ČSA plans Zagreb and Belgrade pullout

Zagreb and Belgrade flights on the line

The national carrier of the Czech Republic, ČSA is seriously considering suspending flights to Belgrade and Zagreb from the start of the winter season, insiders say. The Czech airline is trying to concentrate on more profitable markets by opening a base in Bratislava in neighbouring Slovakia and launching several new routes to Russia.

Only a month ago the SkyTeam member airline flew to the Croatian capital 9 times per week, usually with ATR72s. It has now cancelled 3 of its weekly flights and downgraded to a 45 seat ATR42. The airline won't be operating its traditional seasonal summer services to Dubrovnik and Split either. Zagreb was ČSA’s first international destinations, launched back on July 1, 1930.

The Czech national carrier is making more drastic cuts to its Belgrade service which used to operate twice per day. Effective immediately, the airline has cancelled 10 of its weekly flights and now operates only 4 times per week from Prague to Belgrade with a Boeing 737-500. The airline will close its representative office in the Serbian capital tomorrow. Flights between Prague and Belgrade have been operating since 1946 with the only interruption occurring during the 1990s when flights to Yugoslavia were banned under international sanctions. Jat Airways suspended flights to Prague as part of its cost cutting escapade in 2008 along with Tirana, Gothenburg, Malta, Thessaloniki and Tripoli. All of them, expect for Tirana and Prague, were resumed the following year. The main problem on the route is the lack of point to point passengers.

Air India wants Adria

The Slovenian Government wants Air India to take over Adria

The indebted Slovenian national carrier, Adria Airways, could soon be saved by Air India. The “Večer” daily reports that the Slovenian and Indian governments have been negotiating about a potential takeover of Adria Airways by India’s national carrier for several months and a final agreement could be reached in mid June when the Slovenian Prime Minister, Borut Pahor, visits the subcontinent. Air India, which itself is swimming in debt would purchase a certain amount of shares which would be increased over the next 5 years. Similar talks of a potential Adria takeover between the government and Qatar Airways, Turkish Airlines and Lufthansa have all ended unsuccessfully.

Adria Airways now owes up to 80 million Euros to banks and a further 20 million to suppliers. In May the government granted state guarantees for a short term 6.1 million Euro loan for Adria. Further assistance by the government will be provided as the carrier carries out its restructuring process.

Air India is government owned and is the largest airline in the country. It will become a Star Alliance member this summer. Its only interest in the region was shown several years ago when it wanted to set up a joint venture airline with Jat Airways with its base in Belgrade. Ultimately, the plans between the two never materialised.

Montenegro suspends Milan and Brussels

Montenegro Airlines dumps new routes

Montenegro Airlines has suspended services to Milan and Brussels which it launched just over a month ago. The service to Milan was inaugurated on April 8 with 3 weekly flights while services to Brussels launched on April 15 and saw the same number of frequencies. Both services operated out of Podgorica, however, the airline failed to attract any interest. The Montenegrin national carrier announced that as part of its cost cutting measures it was bound to cancel the two new routes. It has also been announced that the airline will suspend its flights to London Gatwick, although services to the British capital remain in the airline’s timetable for now.

Montenegro Airlines now plans to redirect its aircraft to Belgrade. It will add an additional 2 daily frequencies to the city, one from Podgorica and one from Tivat after reducing its services to the Serbian capital for the summer season by 15 flights when compared to the same period last year. The additional flights will commence if an agreement is reached with Belgrade Airport.

Montenegro Airlines is latest amongst the former EX-YU carriers to trim its destination network in the past few weeks. Recently B&H Airlines suspended flights to Frankfurt and Vienna while Jat dumped its flights to Trieste.

New terminal to open in September

Construction of Skopje’s new terminal continues

Skopje’s shiny new passenger terminal is scheduled to open on September 8, more than a month ahead of schedule. The new multi million Euro terminal will be officially opened on September 8, on Macedonia’s Independence Day public holiday. Originally, the building was to open its doors on October 20, in time for the 2011/2012 winter season. The airport’s operator, TAV Airport Holdings, has plans to turn Skopje into a regional leader. Besides the new terminal, the airport’s runway has also been extended so it can handle larger aircraft. Currently, construction of the first of six air bridges has begun.

The new terminal at Skopje Alexander the Great Airport is ten times the size of the current terminal building. It stretches over two levels and 40.100 square metres. It will have the capacity to handle 6 million passengers per year. TAV has recently negotiated for Wizz Air to begin flights to the Macedonian capital and attracted Niki as well. It now hopes to lure Lufthansa to begin flights to Skopje. TAV is also vying to construct Zagreb’s new terminal. It has been shortlisted although the final decision on who will build Croatia’s biggest infrastructure project will be known in several months.

