Ryanair angry at Montenegro

Ryanair flights to Montenegro not a done deal

Ryanair is reconsidering plans to launch flights to Montenegro this June as was previously announced. Europe’s largest no frills airline was to decide this week wheatear to approve an agreement with the Montenegrin government for flights to be inaugurated from London, Brussels and Milan. However, Ryanair is angry at the media coverage its provisional agreement with the authorities created. Namely, it is unhappy with the way the government publicised what is still an incomplete agreement. It is now requesting additional guarantees from the government that all discussed conditions will be met.

The provisional agreement between the two sides states that Ryanair is obliged to operate flights to Montenegro eight months per year, every year, with the exception of 2012, as flights would launch in June and operate until the end of October. During this year the airline is required to launch three destinations. This would grow to four in 2013 and six by 2014. The six routes are to be maintained in 2015.

It is unclear as to the amount of subsidies the low cost airline will receive in the country and whether flights will be operated to either Tivat or Podgorica. Last year, the government insisted for Ryanair to operate flights exclusively to the country’s capital all year round, highly unattractive for an airline catering mostly for tourists wishing to spend a holiday on the coast. Furthermore, the deal is unlikely do go down well with Montenegro Airlines, which saw sliding passenger numbers and mounting debt last year. Currently, within the EX-YU region, Ryanair only operates flights to Croatia with services to Zadar, Rijeka and Pula.

Employees unhappy with CEO proposal

Krešimir Kučko taking over

Croatia Airlines employees are fuming over the government’s candidate for the carrier’s new CEO. The Croatian government has proposed for Krešimir Kučko to take over the reins at the airline. Kučko is currently serving as the airline’s representative for the Benelux region, based in Brussels. He has previously been the airline’s representative in Switzerland and the Netherlands. However, employees have doubts in their colleague’s ability to lead the carrier and turn it into a profitable business. Furthermore, they note that Kučko was recently ordered by the airline’s Ethics Committee to apologise to a female co-worker, although it wasn’t disclosed as to why he was ordered to do so.

“I have nothing to say. I was just informed about my naming. I’m currently in Belgium because I work for Croatia Airlines abroad”, Kučko told the “Poslovni” portal. Speaking about his ordered apology Kučko says it was all a misunderstanding, “I don’t know how it was presented in Croatia because I haven’t lived there for the past seven years. I have been working at Croatia Airlines for the past twenty years”, the CEO in waiting says. Furthermore, he explains that he doesn’t understand colleagues who are against his naming noting that he has worked with the national carrier from the very beginning and on the very first commercial agreements. “Even if Richard Branson were to be named CEO some employees wouldn’t be happy”, Kučko concludes.

The Croatian government has suggested for the entire managerial team headed by Srećko Šimunović to be replaced. It was previously in favour of Boško Matković, former Zagreb Airport CEO, to take over. However, in the end it decided to go with a different candidate. Speaking on television this week, Matković said there are valid arguments for the formation of a single national carrier for all the countries of the former Yugoslavia but warned that such scenario is highly unlikely due to the political climate in the region

Government planning Jat sale

Government promises brisk Jat privatisation

The Serbian government is planning to privatise Jat Airways yet again, this time within the next two months before its four year term runs out. Parliamentary elections are to take place on May 6. Local media report that the government has agreed to sell a 50% stake in the airline to Serbia’s three most successful businessmen who are also the country’s richest. Local media report an equal share will be divided between Miroslav Mišković (owner of the Delta Group), Miodrag Kostić (owner of the MK Group) and Miroslav Bogićević (owner of Farmakom).

According to sources inside the government, the trio is prepared to invest 25 million euros into the airline while the government, which would continue to own a 50% stake in the carrier, would invest a further 25 million euros. Seven aircraft from Jat’s current fleet would be used, while a further three would be bought or leased. The new owners would also be prepared to put an end to Jat’s Airbus woes. Through this new arrangement the government plans for Jat to become profitable by 2015. It has also said a new professional management would take over. However, if the privatisation plan materialises many can expect to lose their jobs. It is projected that as many as 1.000 people would have to leave the airline, with the government preparing redundancy packages.

So far, there have been two attempts to privatise Jat, both ending in failure. The first attempt was made in the summer of 2008 just as the global economic crisis was gathering pace, while the aviation industry was already in trouble. Last year, the government tried to sell Jat again, this time trying to find a partner to set up a successor national carrier. Only Baltic Aviation Systems, which runs airBaltic, purchased the tender documents but shortly announced it had no interest in pursuing the purchase. Will it be third time lucky for Jat in the year it celebrates its 85th birthday?

