The final countdown

Grand opening next week

Next Tuesday the new terminal building at Skopje’s Alexander the Great Airport will open. New details are now emerging regarding the grand opening on September 6. The opening ceremony will take place at 13.30. Turkish Airlines is chartering a special flight to the Macedonian capital on Tuesday carrying members of the Turkish Government and businessmen. Shortly after, Turkish’s scheduled service from Istanbul will touch down in Skopje together with the Turkish Prime Minister Recep Tayyip Erdogan who will open the new terminal with his Macedonian counterpart Nikola Gruevski. As a result, Turkish Airlines will be the first to use the new facilities. Later that day Malév, Adria Airways, Pegasus Airlines, Croatia Airlines and Jat Airways will also use the new terminal.

TAV, the airport’s operator, is keeping the interior of the new terminal a closely guarded secret. Known so far is that the terminal will have 23 check-in desks, 6 air bridges and 15 passport control counters. The new terminal also features a large statue of Alexander the Great and several duty free stores and restaurants including the first Burger King fast food restaurant in Macedonia. Skopje’s city transportation company will operate two double-decker busses from the city centre to the airport on the opening day so those interested can see the final product of the 110 million Euro investment.

Meanwhile, Mat Airways, the only passenger airline which calls Skopje its home has once again ceased operations, a second time it has done so this summer. It is unknown when and if the airline will resume flights. The Macedonian Civil Aviation Agency is talks with several airlines in hope that one will base an aircraft in Skopje from the 2011/12 winter season. One of them is a national airline from the former Yugoslavia which operates flights to Skopje.

ČSA to suspend Belgrade flights

ČSA farewells Belgrade

As was originally reported by EX-YU aviation news back in May, ČSA Czech Airlines has this week officially confirmed it will be suspending flights from Prague to Belgrade. The service will come to an end due to cost cutting measures and internal reorganisation but also due to poor economic performance on the route. The carrier operated 2 daily flights to Belgrade at the beginning of the year but signs of problems emerged when the airline cancelled 10 of its weekly flights and closed its representative office in Belgrade over the summer. ČSA has been the sole operator on the Prague to Belgrade service since 2008 when Jat Airways suspended its flights on the route due to its own cost cutting policy. As a result, Belgrade won’t have a direct air link to Prague for the first time in nearly 10 years. 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.

ČSA becomes the latest airline to announce that it will pull out of Belgrade. LOT Polish Airlines will alter its flights from Warsaw to Belgrade into a seasonal summer service as will Cimber Sterling on its flights out of Copenhagen. Meanwhile, airBaltic will also suspend its flights from Riga this winter, but at this point the airline is unsure whether it will return to the Serbian capital next summer. On the other hand, Sky Work Airlines will commence flights from Bern to Belgrade this winter. Bulgaria Air is still hoping to strike a deal with Jat and commence flights from Sofia in the next few months while Flydubai has applied for a license to operate flights to Belgrade although there are still no guarantees that the airline will actually begin the flights from Dubai this winter.

Together with Belgrade, ČSA is also cancelling several other destinations including Tel Aviv, Venice and Zurich. Within the EX-YU region, the Czech national airline will reduce its flights to Skopje from 6 to 4 times per week. Currently, flights from Prague to Zagreb and Ljubljana remain unaffected.

Ryanair to Ljubljana from summer 2012

Ljubljana negotiates with Ryanair as Adria faces a tough week

Ljubljana Airport’s management is finalising an agreement with Europe’s largest low cost airline Ryanair. Worried that the airport will be hit by Adria’s massive network reduction, the airport has proposed for Ryanair to operate flights out of Dusseldorf, Madrid, Oslo and London to the Slovenian capital. While airports across the former Yugoslavia report a significant passenger surge, Jože Pučnik in Ljubljana saw only a 3% increase in the first 6 months of the year, thus handling 574.740 passengers. Numbers began to slide after February despite the fact that the airport was closed for 2 weeks in April of 2010 for a runway overhaul. Nevertheless, the airport did see an operating profit of 2.1 million Euros, which is up by 78% on last year. Adria Airways is responsible for 74.9% of passengers using Ljubljana Airport.

Ryanair is also conducting talks with other EX-YU airports. There are negotiations under way for the no frills airline to commence flights from Dusseldorf and Frankfurt to Tuzla and flights to Podgorica from London and Glasgow. Flights to Ljubljana are expected to commence in April, at the start of the 2012 summer season.

Meanwhile, it will be a do or die week for Adria Airways. On Wednesday, the airline’s shareholders will decide on a capital injection and a restructuring plan to rescue the indebted flag carrier. Last week, all of the major banks participating in the talks said that they are unlikely to further support Adria. Such a decision, Adria says, will see the airline out of business by October. The restructuring plan entails a fleet, destination and employee reduction. The airline’s network cuts will be announced in September. Short listed for suspensions are flights to Paris, London, Istanbul, Warsaw and Copenhagen. Latest inside information points that the airline is also considering suspending flights to Belgrade and Podgorica.

