrin Government put 30% of the carrier on sale in September, with the possibility of the new share holder increasing its ownership within 2 years. The government has not commented on the failed privatisation process.

November surge for Jat

More passengers flying with Jat

Despite management wrangling last week, Jat Airways has posted an impressive 23% passenger increase in November 2010, compared to the same month last year. The airline carried 70.108 passengers compared to 56.800 last year. Since September, the Serbian carrier has also seen an increase in revenue by 18%. Jat’s media centre has reported that the airline kept a 40% share of all departures out of Belgrade despite competition from 32 airlines. Until the end of November, Jat Airways has carried 988.639 passengers in 2010.

Meanwhile, Jat, which was supposed to commence flights between Portorož and Rome yesterday, has delayed the service until January 13, although it is believed that the route will be cancelled. Jat employees have said that the route is unprofitable and have called on the new management to cancel the planned flights. There has been some good news for employees as most are returning to the airline’s headquarters in central Belgrade, a week after they were moved to neglected buildings near the airport which have not been used in 20 years. This week, the airline withdrew the first 2 million Euros out of a 51.5 million Euro credit, Serbian media report.

Croatia Airlines returns to Rijeka

From Rijeka to London with Croatia Airlines

Rijeka Airport’s prayers have been answered as Croatia Airlines announced on Tuesday that it will resume flights between the island airport and London Heathrow during the 2011 summer season. Croatia Airlines was strongly criticised by local authorities and airport management when it decided to discontinue the route after the 2009 summer season. Back then, Croatia Airlines explained that the service was unpopular and thus unprofitable. Flights between Rijeka and London will operate from April 20 until October 19, once per week, using the Airbus A320.

Rijeka Airport has had a year it would rather forget. Its passenger numbers have halved compared last year while its finances are in disarray. Some have even called for the airport’s closure. The resumption of the London service will bring some much needed relief. The Croatia Airlines service will be partially subsidised by the Croatian National Tourist Board, the airline’s CEO Srećko Šimunović told the “Novi List” newspaper.

Croatia Airlines has already announced a string of new seasonal summer flights for next year including the likes of Athens and Venice. Flight details for the Rijeka – London service can be found on the right hand side in the new route launches section.

Visa free

Sarajevo, Bosnia and Herzegovina

From today, passport holders of Bosnia and Herzegovina can travel to 25 members of the Schengen Area as well as Bulgaria, Romania, Cyprus and Lichtenstein without a visa for up to 3 months. The visa liberalisation is anticipated to have a big impact on passenger numbers travelling to and from airports in Bosnia and Herzegovina. Last night, Sarajevo celebrated the lifting of the visa restrictions with a “New Schengen Year” party in the city centre. B&H Airlines will today operate a special flight to Strasbourg in France, carrying deserving citizens as well as politicians and members of the media. From Banja Luka, a special flight will be chartered to Brussels. Sarajevo Airport has seen a massive increase in passenger numbers mostly due to B&H Airlines’ increased flight offering. Both the airport and airline will hope to see an even better 2011. Whether foreign carriers will be enticed to commence flights to either Sarajevo, Banja Luka, Mostar or Tuzla remains to be seen.

Last December the same visa restrictions were lifted for citizens of Serbia, Montenegro and Macedonia. All three countries have seen a sharp increase in passenger numbers at their airports this year. Belgrade Airport has so far recorded an increase of 13% with the visa liberalisation coinciding with the introduction of the open sky policy. Similar growth has been recorded at Macedonia’s two airports, with numbers at Skopje increasing by 12.6% and at Ohrid by 9.3%. Meanwhile, Montenegro’s two airports saw a combined passenger increase of 20% (Podgorica up by 47% and Tivat by 2%).

More Wizz Air flights to Belgrade

Wizz Air from Belgrade to Brussels and Gothenburg

The low cost airline Wizz Air, which will open its base at Belgrade Nikola Tesla in April 2011, has announced the launch of another 2 routes. The no frills carrier will begin flights from Belgrade to Gothenburg’s City Airport and Charleroi (Brussels) from late March. The new services will operate twice per week. Attila Dankovics, Marketing, Sales and Communication director at Wizz Air said, “We are excited about our new expansion milestone reached in Serbia. Besides the new direct flight to Gothenburg, our new Brussels flight makes the capital of Europe available directly from Belgrade. This, together with the already operated routes allows more and more passengers to enjoy the Wizz flying experience – great service at truly affordable prices”.

