Adria to suspend four routes

Adria to bid farewell to Paris, London, Istanbul and Warsaw

Adria Airways’ Board of Directors has approved a restructuring plan for the debt stricken Slovenian national airline which will see the suspension of four destinations, a fleet reduction and a slash in jobs. Speaking to the national broadcaster RTV SLO, Adria Airways' Executive Director Robert Vuga said that the airline is likely to suspend flights to Paris, London, Istanbul and Warsaw. Vuga says that these routes are not profitable. The airline will decrease its fleet, although it hasn’t disclosed any further details to the public yet. Adria’s employees will also be reduced with the airline preparing redundancy packages and social programs. Adria currently employs only 450 people.

As of this moment, Adria Airways operates 14 weekly flights to Istanbul, 5 weekly to London Gatwick, 10 weekly to Paris and 3 weekly flights to Warsaw, which are code-shared by LOT Polish Airlines. Lufthasa is likely to take the airline's slots at these airports. Adria Airways is expecting to receive 50 million Euros in state aid and will borrow a further 40 million Euros from the banks. Both of these are under the condition that the airline carries out the restructuring plan it just approved.

June passenger jump

Busy times for Zagreb

Airports across Croatia recorded a rise in passenger figures for the month of June as the tourist season kicked in. Zagreb continues to see impressive passenger growth in 2011.

The country’s busiest international airport, Zagreb, saw its figures jump by 14.5%, with the airport handling 229.551 passengers. During the month the airport welcomed its millionth passenger in 2011 and ended the first 6 months of the year with 1.062.590 passengers, up 16.9% on the same period last year. Split, Dubrovnik, Pula, Rijeka and Zadar all saw their passenger numbers increase between 5 and 10%. Rijeka’s fortunes have finally turned for the better. The airport handled 14.056 passengers, an increase of 50.5%.

Osijek was the only major airport to see its numbers decline. It handled 3.335 passengers, which is 42 passengers less than in June 2010, thus representing a decrease of 1.2%.

Below you can review the performance of Croatia’s airports in June 2011. Overall, Croatian airports handled 693.038 passengers, an increase of 10.7% compared to June 2010. The statistics have been provided by the Croatian Bureau of Statistics.

Airport	Passengers JUN 2011	Passengers JUN 2010	Change (%)
Zagreb	229.551	200.515	▲ 14.5
Dubrovnik	179.950	167.931	▲ 7.2
Pula	56.208	53.159	▲ 5.7
Split	169.415	154.778	▲ 9.5
Zadar	37.065	33.838	▲ 9.5
Osijek	3.335	3.377	▼ 1.2
Rijeka	14.056	9.341	▲ 50.5
Mali Lošinj	942	938	▼ 0.4

New CEO for Sarajevo Airport

From Croatia Airlines representative to Sarajevo Airport CEO

A new acting CEO has been appointed at Sarajevo Airport. Former Croatia Airlines representative for Bosnia and Herzegovina, Ivica Veličan, will now lead the country’s largest and busiest airport. He has been Croatia Airlines’ general manager for Bosnia and Herzegovina for the past 10 years. Croatia Airlines currently operates 2 daily flights to the Bosnian capital.

Veličan replaces Bakir Karahasanović, a Sarajevo Airport veteran who has been running the airport for the past 17 years. Karahasanović has been criticised for having an extremely high pay which exceeds that of the Prime Minister, although he also boasts some achievements to his name. During his time commercial flight operations resumed out of Sarajevo and the airport went through renovations and upgrades.

Ivica Veličan has been appointed as acting CEO by the Bosnian government. His job will be not only to attract new airlines but also to push through the Sarajevo Airport terminal expansion. The airport has been criticised for its high taxes, which some believe has been the reason why some airlines have stayed away from it. This year Sarajevo has seen steady passenger growth.

Jat sale begins on Monday

Jat sale - take two

The Serbian Government has confirmed that its tender for the sale of Jat Airways will begin on Monday, August 1. The terms of the tender will be extremely flexible. The conditions are that the new owner must be an airline or aviation consortium. Once they take over Jat they must continue cooperation with Jat Tehnika and Jat Catering, which were separated from Jat several years ago. The new owner will be required to buy Jat and set up a new national airline, to be operational by the beginning of 2012. The new owner will also be a majority shareholder and it will be up to them to decide whether to close Jat or keep it as a charter airline. The new national airline would take over Jat’s slots, employees, route network and so on, while the new owner will be required to purchase new aircraft. All other details will be negotiated directly with the government, including the price.

Companies have until September 30 to purchase the tender documentation. A similar sale ended up in failure in 2008 as no companies answered to the government’s call. If history repeats itself the government will not set up a new airline, rather, it will keep Jat Airways in its current form.