Montenegro plans Belgrade base

Montenegro Airlines hopes for flights from Belgrade to Europe

The CEO of Montenegro Airlines, Zoran Djurišić, told a press conference on Wednesday that Montenegro Airlines plans to offer flights out of Belgrade to Western Europe. This came only several days after the Serbian Civil Aviation Directorate denied to issue Montenegro Airlines a license to operate summer charters from the Serbian capital to Palma de Mallorca in Spain. Djurišić said that although the Directorate had the right to make such a decision he hopes that Serbia and Montenegro will liberalise their skies soon. Djurišić added that he wants Montenegro Airlines to begin flights from Belgrade to other countries other than Montenegro and in return Jat Airways should be granted the right to fly out of Tivat and Podgorica to other countries of its choice.

Serbia is currently implementing phase 1 of the Open Sky agreement meaning that it is under no obligation to issue fifth freedom rights to airlines, although it has exercised this right with Wizz Air since the Hungarian registered airline flies from Belgrade to several destinations in Western and Northern Europe.

Recently, the Montenegrin Government announced it would liberate its sky by allowing low cost airlines to commence flights to both Podgorica and Tivat. Montenegro Airlines’ chief says he welcomes competition but underlines that low cost airlines should operate all year round services to the country and not only peak season flights.

Until June 2006, Montenegro Airlines operated summer charters out of Belgrade Nikola Tesla Airport as well as scheduled services to Zurich, Podgorica and Tivat.

Wizz confirms new Skopje route

Venice Treviso to Skopje by Wizz Air

As was exclusively reported by EX-YU aviation news back on March 30, Wizz Air yesterday confirmed that it will commence flights from Venice (Treviso Airport) to Skopje. The flights will accompany the London Luton – Skopje service which will be inaugurated on June 20. The low cost airline will introduce the Venice flights on September 20 and will operate them twice per week, every Tuesday and Saturday (moving to Thursday and Sunday in the winter). Tickets can already be purchased via the airline’s website. Wizz Air decided on launching the Venice service after recording strong booking figures for the London Luton flights. The airline has already sold over 5.000 tickets from London to Skopje. According to EX-YU aviation sources, the airline’s next route to Skopje is likely to be from Charleroi in Belgium, since the airline is conducting a feasibility study.

This summer, Skopje Airport is seeing a boom in traffic and has managed to attract several new low cost airlines, the latest being Niki from Austria. Wizz has a strong presence in the region with a base in Belgrade and flights to the Croatian coast. To view details for the Venice – Skopje service click here.

Jat dumps Trieste

Jat suspends Trieste service

Jat Airways has suspended services to the Italian boarder city of Trieste, citing low interest. The flights have been suspended as of immediately. Jat’s acting CEO said there was no interest to fly to the North of the Adriatic. Although it is no secret that the service has been struggling for years, it has been part of Jat’s destination network for quite some time and carried an Alitalia codeshare as well. The Serbian carrier operated flights to Trieste 3 times per week using its ATR72. Jat continues to fly to Rome and Milan in Italy. The airline has also temporarily suspended flights to Malta and Tripoli due to the NATO led intervention in Libya. With both air raids and civil war ensuing in the North African country, it is unlikely the Serbian carrier will be returning to Tripoli anytime soon, despite being the last European carrier to pull out of the city. The flights operated as a triangle service (Belgrade – Malta – Tripoli – Belgrade).

The Serbian carrier has today cancelled its service to Stockholm due to a spreading volcanic ash cloud from Iceland. It also cancelled yesterday's service to Copenhagen for the same reason. Thousands of passengers have been stranded in Europe as a result of the eruption. Germany has today closed its northern airspace. Most services originating to and from EX-YU airports remain unaffected. Meteorologists predict that this year’s ash cloud won’t cause mass havoc as the one last year.

Montenegro denied Palma flights

Montenegro Airlines unable to operate Belgrade charters

The Serbian Civil Aviation Directorate has denied issuing a license to Montenegro Airlines to operate charter flights from Belgrade to Palma de Mallorca in Spain. The Directorate’s spokeswomen Katarina Andrić-Milosavljević said that under the first phase of the Open Sky Agreement, which Serbia is a party to, the country has no obligation to permit fifth freedom rights to airlines. Fifth freedom rights in this case would allow a foreign carrier (Montenegro Airlines) to operate out of Serbia to a country other than its own (Spain). She went on to explain that Wizz Air was granted such a license due to the impact it will have on the development of air travel in Serbia.

This is not the first time Montenegro Airlines has been denied to operate flights out of Serbia. After the breakup of the state union of Serbia and Montenegro in 2006, the Montenegrin carrier lost its rights to operate the lucrative Belgrade – Zurich service and, as a result, planed to set up a Serbian registered airline in Niš, to be named Master Airways. The airline never received the green light from the authorities. Similarly, Jat Airways lost its rights to operate seasonal summer flights from Tivat to other European cities. More recently, Switzerland denied the Montenegrin carrier rights to operate flights from Niš to Zurich, despite the fact that the Serbian authorities approved the service.

Montenegro Airlines was also planning on applying for charter flights from Belgrade to Greece. However, after this decision from the Serbian Directorate, the airline might relocate these flights to Niš as there is a greater chance for the carrier to gain all necessary licenses.