Wizz Air already serves Belgrade from London Luton and Dortmund. The airline will begin flights to Malmo and Rome this week while it will initiate services to Stockholm, Memmingen and Eindhoven next April.

Wizz Air will compete with Jat Airways on both flights to Brussels and Gothenburg. Jat operates flights to Brussels via Amsterdam while Gothenburg was upgraded from a seasonal to an all year round service this year. Unlike Wizz, Jat operates flights to Brussels National Airport and Gothenburg Landvetter Airport.

Zagreb – New York in the works

Possible flights from Zagreb to New York in 2011

The director of Croatia’s main airport, Tonči Peović, announced last week that Zagreb might soon have direct flights to the United States. The airport’s management is negotiating with a US carrier to commence flights between New York and Zagreb. Peović did not want to disclose the airline in question until the deal is finalised although he expressed optimism, stating that flights would commence in 2011.


The “Jutarnji List” daily reports that the airport will purchase a certain number of seats on each flight in order entice the airline to initiate the flights. The airline will be exempt from paying landing and handling fees in the first year, with the fees progressively introduced within the next five years. Peović believes that with the establishment of the direct US service, Zagreb would become a transit point in the region which would in turn attract many new airlines and passengers.

The presence of North American airlines in the region is limited. During the 2011 summer season both American Airlines and Delta Air Lines will commence flights to Budapest in Hungary from New York City. No former Yugoslav republic has direct flights to United States or Canada. The director of Belgrade Nikola Tesla Airport hinted last month that flights to the United States could be established from the Serbian capital in 2011 although no concrete negotiations have taken place.

Boost for new Zagreb terminal

The original Zagreb Terminal 2 design (2008)

The Croatian Government will commence tender procedures in order to find a strategic partner which will help build Zagreb Airport’s new terminal next month, the Croatian Prime Minister Jadranka Kosor announced on Friday. The Prime Minister said that the project will be funded by both the government and the company which wins the tender. In return for financing the project, the strategic partner will gain control over Croatia’s main hub and run it for several decades. Kosor said that many have shown interest in the project including airports from Munich, Frankfurt, Istanbul, Zurich and Houston. “Next year, after several phases of the tender process I believe we will find a strategic partner with whom we will commence the construction of the new airport terminal which should cost some 180 million Euros”, she said. Kosor revealed that the government has already held talks with interested partners.

The construction of Zagreb’s much needed second terminal has been on the cards for a decade. In 2008, a winning design for the new terminal was chosen but the price tag was too expensive for the government. A modified version of Zagreb’s design is now under construction in Donetsk, Ukraine instead.

New plans for Jat

Jat to decide about Macedonia, employees want Portorož suspension

Based on the events witnessed in the past 2 weeks, it is more than obvious that Jat Airways has no development strategy. Even more concerning is that the Serbian Government openly admitted it had no idea what it wanted to do with its frayed carrier. The question now being asked is what the new acting CEO, Vladimir Ognjenović¸ and his management team will do with Jat.

Ognjenović spent all of Thursday and Friday locked in meetings with the government, according to the “Danas” daily. Employees at Jat are calling for the suspension of the planed Belgrade – Portorož – Rome service which was supposed to begin this week but has been delayed until next. They say the service is not economically viable. Furthermore, employees have expressed outrage at the news that former CEO, Srdjan Radovanović, might be named as a Jat Airways advisor. Employees have said that Radovanović’s ludicrous business plans and autocratic leadership should bar him from ever setting foot in the company again. Another major problem the airline is facing is the planned lease of 2 Airbus A319 aircraft. There has been uproar amongst pilots who haven’t been named as part of the group that will be undergoing training for the new aircraft. As a result the president of the Jat Airways pilots union stood down last week.