Steady growth for Croatian airports

Split Airport busiest in Croatia in July

In July Croatian airports recorded steady passenger growth when compared to last year. The country’s main airport, Zagreb, once again recorded a formidable result while last year’s star performer Zadar saw its numbers slip.

Zagreb’s Pleso Airport handled 256.256 passengers in July, an increase of 9.5% compared to the same period last year. The number of flights operating to and from the airport increased nearly 2%. By the end of July, Zagreb has seen 1.318.846 passengers pass through its doors, an impressive increase of 15.5%. Both Dubrovnik and Split fared well in July with Split recording a 10% passenger increase while Dubrovnik did even better with a 13% increase. Split handled more passengers than Zagreb thus becoming the busiest airport in the country in July. Rijeka Airport’s positive run continued with it handling 21.210 passengers, 36.7% better than last year.

On the other hand, Zadar and Osijek saw their numbers decrease on last year. Zadar was directly impacted by a decrease in the number of flights operating to and from the airport. It saw 50.890 passengers use its facilities in July which is down 8.3% on last year. Osijek saw a second month of sliding passenger numbers.

Below you can review the performance of Croatia’s airports in July 2011. Overall, Croatian airports handled 946.547 passengers, an increase of 9.4% compared to July 2010. The statistics have been provided by the Croatian Bureau of Statistics.

Airport	Passengers JUL 2011	Passengers JUL 2010	Change (%)
Zagreb	256.256	234.071	▲ 9.5
Dubrovnik	252.869	223.800	▲ 13.0
Pula	86.357	81.877	▲ 5.5
Split	270.791	246.084	▲ 10.0
Zadar	50.890	55.466	▼ 8.3
Osijek	4.013	4.477	▼ 10.4
Rijeka	21.210	15.517	▲ 36.7
Mali Lošinj	934	1.224	▼ 23.7

Montenegro Airlines on sale – take two

Montenegro Airlines sale to begin in September

The Government of Montenegro will make a second attempt at privatising its national carrier Montenegro Airlines. The tender will begin next month, according to the Montenegrin press. The government attempted to sell a 30% share of the national carrier last year. Although El Al Israel Airlines, Etihad Airways and Arkia Israel Airlines all purchased the tender documentation, none of them made an offer. The tender outlined that the company which purchased the 30% stake would have the opportunity to be a majority shareholder within 2 years. It is unknown whether the government will offer a bigger stake in the airline this time around. The Montenegrin Tender Commission began preparations for Montenegro’s sale this July.

Since the first failed sale attempt it has been revealed that Montenegro Airlines, a star performer amongst former Yugoslav national carriers, was making big financial losses in proportion to its size, which led it to terminate several routes. A few months ago the Government of Montenegro wrote off 3.2 million Euros worth of debt made by the national carrier. Montenegro Airlines says that a new tender won’t impact on its operations or plans to expand its fleet in the hope of cutting losses. The airline recorded a loss of 3.6 million Euros in 2010 which is expected to rise this year.

Air Berlin pulls out of Priština

Germanwings to replace rival on key routes

Priština will become the causality of Air Berlin’s network reductions in face of mounting losses. The airline, which operates flights from Hamburg and Dusseldorf to Priština will suspend the flights on October 15 and October 30 respectively, as the summer season comes to an end. Germany is the biggest market served out of Priština. There are dozens of weekly flights out of Priština to a handful of German cities.

The airport’s management won’t be too worried about Air Berlin’s exit. One of the airline’s biggest rivals, Lufthansa’s Germanwings, will fill in the void left by Air Berlin and commence new flights from Cologne, Frankfurt, Dusseldorf, Hamburg and Munich to Priština. As a result, Germaniwngs will become the airline with the largest network out of the city. These new flights will accompany Germanwigs’ already existing flights to Priština from Berlin, Hanover and Stuttgart. The new flights begin on November 2 and 5. They will compete with Adria Airways which offers direct services from Priština to Frankfurt and Munich. Details for the new flights can be found on the right hand side in the new route launches section.

Priština Airport has had a strong start to the year. The airport has seen an average passenger increase of 11% in the first half of 2011. Furthermore, the construction of its new terminal has begun. In 2011 Priština Airport handled 1.305.533 passengers. It is now more than certain that it will surpass Ljubljana to become the third busiest airport in the former Yugoslavia by the end of the year.

Flydubai to Belgrade

Soon in Belgrade

The low cost airline Flydubai has applied for a license to commence 4 weekly flights to Belgrade. The service from Dubai will commence in the first week of November. The no frills airline would be in direct competition with Jat Airways which is scheduled to operate 3 weekly flights from the Serbian capital to Dubai during the 2011/12 winter season. Dubai has been one of Jat’s signature routes and carries mostly transit passengers to and from Australia and New Zealand in cooperation with Emirates Airlines, made possible through a Special Prorate Agreement the two airlines have.

Flydubai, which flies out of Dubai’s terminal 2, operates mostly to the Middle East and West Asia region although has recently begun expanding into Russia and Ukraine. It was created by the Government of Dubai and although it is not a subsidiary of Emirates Airlines, the two are tightly knitted.