Turkish considering B&H exit

Turkish Airlines blames government for B&H problems

Local media have tipped that Turkish Airlines, which owns a 49% stake in Bosnia and Herzegovina’s national carrier B&H Airlines, could soon relinquish its shares. The Turkish carrier accuses the Bosnian government and its lack of cooperation for the current state the airline is in. “The partnership started off well. We wanted to export our know-how to the airline. However, the CEO of B&H had to wait three months to get an appointment at the Ministry of Transport. Our ideas were not met with understanding and the ministry did nothing to secure licenses to other countries. This caught us by surprise”, Hamdi Topcu, the Chairman of the Executive Committee of Turkish Airlines told the “Oslobodjenje” daily.

B&H Airlines is today operating with one ATR72 since another has been undergoing maintenance for over a month. Turkish Airlines’ Airbus A319, which operated for B&H has returned to its owner’s fleet and will not be returning to Sarajevo. The airline has been forced to cancel numerous destinations and many are beginning to avoid the national carrier due to uncertainty. In 2010, B&H Airlines recorded a loss of 10.230.000 euros. The airline is yet to publish its 2011 financial report although the Ministry of Transport warns that substantial losses were also recorded last year. “Bosnia does not care for B&H Airlines. This was a big disappointment for us. The main reason for the current state of the airline is a complete lack of interest and understanding”, Topcu concludes.

Enver Bijedić from the Ministry of Transport says Bosnia needs a national carrier. “It is our aim to survive with these two aircraft. We have to keep the airline and keep flying until there are better conditions on the market”. Earlier in the month the ministry accused Turkish for not adhering to its purchasing contract. B&H Airlines was set up on the back of the bankrupt former national carrier Air Bosna. The Bosnian government subsidises its national carrier with 3.4 million euros on an annual basis. B&H carried 129.435 passengers in 2011, a decrease of 6.7% compared to the year before.

Air India and Ryanair to skip Ljubljana

Air India flights to Ljubljana unlikely

Air India and Ryanair, which intended to launch flights to Ljubljana this year, have postponed such plans until further notice, primarily due to the extremely high fuel prices at the airport. Last year Air India and Adria Airways signed a memorandum of understanding which was to see Air India code share on Adria’s regional flights, while in return the Indian national carrier would operate some of its services to the United States via the Slovenian capital. Plans were set for flights to be launched either during the 2012 summer season or the 2012/2013 winter season, depending on the arrival of the profoundly delayed Boeing 787 Dreamliners. The airline is expected to receive its first Dreamliner in May.

Zmago Skobir, the head of Ljubljana Jože Pučnik Airport, has told the media that Air India has requested lower fuel prices at the airport and an exemption from paying fees in order to launch services to the Slovenian capital. However, Skobir notes that the airport does not control the pricing policy of the petroleum company. “I stress that this project could be beneficial for both the airport and Adria but it must be approached on an intergovernmental level”, Skobir says.

Meanwhile, talks with Ryanair have broken down. Late last year, Ljubljana Airport initiated talks with the no frills airline in order to cover the substantial cut in flights by the debt stricken Adria Airways. The low cost airline offered to open two to three new routes to the city, however, in return, requested minimal handling and operational fees. Skobir says that such terms were unacceptable. He notes that Bratislava Airport, which handled more passengers than Ljubljana last year, is almost exclusively served by low cost airlines but at the same time suffered a loss of over four million euros. Despite sliding passenger numbers, Ljubljana Airport saw record profit last year.

Ryanair to Montenegro from June

Soon in Montenegro

The Montenegrin government and Ryanair have reached an agreement which will see Europe’s biggest no frills airline operate flights to the country over the next four years. It comes after more than a year of negotiations. Flights are expected to begin in June and will operate on a seasonal basis. From next year flights will launch at the start of the summer season, in late March. The government estimates that by 2015, Ryanair will bring some 50.000 tourists to the country. It has backed down from insisting for the airline to fly all year round, a move which is set to ignite problems with its national carrier.

An official announcement from the airline will be made once Ryanair’s Board of Directors approves the deal with the government, expected during the week. According to the Montenegrin Tourism Ministry, the airline should launch flights from London, Brussels and Milan and will increase its offering to six destinations in three years. Notably, both Brussels and Milan were suspended from Montenegro Airlines’ destination network last year due to poor ticket sales.