Next week the airline’s management board is expected to decide what to do with its Macedonian offspring Aeromak. The airline, which is supposed to be based in Skopje, was denied a license by the Macedonian Civil Aviation Directorate earlier this year. It is expected that the management will decide whether to pursue the idea or end it once and for all.

“Adria on its deathbed”

Minority shareholders call for Adria’s CEO to resign

A group of minority shareholders have written a scathing letter to Adria Airways’ CEO, Tadej Tufek, calling for his resignation and urging for a swift company restructuring plan, the “Žurnal24” newspaper reports. The letter states that Adria Airways ended 2009 with a 14 million Euro loss. The airline also reported losses in 2005 and 2008, while it ended 2006 and 2007 with a marginal profit. The letter reads that the airline has already registered a 7 million Euro loss in the first half of 2010. “The numbers speak for themselves and Adria requires a restructuring plan. Otherwise, its days are numbered”, the memo states.

Shareholders have blamed Adria’s management for a lack of vision and holds them responsible for their inability to restructure the company. They accused CEO Tadej Tufek and the President of the Board of Directors, Maks Tanjikar, of bad management and highlighted that both are members of the ruling political party. “Adria is on its deathbed while the same management team is at the saddle”, the letter states.

Meanwhile, Adria has received a major blow after the largest Slovenian bank, NLB, rejected to issue a multi million Euro, short term, loan to the national carrier. The bank itself is a 7% Adria shareholder.

The Slovenian national carrier today launches flights from its new base in Priština. By the end of October 2010 the airline carried some 1.026.016 passengers, up on last year’s result.

Jat gets new CEO

Vladimir Ognjenović, Jat’s new CEO

Vladimir Ognjenović has been named the acting CEO of the Serbian national carrier, ending a 2 week farce. Ogjenović was part of the much despised management team led by Saša Vlaisavljević which served prior to Srdjan Radovanović who was recently fired as the airline’s CEO. That management team also led the airline into a deficient state. Vlaisavljević, who yesterday also stood down as the head of the airline’s management board, said that with Ognjenović’s leadership Jat has a bright future. Vladimir Ognjenović worked as a Jat ground handler since 1995 before attaining a hefty promotion from Saša Vlaisavljević as Jat’s general manager in Denmark. He served as deputy CEO under the leadership of Srdjan Radovanović. Although he is only the “acting” CEO he could stay as the airline’s director for years.

On Tuesday, the Jat Airways workers union “Nezavisnost” stated that with Ognjenović at the helm the airline will only further sink into debt and mismanagement. The Serbian Minister for Infrastructure, Milutin Mrkonjić, said that Serbia must and will have a national carrier. “Jat will either have a strategic partner or a new Serbian national carrier will be created”, Mrkonjić said. “We still haven’t decided which strategy we will use”, the minister stated.

Ognjenović now takes on an airline with an aging fleet and mounting debt but also extremely hostile workers which haven’t forgotten Ognjenović’s part in Vlaisavljević’s mismanagement.

Slovenia’s Adria Airways is facing similar management issues. You can read about it here tomorrow.

Radovanović resigns

The end

Jat Airways CEO, Srdjan Radovanović, resigned last night after mounting criticism from unions, the management board and the media. Radovanović said that a media campaign had been orchestrated against him and Jat on behalf of Saša Vlaisavljević, former Jat CEO (now president of the airline’s management board), who fell from grace in a similar fashion as Radovanović. Serbian media state that Vladimir Ognjenović, deputy CEO will takeover. Ognjenović was part of two disastrous management teams, one led by Radovanović and the other by Vlaisavljević.

The union “Nezavisnost”, which represents all employees at Jat Airways said that the airline’s CEOs have gone from bad to worse. The union criticised former CEOs Nebojša Starčević, Saša Vlaisavljević, Srdjan Radovanović and the CEO in waiting, Vladimir Ognjenović. The union says that the airline has been used as a political tool.

