Montenegro looks to the future

Crisis measures at Montenegro Airlines

After a government bailout, Montenegro Airlines is now looking at slashing employee pay instead of slashing its workforce. The airline’s management planned to have only 100 staff working for the national carrier by 2014. However, the management has had a change of heart. “Employees are keener to see their wages slashed by some 20% instead of losing their jobs”, Zoran Djurišić, the airline’s CEO said. Apart from decreasing wages, the airline plans to reduce its destination network, with newly launched services to Milan and Brussels expected to go first along with its signature London route. On the other hand, despite falling on hard times, the airline plans to purchase new aircraft and replace its entire aging Fokker fleet with Embraer jets.

Meanwhile, Djurišić has requested the Montenegrin Government to punish those responsible at the national judiciary and the police department who have lead a 4 year investigation against him on assumption of corruption. Djurišić was accused of signing damaging deals with an Albanian airline for the lease of a Fokker jet and suspicious business dealings relating to the unsuccessful launch of the airline’s Serbian subsidiary, Master Airways. According to the judiciary, such actions cost Montenegro Airlines some 10 million Euros. No charges have ever been laid against Djurišić, who is a member of the ruling party in the Montenegrin Government, as is the case with most CEOs of national carriers in the former Yugoslavia.

Despite the recent bad press, Montenegro Airlines is set to benefit from a bumper tourist season. The airline carried some 20.000 passengers in the past two weeks, with the most popular services being those from Paris and Moscow.

Mat spreads its wings

Mat launches Amsterdam flights

Macedonia’s Mat Airways inaugurated flights from Skopje to Amsterdam last week and plans to further expand its operations after a recent tie up with Skywings International Airlines. Mat launched flights between the Macedonian capital and Amsterdam on April 22 and operates the service once per week, every Friday, with a Boeing 737-500. The route used to be served regularly during the summer peak season by MAT Macedonian Airlines, last operating in the summer of 2007. In addition to direct sales, the new service will also be marketed through the Dutch tour operator Karatanova Tours, which specialises package holidays to the Balkans. For video coverage of Mat Airways’ welcoming to Amsterdam’s Schipol Airport, click here.

Skywings International Airlines, Macedonia’s largest charter airline, was recently left without an operating license and decided to merge with its rival Mat, with the aim of reducing costs and optimising operations. As a result, Mat now operates 2 aircraft (1 B737-300 fitted with winglets and 1 B737-500) to 8 destinations.

Easter record for Belgrade

Holidays boost passenger numbers

In the run-up to the Easter holidays last week, Belgrade Nikola Tesla recorded record passenger numbers. On Good Friday the airport handled almost 10.000 passengers while on Wednesday and Thursday Serbia’s main hub welcomed a total of 19.000 passengers within 48 hours. The impressive results coincide not only with diaspora passengers arriving to Serbia but also the start of the summer charter season with many combining the Easter and May Day public holidays in order to travel.

Velimir Radosavljević, the airport’s CEO, said that during last week nearly all flights arriving and departing Belgrade were full to the last seat. He added that Jat Airways’ new service to Girona in Spain, inaugurated over the weekend, was also popular. This summer, Belgrade will see charter or seasonal summer flights operated by the likes of Astra Airlines, Aviogenex, Atlasjet, Croatia Airlines, Jat Airways, Spanair, Swift Air, Tunisair and many more to destinations such as Thessaloniki, Dubrovnik, Antalya, Enfidha and Chicago, to name a few.

This year’s April results will be significantly greater than those of last year due to Iceland’s volcanic ash cloud which forced the closure of most European airports. However, when compared to the record breaking April of 2008, Belgrade Airport is so far reporting a 25% passenger increase for the month. Nikola Tesla Airport is on track to handle over 3 million passengers in 2011.

Belgrade – Dubrovnik flights fail to sell

Dubrovnik Airport awaits Belgrade flights

Flights between Belgrade and Dubrovnik are set to resume after 20 years on June 17 when Jat Airways launches 2 weekly flights between the two cities. Three days later Croatia Airlines will also inaugurate services between Dubrovnik and Belgrade. Between the two national carriers a total of 4 flights and 282 seats will be on offer each week. However, interest has been unexpectedly low. Both airlines are offering seats to tour operators and a certain amount of seats have been put directly on sale to passengers wishing to travel individually, rather than through a travel agent.