Currently, the only national EX-YU carrier successfully privatised is B&H Airlines, with Turkish Airlines having a 49% share in the Bosnian carrier. Montenegro Airlines’ sale failed last year as no one was interested in the 30% of shares offered by the government. There are increasing calls for the debt ridden Adria Airways to be sold as well.

Banja Luka to remain open

Flights to Banja Luka to go ahead as planned

Workers at Banja Luka Airport, who planned to go on a general strike today, effectively shutting down the airport until further notice, have decided against the move. Workers are unhappy with late and low wages and are requesting for funds to be redirected to them from Trebinje Airport and Sky Srpska. The decision came after the government of the entity and the workers union met yesterday and agreed for some outstanding wages to be paid. However, the government did not concede into granting a 30% pay increase, as requested by Banja Luka Airport employees. The planned 307.000 Euros the entity will give to the airport this year is only half of what is needed for it to continue to operate, the union chief said.

The agreement between the two sides will come as good news for the small amount of passengers using the airport. Today, both Adria Airways from Ljubljana and B&H Airlines from Sarajevo and onwards to Zurich have scheduled flights to and from Banja Luka. These two are the only airlines currently operating from the city. Due to its unprofitability the airport is facing the prospect of losing its operating license, which means it would no longer be able to handle commercial flights.

Skopje Airport turns 83

Skopje Airport celebrates 83rd birthday

This month Skopje Airport celebrates 83 years of existence. In July 1928 the airport opened its doors with the first experimental flight organised by the national carrier of the Kingdom of Serbs, Croats and Slovenes - Aeroput. Flights departed Belgrade and operated via Skopje, Mostar and Sarajevo back to Belgrade. On July 31, 1929 Skopje saw its first scheduled service, with Aeruput operating return flights from Belgrade. The first international flight to Skopje was operated in 1930 from Vienna.

Current Skopje terminal - soon to close

After the Second World War Skopje became a secondary hub for the Yugoslav national carrier JAT. The devastating 1963 Skopje earthquake severely impacted on the airport’s operations. A new terminal was built in 1987. Following Macedonia’s independence from Yugoslavia, the airport went through reconstruction and redevelopment. During that time it served as a base for Palair Macedonia, as well as MAT Macedonian Airlines later on. Today, only Mat Airways calls Skopje its home.

Skopje's new terminal - opening in September

In more recent history, Skopje renamed itself to Alexander the Great Airport, an unpopular move with the international community. In 2008, the Macedonian Government signed a contract with the Turkish TAV Holdings for a 20 year concession during which the company will run both Skopje and Ohrid airports. As a result, the construction of a multi million Euro terminal began in the spring of 2010. On September 8, 2011 the brand new terminal will open marking a new chapter in the airport’s long history.

Jat on sale in August

Open call for Jat bids this summer

The Serbian State Secretary for Aviation, Miodrag Miljković, announced yesterday that the Serbian Government will call for bids for the purchase of the national carrier Jat Airways in August. It was originally planned for the tender to open in June. The call for bids should last until the end of September. The new owner would set up a new national carrier which would take possession of Jat’s aircraft, routes, international agreements and employees. The Serbian Government would also retain some shares in the airline.

The government tried to sell Jat during the summer of 2008, however, not a single airline expressed interest. It is expected that the same will happen this year. Asked if Turkish Airlines was still interested in purchasing Jat, Miljković answered the media, “I hope so”. At the beginning of July, Turkish Airlines CEO, Temel Kotil, said, “There’s no progress in talks to buy a controlling stake in Serbia’s Jat Airways. There are several carriers in Europe and the Balkans that are seeking partners but our board hasn’t made a strategic decision to look for a partner at the moment”.

If the tender fails, the government has said it will provide the finances for Jat to purchase new aircraft. In 2008 it offered a 51% share of the airline for 51 million Euros.

B&H to Pescara in September

Charter flights for B&H

B&H Airlines will begin subsidised charter flights from Mostar to Pescara in Italy. Flights are expected to begin in early September and are scheduled to run until the end of October. The service will operate once per week. All sides participating in this project are hoping to attract Christian pilgrims from Italy visiting Medjugorje in Bosnia and Herzegovina. B&H Airlines should make good money from the service as all seats on the aircraft will be pre-booked by a tour operator. Pescara is located on Italy's eastern coast, some 180 kilometres from the capital Rome.

Mostar Airport has been reporting strong passenger figures this year, thus becoming Bosnia and Herzegovina’s second busiest airport, behind Sarajevo. The airport is booming thanks to religious tourism and has seen an increase in charter flights this summer. However, the airport still doesn’t have a single scheduled service, as a result preventing it from reaching its full potential.