Flydubai will operate its flights to Belgrade with a Boeing 737-800. The airline will offer 756 seats per week from Dubai to Belgrade and vice versa, which will be difficult to fill. Jat operates its flight to Dubai via Larnaca in Cyprus, making the route profitable thanks to the large amounts of passengers flying to the Cypriot city.

Ljubljana Airport wants Ryanair

Ljubljana seeking Adria alternative

Ljubljana Airport has begun talks with the low cost airline Ryanair in fear that Slovenia’s biggest airport will suffer as a result of Adria Airways’ plan to cut up to a third of its flights from the Slovenian capital. The troubled Adria currently holds an 80% share of flights from Ljubljana Jože Pučnik Airport. Recently, the airport managed to lure RusLine to commence flights from Moscow to Ljubljana. The service was originally planned to commence on August 15, though it has now been pushed back to September 2. According to the Slovenian media, the airport is now in talks with Ryanair which had a short and unsuccessful run in Slovenia. In 2007 the no frills airline operated 3 weekly flights from London Stansted to Maribor Airport. The flights lasted 9 months before they were cancelled. Following Slovenia’s accession to the European Union in 2004, several new airlines commenced flights to Ljubljana but Adria’s dominance saw them cancel their services soon after.

This week, Ljubljana Airport’s Supervisory Board is discussing whether the airport’s CEO, Zmago Skobir, is capable to steer the airport through its upcoming time of crisis. Skobir will be up for re-election for another 5 year term next summer. The airport warned that the construction of a brand new second terminal, to commence in 2012 with a price tag of 50 million Euros, will be affected by Adria’s crisis and states it must find new customers, which is why it is in talks with Ryanair. The airport is also hoping that Air India will make good on its promise to begin flights to Ljubljana in 2012 which will continue onwards to the United States.

Adria Airways has little competition on most of its routes. From September 1 only 7 airlines will have regular scheduled flights to and from Ljubljana, although the airport sees a flurry of charter airlines operating throughout the summer.

No interest for new Jat

Plan B for Jat

Over 20 days after the Serbian Government opened a tender to find a partner to create a successor national carrier to Jat Airways, not a single airline or investment group has even bought the tender documentation. With just over a month left until the tender deadline ends, most believe the process is destined for failure. Former Jat Airways CEO, Predrag Vujović, who helped get Jat back on its feet following the lifting of international sanctions, says that the new national carrier would be unable to inherit Jat’s lucrative landing slots at major European airports. Since Serbia is a part of the European Open Sky Agreement, any airline from the European Union can easily base an aircraft in Belgrade and begin operations. It does not need to own an airline in Serbia, together with the government, to do so.

The government, which seems to be aware of the impending tender failure, plans to professionalise the airline’s management after September 30 and leave Jat Airways as the national carrier. Currently, most CEOs of state owned companies in Serbia are named by the parties in the governing coalition. Most of those chosen have little knowledge on how to run a company and are purely chosen upon party lines, which more often than not leads to bad results and corruption. However, the government now plans to professionalise and depoliticise these positions, starting with Jat. Following the selection of a new CEO the government would give a guarantee for the airline to take out a loan and purchase several new aircraft.

Jat Airways has been reporting a strong increase in passenger numbers this year. However, the top management’s decision to push through constant promotional ticket sales, even during the high summer season, has led the airline to increase its losses this year.

New opening date for new terminal

Passengers to enjoy new terminal even sooner

Skopje’s new multi million Euro terminal will open its doors two days ahead of schedule, on Tuesday September 6. Originally, it was planned for the terminal, which will handle all of Skopje Airport’s customers, to open on Macedonian Independence Day on September 8. However, the airport’s management believes that the new terminal will get more publicity if it is opens ahead of the public holiday. The first airlines and passengers to use the new terminal should be those arriving and departing in the afternoon. The new terminal has 23 check-in desks, 6 air bridges and stretches over 40.000 square metres. When construction started last year it was planned for work to be completed by October 23.

Meanwhile, Macedonia’s Minister for Transport and Communications, Mile Janakieski, held a bilateral meeting with his Turkish counterpart last Friday in Skopje. Both ministers signed an agreement which further liberalises the possibility of airlines commencing flights to each other’s countries. The agreement also aids TAV’s hunt to find a foreign airline to base an aircraft in Skopje. The Macedonian Civil Aviation Agency has now also joined TAV in its bid to find an airline willing to make Skopje its hub from the 2011/12 winter season, according to a source from the agency.

Adria network cuts decision in September

Key decisions to be made at Adria

Slovenia’s Adria Airways will announce reductions to its destination network in September, which will take effect from the 2011/12 winter season which begins on October 30. Due to its financial woes, the airline is expected to terminate several destinations. Short listed for the cut are the biggest loss making routes such as Paris, London, Istanbul, Warsaw and Copenhagen. According to the Slovenian daily “Delo”, the airline’s only profitable flights are those to Frankfurt, Zurich, Munich and Brussels, mostly feeder flights for the Lufthansa Group of airlines. According to the same newspaper, Adria is reporting big losses on its charter flights this year. Last year the airline did not make a profit on any of its charter services, making the decision to lease 2 Airbus A320s this year incomprehensible.