The Association of Serbian Tour Operators told the “Tanjug” news agency that interest for holidaying in Croatia has fallen drastically when compared to last year while Greece followed by Turkey, Spain and Montenegro remain the main holiday choices. Interest in holidaying in Tunisia and Egypt during the summer is almost nonexistent, which will lead to a big reduction in charter flights to the two North African countries, which recently experienced violent revolutions.

Both Jat Airways and Croatia Airlines are operating the route between Belgrade and Dubrovnik as a seasonal summer service. Despite previous plans for Jat to launch flights to both Pula and Rijeka during the summer season, the poor showing for the Dubrovnik flights have forced the airline to amend those plans. Furthermore, Dubrovnik Airline has also backed away from initial plans to operate flights to Belgrade. In 2008, when the first scheduled services between Serbia and Croatia were resumed since the breakup of Yugoslavia, flights between Belgrade and Pula were extremely popular, being full on almost every single flight. On the other hand bookings for the Belgrade – Dubrovnik service may improve as summer approaches.

Croatia Airlines plans to commence flights from Zagreb to Belgrade this winter, according to statements the airline made earlier in the year. Whether those will be successful remains to be seen.

Swift Air gets Zagreb approval

Chicago – Zagreb flights begin in June

Swift Air has been issued with a license to commence flights from Chicago O’Hare International Airport to Zagreb Pleso Airport. The service, which is being chartered by the Fly Air Plus tour operator, will commence on June 3, two weeks before the same airline commences services to Belgrade. The Chicago – Zagreb service will operate every Friday until September 14, using the Boeing 767-200ER. The airline will operate flights from Chicago with a similar departure time as the service to Belgrade, while the departure time on the return leg will differ slightly, leaving the Croatian capital on Sunday morning. Flight details will soon be available on the right hand side in the new route launches section. The Chicago – Belgrade flight times can be found here.

The “Jutarnji list” daily writes that North American Airlines was offered an array of subsidies to commence services from New York to the Croatian capital this summer, however, the airline declined, stating there would be no interest.

There have been no direct flights from Zagreb to the United States since 1991. In its golden years of the late 1980s, JAT Yugoslav Airlines operated flights from Zagreb to New York, Chicago, Toronto and Montreal. In recent years, the now defunct Skyservice offered seasonal summer flights from Toronto to Zagreb.

Jat could become a charter airline

Politics to decide Jat’s future

The Serbian State Secretary for Aviation, Miodrag Miljković, has said that a tender to find a strategic partner for Serbia’s new national carrier should commence by the end of summer. “We expect to begin tender procedures by the end of summer and begin transferring Jat’s assets into the new company”, Miljković said. Part of Jat Airways’ assets will be transferred into the new company, another will be sold, while a part could stay with the old Jat, which could continue to operate as a charter airline. He added that the government will make a final decision with what is left of Jat at the beginning of next year.

The coalition government does not see eye to eye over Jat’s future. While the largest party within the government wants the Jat brand to live on, another coalition partner (United Regions of Serbia) is itching to create a new airline as soon as possible. Parliamentary elections are scheduled to take place in Serbia by May 2012. If a new airline is created successfully it could prove as a pre-election boost for the ruling parties. On the other hand, if the creation of the new carrier leads to mass layoffs it could spell disaster for the same parties.

Miljković has told the “Tanjug” news agency that Turkish Airlines is interested in cooperating with carriers from the former Yugoslavia so they could become feeder airlines for Turkish’s long haul routes. He announced that representatives from Turkish Airlines will visit Serbia in May.

HAPPY EASTER

Dubrovnik, Croatia

To all celebrating the holiday today, Happy Easter!