This summer Spanair is offering scheduled flights from Barcelona and charters from Mallorca to Belgrade, while Jat Airways is offering flights to Girona on the Costa Brava coastline.

Croatia Airlines to introduce new seats

Lufthasa’s Recaro seats to be rolled out on Croatia Airlines jets

At a launch party in Zagreb for Lufthansa’s new look economy class cabin for inter-European flights, Croatia Airlines revealed it too will introduce the Lufthansa Recaro designed seats (pictured above) on its Airbus fleet in 2012. Lufthansa began refitting its short and medium haul aircraft in December 2010 with the new slimline seats. Georg Lazzari from the airline said that Croatia Airlines’ technical division has been authorised to fit the Europe cabin on several of Lufthansa’s Airbus A320s, thus making Croatia Airlines the only other airline authorised to do so on Lufthansa jets. The refitting will be done at Croatia Airlines’ relatively new hanger at Zagreb Airport, opened in 2008 in cooperation with the German flag carrier.

The new seats are both more comfortable and economical, according to the two partner airlines. They provide passengers with more legroom but also allow the addition of another 2 rows of seating. Croatia Airlines will roll out the new economy class cabin on selected Airbus A320s in time for the 2012 summer season.

Užice to get passenger terminal

Proposed new look for Užice Airport

With the construction of Morava Airport in Kraljevo in full swing, plans are being made for yet another airport project in Serbia, this time in the country’s West in the town of Užice. Ponikve Airport, a military base which served as a civilian airport during the 1990s before its complete destruction in 1999, is anticipated to get a new passenger terminal building, which would open new opportunities for the local economy. However, for construction to take place, mines, which are scattered throughout the airport complex, must first be removed. At a recent donors conference in Belgrade a total of 4 million Euros was donated for the removal of the mines which will begin in 3 months. A total of 15 countries along with Slovenia and Serbia will take part in the project. Construction of the new terminal and supporting infrastructure should begin in the second half of 2012 if finances are secured.

However, Užice is not day dreaming of becoming a passenger hub. The city’s mayor says that Užice can only attract cargo and charter airlines. The city has a population of just over 100.000 but also has a developed industry, a lot of which is exported.

During the 1990s, JAT Yugoslav Airlines used the airport as an occasional stopover for flights bound from Belgrade to Tivat or Podgorica in order to increase flying times for pilots, needed to retain their license since, at the time, the airline was only able to operate within its country’s boarders.

According to local media, the Serbian Government has drafted a post economic crisis plan which sees planed investment for 16 airports throughout the country, one of which is Užice’s Ponikve Airport. Currently the former Ladjevci airbase in Kraljevo is being transformed into an airport for civilian use and is expected to be open in either September or October.

Mostar to get flights

B&H to commence Pescara service

Mostar Airport has announced it is finalising an agreement with B&H Airlines to commence seasonal summer charters from the city to Pescara in Italy. Mostar Airport’s managment is visiting Pescara in order to finalise the flight details. The project is being propped by a local tour operator. This is welcomed news for the airport as it has been struggling to attract airlines for years. If all goes to plan flights could commence next month, local media reports. In April, Mostar handled 2.193 passengers thanks to charter flights from Italy and Lebanon. It is believed Mostar Airport could attract airlines offering flights to religious pilgrims visiting the nearby Medjugorje.

On the other hand, Tuzla is anticipating the start of Air Arabia’s Dubai service, which commences on July 1. The airport handled only 54 passengers last month. Meanwhile, Bosnia and Herzegovina’s second largest city, Banja Luka, saw 719 passengers pass through its doors. Finally in April, Sarajevo handled 49.489 passengers. In total, Bosnia and Herzegovina’s four airports handled 52.455 passengers in April.

Montenegro Airlines incident at Tivat

The flying eagle hit by an eagle

A Montenegro Airlines Fokker F100 sustained minor damage yesterday after an eagle flew into its nose cone while landing at Tivat Airport. Passengers onboard the flight operating as YM201 from Belgrade said they heard a loud bang as the aircraft touched down, however the pilot managed to stabilise the plane and taxi safely to the apron. No passengers were hurt in this minor incident. The aircraft, registered 4O-AOL was out of service for several hours but was returned to the fleet by the afternoon as the incident took place just before 10.00. The aircraft’s meteorological radar was slightly damaged as a result of the bird strike. Interestingly, the aircraft in question is in the middle of a stalled corruption investigation as it is suspected it was unlawfully leased to the Albanian airline Belle Air several years ago.

Meanwhile, Tivat Airport welcomed its first batch of German tourists from Nuremberg on Wednesday as Air Berlin operated its first service to Montenegro. Flights will operate once per week until September 14. In a recent interview, Montenegro Airlines CEO said he had nothing against low cost competition but insisted that all airlines operating to the country must have equal rights. The Montenegrin Government recently announced it would suspend its protectionist policy over the national carrier and began negations with no frill carriers Ryanair and easyJet.