While Ryanair’s arrival will be warmly welcomed by both locals and foreign tourists it could prove a headache to the already struggling national carrier. Montenegro Airlines will have to compete against Ryanair to London, which it turned into a seasonal service due to low interest throughout the winter. Furthermore, the airline has said that it is not against low cost airlines but argues that that they should operate year round services rather than taking all the tourists and then disappearing over the winter season. Details of the agreement with Ryanair, including how much the airline will receive in subsidies, hasn’t been revealed.

Jat’s Airbus saga deepens

Airbus offers Jat four A320s

Airbus is threatening to take Jat to court after its offer to the government to finally settle the dispute with the airline went unanswered. Airbus is looking to resolve a 14 year old quarrel with Jat. In 1998, the Yugoslav government ordered eight Airbus A319s for its national carrier, a highly unfavourable and politically motivated deal worth 560 million dollars at the time. Despite a deposit of 23.5 million dollars, the aircraft were never delivered. The latest problem came last week after a draft Airbus proposal to the Serbian government was publicised. Airbus is now offering four A320s to Jat for delivery until 2015. Under favourable terms, the European plane manufacturer would be inclined to even deliver all four aircraft immediately from its stockpiles. However, even after eleven attempts to contact the government, the State Secretary for Aviation, Miodrag Miljković, member of the United Regions of Serbia Party, didn’t bother to answer.

The Serbian government formed a task group two years ago to resolve the issue. However, they have never even met up. The TangoSix portal reveals that Miljković, instead of bothering with the Airbus deal, is hard at work lobbying in the interests of Wizz Air and is actively seeking for the low cost airline to be granted a bigger share of the Serbian aviation market.

Since, the latest row hit the media, the government has been in damage control saying at first that such pressure from Airbus is unnecessary ahead of parliamentary and local elections which are to take place in the country this May. Later the government said it needs more time to study the draft proposal. It seems that once again a complete disinterest in Jat on the part of the ruling elite has been shown. Airbus has given the government until March 30 to respond, either it will take Jat to court.

Summer 2012Adria, B&H and Montenegro Airlines

Summer changes for Adria, B&H and Montenegro Airlines

Tomorrow, the 2012 Northern Hemisphere summer season begins. Following on from last week, when changes and additions were published for Croatia Airlines and Jat Airways, this week amendments for Adria Airways, B&H Airlines and Montenegro Airlines can be viewed.

Adria Airways’ summer season sees a big reduction in operations compared to last year. Flights to Paris, Warsaw, Toulon and Banja Luka were all suspended last year. Seasonal flights to Athens, Dublin, Kiev and Stockholm won’t be resuming this summer. The airline will reduce frequencies on regional flights with services to Priština, Tirana and Skopje taking a hit. On the other hand, the Slovenian carrier will launch new flights to London Luton Airport, increase frequencies to Copenhagen and operate numerous charters.

B&H Airlines will operate flights only to Istanbul, Copenhagen and Zurich via Banja Luka. The airline currently has a single ATR72 in operation. However, if its Turkish part owner manages to make amends with the Bosnian government other aircraft could be returned to the B&H fleet which would lead to some destinations being resumed.

Finally, Montenegro Airlines will reduce frequencies to several destinations. The most notable is a reduction of nine weekly flights from Podgorica to Zurich. The airline will also halve the number of flights to Moscow. However, the Montenegrin carrier will introduce a new service from Tivat to London Gatwick and will strengthen frequencies to Paris.

By clicking on the links below, you can view the 2012 summer season changes in more detail.

Adria Airways • B&H Airlines • Croatia Airlines • Jat Airways • Montenegro Airlines

Priština success for Adria

All smiles for Adria at Priština

Priština has quickly become a success for Slovenia’s Adria Airways, a claim reinforced by the strong results the airline has seen on the recently launched services from the city to Verona in Italy. In the first three weeks since the route was launched on January 28, the airline carried approximately 2.500 passengers and recorded an average cabin occupancy index of 81.6%. "I am very pleased that we have introduced this service and I expect it to satisfy both Kosovo and Italian citizens", Adria CEO Klemen Boštjančič said at a recent launch party for the service.

Adria is quickly becoming one of the major players at Priština Airport. In 2011 the Slovenian national carrier welcomed some 140.000 passengers on board flights to and from Priština, making it the second busiest airline at the airport after Edelweiss. This summer, besides Verona, Adria will be operating flights to Frankfurt, Ljubljana and Munich as well.