Hristos voskrese! Vaistinu voskrese!
Христос вoскрeсе! Ваистину вoскрeсе!
Krist uskrsnu! Uistinu uskrsnu!
Христос воскресе! Навистина воскресе!
Vesele velikonočne praznike

Visit tomorrow for the latest news

Mixed March for Croatian airports

MalI Lošinj handles more passengers than Rijeka in March

Croatian airport reported average growth in March compared to the same month last year. Dubrovnik, Pula and Rijeka saw their numbers decrease while Zagreb, Split and Zadar were on the other side of the scale. Osijek reported triple digit growth as the airport had double the amount of flights compared to last March.

Zagreb continued its solid run this year with another double digit increase. It handled 160.084 passengers, an increase of 11.1% compared to the same month last year. In the first quarter of 2011, the airport handled 424.222 (+ 11%). Split and Zadar both reported growth of just over 1%. With a total of 84 flight and 436 passengers, Osijek recorded an increase of 808.3%.

On the other hand, Rijeka will have to wait another month for its much publicised comeback. After suffering significant passenger loss last year, the trend is continuing so far this year as well. The airport welcomed just 45 passengers compared to last March’s 1.577 and thus recorded a decrease of 97.1%. Dubrovnik and Pula were both down on last year as well.

Below you can review the performance of Croatia’s airports in March 2011. Overall, Croatian airports handled 218.268 passengers, an increase of 7% compared to March 2010. The statistics have been provided by the Croatian Bureau of Statistics.

Airport	Passengers MAR 2011	Passengers MAR 2010	Change (%)
Zagreb	160.084	144.074	▲ 11.1
Dubrovnik	24.819	25.701	▼ 3.4
Pula	1.431	1.562	▼ 8.4
Split	28.105	27.779	▲ 1.2
Zadar	3.154	3.103	▲ 1.6
Osijek	436	48	▲808.3
Rijeka	45	1.577	▼ 97.1
Mali Lošinj	175	116	▲ 50.9

No airport for Trebinje

Bosnia and Herzegovina to stay without a fifth airport

For the past two years, local authorities in Trebinje have claimed that they will build Bosnia and Herzegovina’s newest airport. However, the project has been cancelled. Local authorities say that they failed to find a party interested in participating in the construction together with the government of the entity of Republika Srpska, despite initial interest from a Chinese corporation. The Government of Republika Srpska has spent 1.6 million Convertible Bosnian Marks (820.000 Euros) for the Trebinje Airport project documentation. It envisaged for the airport to handle up to 250.000 passengers per year. Within a 120 kilometre radius from Trebinje there are airports in Dubrovnik, Mostar, Tivat and Podgorica.

Bosnia and Herzegovina currently has a total of 4 international airports – Sarajevo, Mostar, Tuzla and Banja Luka and most are struggling, both financially and passenger wise, with Sarajevo being the only exception. The 4 airports handled a total of 42.151 passengers in March 2011. While Sarajevo saw 40.803 passengers, it was followed by Mostar with 696 passengers, Banja Luka with 640 and Tuzla at a distant 4th place with a total of 12 passengers handled in March.

El Al to Zagreb

El Al begins Zagreb flights

El Al Israel Airlines has commenced 2 weekly flights to the Croatian capital Zagreb. The Israeli national carrier replaces its charter subsidiary, Sun d’Or International Airlines, on the route. The charter airline lost its operational license this month and all of its routes have been taken over by El Al. The airline operates 2 weekly flights from Tel Aviv’s Ben Gurion Airport using a Boeing 757-200. The airline will be in direct competition with Croatia Airlines which operates 1 flight per week to Ben Gurion Airport.

Meanwhile, Croatia and the United Arab Emirates have signed an open air services Memorandum of Understanding and initialled an Air Services Agreement. The two delegations agreed that any number of designated airlines of both parties will have the right to perform scheduled air services. The UAE delegation designated Emirates Airline, Etihad Airways, Air Arabia, RAK Airways and FlyDubai as UAE national airlines under the agreement. The Croatian delegation designated Croatia Airline, Dubrovnik Airline and Trade Air as its designated carriers. The agreements allow full flexibility on the routes, capacity, number of frequencies and types of aircraft, in any type of service (passenger or cargo). The signed memorandum also includes the exercise of fifth freedom traffic rights. In addition, both parties agreed to allow unrestricted non-scheduled operations between the two countries.