Meanwhile, Dubrovnik Airline from Croatia will begin summer flights from Dubrovnik to Pescara. The 1 weekly service will commence next week. Flight details can be found here.

Aid for Montenegro Airlines

Government writes off debt

The Government of Montenegro has announced it will write off 3.2 million Euros of debt amassed by the national carrier between 2002 and 2006. The government said the cash injection will be treated as state aid. Earlier in the year it was revealed that Montenegro Airlines has significant financial problems and was forced to terminate flights to 2 destinations as a result. More recently, the operator of Montenegro’s two international airports said that the national carrier owes 6.2 million Euros to Podgorica and Tivat airports. The airline has already received 9.6 million Euros from the government this year (4.6 million for opening new destinations, 4 million for the purchase of new aircraft and the rest for the overhaul of a grounded Fokker F100).

The President of the Financial Board of the Montenegrin Parliament criticised the government’s action stating, “This is the government’s most beloved company and it will always come out and help it. This is bad news because 3 million Euros will be paid by someone else; by the citizens, unemployed, workers and other companies in need of aid”.

Zoran Djurišić, Montenegro Airlines’ CEO, was elected for another term at the helm of the national carrier by the Montenegrin government earlier last week. He has led the airline for the past 17 years.

Croatia Airlines surpasses million

Record numbers for Croatia Airlines

Croatia Airlines carried its millionth passenger on Wednesday, the earliest it has done so since beginning operations 20 years ago. The Croatian national carrier recorded the figure 27 days ahead of last year and 4 days ahead of its record breaking year of 2008. The millionth passenger in 2011 was travelling from Munich to Zagreb. Srećko Šimunović, the airline’s CEO, said that the good result was achieved due to the development of Croatia Airlines’ destination network, strategic routing and an efficient fleet.

By Wednesday, Croatia Airlines handled 127.000 passengers more than during the same period last year. In international traffic the airline carried over 674.000 passengers, an all time record. In domestic traffic, on the other hand, the national carrier welcomed 266.000 passengers on board its aircraft, an increase of 16% on last year.

However, the airline’s finances are seeing record losses. Šimunović remains optimistic though, saying that he believes Croatia Airlines will be able to post a minimal profit next year. Turmoil in North Africa, a resurgent tourism industry in Croatia and more travel within the country are all factors which have led the airline to record large scale growth. As a result, Croatia Airlines will carry the most passengers out of all former Yugoslav airlines by the end of the year, leaving its rivals Jat Airways and Adria Airways well behind.

Banja Luka Airport to close

Strike to close Banja Luka Airport’s doors

Banja Luka Airport will be forced to close its doors from July 27 as its employees will begin a general strike, unhappy with unpaid wages. Employees of Bosnia and Herzegovina’s third largest airport (passenger wise) are demanding for government funds, currently being directed for the inexistent Trebinje Airport and the Sky Srpska airline, to go towards their salaries. A total of 63 people are employed at the airport. The head of the worker’s union said, “We are aware that the airport is having financial trouble but this is not our problem. The government and management are responsible for the fact that this international airport offers flights to only two destinations”.

Banja Luka Airport is currently served by Adria Airways from Ljubljana and B&H Airlines, which operates flights to Zurich. The 5 weekly flights operated by Adria Airways are heavily subsidised and on average have 6 passengers per flight. The strike, scheduled for next Wednesday, will disrupt both B&H’s and Adria’s operations to and from the airport. The strike will continue until the demands of the workers are met, which includes a 30% wage increase.

Banja Luka Airport has been in financial strife for some time. Its employees held a warning strike on July 4 but none of their terms have been met.

Zagreb issues threat to Croatia Airlines

Croatia Airlines faces loss of aircraft

Zagreb Airport has said it will ground and take possession of one of Croatia Airlines’ Airbus jets if it does not pay off it outstanding debt to the airport for the year 2009 immediately. The move would be lawful as the two agreed that such action could be taken if no payments were made by the end of 2010. In 2009, Croatia Airlines did not pay its hub any handling fees nor did it divide the passenger tax. As a result, the Croatian national airline owes Zagreb Airport 9.2 million Euros. The airline says that it has been paying its fees to the airport for the years 2010 and 2011 on time.

Despite an agreement for the debt to be paid off by the end of December 2010, Croatia Airlines has not done so and the airport is not amused. It says it will exercise its right to take possession of one of Croatia Airlines Airbus jets. In the first 3 months of 2011, Croatia Airlines recorded a loss of 13.1 million Euros. The two are also feuding over food catering prices. Croatia Airlines has refused to pay for catering under new prices set in 2006 and still continues to pay in accordance to prices set in 1999. As a result, Zagreb Airport has sued its main customer.