The next few weeks will be of great importance for Adria with a decision on its future financing and shareholder structure to be made. Furthermore, a decision on how to distribute state aid and bank loans, as well as implement cost cutting measures will be made on August 31. The extent of Adria’s financial problems were made public late last year which was followed by a complete change in management. The Slovenian Government has stressed the importance of Adria to the Slovenian economy. Passenger wise Adria had a good start to the year with solid growth. However, passenger numbers have begun to slip over the summer.

Jat Catering on sale

Jat being sold bit by bit

Jat Airways’ catering division, divided into a separate company from the Serbian national carrier in 2005, will go on sale on September 9. The Serbian Government, the company’s owner, is offering 70% of the catering company, which will be auctioned off in Belgrade. In order to participate in the September auction, those interested must pay 783.000 Euros. The asking price for Jat Catering amounts to 6.6 million Euros while the new owner will be obliged to invest at least 274.000 Euros into the company.

Jat Catering, based at Belgrade’s Nikola Tesla Airport, was separated from Jat Airways under the direct orders of the government several years ago. Many criticised the move as it decreased the value of the national airline itself, although the government stressed it would be easier to sell Jat without its additional businesses such as Catering, Tehnika (technical division) and hotels.

Despite being separated from Jat, the two companies have strong ties and Jat Catring depends entirely on the national carrier. The CEO of Jat Catering is named by Jat Airways and its only customer is Jat. The catering division employs 147 people, owns a catering production facility stretching over 7.519 square metres and had a loss of 890.000 Euros in 2010.

Montenegro Airlines plans for the future

New Embraer jet for Montenegro Airlines

Montenegro Airlines will expand its fleet within the next few years and plans to position itself on new markets. Earlier this year the Montenegrin national airline revealed it would purchase new aircraft in an attempt to counter its financial woes. The airline’s Commercial Director, Vladimir Ristić, says that the airline will take delivery of a new Embraer jet in 2013, to complement its existing fleet of 3 Embraer E190s and 5 aging Fokker F100s. “Our negotiations are entering the final phase and we plan to put an order in soon”, Ristić said, referring to the new aircraft. Currently 7 out of the 8 aircraft are in use as one of the F100s has been grounded for some time.

The airline is also planning ahead for the Open Sky agreement with Europe, which will come into effect in 2 to 3 years. The agreement will allow foreign airlines to be granted licenses to operate to Montenegro more easily. Ristić emphasized Serbia and Russia as the airline’s two main markets but also added that Montenegro Airlines plans to expand. This summer the airline was not granted a license to operate charters from Belgrade to Palma de Mallorca and Greek holiday destinations. It also failed to secure a license from Swiss authorities to operate direct flights from Niš to Zurich. However, the airline is not giving up and plans to offer direct flights from Niš to other European cities other than Podgorica.

During this winter season Montenegro Airlines plans to wet lease one of its Fokkers to Belle Air, which is based in Tirana. Montenegro Airlines will operate on behalf of the Albanian airline with Montenegrin cabin crew, pilots and technicians taking care of the aircraft.

B&H sees passenger increase

B&H records growth in 2011

Bosnia and Herzegovina’s national carrier, B&H Airlines, has had a strong first half of the year. The airline carried a total of 65.309 passengers in the first 6 months, an increase of 20.5% on last year. In the first quarter of 2011 the airline saw its figures jump 59%. However, growth slowed in the second quarter with numbers increasing by only 2%. This is explained by the sharp decrease in flights as B&H suspended several routes during the summer, most notably Frankfurt and Vienna.

Later this month, B&H Airlines will suspend its flights to Stockholm and Gothenburg. Despite rumours that the airline will also terminate flights to Copenhagen at the end of the 2011 summer season, B&H itself confirmed to EX-YU aviation news that flights to the Danish capital will continue as normal. Due to the suspension of its Swedish routes there will be minor changes to the airline’s Amsterdam service. One of the 3 weekly flights will be served by the ATR72 while other days will see the Airbus A319 deployed, as has been the case since the service was launched.

Due to a relatively small destination network, the airline won’t be seeing a new aircraft entering its fleet this summer as was originally planned but it remains to be seen what its Turkish owners, who have now completely taken over the management positions at the national carrier, have in store.

Bulgaria Air to Belgrade

Soon in Belgrade

The Bulgarian national carrier, Bulgaria Air, will commence flights from its hub, Sofia, to Belgrade this winter. A source within the national carrier has confirmed to EX-YU aviation news that the airline is likely to begin 3 weekly flights at the start of the 2011/2012 winter season. The airline is yet to request flight permits and slots and is expected to do so next month. Originally, Bulgaria Air was to officially announce the route launch earlier this month as the flights were to be operated in cooperation with Jat Airways, however, the Serbian national carrier backed out of the deal at the last minute.