B&H suspends Frankfurt and Vienna

B&H farewells Frankfurt and Vienna

B&H Airlines has issued a press release saying it will suspend services to Vienna and Frankfurt, leaving the national carrier with only 6 routes. The news comes after this blog reported the airline is gearing up to sell one of its ATRs, which will be made possible with the suspension of these routes. B&H Airlines says that the two services were no longer profitable as both were reporting dwindling passenger figures. Prior to the 2011 summer season, EX-YU aviation news was told by officials from the airline that Vienna would get another chance to prove itself. However, B&H Airlines failed to attract any significant passenger numbers on the route since then.

Services to Vienna have been suspended as of immediately while the final service between Sarajevo and Frankfurt will be operated on May 23. All passengers that have booked tickets on these flights will be refunded or, if they wish, transferred onto other flights.

Austrian Airlines now becomes the sole carrier offering flights from Sarajevo to Vienna. Passengers to Frankfurt will have to make a stopover if they wish to travel from Sarajevo as there are no longer nonstop flights between the two cities.

Belgrade expansion to begin soon

52 million Euro investment

As Belgrade Nikola Tesla Airport reports continued passenger growth and rising profits, plans are being finalised for the expansion of Terminal 2. The airport has a final version of the expansion project and the visualisation of the new expanded terminal. A total of 8 new aerobridges will be added to the C gates section. The airport’s CEO, Velimir Radosavljević, pointed out that the project will allow greater comfort for passengers and the addition of new facilities. Construction work will be carried out in 14 phases so as not to disturb passengers and traffic. Work on this project has already begun as the A and C aprons have been recently connected. The expansion of the Terminal 2 building will begin in the second half of 2011. The airport plans to spend 12.3 million Euros on the expansion project in 2011 and another 14.7 million in 2012. By the end of next year the airport anticipates to begin the overhaul of Terminal 1, which will cost an additional 15.6 million Euros and in 2014 it plans to spend a further 10.2 million for the expansion and maintenance of the airport buildings. A total of 52.985.000 will be invested into the airport within the next 3 years. Serbia’s main airport is also investing further afield, financing the construction of the country’s newest airport in Kraljevo and aiding the airport in Niš.

In 2011, Jat Airways holds the largest share of flights departing and arriving from Belgrade, at 41.3% followed by Lufthansa at 11.1%, Montenegro Airlines at 7.5%, Swiss International Airlines at 6.6% and the low cost Wizz Air at 6.4%. In 2012 Wizz Air plans to base another aircraft at the airport, according to the Serbian Civil Aviation Agency.

Strike averted

Cabin crew gets pay increase

There has been some welcome news for Croatia Airlines passengers, as the cabin crew union of the national carrier said it would not go on strike. The decision comes after the union secured a 30% pay increase for its members. Croatia Airlines management is less than happy with the new deal but says it was forced to give in to the union in order avert a similar strike to the one staged last year. The management says that cabin crew will be responsible for the airline’s financial losses as they have added an additional 700.000 Euro loss to the annual financial performance and from 2012 a further 2.7 million Euro loss, as the pay increase will apply to all other employees. Initially, cabin crew unions, unhappy with low wages and work conditions, threatened to strike on May 13 but the strike was postponed as talks between the management and unions resumed. Yesterday an agreement was reached.

The management of the Croatian national carrier says that cabin crew will now earn 1.000 Euros per month, despite the fact that they only work 70 hours per month. The cabin crew union refutes these claims, saying that Croatia Airlines cabin crew work 190 hours per month and are not granted overtime pay. The union highlights that up until now its member’s wages ranged between 400 and 650 Euros, which is significantly less than other airlines in the region. The agreement is said to have been mediated by government minister Božidar Kalmeta who doesn’t want a strike in his department during an election year.

B&H plans ATR sale

Turkish Airlines to call all the shots from now on

According to internal sources from B&H Airlines, EX-YU aviation news can reveal that the national carrier of Bosnia and Herzegovina is planning on selling one out of its two turboprops ATR72 aircraft. The orders have apparently come from Turkish Airlines which owns 49% of the company and plans to buy out the airline by the end of the year. Besides the two turboprops, B&H also operates an Airbus A319, used on more popular routes to Scandinavia as well as Amsterdam. The ATR has come in handy for lower yielding services such as Vienna, however, with 3 aircraft in its fleet and a small destination network the aircraft is no longer needed. Some sources claim that B&H had to sell the aircraft due to mounting debt, although this cannot be verified.

Furthermore, B&H Airlines will finally get a CEO. Buyuk Yilmaz from Turkish Airlines will run the company and is expected to be named as the new CEO within the next two weeks. According to Bosnian press, Turkish Airlines insisted that they name the new CEO rather than the government. In addition, Yilmaz will have to draft an action plan for B&H Airlines which is struggling with losses and debt as is the case with all other EX-YU airlines. He will have 30 days to deliver the plan to the government with his term expected to last 3 years.

B&H Airlines flies to 10 destinations. Although it was planned for the airline to receive another Airbus A319 this summer, this now seems unlikely and ultimately Turkish Airlines will call all the shots from now on. Although the airline is reporting financial losses and its passengers must now pay additional taxes at Sarajevo Airport rather than directly through the ticket price, B&H is reporting significant passenger growth this year.