Bad relations between national carriers in the former Yugoslavia and their hubs is not uncommon. Last week, the operator of Podgorica and Tivat airports said that Montenegro Airlines owes 6.5 million Euros to the Airports of Montenegro company and urged the government to pressure the national carrier into paying off its debt. Earlier in the year, Ljubljana Airport wrote off 2.4 million Euros in debt owed by the Slovenian carrier. Last week, Adria Airways accused Ljubljana Airport of favouritism towards other airlines.

Cimber and LOT dump Belgrade

Belgrade losses Cimber Sterling and LOT

Cimber Sterling will terminate its services from Copenhagen to Belgrade on August 29 due to low interest. The Danish airline will suspend its services to the Serbian capital 2 years after flights were inaugurated. Cimber has operated 2 weekly flights to Belgrade from Copenhagen Kastrup Airport with the 148 seat Boeing 737-700. The news will be warmly welcomed by Jat Airways which flies to Copenhagen 3 times per week with the 126 seat Boeing 737-300 and will no longer have any direct competition on the route from September.

On the other hand, LOT Polish Airlines will also terminate its 5 weekly flights from Warsaw to Belgrade. The airline launched the service last year but has failed to attract too many passengers. The last flight will operate on October 28. As a result, Belgrade will no longer have a direct air link to the Polish capital.

So far this year, B&H Airlines has been the only scheduled carrier to cancel its flights to Belgrade Nikola Tesla Airport and is soon be joined by Cimber and LOT. Scheduled airlines which began flights to Belgrade in 2011 are Olympic Airways, Croatia Airlines and airBaltic (the latter two on a seasonal summer basis). During the winter, Skywork Airlines will begin flights from Bern in Switzerland and a national carrier from Europe, which has previously never flown to the city, will announce its flights in the coming weeks.

B&H dumps Stockholm and Gothenburg

No more flights to Sweden with B&H

B&H Airlines is to add Stockholm and Gothenburg in Sweden to its growing list of suspended destinations in 2011. The airline will operate its final service to both cities on August 31. Both have been operating once per week this summer, with one flight to Stockholm operating via Gothenburg and one weekly service to Gothenburg flying via the Swedish capital. Poor loads are said to be the reason behind the suspension. In the summer of 2010 flights to both cities operated 3 times per week.

The Bosnian national carrier launched both destinations when it received its first jet engine aircraft, a Boeing 737-400, back in 2009. The flights have recently been operating with the airline’s Airbus A319. With these latest terminations, Sarajevo will no longer have a direct link with Gothenburg while Norwegian Air Shuttle continues to provide an alternative to Stockholm, although only during the summer months.

So far this year B&H Airlines has suspended flights from Sarajevo to Belgrade, Vienna and Frankfurt. The airline has 3 aircraft, 2 ATR72s and 1 Airbus A319.

Priština terminal construction begins

New look for Priština Airport

After some delays, the construction of Priština Airport’s new terminal began earlier this week with a ceremony attended by local officials. The investment is worth 120 million Euros and will see the construction of a new terminal stretching over 42.000 square metres, a new control tower, an apron able to accommodate 9 Boeing 737 jets, 3 air bridges, a car park for 1.750 vehicles, a new access road from the city to the airport and the widening of taxiways. The Turkish company running Priština Airport for the next 20 years, the Limak Group, says that the airport intends to handle 4 million passenger per year over the next 2 decades. The group is upbeat about the airport’s construction pace and believes the project can be completed by June 2012 at the latest, despite earlier statements that construction would take 18 months. The new building will be environmentally friendly and will meet all international and IATA standards.

In 2010, Priština Airport handled 1.305.532 passengers, placing it in the top 5 airports in the former Yugoslavia, passenger wise. The airport is continuing to show passenger growth in 2011 as well. Recently, Lufthasa’s low cost airline, Germanwings, announced its newest service to Priština from Munich. Flights will begin on November 02. Details can be found here. Germanwings already operates flights from Berlin, Hanover and Stuttgart to Priština.

Jat extends Dubrovnik flights

Jat to Dubrovnik until 2011/2012 winter

Jat Airways will extend its seasonal summer flights from Belgrade to Dubrovnik until the end of the 2011 summer season. Flights were initially meant to operate until September 18 but due to the route’s popularity, the service will now be extended until October 28.

Jat Airways resumed services do Dubrovnik after 20 years on June 18, 2011. It competes directly against Croatia Airlines, which also operates the flights twice per week on a seasonal basis. However, Jat has had more success with the route. The Serbian national carrier on average per flight carries approximately 45 passengers on its 66 seat ATR72, while an average of 30 passengers choose Croatia Airlines. Although figures for both are set to further increase as the peak of the summer season begins.