Bulgaria Air has never flown to the Serbian capital but has previously operated within the EX-YU region with flights to Skopje. The airline announced in 2007 that it would begin flights to Belgrade at the start of the 2007/2008 winter season, although those never materialised.

Bulgaria Air was set up in 2002 as the successor to the defunct Balkan Airlines. The airline recently ordered 7 Embraer E190 jets, which will form the essence of its regional network fleet. They are scheduled to arrive in early 2012. In the last 2 years Belgrade has seen the arrival of several new airlines from the region including Malév, TAROM, Croatia Airlines and Adria Airways.

Strong growth for Macedonian airports

Construction work inside Skopje's new terminal

With less than a month left until the opening of the brand new terminal at Skopje Alexander the Great Airport on September 8, Macedonia’s main airport, together with Ohrid, is reporting strong growth. In July, the two handled 113.819 passengers, an increase of 17% compared to the same month last year when they welcomed less than 100.000 passengers. So far this year Skopje and Ohrid have seen 453.527 passengers use their facilities, an increase of 13% compared to the first seven months of 2010.

The two airports, in particular Skopje, have lately managed to attract new airlines. Only yesterday Pegasus Airlines from Turkey commenced flights. The low cost airline Wizz Air also commenced flights a few motnhs ago while Air Berlin also began flights to the Macedonian capital recently. As a result, Skopje and Ohrid handled 1.349 aircraft in July, an increase of 2%. According to internal sources, the airport is now looking for an airline in the region to base one of its aircraft at Skopje and operate several popular routes from the start of the 2011/2012 winter season.

Construction work at Skopje Airport is entering its final phase, with the new air bridges, which will connect the aircraft to the terminal, installed. Ohrid Airport on the other hand saw a small scale face lift earlier in the year.

Belgrade overhaul begins

New look for Belgrade Airport

Work on the overhaul of Belgrade Airport’s two terminals has begun. The reconstruction of the scruffy old business class lounge is in full swing, according to the “Aviokarta” portal. The business class lounge, used by all airlines offering a business class product to their passengers from Belgrade, is being expanded and modernised. Located near the A transit area gates, the lounge will be completed in September. Following its completion, work will begin on the expansion of both terminals 1 and 2. The expansion project entails the construction of a new floor above the current terminal buildings. It will be used by passengers arriving on incoming flights, thus separating them from the departing passengers.

Construction will take place in four phases. The first one will see the expansion of the C1-2 gate and the expansion of gates from A1 to A5. As a result, an extra 2.750 square metres will be added. Gates C3-4 and C5-6 will be expanded in the second phase. The third phase will involve the expansion of the A6 gate and onwards with the fourth and final phase seeing the construction of the completely new floor which will stretch over 4.900 square metres. Another apron will be built next to terminal 2 which will be able to handle four medium sized aircraft. Once the project is completed, a total of 9.900 square metres will be added and the terminal 1 air bridges will be replaced.

New look business class lounge

Belgrade Airport is one of Serbia’s most profitable state owned companies, turning a multi million Euro profit annually. The airport’s terminal 2 was spruced up several years ago, although the gate transit areas were left untouched.

Ryanair to Tuzla

Soon in Tuzla?

Tuzla Airport is finalising talks with the no frills airline Ryanair, which could see it offer direct flights from Germany to Tuzla, according to the airport’s management. Tuzla Airport CEO, Enver Jukanović, says that Ryanair could commence flights from Frankfurt and Dusseldorf to Tuzla at the start of the 2012 summer season, next March. “We have been in talks with Ryanair since 2006. We have to secure sufficient funds from the local government to subsidise the flights. After this is achieved, Ryanair will begin a six month marketing campaign”, Jukanović explains. He adds that it is extremely difficult to attract low cost airlines as they request financial support. “We negotiated with Wizz Air for years but in the end they chose to fly to Belgrade. Unfortunately, our country is still not affordable for tourists”. Jukanović explains that the local authorities are willing to provide the funds so Europe’s largest low cost airline could begin flights to the city.

Tuzla Airport was recently dealt a blow when local tour operators, in cooperation with Air Arabia, decided to terminate the short lived Dubai service. On the other hand, charter flights from Antalya in Turkey are ongoing this summer. Tuzla has seen its best passenger figures over the summer since it opened its doors for commercial flights more than a decade ago.

The airport’s CEO believes that the future Ryanair services will attract Bosnians living in Germany. Ryanair is in talks with the Montenegrin Government to commence flights to Podgorica this winter. It currently only flies to the Croatian coast, out of all the former Yugoslav republics.

Belgrade growth continues

Belgrade Airport to surpass 2 million in August

Belgrade Nikola Tesla Airport handled 384.256 passengers in July, marking its 15th month of consecutive passenger growth. The airport saw its figures improve by 8.8% compared to the same month last year. During August, Serbia’s main airport should surpass the 2 million passenger mark, handling a record 15.000 passengers on August 1. By the end of July Belgrade welcomed 1.719.665 passengers. In order to attract airlines, the airport recently announced that it will once again be slashing its landing fees from September 1, this time by 7%. The airport is looking to attract low cost airlines with Cimber Sterling and LOT Polish Airlines recently announcing that they will turn their Belgrade service into seasonal summer flights only.