Srdjan Radovanović, a lawyer by profession, came to Jat in 2009 when he was appointed CEO. His grand plans for 2010 included the opening of new bases in Skopje and Banja Luka and the purchase of new aircraft. None of them materialised. During his management, Jat Tehnika and Jat Catering both went on strike. The airline has moved to derelict buildings near the airport, one of which is in such bad state that employees had to move back to the former headquarters this week until it is fixed. Radovanović’s plans to sell tickets in Serbian post offices and provide free taxi services to Jat passengers in Belgrade were strongly criticised by employees. However, during Radovanović’s management some grounded aircraft were returned to the sky and their interior refurbished. The airline launched its first media campaign in decades and employed new cabin crew. Passenger numbers have somewhat improved in 2010.

Vladimir Ognjenović, who is expected to take over the airline, worked as a Jat ground handler at Belgrade Airport since 1995 before being mysteriously propelled to the position of the airline’s representative in Copenhagen and then finally settling for the deputy CEO post. He is also a member of the ruling Democratic Party which named Vlaisavljević and Radovanović as CEOs. Most employees have little optimism he will lead the airline into better times.

Breaking news

Jat Airways CEO, Srdjan Radovanović, has resigned tonight, Serbian media report. Visit tomorrow for the latest news in regards to the resignation and who is likely to take over the battered carrier

B&H sell out in 2011

Government to sell B&H shares

After EX-YU aviation news exclusively revealed in November that Turkish Airlines was planning a full takeover of the Bosnian national carrier next year, the Bosnian Privatisation Agency announced on Friday that government owned shares in B&H Airlines will be sold in 2011.

B&H Airlines is featured on a long list of companies that will be fully privatised in the coming year. 51% of the Bosnian carrier is owned by the Government of Bosnia and Herzegovina and 49% by Turkish Airlines. According to sources close to the airline, this ownership structure has proved ineffective with many decisions being delayed as both parties have to agree on a set decision. Furthermore, Turkish Airlines has been criticised for not doing enough with B&H, while a possible majority stake in the company would give the Turks more room for action.

The sell out decision might come under scrutiny sometime in the future since Bosnia and Herzegovina aspires to become a member of the European Union. Current European Union regulation states that a flag carrier cannot be in majority ownership of another airline or business that comes from a country not part of the EU.

Do you think it’s a good idea to fully privatise B&H Airlines? Should the government keep some of its shares in the carrier? Post a comment with your thoughts.

Tirana – Belgrade in 2011

Soon in Belgrade

Albanian Airlines will commence flights to Belgrade in the first half of 2011, according to the Albanian Minister for Economy, Trade and Energy, Ilir Meta. Meta announced the new service at a Serbian business forum in Tiranam, the “Macedonian Information Agency” reports. The Serbian Secretary for Aviation, Miodrag Miljković, welcomed the news and said the service could commence if Albanian Airlines has such intentions.

Jat Airways operated flights between the Albanian and Serbian capitals until 2008 when the service was terminated along with the likes of Prague and Gothenburg in a series of cost cutting measures. Albanian Airlines operates two BAe 146 jets. The airline has suffered greatly at the hands of Albania’s low cost airline Belle Air, which is the country’s leading carrier. Visa restrictions for Albanian passport holder for entry into Schengen zone countries will be abolished on December 15, 2010 which is expected to result in an increase in travel from the country. Albania abolished visas for Serbian citizens in April this year while Serbia reciprocated with the same measure several days ago.

Belgrade traffic surpasses 2009

Belgrade reports passenger increase

Belgrade Nikola Tesla Airport handled 182.651 passengers in November, up from 146.859 the same month last year. As a result Belgrade has secured a 24.3% monthly increase. So far this year, Serbia’s main airport has welcomed 2.506.381 passengers and has already surpassed 2009’s end of year result. The airport is on course to beat the extremely successful year of 2008 when it handled 2.650.000 passengers. In the first 3 days of December, the airport has seen a 30% passenger jump.

The airport has enjoyed a flurry of new airlines since Schengen visa restrictions were abolished for Serbian passport holders in mid December last year. New airlines include Spanair, airBaltic, Wizz Air and Cimber Sterling. However, British Airways recently terminated flights to Belgrade while Wizz Air will set up its 13th base at the airport on April 1, 2011.