The final service between Belgrade and Dubrovnik was operated by JAT Yugoslav Airlines on August 6, 1991, before its resumption this June. During the 1980s, the Belgrade - Dubrovnik - Belgrade service was one of the most popular domestic flights in the country.

MAT resumes flights

MAT Airways ends flight hiatus

MAT Airways has resumed services after nearly 4 weeks from its hub in Skopje with a flight to Rome yesterday evening. The airline voluntarily grounded its sole aircraft, a Boeing 737-500. According to MAT’s management it did so in order to review its position on the market in face of increased competition. However, other sources claim that the airline has been having financial problems. Passengers are still unable to purchase tickets with the airline. Within the next few days MAT will not be operating its full schedule. Its next service is planned for tomorrow morning, to Dusseldorf.

MAT Airways began operations last year as a charter carrier, although its own management has admitted that the airline is aspiring to become Macedonia’s national carrier sometime in the near future. Currently, the airline has a license to operate flights out of Macedonia until June 15, 2012 after which the Macedonian Civil Aviation Agency will review its permit.

MAT went through a short term tie up with struggling charter airline Skywings International Airlines earlier this year, in turn adding a Boeing 737-300 to its fleet. However, the two are no longer partners. The operator of Skopje and Ohrid airports, TAV, has expressed its anguish at the fact that the country does not have a flag carrier.

Skopje terminal nears completion

Skopje’s new terminal takes shape

In a month and a half the brand new terminal at Skopje Alexander the Great Airport will be opened featuring 23 check in desks, 6 air bridges and 15 passport control counters, stretching over an area of 40.000 square metres. Approximately 80% of the construction work has been completed and the airport’s operator, TAV, has assured that the shiny new terminal will be opened on September 8. The main entrance to the terminal will be located at the right wing of the building. The ground floor is dedicated for check in desks and ticket counters while passport control, security, restaurants, free-shops and gates will be located on the second floor. Passport control will be separate for those departing for Schengen Zone countries and those leaving for countries outside of the zone. The price tag for the new terminal amounts to 110 million Euros.

Work has also been done on the airport’s runway which has been lengthened by 50% and now covers an area of 1.250 square metres. A 1.5 meter statue of Alexander the Great will be erected in front of the new terminal building, a move sure to ruffle some feathers.

Skopje Airport has seen solid growth in the first half of 2011. In the first quarter of the year Skopje and Ohrid handled a combined total of 137.498 passengers (an increase of 10.8%). It has also seen a flurry of new scheduled and seasonal traffic, welcoming recently airlines such as Wizz Air, Air Berlin, XL Airways and soon Pegasus Airlines.

Record year for Croatia Airlines

Strong growth for Croatia Airlines in 2011

Croatia Airlines is heading towards one of its best years on record. The flag carrier is only a few weeks away from carrying its millionth passenger for the year and is outperforming other EX-YU airlines. In May alone the airline saw a 20% passenger increase. The improving figures are on the back of a resurgent tourism industry, increase in domestic travel and a sharp increase in flights from secondary hubs. Croatia Airlines has launched several new routes this summer, particularly from Dubrovnik. The number of scheduled flights has increased by 18% and the airline’s average cabin load factor has also jumped from 67% last year to 74.7% in 2011.

The peak summer season is just about to begin and judging by the airline’s booking numbers further growth is yet to come. In the week starting June 27 and ending July 3, Croatia Airlines saw a record number of bookings. Within 7 days the airline had 48.427 bookings.

However, it’s not all smooth sailing for the national airline. Its losses are continuing to mount despite an increase in passenger numbers. Furthermore, from next year Croatia Airlines is expected to get more competition from its Zagreb hub as the country heads towards European Union membership.

Passenger wise, Croatia Airlines recorded its best year in 2008 when it handled 1.870.000 passengers with an average cabin load factor of 65.2%.

Big numbers for Belgrade

Strong figures in June and July

Belgrade Nikola Tesla Airport recorded another good month and is on target to handle 3 million passengers by the end of 2011. In June, Serbia’s main hub welcomed 301.782 passengers, representing a 16.8% increase on the same month last year. However, the number of flights operated to and from the airport did not change. By the end of last month the airport handled 1.335.409 passengers, an increase of 20.1%.

July figures are also set to see a big increase. On July 1 the airport broke its own record for the number of passengers handled within 24 hours – a total of 14.320. These figures are expected to be broken again soon. The “Aviokarta” portal reports that the airport now has 2 rush hour periods compared to one last year. The first one begins in the morning when most Jat Airways flights depart and arrive and another one which commences late in the afternoon and lasts until the end of the day. Furthermore, most European airlines have begun sending bigger aircraft to Belgrade this summer, such as the Airbus A321, including Air France, Alitalia, Aeroflot, Turkish Airlines and Atlasjet.