Meanwhile, Niš Constantine the Great Airport welcomed 2.739 passengers in July, its best month of the year so far. In the first 7 months the airport handled 12.584 passengers. In 2010 Niš welcomed 26.627 passengers. Since reopening its doors in 2004, Niš recorded its best annual result in 2006 with a total of 35.518 passengers.

Adria considering Copenhagen suspension

Loss making routes to be cut

After announcing that it will shed its route network by suspending flights to Paris, Istanbul, London and Warsaw, Adria Airways is now considering terminating flights to the Danish capital Copenhagen in an attempt to cut costs. “The decision to suspend certain destinations is yet to be adopted but we will cut all unprofitable lines”, Maks Tanjikar, the head of the Supervisory Board said. Tanjikar added that these cities are likely to disappear from Adria’s destination network in late October, at the start of the 2011/2012 winter season, although no firm timeframe has been given. This decision will be made once the state aid for the airline is approved. For the first time, Copenhagen has been mentioned as a potential city to be cut from the network. Adria currently operates 5 weekly flights to the Danish capital, code-shared by SAS Scandinavian Airlines, and is reporting losses on the route.

Adria is in the red, just like every other national airline in the former Yugoslavia. The Slovenian carrier has been reporting an increase in passenger numbers this year thanks to improving figures at the beginning of the year and a strong charter flight network. In the 7 months so far, Adria carried 678.203 passengers, an increase of 5%. However, latest figures show a worrying trend. In July the airline welcomed 148.931 passengers, a decrease of 4%. Its average cabin load factor also slumped to 72%, 5 points less than the same month last year.

Dubai – Tuzla flights cancelled

Farewell Tuzla

Air Arabia, which was hired to perform 2 weekly summer charters from Dubai Airport to Tuzla has cancelled its service. The flights, which were to mark the rebirth of Tuzla Airport have been terminated due to extremely low loads. According to the airport’s management in Tuzla, on one flight there was only one passenger, representing the difficult the route faced to attract passengers. Before services were launched in July, the airport’s management expected strong figures thanks to tourism and connecting passengers from Australia and the United States.

Originally, a total of 31 flights were planned to operate this summer with the possibility of extending the flights if they proved successful. Last month EX-YU aviation news reported that the airline was experiencing a slow start to its services. Return ticket prices for the Dubai – Tuzla flights hovered between 460 to 700 Euros. Jat Airways now remains the only airline to offer flights from the former Yugoslavia to the largest city in the United Arab Emirates.

Jat closes in on Adria

Jat’s passenger numbers continue to increase

In the first 7 months of the year, Jat Airways carried 675.507 passengers, an increase of 16% compared to the same period last year. Jat is now less than 2.000 passengers away from overtaking Adria as the former Yugoslavia’s second busiest airline. Adria managed to “overthrow” Jat last year although looks unlikely to do so for a second successive time. Croatia Airlines remains unbeatable with the airline already topping 1 million passengers.

Boosting Jat’s numbers was a strong July as the airline carried 156.508 passengers, an increase of 8%. In scheduled traffic the airline’s figures jumped 14%, in charter traffic they were down 25%, while Jat’s average cabin load factor soared to 80%, an increase of 6 points. In the first 7 months, the load factor has averaged 65%. Jat’s Montenegro network continues to see numbers significantly increase. In July the airline improved its figures to and from Podgorica and Tivat by 14% while Euro Mediterranean traffic saw numbers surge 13%.

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
JUL	156.508	▲ 8

Open Skies between US and Macedonia

Greater chance for US – Skopje flights

The United States and Macedonia recently reached an Open Skies aviation agreement, which will allow airlines from both countries to select routes, destinations and prices for both passenger and cargo services based on consumer demand and market conditions. It is the first aviation agreement between the two countries. “By agreeing on an open market for aviation services now, we are setting the stage for travel and trade between the United State and Macedonia to develop in the future”, the United States Transportation Secretary Ray LaHood said. “We welcome Macedonia as an Open Skies partner”, he added.

The Open Skies agreements allow unrestricted access by the airlines of each side to fly to, from and beyond the other’s territory, without restriction on how often carriers fly, the kind of aircraft they use and the prices they charge. The agreement came in to force immediately upon signing.

Currently, no Macedonian airline has the ability to offer any long haul flights. United States based airlines have been weary of operating flights to the region. Croatia also signed an Open Skies agreement with the USA recently. The agreement makes Macedonia the 103rd US Open Skies partner. Macedonia also signed an Open Skies agreement with Qatar several months ago.