May start for new Priština terminal

Priština awaits new terminal

The construction of Priština Airport’s brand new multi million Euro terminal could begin by the end of the month, the airport’s new CEO said last week. The Turkish-French consortium, Limak Holding and Aeroport de Lyon, which will be running Priština’s airport for the next 20 years promised to begin construction of the new terminal building back in January. However, a delayed handover of the airport to its new management postponed the project. The price tag for the new terminal is expected to amount to 140 million Euros together with supporting infrastructure. The planned investment foresees a 27.000 square meter terminal building, a 77.000 square meter apron and runway, a new traffic control tower, car park facilities with a capacity to accommodate 1.750 vehicles and the refurbishment of airport access roads. If work begins in May, the project should be completed by November 2012.

Meanwhile, in the first quarter of 2011 Priština Airport saw its passenger numbers increase by 5% compared to the same period last year. The number of flights operating out of Priština also increased, up by 11.6%. The airport plans to handle 4 million passengers annually by 2030. In 2010, Priština Airport welcomed a total of 1.305.532 passengers, thus becoming the fourth largest airport in the former Yugoslavia after Belgrade, Zagreb and Ljubljana.

Four digit growth for Osijek

An April to remember at Osijek Airport

It’s not every day that an airport records a 4 digit passenger percentage increase but that is exactly what happened to Osijek in April. Airports across Croatia recorded substantial passenger growth when compared to April 2010. Granted, April of last year saw most airports across Europe close due to the volcano ash from Iceland but the airports also recorded respectable increases compared to April of 2009.

Croatia’s main airport, Zagreb, handled a total of 190.751 passengers, an impressive 35.2% increase. For the first four months of the year, Pleso is up by 17.6%. A similar increase in passenger numbers was recorded in Split where figures jumped by over 37%. Despite having only 10 flights more, Dubrovnik’s airport handled 77.046 passengers and recorded an increase of 22.2%. An impressive passenger boost was also seen at Pula Airport, which plans to end the year off with an increase of at least 10% compared to 2010. Rijeka is still waiting for flights to pick up this summer. It recorded an increase of “only” 17.7%. Finally, Osijek with 2.122 passengers sees its numbers grow by 3.286%.

Below you can review the performance of Croatia’s airports in April 2011. Overall, Croatian airports handled 371.127 passengers, an increase of 36.5% compared to April 2010. The statistics have been provided by the Croatian Bureau of Statistics.

Airport	Passengers APR 2011	Passengers APR 2010	Change (%)
Zagreb	191.751	141.053	▲ 35.2
Dubrovnik	77.046	63.033	▲ 22.2
Pula	11.538	6.915	▲ 66.9
Split	63.550	46.188	▲ 37.6
Zadar	23.013	12.305	▲ 87.0
Osijek	2.122	63	▲3.268
Rijeka	2.681	2.277	▲ 17.7
Mali Lošinj	312	131	▲ 138.2

Montenegro Airlines orders new aircraft

New Embraer coming next year

Montenegro Airlines has ordered a fourth Embraer jet, which is set to join its fleet in 2012. The order is in line with the airline's anti-crisis measures. The Montenegrin carrier currently operates 3 Embraer E-195 jets. The airline's CEO, Zoran Djurišić, says that new aircraft are needed in order to respond to growing competition. Although the exact model ordered wasn't announced, it will be one of the smaller capacity aircraft from the E-jet family. This means it could be either the E-170, E-175 or the E-190. The order is worth 26.9 million Euros.

Patrice Candaten, Embraer’s Sales Director, said that the two companies enjoy high levels of cooperation and that Montenegro Airlines has become a leading carrier when it comes to the usage and maintenance of Embraer jets. The new order was made possible after Montenegro Airlines paid its outstanding debt to the Brazilian plane manufacturer late last month for other aircraft in its fleet.

Montenegro Airlines currently operates a fleet of 5 Fokker F100s and 3 Embraer E-195s, although one F100 has been permanently grounded. The carrier plans to operate an all Embraer fleet in the near future and phase out the older Fokker aircraft. Montenegro Airlines said it will order another Embraer in 2012, to be delivered in 2013. The new, smaller capacity, Embraer jet will be deployed to destinations such as Zurich, Frankfurt, Vienna and Rome.

TECHICAL PROBLEMS

Due to a major global outage suffered by “Blogger” over the past 12 hours, no news item could be published. The problem has now been fixed. Unfortunately, all comments on yesterday’s news item were deleted, although there is still a possibility they might be retrieved in the next few hours. Those following the EX-YU Aviation News Facebook page were informed of the technical difficulties this morning. Thank you for your patience and apologies for the inconvenience.