Niš hoping for flights

Smaller EX-YU airports continue to struggle

Niš Constantine the Great Airport in Serbia is negotiating with several airlines to commence flights to the city, the CEO of the airport told Serbian media. The airport currently only has 7 weekly flights to Podgorica, operated by Montenegro Airlines, which are subsidised by the local authorities. “I cannot disclose which airlines are in question but I am optimistic that talks will be finalised soon”, Dragan Bugarinović, the airport’s CEO says. Recently, Adria Airways announced it was considering introducing flights from Ljubljana to Niš.

In 2010 the airport handled 23.650 passengers, an increase of 38% compared to 2009. In the first few months of 2011, the airport is continuing to report passenger growth, with a 40% jump compared to the same period last year. In 2010, the low cost Italian airline, Wind Jet, operated flights to the city but were eventually suspended as subsidies for the route dried up. The airport also had financial problems last year, although Belgrade Airport eventually bailed it out by providing much needed funds. Jat Airways has refused to operate flights from Niš in the past few years saying that it is unprofitable to operate services to the city (unsubsidised).

Small secondary airports in the EX-YU region, such as Niš, have been struggling for years. Banja Luka, Mali Lošinj, Portorož, Tuzla, Mostar and Maribor all report minimal services throughout the year and most are struggling financially. However, governments continue to open airports throughout the region with the Croatian Government recently announcing it will go ahead with plans to construct an airport on the island of Korčula. The Serbian Government is funding the construction of an airport in Kraljevo while Montenegro is keen on building an airport in Berane.

Air Arabia to Tuzla

This summer from Sharjah to Tuzla

EX-YU aviation news can exclusively confirm that the low cost, United Arab Emirates based, Air Arabia will commence services to Tuzla in Bosnia and Herzegovina this summer. Air Tours Tuzla, the tour operator organising the flights, has confirmed the news for EX-YU aviation news. If all goes to plan, services between Sharjah and Tuzla are set to commence on June 10 and operate every Monday and Friday with the airline’s Airbus A320. Services will run throughout the summer. Sharjah is located some 15 kilometres from Dubai city centre, the largest Emirate of the UAE. Ticket sales for the new service are expected to commence soon and attract predominantly holiday makers. Flight details can be found here. Bus shuttles will be organised for passengers from Sharjah to Dubai.

B&H Airlines operates summer charters from Tuzla to Antalya in Turkey and Hurghada in Egypt. Although the national carrier hoped to operate a scheduled service from Tuzla to Frankfurt in 2009, the route was cancelled as it failed to secure a single booking.

Meanwhile, Sarajevo has also secured 4 special charter flights to the Middle East. Flights will be operated by the Lebanese national carrier, Middle East Airlines. The charter service from Beirut will commence tomorrow and operate every Wednesday until May 11 using the Airbus A321.

Swift Air confident in transatlantic success

Flights could be extended throughout the year

In exactly 2 months, Swift Air will commence charter flights from Chicago to Belgrade and Zagreb, with the airline confident the service will prove a big success. The flights are being chartered by the American tour operator Fly Air Plus. Although the exact launch date of the Zagreb service is expected to be announced soon, as the airline awaits clearance from the Croatian Civil Aviation Agency, the service to Belgrade begins on June 17. Ron Hansen from Swift Air says, “We have known for a long time that there is a market for nonstop flights between Chicago, Belgrade and Zagreb. We are also aware that there is no competition on these routes. We have already received all necessary licenses from Belgrade and hope that our first flight will be packed to the last seat”.

Some 50 travel agents are already selling tickets for the Chicago – Belgrade service. The flights, which will operate with a Boeing 767-200ER, will have a flying time of roughly 10 hours. Hansen notes that the aircraft has been refurbished and will operate in all economy class layout with leather seats and in-flight entertainment. The service will be extended all year round if it performs well during the summer.

Hansen also revealed that the airline will hold talks with both Jat Airways and Belgrade Nikola Tesla Airport. “I will be in Belgrade by the end of April where I will meet up with representatives of Jat Airways and the airport. I will also be one of the passengers on Swift Air’s first service to Belgrade. We are certain in the success of the route”, Hansen told the “Vesti” newspaper.