Adria is the only former Yugoslav airline to have a secondary base outside of its borders. There have also been other attempts by national carriers in the region to open bases in neighbouring countries. Montenegro Airlines has attempted several times to open a base in Belgrade since 2006 but so far hasn’t received the green light from local authorities to do so. In 2010, Jat Airways attempted to open a base at Skopje Airport following the collapse of MAT Macedonian Airlines. However, its subsidiary Aeromak was denied a license by the Macedonian Civil Aviation Directorate.

Tomorrow you will be able to review summer changes Adria, Montenegro Airlines and B&H Airlines will be making to their summer timetables. Special thanks to the Sierra5 portal for contributing to the above news story.

Adria support for single EX-YU airline

Déjà vu?

Adria Airways CEO, Klemen Boštjančič, has announced that if Adria Airways’ pending privatisation process fails, a single airline for the former Yugoslavia will need to be created as no carrier in the region has the chance to survive in the current economic climate. “If the sale of Adria to a foreign partner fails, then our last chance is for regional integration with Croatia Airlines, Jat Airways and Montenegro Airlines”, Boštjančič told one of Slovenia’s most popular web portals - “SiOL”. The news comes a week after the Association of European Airlines urged Adria Airways to take a leading role in the integration of the former Yugoslav aviation market.

Adria’s CEO notes that Brussels has already shown support for the creation of a single airline for the former Yugoslavia. “Croatia will soon become an EU member and Serbia and Montenegro are not far off”, Boštjančič adds. However, Adria will first attempt to put itself on the market to foreign airlines. By the end of the month a financial consultant will be chosen to assist the Slovenian carrier with its privatisation process. While Boštjančič says that there is interest in Adria, he notes, “We and the government have to do everything in order for Adria Airways to get a new owner but I do not know whether we will succeed”, adding that regional cooperation must develop simultaneously with the privatisation process. Currently, many bigger players in Europe such as LOT Polish Airlines and Czech Airlines are awaiting privatisation.

Adria Airways already enjoys cooperation with airlines in the former Yugoslavia. It has code share agreements with both Jat Airways and Montenegro Airlines. Klemen Boštjančič says that regional integration could fail out of purely political reasons. All of the national EX-YU airlines ended 2011 with multi million euro losses. Once again the debate over a single national carrier for the countries of the former Yugoslavia reopens, 21 years after its break up.

Low cost to Sarajevo

Interest from low cost airlines to fly to Sarajevo Airport

Sarajevo could soon see low cost flights from London, Rome and Dusseldorf as the Bosnian government relaxes its conditions towards no frills airlines. The government currently requires low cost airlines to pay a levy of ten euros per passenger in order to operate flights to the country. Until recently, the levy amounted to fifteen euros but the state government gave up on its share of the takings while the Federation government is expected to follow suit. According to the Al Jazeera Balkans network, interest has been shown for flights to commence from London, Rome, Dusseldorf and a city in Sweden to Sarajevo this summer. Recently, the low cost Austrian airline Niki, owned by Air Berlin, said it was evaluating the Bosnian market.

New airlines would be more than welcomed by airports in Bosnia and Herzegovina. In February, the country’s busiest airport, Sarajevo, suffered a 21% passenger decrease by handling only 26.278 passengers. During the month the airport was affected by bad weather but also B&H Airlines’ route suspensions. However, the full brunt of the carrier’s woes is to be felt at the airport in March. Currently, B&H operates a single daily flight to Istanbul with an ATR72. During February, Banja Luka Airport welcomed 424 passengers and Mostar 318. Tuzla did not manage to attract any passengers last month.

Sarajevo Airport is served by two low cost airlines - Germanwings and Norwegian Air Shuttle. Norwegian operates flights on a seasonal basis and will be resuming services from Oslo and Stockholm to the Bosnian capital this summer. On top of its all year round service from Cologne, Germanwings will resume seasonal flights from Stuttgart to Sarajevo this summer as well.

New economy class at Croatia Airlines

New look seats on Croatia Airlines A319s

Croatia Airlines has begun rolling out its new economy class cabins in its Airbus A319 jets. The cabins feature the Lufthansa Recaro designed slim seats. According to the Croatian carrier, the new seats will provide more comfort to passengers. However, the airline plans to save with the introduction of the new design. Since the seats weigh only five kilograms each, the carrier will save on fuel. Furthermore, Croatia Airlines will be able to introduce an additional two rows of seating.