One of the most popular destinations this summer from Belgrade is Antalya in Turkey with at least one flight per day. On several occasions the airport even saw 6 daily flights to the city. The airport is also gearing up for the winter season with Sky Work Airlines from Switzerland announcing flights to the city and a new airline will also soon announce services to the Serbian capital. More on this in the next couple of weeks.

UPDATE
The July 1 passenger record was broken yesterday with the airport handling 14.694 passengers.

Sarajevo terminal expansion on hold

Sarajevo Airport complex

The expansion of Sarajevo Airport’s passenger terminal is on hold due to unresolved land ownership issues around the airport, a problem most major hubs in the former Yugoslavia face today. The multi million Euro project involves the expansion of the terminal building, aprons and jet ways. On top of the existing 10.000 square meter terminal building, another 7.000 square metres will be added. The project is being financed by the European Bank for Reconstruction and Development to the tune of 32 million Euros. A Dutch firm has been awarded the assignment to develop a final design for the terminal expansion. While the airport is still functioning effectively, capacity constraints are starting to emerge with security and duty free facilities in need of expansion.

While the finances have been secured and the design plan completed, there are problems with getting necessary permits to expand onto nearby land plots. Construction has been waiting to start for almost a year, however, a slow bureaucratic process has stalled the entire project.

Sarajevo Airport continues to show strong passenger growth. In the first 5 months of 2011, the airport handled 211.736 passengers, with a 10% end of year growth rate expected. Last year, Bosnia and Herzegovina’s main hub handled 563.266 passengers. The airport’s CEO, Bakir Karahasanović, recently said, “The extension of the terminal building will not only solve future development necessities of Sarajevo International Airport, but will also enable provision of top quality services to passengers, while the airport, as a whole, will contribute to a better image of the country “.

New CEO for Jat

Professional CEO instead of party minion

Jat Airways is heading towards getting its first professional CEO without political affiliation. The Serbian Government has announced that the heads of all state owned companies will be selected through open competitions. Amongst the first companies to get a new CEO will be Jat Airways, as the national carrier currently has only an acting CEO who is the member of the largest party in the ruling coalition. Often, people with little knowledge in the field of aviation are selected as CEOs of the Serbian flag carrier based on their party memberships leading to disastrous business decisions. Jat’s last CEO, Srdjan Radovanović, a lawyer by profession, was brought to the airline only to be run out by his own employees following questionable decisions. Others, who have actually been with the airline and selected as CEOs, were often at the bottom of the hierarchy and with little experience were propelled to the top job.

Whether the process will be transparent remains to be seen. The government announced that it will begin with the open competitions and selections immediately. The heads of Adria Airways, Montenegro Airlines and Croatia Airlines have all been hand picked by the country’s ruling party. B&H Airlines also endured the same process until recently when the naming of the company’s CEO was handed to part owner Turkish Airlines.

Banja Luka Airport in crisis

Troubled times for Banja Luka Airport

Banja Luka Airport is struggling to stay open as it falls into deeper financial trouble. The airport is currently served by only 2 airlines - B&H Airlines and Adria Airways. B&H Airlines operates flights from Banja Luka to Zurich. The service originates from Sarajevo and is failing to attract passengers. Similarly, Adria Airways on average carries 5 passengers on its services from Ljubljana to Banja Luka and vice versa. Flights operated by the Slovenian carrier are subsidised, which has led to fierce criticism from the media in the past few weeks.

The Government of the entity of Republika Srpska yesterday said it will grant Banja Luka Airport 307.000 Euros. Sky Srpska, an airline which is supposed to be based in Banja Luka, will be given a further 409.000 Euros for development. “The financial situation at Banja Luka Airport is difficult. We will have to find a long term solution for the airport such as the opening of new flights. We are determined to help them”, Aleksandar Džombić, the entity’s Prime Minister said.

Last week the airport’s employees staged industrial action, unhappy with late wages. Banja Luka Airport prospered during the early 2000s when Jat Airways set up a Banja Luka based offshoot named Air Srpska. However, the Serbian airline decided to take back its aircraft and focus on its core business back at home, thus closing Air Srpska. Since then the airport has struggled to attract any carriers.

Jat’s numbers climb

Good half yearly results for Jat

In June 2011 Jat Airways reported yet another passenger increase compared to the same period last year, this time amounting to 18%. In the first half of the year the Serbian national carrier saw an increase of 19%.

This June, the airline handled 116.105 passengers, representing 22% passenger increase in scheduled traffic and an overall increase of 18%. The cabin load factor was increased by 7 points and amounted to 72%. The airline saw its biggest passenger jump on its Euro-Mediterranean routes (+24%) and Montenegro services (+22%). The number of flights was increased by 6%. However, the airline’s charter services continue to suffer. The number of charters decreased by 21%, resulting in a 28% passenger charter slump.