Visit the blog tomorrow for exclusive news on an airline which will commence flights to an EX-YU city this summer. It will be one of a kind.

Incident at Belgrade Airport

Air bridge collapses at Nikola Tesla Airport

At 08.00 on Saturday morning an air bridge at Belgrade Nikola Tesla Airport’s terminal 2 collapsed, injuring one employee. Before the collapse, the air bridge was out of function and was being repaired, the "Blic" daily reports. “Early in the morning supervisors uncovered that the air bridge was not functioning properly and a repairman was called. While he was repairing, the air bridge collapsed”, Katarina Bjelanović, the airport’s spokeswomen said. The repairman has suffered injuries to the head, chest and legs, however, he is not in a life threatening condition. No flights were affected by the incident. The Spanish manufacturer of the air bridges has been informed about the incident as well as the Serbian Civil Aviation Agency.

Meanwhile, Belgrade Airport recorded a 12.8% passenger increase in March when compared to the same month last year. The airport handled 188.826 passengers. In the first 3 months of 2011, 530.371 passengers have used the airport.

Skopje hopes for US flights

New terminal under construction as Skopje anticipates traffic rise

After Zagreb and Belgrade, Skopje is hoping it too will have flights to and from the United States. Macedonia’s Civil Aviation Agency is finalising an open sky agreement with the Federal Aviation Administration in the US, which would enable direct flights between the two countries, the MIA news agency reports. Dejan Mojsoski, the CEO of the Macedonian Civil Aviation Agency said, “The extension of the runway at Skopje’s Alexander the Great Airport will enable long haul intercontinental flights”. He adds that there is interest for flights between the United States and Macedonia. Work at Skopje Airport is ongoing with the construction of the new terminal in full swing. However, whether Skopje will be able to attract any US airline to operate flights remains questionable.

Currently, no airport in the EX-YU region has flights to the United States. However, this summer, both Belgrade and Zagreb are expected to be linked with a 1 weekly service to Chicago. Croatia already has a free sky agreement with the United States while Serbia is also negotiating with US authorities.

Meanwhile, the low cost Austrian airline Niki will commence 2 weekly flights from Vienna to Skopje this September. The airport's management believes Skopje could handle up to 900.000 passengers this year and is negotiating with other high profile companies to commence flights to the Macedonian capital.

Houston wants Zagreb terminal

Houston Airport favourite to win Zagreb terminal bid

Houston Airport System from the United States is expected to win the tender to construct Zagreb’s long awaited new terminal and effectively manage the airport. Although interested parties were meant to place their bids until April 4, the government decided to extend the tender until May 6. It is believed the extension has been given so Houston Airport can prepare all necessary documentation. Munich, Istanbul and Frankfurt were some of the names said to have been interested in bidding for the project. Vienna Airport, which showed the most interest, was disqualified from bidding under the explanation that the Austrian airport is too close to Zagreb.

In order to construct Zagreb’s new terminal and manage the airport, only companies which have run airports with more than 10 million passengers annually can bid. At a recent business forum in Dubrovnik, Houston Airport representative, Roman Miro, said his company was interested in taking over Pleso Airport. Houston cannot directly compete for the project since it is a non-profit organisation owned by the City of Houston. It plans to do so, however, through its subsidiary HAS Development Corporation.

The new terminal is planned to be built in 3 phases, with the first set to be completed in 2014. The current terminal will undergo a smaller expansion and face lift to accommodate the rising number of passengers until the new terminal is completed.

More passengers flying with Jat

Rise in March traffic

Jat Airways has had another good month, passenger wise. In March, the national carrier carried 79.408 passengers, an increase of 20% compared to the same month last year. The average cabin load factor stood at 59%, an increase of 4%. The airline also increased the number of flights by 12%. Services to Montenegro continue to see more passengers than last year (+ 28%), while charters continue dwindle (- 90%). In the first 3 months of the year, Jat carried 215.643 passengers, an increase of 14%.

In order to stave off a low cost assault, primarily by Wizz Air, Jat recently launched a promotional ticket sale. The airline has sold 23.033 tickets. Over 4.000 tickets were sold for regional flights while over 18.000 for Euro-Mediterranean services. Despite the good passenger result, Jat Airways’ acting CEO said the airline ended 2010 with a 25 million Euro loss. The management promises a better financial performance this year.