The new economy class cabin is featured on all four of Croatia Airlines’ Airbus A319s. Although there were plans to introduce the new seats on its A320s as well, it was decided against the move as the aircraft will soon be leaving the Croatia Airlines fleet. The airline also says the new cabins will be enhanced by new catering, to be introduced this summer season, which sets to promote Croatian cuisine.

Meanwhile, Croatia Airlines will have to compete on its Zagreb to Barcelona service this summer as the Spanish airline Vueling has announced three weekly flights between the two cities. Services will be launched on June 22 and will operate on a seasonal basis until September 17. Vueling replaces the recently bankrupt Spanair which used to operate on the route. Flight details can be viewed here. The Spanish national carrier Iberia will also operate seasonal flights to the Croatian capital. Flights from Madrid to Zagreb are set to operate twice per week until September 16. Details are available here.

Kon Tiki Sky to fly

From MAT Airways to Kon Tiki Sky to Alfa Air

Kon Tiki Sky (branded as MAT Airways), led by disgraced Dutch businessmen Harry van Achteren, has found a way to operate flights out of Skopje as Serbian tour operator Kon Tiki Travel confirmed it has sold its stake in MAT Airways to Bays Air from the Netherlands and has no connection to Kon Tiki Sky. Last week, Kon Tiki Sky announced it would launch fourteen new destinations out of Skopje but later noted the mentioned destinations were only a list of cities the airline would wish to fly to since it did not receive a license from the Macedonian Civil Aviation Directorate.

However, it has now found a solution. Kon Tiki will operate under Alfa Air codes, which is an airline based in Romania. It will use its aircraft as well (pictured above). As a result, the MAT Airways Boeing 737-500 won’t be used. Kon Tiki Sky says it will launch low cost flights from Skopje to Basel (5 times per week), Dusseldorf (3X p/w), Stuttgart (2X p/w), Hamburg (2X p/w), Berlin (2X p/w), Malmo (2X p/w) and Istanbul (2X p/w) from April 30. From May 28 the airline will launch services to Ancona (3X p/w), Milan (3X p/w), Bologna (3X p/w), Rome (4X p/w), Trieste (4X p/w) and Bratislava (4X p/w). All flights will operate with two Alfa Air British Aerospace RJ85 jets.

According to Kon Tiki Sky reservations can already be made. Ticket prices, which start from 45 euros, can already be seen on the airline’s website but are still unavailable for online purchase. If the flights do go ahead they should help boost Skopje Airport and its passenger numbers. Kon Tiki Sky will also be up for a chance to receive government subsidies designated for low cost airlines.

Summer 2012Croatia Airlines and Jat Airways

Summer changes for Croatia Airlines and Jat

On March 25 the 2012 summer season begins. Croatia Airlines and Jat Airways will both introduce new routes and increase frequencies.

Croatia Airlines has kept its summer frequencies out of Zagreb similar to last year, however, there will be some small cuts to flights in the EX-YU region. The Croatian national carrier will cut one flight each to Priština, Sarajevo and Skopje. Istanbul will see an addition of three weekly flights compared to last summer season. The airline will introduce a new service from Split to Belgrade, Rijeka to Barcelona and new flights from Zadar to Frankfurt and Paris.

Jat Airways will be increasing frequencies to most key destinations. Services to Moscow and Zuirch will see a boost of three flights with the two cities to be served ten times per week. Flights to Brussels have now been separated from the Amsterdam service and passengers will be offered a total of five weekly flights. The airline introduces new destinations this summer to London Gatwick, Malta, Pula and Split.

By clicking on the links below, you can view the 2012 summer season changes in more detail. Note that the tables display the peak weekly frequencies for each destination during the summer (keep this in mind especially for domestic flights within Croatia and flights between Belgrade - Tivat - Podgorica as some services operate only for several weeks). Over the next week the 2012 summer season changes for Adria Airways, B&H Airlines and Montenegro Airlines will also be published.