From January until the end of June, Jat handled 518.999 passengers (+19%) and had an average cabin load factor of 65%. Jat currently holds a 40% share of passengers using its hub, Belgrade Nikola Tesla Airport.

You can review all the results from this year in the table below.

Month	PAX	Change (%)
JAN	70.788	▲ 2.9
FEB	67.635	▲ 24
MAR	79.408	▲ 20
APR	88.597	▲ 33
MAY	96.466	▲ 17
JUN	116.105	▲ 18

Mat to resume flights?

Mat voluntarily grounds aircraft to prepare for competition

Macedonia’s Mat Airways could resume services next week after it grounded one of its aircraft, as reported on Monday. The airline says that it voluntarily grounded its Boeing 737-500 and took “time out” to reconsider its position on the market and better prepare for increased competition. Mat Airways operated its last service on June 20. Since then its sole aircraft has been grounded while Skywings International Airlines decided to split from Mat, only a month after it joined the charter airline. Mat’s management says that its aircraft will probably return to the sky next week and has been given a new look. On the other hand, Mat has halted the sale of all its tickets.

The Macedonian Civil Aviation Agency says that it did not play a part in Mat’s service suspension and adds that the airline has a permit to operate flights from Skopje and Ohrid to Zurich, Dusseldorf, Berlin, Hamburg, Vienna and Copenhagen until June 15, 2012.

Meanwhile, the Turkish low cost Pegasus Airlines will commence 3 weekly flights from Istanbul’s Gokcen Airport to Skopje and 2 weekly flights from Izmir to the Macedonian capital. The airline will compete against Turkish Airlines, which operates flights to Skopje out of Istanbul’s Ataturk Airport. Flights from Izmir commence on August 15, while services from Istanbul will begin a day later on August 16. Flight details can be found on the right hand side in the new route launches section.

Kraljevo terminal construction begins

Work begins on Kraljevo’s Morava Airport terminal

The construction of a 3.000 square metre terminal building in Kraljevo has begun and is set to be completed this October, allowing the airport to open in time for the 2011/2012 winter season. Three local companies have been given the job to construct the building. The price tag for the entire project amounts to 22.2 million Euros, while necessary equipment needed for the control tower and terminal building will be provided by both the Serbia and Montenegro Air Traffic Services Agency and Belgrade Nikola Tesla Airport.

Local authorities have stated that interest has been shown for flights to commence from Kraljevo to Turkey and Germany once the airport is completed. The Turkish Embassy in Serbia has donated 10 million Euros for the project. Furthermore, there is hope that due to the relative closeness of the Kopaonik Mountain resort and the city of Kragujevac, which is home to the Fiat car maker factory, the airport could secure decent passenger figures. Similar hopes were held for Niš Airport as well, which opened for commercial traffic in 2004, following its reconstruction. However, the airport handled only 23.627 passengers last year and in the first six months of 2011 welcomed 9.847 passengers. Montenegro Airlines, the airport’s sole operator, is subsidised for its flights to the city in Serbia’s east.

Kraljevo is located in central Serbia, 125 kilometres from Belgrade and Priština, 185 kilometres from Sarajevo and 200 kilometres from Skopje. It remains to be seen whether it will manage to attract any airlines or passenger. Kraljevo was rocked by a strong earthquake last year which caused city wide damage. The airport’s opening should coincide with the first anniversary since the earthquake.

Adria to terminate high profile routes

Adria to cut flights and fleet

While Adria Airways waits for the European Commission to clear its 50 million Euro state aid package and a further loan of 40 million Euros from the banks, it has started cleaning up its own backyard. First on the to-do list is the suspension of several loss making routes out of Ljubljana. The airline also plans to sell some of its aircraft.

According to the Slovenian media, Adria Airways is considering either suspending or significantly reducing its frequencies to high profile destinations such as Paris, London-Gatwick and Istanbul. Adria currently operates 10 weekly flights to the French capital, 5 to London and 9 to Istanbul. The Slovenian national carrier faces competition an all 3 routes with Air France and easyJet operating from Paris, Turkish Airlines from Istanbul and easyJet from London Stansted Airport. This is virtually the only direct competition the airline has from its Ljubljana hub. Adria is still waiting to gain some momentum on its recently launched flights from Priština to Brussels.

In order to gain some extra cash, Adria is planning on leasing its aircraft together with its cabin crew to other airlines, with the Airbus A319s being the likely aircraft to be leased or sold. The airline returned 2 Airbus A320s to its fleet this summer after retiring them last year. Adria currently has a fleet of 14 aircraft with 13 in operations as 1 Bombardier CRJ200 (registration S5-AAD) is grounded at Ljubljana Airport.