Jat’s numbers continue to rise

More passengers flying with Jat in 2011

Jat Airways’ passenger numbers continue to rise in what is shaping up to be a solid year for the carrier, passenger wise. In April, the airline handled 88.597 passengers, an increase of 33% compared to the same, volcano stricken, month last year. In scheduled traffic the airline saw a 36% passenger increase with an average cabin load factor of 69%, a jump of 6%. The Serbian carrier has gained the upper hand against Montenegro Airlines on the popular Belgrade – Podgorica – Tivat flights. The airline increased its figures on those by 27%. In Euro-Mediterranean traffic passenger numbers were up by 37%.

On the other hand, Jat’s charter operations have been severely affected by the turmoil in North Africa and the Middle East as well as increased competition from other airlines. Jat operated 52% less charter flights than last April and recorded a 62% passenger plunge.

In the first 4 months of the year Jat Airways recorded a 19% passenger increase, the biggest increase out of the EX-YU’s “Big 3” airlines and the second best after B&H Airlines. You can review all the results from this year in the table below.

Month	PAX	Change (%)
JAN	68.600	▲ 2.9
FEB	67.635	▲ 24
MAR	79.408	▲ 20
APR	88.597	▲ 33

Big success for Zagreb terminal bid

Zagreb awaits new terminal

A total of 10 world famous companies and consortiums have applied to construct and manage Zagreb Airport’s much anticipated new terminal. From Houston to Seoul, airports across the world placed their bids for a joint Public Private Partnership (PPP) with the Croatian Government. The bids that were accepted are as follows: GMR Infrastructure & Flughafen Muenchen (Munich Airport), IC Ictas Insaat Sanayi ve Ticaret with IC Ictas Altiapi Yatiramlan ne Istetru and Incheon Int. Airport Corporation (Turkish consortium together with Seoul Airport), TAV Airport Holding & TAV Construction (Turkish airport operator), ADC & HAS Airports (Houston Airport), Alpine Bau and FCC Construction (Austrian-Spanish consortium), J&P Avax & Athens International Airport, Vinci Concessions (European airport infrastructure conglomerate), Hochtief Concessions (from Germany), Zaic (from the United Kingdom) and finally Flughafen Zuerich & Strabag te Limak - French Riviera Airports Consortium (Zurich Airport and Turkish airport operator).

A contract between the government and one of the ten listed above is expected to be signed in October 2011 with construction to start in late 2012. "We will check to see how many of those bids can enter the second stage of the tender. In the second half of June, we will invite those who enter the second stage to submit concrete financial terms", senior ministry official Tomislav Mihotić said yesterday.

The bidders are competing to build a new terminal and operate both future terminals at Croatia's biggest airport. The value of the project is estimated at up to 220 million Euros. To enter the second stage, bidders must not own an airline, must not depend on state financing and are not allowed to be in ownership of any other airport within a 400 kilometre radius from Zagreb. Due to the high number of bids, the tender can be declared as a success.

Montenegro Airlines protectionism to end

Low cost competition for Montenegro Airlines

Government protectionism over Montenegro Airlines is expected to end soon as it announces it will no longer pose obstacles to other carriers interested in establishing flights to the country. Until now, all airlines applying for a license would first have to get the tick of approval from Montenegro Airlines before receiving clearances from the country’s civil aviation body to operate to either Tivat or Podgorica. The practice is said to be hindering the country’s expanding tourism industry, which could benefit from numerous seasonal low cost flights as is the case in seaside cities across Croatia. The move will come as a slap to the Montenegrin national carrier which is in the process of taking out a 9.6 million Euro loan to cover its losses and is hoping airports in Montenegro and Belgrade will write off its unpaid debt. The airline is also struggling to pay handling fees at other airports such as Frankfurt and Vienna and will be slashing employee pay by 20%.

The Montenegrin government is continuing negotiations with low cost airlines Ryanair and easyJet. With generous incentives, Ryanair is keen on starting flights to both Podgorica and Tivat from the United Kingdom, namely Glasgow. easyJet on the other hand is considering commencing services to the country in the summer of 2012. The relaxed protectionist policy would also encourage other low cost airlines, the government believes. The Ambassador of the United Kingdom to Montenegro, Catherine Knight-Sands, said that the introduction of low cost flights between her country and Montenegro would be of great importance to the further advancement in relations between the two.

Despite being a country which heavily relies on tourism, an industry significantly propped up by low cost flights, not a single no frills airline operates to Montenegro. This summer, only Air Berlin will fly the flag for low cost airlines in Montenegro, although most consider Germany’s second largest airline to be outside of the no frills category due to its pricing.

Dubai – Tuzla

Sharjah – Tuzla replaced by Dubai - Tuzla

As was exclusively reported several weeks ago on EX-YU aviation news, Air Arabia, the low cost UAE based airline, will commence flights to Tuzla in Bosnia and Herzegovina in cooperation with the airport’s tour operator. With the deal between the two sides now finalised, there have been some changes. Instead of flying into Sharjah (as was initially planned), located 15 kilometres from Dubai, the flights will now originate and operate directly from and to the United Arab Emirates’ largest city – Dubai. Instead of the planned June 10 start the service has been pushed back to July 1, however, both the operating days and times have stayed the same. A total of 31 flights will operate until October 24. Although Air Arabia is based in Sharjah the flights will operate out of Dubai as agreed between tour operators and the operating carrier.