The year so far:

Month	PAX	Change (%)
JAN	68.600	▲ 2.9
FEB	67.635	▲ 24
MAR	79.408	▲ 20

Niki coming to Skopje

Soon in Skopje

After securing the arrival of low cost airline Wizz Air, Skopje Aleksandar the Great Airport has another new high profile arrival. The Austrian low cost airline, Niki, will commence flights to Skopje this summer with 2 weekly flights from Vienna. A promotional flight is set to be operated on Thursday when a press conference is also scheduled to take place in Skopje, where details of the new service will be revealed. On Thursday, the public will be informed of the launch date of the new route, flights information and ticket prices.

Niki recently requested for a permit in order to operate flights to Skopje. A month ago, when the Macedonian Civil Aviation Agency made public the airlines that are set to operate flights to Skopje this summer, Niki was not listed as one of them. The Austrian no frills airline has been lured by Macedonia‘s airport operator TAV Holdings, local media report. This summer another low cost airline, Wizz Air, will launch services from London Luton and Venice to Skopje.

Currently, within the EX-YU region Niki only operates flights to Belgrade. From June 29, the airline will launch flights to Priština.

Montenegro falls on hard times

Montenegro Airlines to cut routes and employees

Montenegro Airlines was bailed out last week by the Montenegrin Government as it faced bankruptcy, however, disarray within the airline continues. The Montenegrin national airline plans to cut its workforce and terminate several services.

At a press conference in Podgorica, Zoran Djurišić, the carrier’s CEO said that 150 employees will lose their jobs by 2014. Furthermore, it plans to discontinue services to London Gatwick Airport due to heavy losses. “We have made a loss of 2.5 million Euros on the Podgorica – London service. We wanted to connect Montenegro with London but we will review this decision”, Djurišić said. The route was launched with much fanfare 2 years ago. Last Friday, Montenegro Airlines launched services to Milan and will inaugurate flights to Brussels this week. In spite of this, the new additions are expected to be short lived as Djurišić says that booking numbers have been extremely low.

Montenegro Airlines employees might soon have to look for a job elsewhere as the airline plans to cut nearly half of its workforce within the next 2 years, when it hopes to have between 250 and 300 employees.

Djurišić also touched on the topic of low cost airlines, which are soon expected to begin services to the country. “Former government minister Nenezić told me he flew between Vienna and Venice yesterday on a low cost airline, purchasing his ticket 3 hours prior to departure for 300 Euros. That’s 300 Euros for a 45 minute flight. It’s all a marketing ploy”, the CEO explained. Djurišić says that the government should accept Montenegro Airlines’ terms for low cost airline to fly during the winter season as well and stay away from routes served by Montenegro Airlines.

From Chicago to Belgrade and Zagreb

Swift Air to operate flights to Belgrade and Zagreb

An American charter operator, Air Plus, has announced plans to commence flights from Chicago O’Hare International Airport to both Belgrade and Zagreb this summer. According to the charter operator, it is already selling tickets through various travel agents in the United States and nonstop flights are set to commence in June, using a 235 seat Boeing 767-200ER from the designated airline operator Swift Air. Ticket prices amount to approximately 760 Euros from Chicago to Zagreb and 800 Euros to Belgrade (roundtrip).

Both the Serbian and Croatian civil aviation agencies have remained tight lipped about the service but the former has confirmed it is in the process of granting a license to Swift Air. Only a week ago it was said that Ryan International Airlines, which was supposed to operate services from Chicago and Toronto, would not be doing so and no hints were given that other airlines were interested. At the beginning of the year Zagreb Airport said it was on the verge of securing a major US carrier to operate flights to the Croatian capital but has been quiet ever since.

Air Plus will operate flights from June 17 to September 14. A total of 58 flights are expected to be operated to the two cities. Since designated airline operator, Swift Air, is based in Phoenix, flights are set to originate from the city and operate to Belgrade and Zagreb via Chicago. Flight information will soon be available on the right hand side in the new route launches section.