Jat’s Boeings turn 26

The arrival of the first passenger B737 at Belgrade Airport, 1985

Jat Airways’ Boeing B737-300 registered YU-AND today celebrates 26 years since it was delivered to the Yugoslav national carrier. It was the first passenger B737-300 to operate in Europe. The aircraft came during the golden decade of JAT Yugoslav Airlines. The Yugoslav national carrier initially ordered 2 B737-300s on September 1984. A year later the first, registered YU-AND, arrived on August 8 while on August 15 the second, registered YU-ANF, landed at Belgrade Airport. Both are still with the airline. Under the purchasing contract for the Boeing jets, at least 50% of the aircraft’s price was covered by Yugoslav exports to the United States as well as the production of certain Boeing parts in Yugoslavia. The Boeings were deployed to European routes, with the DC9s relegated to domestic and charter flights.

YU-AND on the production line

The Boeing B737-300 today forms the bulk of Jat Airways’ feet with the airline operating 10 aircraft of this type. The last 2 arrived in 1988 (YU-ANW and YU-ANV). Despite their age it should be noted that Jat’s Boeings do not have a great deal of flying time as they were grounded for almost a decade due to United Nations and European Union sanctions. One of its 737s, registered YU-ANJ, was grounded at Istanbul Airport from 1992 until March of 2000 when it was allowed to return to Belgrade after some of the sanctions were lifted.

YU-AND today

Jat’s B737s have, over the past 2 decades, worn several liveries including the silver body egg livery, the flame livery and the current dot livery. Similarly, the aircraft have seen several cabin refurbishments. The airline has acknowledged that its fleet is old and has said it will need new aircraft in 2012 as the cost of maintaining the Boeings will become too expensive in the near future. Whether their wish will come true depends on its owner - the Serbian Government and a potential future strategic partner.

Strong figures for Sarajevo

Passenger numbers increase across Bosnia and Herzegovina

Sarajevo Airport handled 81.042 passengers in July 2011, an increase of 12% compared to the same month last year. Driving the growth are larger capacity aircraft foreign carriers are sending, an increase in travel from the diaspora as well as visa free travel for Bosnian citizens to Schengen Zone countries, introduced in December last year. So far this year the airport handled 355.772 passengers and will comfortably surpass last year’s annual result of 563.266 passengers. Although the airport saw numbers slip in January compared to last year, business picked up from February with the airport enjoying 6 months of consecutive growth.

Other airports in Bosnia and Herzegovina also saw their figures improve, particularly Tuzla. Thanks to charters to Antalya and seasonal summer flights to Dubai, Tuzla Airport welcomed over 1.000 passengers in July. Similarly, Mostar, which has been enjoying a flurry of charters this summer, saw over 5.000 passengers pass through its doors. However, there is trouble at Banja Luka Airport which is seeing its numbers decrease as summer progresses. The airport handled just over 500 passengers, putting it in last position for the month amongst Bosnia’s international airports for the first time in several years.

Record July for Croatia Airlines

Croatia Airlines popular in 2011

In July Croatia Airlines carried 227.791 passengers, the most it has ever done so in a single month. The number is an improvement of 16% compared to July 2010. Furthermore, the airline carried 4.200 passengers more this July than during the same month in 2008, when the airline set its annual passenger record, which it looks to beat this year. In the first 7 months of 2011, Croatia Airlines welcomed 1.065.913 passengers, an 18% increase on last year. The figures also represent the highest number of passengers the airline has carried in the first 7 months of the year since it began operations back in 1991. The average cabin load factor stands at 65.6%, an increase of 6.4%.

However, the airline’s losses are also extremely high. So far this year Croatia Airlines has made a loss of 13.4 million Euros. The airline blames high fuel prices for the loss. It also argues that its financial performance has somewhat improved compared to last year.

Many Croatian airports have also set passenger records in July. More on this in the monthly Croatian airport review later on in the month.

Fresh problems for Zagreb’s new terminal

Suspicion over tender procedures arise

The much anticipated and much delayed construction of Zagreb’s new terminal has run into fresh problems which threaten to delay the start of construction. Last week the Croatian government announced six companies which made it into the second round, vying to run Zagreb’s Pleso Airport and its construction of a new terminal. A total of ten companies and consortiums were in the running with the four that lost out crying foul. The government was supposed to announce the list of companies that made into the second round weeks ago but made no explanation as to why the process had been delayed. The four companies that didn’t make it into the second round are demanding for the tender process to be halted, arguing that corruption has been involved. They also claim that certain companies that made it into the second round do not meet the necessary requirements outlined by the terms and conditions of the tender.

The Croatian government does not want to reveal the names of the companies that made it into the second round. According to local media a Turkish company did not make it. The Turks are now determined to see the entire tender fail and will do their outmost for that to happen.

The ten companies which are vying to run Zagreb are: Munich Airport, TAV Holding from Turkey, a joint bid by a Turkish consortium and Seoul Airport, Houston Airport, an Austrian and Spanish consortium, a joint bid by Athens Airport and an infrastructure conglomerate, a German consortium, British consortium, Zurich Airport and Limak from Turkey. Many believe that Houston is the hot favourite to win with strong lobbying from the United States Embassy in Zagreb.