Tickets for the Dubai flights can be booked via several local travel agents. Prices for a return ticket with all taxes included vary with prices running between 460 and 700 Euros. Tickets will not be sold via Air Arabia’s website.

Tuzla becomes only the second city in the former Yugoslavia to have flights to Dubai after Belgrade. Jat Airways operates 4 weekly flights to the UAE’s most populous city. Flight details for the Dubai – Tuzla – Dubai flights can be found here.

Berane Airport overhaul

Planned new look for Berane Airport

Turkey will head the reconstruction project of the rundown Berane Airport, located in North-Eastern Montenegro. The Minister without a portfolio in the Montenegrin Government, Rafet Husović, said that Turkish investors will head the reconstruction of Berane Airport which will commence before long. An official agreement regarding the airport’s overhaul will be inked soon. The investor hasn’t been named although various government ministers have recently hinted that the Turkish airport operator Limak Holding (which runs Priština Airport among others) might be entering the Montenegrin market with Turkish Airlines rumoured to be eyeing a takeover of the struggling national carrier Montenegro Airlines. The goal of the investment is for Berane Airport to be used by commercial airlines for civilian flights.

Berane is one of Montenegro’s poorest municipalities and the prospect of an airport could kick start the economy. Berane has both a paved runway and a derelict terminal building which have seen better days. The runway is closed but is often used for motor racing by the locals. In the 1960s and 1970s JAT Yugoslav Airlines operated flights from Belgrade to Berane, then known as Ivangrad. Plans to develop Berane into an international airport were devised several years ago with a visualisation of the future terminal made.

Berane Airport in the 1960s

Turkey’s influence over the aviation industry in the EX-YU region is ever growing with investments in Bosnia, Macedonia and Priština and interest in both Serbia’s Jat Airways and control over Montenegro’s airports and national airline.

An April to remember

Belgrade Airport posts record April result

Belgrade Nikola Tesla Airport has recorded one of its best April results on record. The airport handled an impressive 240.282 passengers, an increase of 38.8% compared to the same month last year. The result is not surprising as many flights were grounded last April due to the closure of European airspace, as a result of the volcanic ash cloud. However, the airport also posted an increase compared to its previous April record in 2008, beating it by 25%. So far this year, Serbia’s main airport welcomed 770.653 passengers. For comparison, last year it handled 633.408 passengers until the start of May, an increase of 21.6% in 2011.

The most popular routes from Belgrade in April were Zurich with 20.086 passengers, Podgorica with 18.506 and Vienna with 18.117 passengers. The airport’s management has announced it is looking to slash airline handling fees for a second time this year on the back of these good results and thus attract more airlines.

Croatia Airlines turns 20

20 years in the sky

Yesterday Croatia Airlines celebrated 20 years since it operated its first flight. The Croatian national carrier, which had been renamed from Zegal Zagreb Airlines, operated its first service on May 5 between Zagreb and Split with a leased Adria Airways MD-83. It took a year before the airline established international flights to Frankfurt in Germany, which remains its largest international market. The airline acquired 3 of Lufthansa’s Boeing 737-200s. The Croatian carrier has continually renewed its fleet over the last 2 decades, purchasing regional ATR42s and later introducing Airbus A319 and A320 models with its newest additions being the Bombardier Dash 8 jets.

The airline has done a lot in its 20 years. It created a notable domestic network and carried more than 20.500.000 passengers, becoming the leading EX-YU national carrier in terms of passenger numbers. It has also become a full member of Star Alliance and will operate its first flight to neighbouring Serbia on June 20, putting the past behind and looking to the future. If all goes to plan, the first of 4 ordered Airbus A319s should start arriving next year.

Some notable milestones for the airline include it becoming the first airline to operate into post war Sarajevo, it flew the late Pope John Paul II on his visit to Croatia and has carried over 1 million passengers annually since 2000.

However, the airline faces a challenging future with a planned strike, a 15 million Euro loss recorded in 2010 and increased competition from low cost airlines.

All set for US flights

Soon in Belgrade and Zagreb

In just over a month, flights between Chicago, Belgrade and Zagreb will commence, to be operated once per week by the charter carrier Swift Air, Ron Hansen, from the airline, told a press conference in Belgrade yesterday. The launch of the Chicago – Zagreb service has been postponed by a week and will now commence on June 20 while services to Belgrade will be inaugurated on June 17. Services will operate until September 11 (Belgrade) and September 14 (Zagreb), although the Serbian Civil Aviation Directorate has issued an operating license to the airline until December 29. Hansen said that Swift will consider continuing the service if it proves popular. During the winter season flights could operate once every 2 weeks.

Swift Air believes it could carry up to 100.000 passengers between North America and the former Yugoslavia. The airline said the flights are in the national interest of both Croatia and Serbia. The Windy City has the largest population of Serbs outside of Belgrade with an estimated 400.000 ethnic Serbs living in the city. Tens of thousands of Croats are also estimated to live in Chicago.