The end of Mat?

Another Mat ceases operations

EX-YU aviation news can reveal that Mat Airways, Macedonia’s largest airline, has suspended all services until further notice. Although it started operations only a year ago it seems the airline could have the same fate as its predecessor MAT Macedonian Airlines. Mat Airways is owned by Serbia’s largest tour operator – Kon Tiki Travel. However, the Belgrade based company has been experiencing financial difficulty of its own and wants to concentrate on its core business in Serbia rather than finance an airline in Macedonia.

Mat Airways’ Boeing 737-500 operated its last service on June 20 and has been grounded ever since. Macedonia’s other charter airline, Skywings International, which tied up with Mat due to both financial problems and problems with the Macedonian Civil Aviation Agency has managed to restart its own flights, offering services from Sarajevo to Dusseldorf with its Boeing 737-300. Mat managed to restart operations to most destinations once served by MAT Macedonian Airlines. Only 2 days after it ceased flights on June 20 it was to commence flights from Ohrid to Tel Aviv in Israel. The airline has not officially commented on the suspension of flights. Only several days ago Mat’s CEO said that the airline would commence scheduled flights from Skopje in September.

Macedonia hasn’t had much success with its own airlines. The country’s first national carrier ceased operations in 1996 after 5 years in service due to fledgling passenger numbers and finances. A new airline, MAT Macedonian Airlines, was set up in 1994 and became the country’s flag carrier in 2000. It suffered financial problems and due to building debt was banned from landing at several key airports. In 2009 the Civil Aviation Agency grounded the airline’s single aircraft due to safety concerns although politics and corruption is said to have been involved in the airline’s grounding.

Nevertheless, it’s the end of another Mat for now. The difference this time being that those travelling from Skopje and Ohrid have a much wider array of airlines to choose from.

Pula Airport expansion

Pula will expand terminal building

The 1987 Pula Airport expansion project will finally become a reality as the airport’s management announces that work will begin soon. Although the expansion of the terminal building began 14 years ago, the project was never fully completed due to the breakup of Yugoslavia. It involves the expansion of the departure lounge and cafes as well as the addition of new restaurants and shops. Since Croatia is set to join the European Union during the summer of 2013, the expansion will allow the airport to separate passengers arriving from countries of the Schengen Zone and those arriving from countries outside the zone, as outlined by European Union regulations.

The big expansion project will not only see work on the terminal building but will also include an overhaul of taxiways, construction of a new multifunctional hanger and the expansion of the aircraft parking area, which will be able to accommodate up to 28 jets.

In the first 5 months of this year Pula handled 39.854 passengers, an increase of 17.1% compared to the same period last year. The airport set its passenger record in 1990 when it welcomed 660.000 passengers and is unlikely to achieve these figures this year either. According to a 1980s master plan the airport was expected to handle 1 million passengers sometime during the last decade of the 20th century.

Slow start for Dubai flights

Dubai - Tuzla flights begin

The Tuzla – Dubai service was inaugurated yesterday with flights operating twice per week with an Air Arabia Airbus A320 and organised by a local tour operator in cooperation with Middle East Passenger Services Group. However, the flights got off to a slow start. Only a 25% cabin occupancy rate was recorded on the first return flight, although it’s still early days. Enver Jukanović, the CEO of Tuzla Airport, told the “Sarajevo-x” portal that the service will attract Bosnians living in the Middle East region but also those transiting from Australia and even the United States. If the flights prove successful they will continue to operate throughout the winter as well.

There are several types of passengers Tuzla Airport is trying to attract for these flights with the Bosnian diaspora living in the Middle East and Bosnians holidaying in Dubai the most likely to use the service. Air Arabia’s flights mark a rebirth for the airport which has failed to attract airlines for over a decade. Ticket prices for the Dubai – Tuzla – Dubai service varies from 455 to 688 Euros.

Priština terminal delayed

New Priština terminal on hold

Construction of Priština Airport’s brand new terminal has been delayed once again. Although work on the new multi million Euro project was supposed to have begun already, nothing except a visualisation of the future building has been placed in front of the existing terminal. The Turkish-French consortium, Limak Holding and Aeroport de Lyon, which will run 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 first time around. The price tag for the new terminal is expected to amount to 140 million Euros together with supporting infrastructure.

There is hope that work could begin soon. Priština Airport is one of EX-YU’s biggest airports when it comes to passenger numbers. In 2010 it handled 1.305.532 passengers, placing itself only behind Belgrade, Zagreb and Ljubljana. So far this year the airport is recording a passenger increase of 5%.

With this latest delay, the terminal is now expected to be completed in January 2013.

Opening of Priština Airport in 1965