Adria plans for positive 2012

A320s return to the fleet as Adria plans financial restructuringAdria Airways’ new financial restructuring plan should see the airline cut its losses by half this year and make a profit in 2012. The Slovenian national carrier is also on the lookout for a financial advisor. Late last year the airline made public it was operating with a loss and owes more than 80 million Euros in loans to various banks. The airline will pitch its financial plan to the banks in the hope of delaying repayments. In January, Ljubljana Jože Pučnik Airport wrote off 2.4 million Euros the airline owed to its hub, in return receiving a stake in Adria Tehnika.

Meanwhile, Adria will introduce 2 Airbus A320s, half a year after it farewelled the type from its fleet, which had been with the airline since 1989. One is being leased from the Italian low cost airline MyAir and is set to join the fleet tomorrow. The aircraft are expected to serve on charter flights throughout the summer season, while there is a possibility for one of the jets to stay with Adria long term, the “Delo” newspaper reports.

Ohrid overhaul complete

New look for St. Paul

The upgrade of Ohrid St. Paul the Apostle Airport’s terminal has been completed, as was originally agreed upon between the Government of Macedonia and TAV Holdings, the airport’s owner. The airport’s new look terminal will be officially opened tomorrow by the Macedonian Prime Minister, Nikola Gruevski, and the TAV management in the country.

A 1.000 square meter hanger and a 2.000 square meter VIP lounge have been built at Ohrid Airport as part of the project. The airport has also received a 6.000 square meter parking lot. However, little work has been done on the passenger terminal with many wondering where TAV’s millions of Euros, allocated for the project, have been spent.

Nevertheless, TAV has delivered good on its promise to upgrade Ohrid and the project was completed on time. Work is ongoing at Skopje Airport where a new terminal is being built and expected to be completed by the end of October.

Montenegro bailout

Montenegro Airlines rescued

The Montenegrin Government has run to Montenegro Airlines’ rescue after the airline reported it was in debt and in urgent need of cash. Montenegro’s government said it would guarantee 9.6 million Euros in loans to help its flag carrier to add routes, buy new aircraft and maintain its fleet, Bloomberg reports.

The carrier, whose current fleet includes 5 Fokker F100s and 3 Embraer E195s, plans to spend 4 million Euros to buy another E195 jet, while 1 million Euros will go toward repairing its existing aircraft, the Finance Ministry said. A further 4.6 million Euros will be used to fund additional new routes.

Montenegro Airlines has already made arrangements for a 2 million Euro loan from Hipotekarna Banka in Podgorica and another 2.4 million Euros from NLB Montenegrobanka, a unit of Slovenian Nova Ljubljanska Banka. It used government guarantees, approved yesterday, to take out the loans.

Montenegro Airlines was forced to suspend services to Priština and Skopje due to debt and admitted it had outstanding payments to Vienna and Frankfurt airports. This summer, the airline slashed services to its main service, Belgrade, while one of its aircraft awaits repairs.

Ryanair to Montenegro

Soon in Podgorica and Tivat

The Montenegrin Minister for Sustainable Development and Tourism, Predrag Sekulić, has announced that Ryanair is prepared to begin services to both Podgorica and Tivat this September. Besides Ryanair, the Montenegrin Government is negotiating with both easyJet and Wizz Air. However, only Ryanair is prepared to begin services this year. On the other hand, easyJet and Wizz Air are also interested in commencing flights to Montenegro but only from 2012. Sekulić told the Antena M radio station, “They [Ryanair] would initially operate flights from Great Britain, from London and Glasgow, to both Podgorica and Tivat. Prices will be in line with airline policy”.

The new low cost arrivals will prove problematic for the debt ridden Montenegro Airlines which has said that talks between the government and low cost airlines are unjustified. Montenegro Airlines’ CEO has previously stated that low cost airlines will operate during the summer season and take passengers away from Montenegro Airlines on routes the carrier has nurtured throughout the year.

This summer, Montenegro Airlines operates 3 flights per week from Podgorica to London Gatwick Airport. On the other hand, Ryanair has bases at both London Luton and London Stansted, with the latter being the largest base in its network.

Airbus deal to be finalised?