Croatia Airlines • Jat Airways

New CEO for Croatia Airlines

Boško Matković to be named new CEO

The former head of Zagreb Airport, Boško Matković, is set to take the reigns over from Srećko Šimunović as the new CEO of Croatia Airlines, local media report. Šimunović, who had close ties to the long time CEO Ivan Mišetić, is set to be replaced due to financial losses at the airline and a worsening spat between the management and employees. Srećko Šimunović was named as the head of Croatia’s national carrier in October 2010. Šimunović came to Croatia Airlines in 2002, taking up the post as head of the marketing department. He later became the director of the marketing and networks department and finally moved to the marketing and purchasing department. Before arriving at Croatia Airlines, Šimunović worked for INA, the Croatian National Petroleum Industry.

On the other hand, Boško Matković was replaced by the government in 2009 with Tonči Peović. Matković was accused by the media for having a monthly salary of up to 13.000 euros. While it is believed that Matković was replaced due to political reasons, the government at the time maintained that he was removed due to bad management. However, Matković was liked by his employees and had good relations with unions, which might come in handy as there is growing discontent amongst Croatia Airlines’ employees. On the other hand, Matković also presided over the failed attempt to construct a new terminal building at Zagreb Airport.

Visit tomorrow to read about Croatia Airlines’ and Jat Airways’ 2012 summer season changes and additions.

New control tower for Belgrade Airport

More passengers and new control tower for Belgrade

The Serbia and Montenegro Air Traffic Services Agency has announced that it will finance the construction of a new control tower at Belgrade Nikola Tesla Airport. Construction will begin next year and is set to be completed by 2014. According to the agency, the land on which the tower will be built has been selected and work on the project design is now in progress. The new tower will stand at 52 metres tall. The current air control tower, being used at Serbia’s busiest airport, was built back in 1962. In 2010 the multi million euro Air Control Centre was opened within the airport complex.

Meanwhile, Belgrade Airport continued to report growth in 2012. In February the airport welcomed 173.606 passengers, an increase of 6.6% compared to the same month last year when it handled 162.813 passengers. The airport was served almost by the same amount of flights - 2.988 compared to last year’s 3.010. In the first two months of the year, Nikola Tesla Airport welcomed 388.185 passengers through its doors, an increase of 13.7% compared to the same period last year.

This summer, Belgrade will see new Croatia Airlines flights to Split which replace Dubrovnik from last year, new flights from Copenhagen by Norwegian Air Shuttle, a 23% increase in flights from Jat Airways while Air One and Qatar Airways will also launch flights to the Serbian capital this summer season.

Wishful thinking

Scam master running Kon Tiki Sky

Kon Tiki Sky, also known as MAT Airways, which recently announced the launch of fourteen new destinations from Skopje, says it has not obtained a license for any of its advertised flights. It has emerged that Kon Tiki Sky is no longer owned or run by the Serbian tour operator Kon Tiki, rather, it has been taken over by Harry van Achteren, who has been involved in several scandals and bankruptcies. The airline has advertised low cost flights from Skopje to Antwerp, Ancona, Bologna, Bratislava, Basel, Berlin, Dusseldorf, Hamburg, Rome, Milan, Trieste, Stuttgart, Istanbul and Malmo.

However, on its website the airline states, “Kon Tiki Sky was not yet able to negotiate commercial terms, with Skopje Airport and/or local authorities, justifying the start of its scheduled routes out of an “emerging market” like Macedonia. Under the chapter “Coming Soon” on our website we mentioned all of the routes Kon Tiki Sky would like to operate out of Skopje”.

In 2004, Harry van Achteren set up jetsSky.com in his native Netherlands. The airline never took off the ground but sold “ghost” flights via its website, meaning it sold tickets for nonexistent flights. Last year van Achteren was arrested on fraud charges in connection to the collapse of the Antwerp Container Repair & Trading Company. Skopje Airport, which has already seen strong growth at the start of 2012, could have significantly profited from the above mentioned flights which were advertised to begin from May 1.

Zagreb numbers continue to decline

Weaker February at Zagreb Airport

Zagreb Airport has seen a third consecutive month of declining passenger numbers. In February, Croatia’s busiest airport handled 117.725 passengers, a decrease of 6.6% compared to the same month last year when it welcomed 125.978 passengers through its doors. The number of flights operating to and from the airport significantly decreased, by 9.4%. However, Zagreb, like other airports in the former Yugoslavia wasn’t immune to the snowstorms and bad weather conditions. Many domestic flights were cancelled in February due to the closure of the country’s coastal airports. Furthermore, other carriers such as Turkish Airlines were also forced to cancel flights due to snow in Istanbul.

Last year, Zagreb Airport handled a record number of passengers. However, figures started to decline in December 2011. In the first two months of 2012, the airport welcomed 5.9% less passengers then the same period last year. Other airports in the country also experienced a decline in traffic, details which will be published at the end of the month.