RusLine to Ljubljana

RusLine to help a stagnating Ljubljana Airport

The Russian airline RusLine will commence 2 weekly flights to Ljubljana Airport this August. Flights will operate to Moscow’s Domodedovo Airport and will be in direct competition with Adria Airways’ service to Sheremetyevo Airport. As a result, Ljubljana will be connected to Moscow’s two largest airports. Adria operates 9 weekly flights to the Russian capital. RusLine will begin services on August 15 with a Bombardier CRJ200. Flight details can be found here. This will be RusLine’s first scheduled destination in the EX-YU region.

Ljubljana Airport is in need of new airlines. The airport is recording almost no improvement in passenger figures this year compared to last, with the exclusion of April as the airport was closed due to runway redevelopment last year. Adria Airways’ recent announcement to suspend up to 32 weekly flights from its hub will prove as a new challenge. Ljubljana Airport has seen its passenger figures slide each year since 2008. In 2010 the airport handled 1.3 million passengers. If such a downward trend continues, Ljubljana is in danger of losing its position as the third busiest airport in the former Yugoslavia to Priština, which is having a bumper year so far with growth of over 10% in the first half of the year (helped partly by Adria Airways' expanding operations from the airport).

Ryanair to Podgorica this winter

Ryanair to spread its wings to Montenegro

Ryanair is likely to begin flights to Podgorica in September as talks between Europe’s biggest no frills airline and the Montenegrin government continue. Ryanair is interested in commencing flights from Glasgow’s Prestwick Airport and London Stansted to the Montenegrin capital. In return for operating an all year round service to Montenegro, Podgorica Airport will finance the airline’s marketing campaign and some handling fees will be slashed. Montenegro Airlines, based in Podgorica, said that low cost airlines should fly to Montenegro only if they offer flights during the low winter season as well.

With a contract between the government and Ryanair in the works, the airline will be obligated to carry 100.000 passengers out of Podgorica in 1 year and carry 50.000 passengers during the low season, from October until May, local media reports.

Ryanair offers many flights out of Croatia but does not serve any other EX-YU nation. Many Montenegrins and tourists choose to fly to nearby Dubrovnik in Croatia with low cost airlines and then find alternative transport to Montenegro. Montenegro Airlines does not operate flights to Glasgow although it serves London Gatwick Airport. Earlier, the Montenegrin national carrier said it would suspend flights to London this year due to low interest.

The new Jat

Government searching for “new Jat” partner

The Serbian Government issued a call for the privatisation of its national carrier Jat Airways, after which it will set up a new national airline with the strategic partner and close down Jat or turn it into a charter airline. In its call for bids, the government issued some new terms and conditions. Only airlines which have carried 1.5 million passengers in 2010 or financial investment companies associated with other airlines can participate in the tender. The cost of the tender documentation amounts to 10.000 Euros.

If the sale is successful, the new part owner will set up a new national carrier with the Serbian Government. The government will invest 400.000 Euros into the new airline and would own 51% of the shares while the other 49% would be held by the strategic partner that wins the tender. Talks with the tender winner would begin in November when it would be decided how the new airline should be called, among other things. The entire processes would be completed by the summer of 2012. Passengers wouldn’t be affected by the national carrier change. The aim of the new company is for it to be competitive with other European airlines.

The tender call was published yesterday in The Financial Times. Analysts believe the tender will fail and that setting up a new airline is a mistake. However, most agree that the government is serious in its bid to sell the airline. The Jat Airways workers union fears many will lose their jobs as a result. Some 1.100 people work at Jat Airways. If the tender does indeed fail, Jat Airways will continue to be the national airline.

Do you think anyone will answer the tender call? If yes, who?

The Adria affect

Tough times for Adria

Over the weekend Adria Airways revealed it will cut high profile destinations such as Istanbul, Paris, London and Warsaw. It will also shed a part of its fleet and workforce. The airline’s management yesterday said that Adria’s survival is vital for the Slovenian economy and its demise would cause a domino effect across the country. A foreign financial advisor estimated that some 3.000 jobs would be affected if Adria were to file for bankruptcy, despite the fact that the Slovenian national carrier employs only 450 people. The airline’s CEO, Klemen Boštjančič, says that Adria’s bankruptcy would cause a crisis in the Slovenian tourism sector. "Even today, one of the main problems in Slovenia is that it has relatively weak air links", he explained. "If you need five hours from one European capital to come to Slovenia, it is quite unattractive for business". Boštančič also warned that Adria’s demise would heavily impact Ljubljana Airport as well as Slovenian Air Traffic Control.

Adria Airways is in serious financial trouble. The airline is in debt of up to 100 million Euros and is waiting for the European Commission to approve a state injection of 50 million Euros. Furthermore, it is also seeking a further 40 million Euros from the banks. Boštjančič says that Adria should find a strategic partner after the restructuring process is completed. He believes the Slovenia as a market wouldn’t be too attractive to a future partner, rather, the airline’s strong regional and South East European network.

Adria currently operates a fleet of 14 aircraft. This summer the airline leased 2 Airbus A320s for a 12 month period despite needing to rationalise its fleet. Other than Ljubljana, it also has a base in Priština and was considering opening a base in Skopje, however, its financial woes put an end to those plans.