Jat hopes for new aircraft in 2012

After 13 years, it is possible that Jat Airways’ outstanding order for 8 Airbus A319s will be revised within the next few days. Serbian President Boris Tadić is on an official state visit to France and is set to meet his French counterpart Nicolas Sarkozy on Friday. Economic cooperation is high on the agenda and a strategic partnership agreement between the two countries is expected to be signed. It was announced months ago that the order for the aircraft could be revised during the visit. According to sources close to Jat Airways, the airline believes it could reach a deal for 4 Airbus A319s and additional ATR72-500 aircraft. The ATR aircraft manufacturer is partly owned by Airbus’ parent company EADS. If the deal is revised, the airline expects to receive its first aircraft at the start of 2012. The Serbian Government has guaranteed a 180 million Euro bank loan to Jat for the purchase of new aircraft in 2011.

The Serbian national airline is constantly experiencing fleet shortage problems. The recent suspension of services to some North African destinations, due to political upheaval in the region, has worked in Jat’s favour fleet wise. The airline’s acting CEO recently told Serbian media that the airline is operating with a fleet of 13 aircraft this summer. Europe’s first Boeing 737-300, operating for Jat, will enter its 26^th year of service for the Serbian carrier this summer.

JAT Yugoslav Airlines ordered 8 Airbus A319s in 1998, a deal worth 580 million American Dollars. The politically motivated order did not suit the airline’s needs at the time. Although JAT deposited over 23.5 million Dollars, none of the aircraft were ever delivered. Jat Airways has been trying to revise the agreement ever since without much success with Airbus unwilling allow Jat to defer the order onto another airline. However, late last year a breakthrough was made during talks between the two sides and both have agreed to make compromises.

No US flights

No flights from US to Belgrade or Zagreb this summer

Ryan International Airlines, which announced it would commence flights from Chicago and Toronto to Belgrade, is unlikely to do so. The American based airline requested and received landing and departure slots at Belgrade Nikola Tesla Airport several months ago. However, the Serbian Aviation Directorate said, “Ryan International Airlines has handed in all necessary documentation except for one part. Since then we haven’t heard from them”. The airline was to have its first flight from Chicago to Belgrade on June 29. A spokesperson from the Serbian Government said it was difficult for such airlines to begin flights to Belgrade because they lack onward regional connections.

Similarly, despite earlier announcements, Zagreb is unlikely to see flights to the United States. Previously, Zagreb Airport’s CEO, Tonči Peović, said an airline from the US, rumoured to be North American Airlines, would commence flights from New York to the Croatian capital. However, Zagreb is set to see long haul services with 5 flights from Seoul this summer, to be operated by Korean Air.

Diaspora passengers travelling from the United States are set to soar this year after most cut back on travel in the past 2 years due to the economic crisis. For now, passengers travelling from the United States and Canada to any EX-YU country will have to transit through other European airports.

Wizz considers Skopje base

Wizz Air stretches its wings over EX-YU

According to sources close to Skopje Alexander the Great Airport, Eastern Europe’s largest low cost airline, Wizz Air, is considering setting up a base in Macedonia’s capital. Wizz, which will commence flights from London Luton and Venice to Skopje this summer, is being lured by TAV Holdings, the airport’s owner, which is offering concessions to the no frills airline. TAV believes that the only way Skopje can expand is by having a scheduled airline based at the airport. The Turkish airport operator hoped, at one point, that Turkish Airlines would set up a national carrier in Macedonia. Wizz Air’s bookings for the new Luton – Skopje service are going well, which led the airline to increase its initial frequencies.

Wizz Air is already studying the prospect of opening services from Charleroi in Belgium to Skopje. Furthermore, in 2011, Macedonia will fully implement the European Free Sky agreement, which would allow Wizz Air to set up a base in Macedonia with ease. The airline will most likely open its base in Skopje sometime in 2012. Wizz Air opened its 13^th base in Europe last week in Belgrade, with bases set to open in Lithuania’s Vilnius and Romania’s Targu Mures later in the year.

Skopje Airport’s brand new multi million Euro terminal is set to open in October 2011. Together with a brand new building, the airport’s runway has also been lengthened.