TAV wants Zagreb

TAV interested in financing Zagreb’s new terminal, according to PM

The construction of Zagreb’s long awaited new terminal hasn’t begun yet as the Croatian Government looks for private investors. The government wants to share costs for the terminal’s construction through a public private partnership. According to the Croatian Prime Minister, Jadranka Kosor, the Turkish airport operator TAV has expressed interest in the venture. The news comes after Kosor presented plans to stimulate the Croatian economy at a business forum in Istanbul. TAV is present in the region and runs both Skopje and Ohrid airports.

However, over the past few months, media reports have stated that a Chinese consortium and several other European airports are interested in partially financing the construction of Zagreb’s new terminal. In return, they would run the airport for several decades.

Construction of the constantly delayed project is now scheduled to begin sometime next year, at best. The first phase of the project is expected to be completed by 2015. The current terminal has reached its maximum capacity and can no longer handle the volume of passengers or aircraft using Croatia’s main airport.

Radovanović survives another week

Government delays CEO decision until next week

Yesterday, the Serbian Government did not dismiss Jat Airways’ CEO, Srdjan Radovanović, and name a caretaker, as was promised in the past few days. The government has left the issue of Radovanović’s sacking until next Thursday. The delay might be due to the fact that the government is unsure of who to name as the airline’s next CEO, after 2 disastrous management teams in the past 3 years. Furthermore, Jat’s deputy CEO, Vladimir Ognjenović, rumoured to become the new CEO was part of the previous management team which also led the airline into debt. It could also be a sign that the government has no strategy for Jat and that it is not overly concerned with the company.

However, the government has announced that it will launch an investigation into the financial dealings of the current management. The investigation will focus on questionable tenders the managing team had launched in the past year. For example, the management recently paid 100.000 Euros for a course in “good manners” which the airline’s staff had to sit through for 2 days.

Meanwhile, the entire company has moved from its headquarters in New Belgrade to 3 dilapidated buildings near Belgrade Nikola Tesla Airport which are virtually uninhabitable and do not provide basic working conditions.

Sarajevo expansion plans revealed

Sarajevo Airport passenger terminal awaits expansion

Sarajevo Airport will soon be getting a 25 million Euro facelift. Bosnia and Herzegovina’s main hub recently signed a multi million Euro loan agreement with the European Bank for Reconstruction and Development (EBRD). The funds will be used to finance three key components: the expansion of the current passenger terminal, the expansion of the apron and the upgrade of the existing taxiway system.

As part of the project, the existing passenger terminal will be expanded by 8.000 square metres, to 17.000 square metres. This will allow each passenger to have 17 square meters at peak hours, which is consistent with European norms, the EBRD states. An additional 4 aircraft stands will be added to the expanded apron. Sarajevo Airport’s expansion is not only required to meet increasing passenger movement, but also to address the need for additional space arising from enhanced security procedures and the need for more commercial facilities. Work on the project is scheduled to begin in 2011.

Sarajevo Airport was opened in the summer of 1969 and had its first and only major expansion in time for the 1984 Winter Olympic Games. It was partially reconstructed in 1996 and fully renovated by 2001. The current terminal has the capacity to handle some 800.000 passengers annually. In the first 9 months of 2010, the airport handled 448.334 passengers.

Skywings grounded

The MAT affect

The Macedonian charter airline Skywings International (operating under the name Airlift Service), which took over the bulk of passengers from MAT Macedonian Airlines following its demise, has suffered a similar fate. The airline owes some 133.000 Euros to the Macedonian Flight Control Agency, the “Kanal 5” network reports. Gzime Asani, a spokesperson for the country’s Flight Control Agency, said that they took passengers into account when they made the decision to ground the carrier, “We offered Skywings various arrangements to pay off their debt in the past year but the airline has not made any contributions”.

Many Skywings passengers due to fly out of Dusseldorf and Zurich have been stranded at the airport as their flights have been cancelled. Skywings believes that they will be able to resume flights next week. Until then, Mat Airways is the only Macedonian based airline operating flights out of Skopje.