Meanwhile, Croatia Airlines also saw a setback this week. It has been revealed that one of the airline’s Dash 8 jets was dropped while being lifted during maintenance. Consequently, the aircraft has been damaged as it sustained a puncture on the fuselage. It occurred during the March 8 industrial action at the airline which saw mechanics walk off the job as well.

AEA: EX-YU airlines should unite

Scandinavian model for former Yugoslavia suggested

The Secretary General of the Association of European Airlines, Ulrich Schulte Strathaus, has told the Slovenian daily “Dnevnik” that in order for the national carriers of the former Yugoslavia to survive they will need to unite into a single airline. “The once single Yugoslav market is now fragmented and a regional solution is necessary. The region needs an airline that would cover local needs and connect with global hubs”, Strathaus says. He notes that he recently discussed the issue with Adria Airways’ management. “It would be great if Adria Airways, which has extensive knowledge of the Balkan market, were to initiate a regional summit which would be dedicated to this issue, however, due to political quarrels I doubt this could happen”, Strathaus adds.

The Association of European Airlines counts 34 members, mostly national carriers. Adria Airways, Croatia Airlines and Jat Airways are all members. Montenegro Airlines also used to be a member of the association but mysteriously left after a few months. Strathaus believes that certain markets in the former Yugoslavia are too small to have their own national carrier. He notes that Serbia can’t find an investor for Jat, Croatia Airlines and Montenegro Airlines are operating with mounting problems and that B&H Airlines will go bankrupt when Turkish Airlines ceases financing it.

Last year, an idea to unite the former Yugoslav aviation market was put on the table during talks between the Serbian government and Turkish Airlines. It was suggested that a regional airline, Balkan Airways, could serve as a national carrier for Serbia, Bosnia and Herzegovina, Montenegro and Macedonia. In September 2011, Croatia Airlines and Adria Airways reached an agreement over a common business plan model. The two airlines agreed to strengthen ties and cooperate on jet leasing as a means of improving efficiency and streamlining fleet utilisation.

B&H resumes operations

B&H Airlines has resumed operations with a single ATR72 and will operate flights to Istanbul. It’s Airbus A319, will soon rejoin Turkish Airlines’ fleet as the carrier abruptly ended its lease of the aircraft to B&H on February 27.

February passenger plunge

Snow hits Jat’s passenger numbers

Jat Airways has seen its passenger numbers stumble for the first time in over a year as snow storms and numerous cancellations take their toll. This February Jat handled 62.289 passengers, down 9% on the same month last year. The number of flights operated in February 2012 fell 10%. During the month, numerous flights were cancelled to one of Jat’s busiest markets - Montenegro. As a result, passenger numbers fell 33% on services to Podgorica and Tivat. On Euro Mediterranean flights passenger numbers decreased 5%, while Jat handled 37% more passengers on charter flights compared to February 2011.

So far this year, Jat Airways has welcomed 137.197 passengers onboard, the same as last year. The average cabin load factor for the two months stood at 63%, which is six points ahead of the same period last year. Despite February 2012 having an extra day, as it is a leap year, the three busiest airlines of the former Yugoslavia saw their passenger figures decline. Adria Airways saw its numbers slump due to a decrease in the number of operated flights while Croatia Airlines and Jat were forced to cancel flights due to bad weather.

Meanwhile, Jat has announced that it will resume its seasonal services to Girona in Spain this summer. Flights will launch on June 5, twice per week, with a Boeing 737-300. The aircraft will have an all economy class layout with 126 seats. As a result, this summer, besides Girona, Jat resumes flights to Malta, Dubrovnik, Pula, Split, Ohrid and launches London Gatwick.

Month	PAX	Change (%)	Average load factor (%)
JAN	74.908	▲ 8	66
FEB	62.289	▼9	63

The end for B&H Airlines?

Crisis hit B&H Airlines suspends all flights

B&H Airlines has suspended all operations until further notice but has not ceased the sale of tickets to Zurich, Istanbul and Copenhagen. The airline is currently scheduled to resume operations to Istanbul on March 13, according to the Amadeus global ticketing system. However, the Bosnian carrier has suspended its planned seasonal flights to Gothenburg and Stockholm. It comes a week after it indefinitely suspended services to Amsterdam.