Hansen told the press that if flights continue to record high booking numbers the airline will consider commencing services from New York City to the Croatian and Serbian capitals.

During the press conference the airline’s representatives said that flight times haven’t been completely finalised yet. To view preliminary flight details for each service click on the arrival city: Belgrade / Zagreb.

May 13 strike

Croatia Airlines cabin crew unhappy

Several Croatia Airlines unions are threatening to go on strike on May 13 as a new collective agreement between employees and the management has not been negotiated. Unions will make their decision on the strike action by the end of the week. The old collective agreement terminated earlier in the year and negotiations for a new one to be signed have been unsuccessful so far, prompting the management to implement code of conduct regulations. However, these new regulations have suspended employee rights such as overtime payments and holiday pay leaving unions less than happy.

Croatia Airlines experienced a similar 48 hour strike last year when part of its cabin crew and pilots walked off the job. Services were severely disrupted and the airline lost millions according to its management. The CEO of Croatia Airlines, Srećko Šimunović, says that workers have the right to protest, but should the national carrier incur further losses, the government may "lose patience" and consider selling it or declaring it bankrupt. The Minister for Sea, Transport and Infrastructure in the Croatian Government, Božidar Kalmeta, denied claims that the government would consider declaring Croatia Airlines bankrupt.

Low interest for Niš flights

Montenegro Airlines remains Niš’s only customer for now

Niš Constantine the Great Airport is still looking for airlines to commence services to the East Serbian city as the 2011 summer season ticks away. The Mayor of Niš, Miloš Simonović, has said that local authorities have secured almost 2 million Euros to subsidise airlines to fly to Serbia’s third largest city. He added that talks have been finalised with one airline, which will commence flights to Niš next summer, but failed to mention the airline’s name. Simonović said that city authorities are negotiating with another two airlines but no concrete agreements have been made yet. Last year, Niš forked out 1.1 million Euros to the low cost Italian Airline Wind Jet for its 69 flights from Forli. The service ultimately ended as the authorities could no longer support the financial subsidies.

Montenegro Airlines is currently the only airline offering flights to the struggling airport where 40 seats are pre-booked on each flight by the local governance. The airport still hasn’t signed a new agreement with the Montenegrin carrier, which would see it continue flying to Niš, but is expected to do so soon. The subsidies in the new agreement are expected to amount to 1.4 million Euros, which is less than in previous contracts with the same airline.

Some sources state Niš Airport has held talks with Carpatair from Romania, Adria Airways and Atlasjet from Turkey while interest has also been shown on behalf of Belavia, the national carrier of Belarus.

B&H on the rise

First quarter passenger growth for B&H Airlines

Bosnia and Herzegovina’s national carrier has had a good start to the year. In the first quarter of 2011, B&H Airlines handled 27.513 passengers, an increase of 59.4% compared to the same period last year. In December last year, citizens of Bosnia and Herzegovina were freed from visa restrictions to some 27 European countries, which is believed to have contributed to the passenger rise. The airline operated almost the same number of flights as it did over the same period last year, yet it carried 10.000 passengers more. B&H Airlines’ average cabin load factor is amongst the highest between the former Yugoslav national carriers, standing at 80%.

Meanwhile, the three main national EX-YU carriers - Croatia Airlines, Jat Airways and Adria Airways, also reported passenger growth in the first quarter of 2011. Croatia Airlines remains the front runner, followed by Adria Airways in second place and Jat Airways in third, 3.000 passengers behind its Slovenian rival. If the same pattern continues as has been the case the past few years, Jat will overtake Adria during the summer, while Croatia Airlines will significantly increase its lead over the other 2 carriers. Financially, the national carriers all reported multi million Euro losses in 2010 and the trend is set to continue this year.

Adria falls on hard times

Eurocontrol trouble for Adria

According to sources close to Adria Airways, the Slovenian national carrier owes millions to Eurocontrol, the European Organization for the Safety of Air Navigation, responsible for the management of air traffic across Europe. The airline has failed to make payments to the European body for months despite numerous warnings. MAT Macedonian Airlines, the now defunct national carrier of Macedonia, had similar problems prior to its demise and was forced to suspend certain routes as a result of its late payments.

However, Adria will soon receive government aid to the tune of 6.1 million Euros. Since the European Union forbids direct government assistance, the Ministry of Economy has proposed for the Slovenian Government to issue loan guarantees to banks. The European Commission has allowed for such arrangements to be made. The Ministry further concluded that Adria Airways is a company with a high bankruptcy risk but that its demise would have serious negative consequences in the region. Furthermore, the Ministry believes that Adria has the basis for recovery and restructuring.

The cash strapped carrier recently announced it would be slashing employee wages by 20% and cutting down on its workforce. In the first quarter of 2011 the airline carried 218.384 passengers, a small passenger increase of only 2% compared to the same period last year. April is set to see double digit growth for Adria as this time last year the airline was first forced to cut down on services due to runway work at Ljubljana Airport and then had to deal with air space closure due to the volcanic ash cloud from Iceland.