Currently, B&H Airlines does not have an aircraft in Sarajevo. Its two ATR72s are in Monchengladbach in Germany’s west. The ATR registered E7-AAD left weeks ago while the other, E7-AAE, took off for Monchengladbach on March 9. They are officially there for regular maintenance. Meanwhile, the Airbus A319 has been grounded in Istanbul since February 27. The government maintains that it too is undergoing technical checks.

It is believed that recent talks between Turkish Airlines’ management, the government of Bosnia and Herzegovina, the Turkish ambassador in Sarajevo and B&H Airlines’ management broke down earlier in the week. The Bosnian daily “Oslobodjenje” reports that B&H’s part owners, Turkish Airlines, have requested for the Bosnian government to cover debt which has been accumulated by the carrier. Turkish maintains it took over B&H not to make a profit but rather to help the struggling airline back in 2008. The government says it no longer has the means to finance its national carrier. It has ordered B&H Airlines to draft a business plan for 2012 after which talks with Turkish Airlines could resume. Whether B&H can bounce back remains to be seen.

MAT Airways rises from the dead

MAT to launch fourteen destinations from Skopje

The charter airline MAT Airways will resume operations from Skopje for the first time since August 2011. The airline, owned by the Serbian tour operator Kon Tiki, will launch fourteen destinations from May 1. The carrier will first inaugurate two weekly flights to Antwerp in Belgium. Just over a month later, on June 18, Mat Airways will launch flights to Ancona (3 times per week), Milan-Bergamo (3 p/w), Bologna (3 p/w), Rome (4 p/w), Trieste (4 p/w), Bratislava (4 p/w), Basel (5 p/w), Dusseldorf (3 p/w), Stuttgart (2 p/w), Hamburg (2 p/w), Berlin (2 p/w) Malmo (2 p/w) and Istanbul-Sabiha Gokcen (2 p/w).

The airline owns a sole Boeing 737-500 but is also likely to use Sky Wings International’s Boeing 737-300, which has been sitting at Skopje Airport for months. MAT operated flights last summer but suspended operations due to poor loads in August. The new flights can be booked via the airline’s website. Prices start from 45 euros. MAT could also be interested in applying for subsidies to be offered by the Macedonian government for low cost airlines.

If the flights get off to a successful start it will be a major coup for Skopje Airport which has already seen strong growth this year. In February, Macedonia’s two commercial airports (Skopje and Ohrid) handled 49.031 passengers, an increase of 22% compared to the same month last year. It was accompanied by a 4% increase in the number of operated flights to and from the airports. Recently, Skopje Alexander the Great Airport finally received a public transport bus link to the city centre, allowing passengers easier access to the country’s main airport.

B&H cancels all flights

B&H Airlines has cancelled all flights as its ATR72 leaves for Germany. Officially the aircraft has joined the other B&H Airlines ATR72 for maintenance. The airline’s Airbus A319 is grounded in Istanbul. As a result, the Bosnian carrier has cancelled all operations until further notice.

Qatar Airways to Belgrade from September

Soon in Belgrade

Qatar Airways will launch services to Belgrade in September this year, connecting the capitals of Qatar and Serbia with an air link for the first time in history. The Qatari national carrier will operate four weekly flights to Belgrade, the airline’s CEO, Akbar Al Baker, said at the ITB Convention in Berlin yesterday. Flights will operate via the Turkish capital Ankara, four times per week with an Airbus A320. It is highly unlikely that the airline will receive commercial rights on the Ankara - Belgrade - Ankara sector. Passengers most likely to use the service are those transiting to far east Asia and Australia.

The news comes as the Qatari national carrier plans to launch services to the Croatian capital Zagreb on May 9. The flights to Zagreb will operate on a daily basis via Budapest. The airline does not have local traffic rights on the Budapest - Zagreb - Budapest sector.

From September, Qatar Airways will go into indirect competition with the no frills Fly Dubai which will be operating five weekly nonstop flights from Dubai to Belgrade this coming summer season. Jat Airways, which planned to resume services to Dubai this summer has decided against the move for reasons unknown. However, Jat will have the most competition on its hands. Fly Dubai has failed to attract transit passengers and is being used primarily by point to point travellers. On the other hand, Jat, which continues to enjoy strong cooperation with Emirates, has simply rerouted its passengers transiting to Australia via European cities served by Emirates rather than directly via Dubai since it suspended flights to the city in November 2011.

UPDATEDCroatia Airlines strike begins

Flight delays and cancelations at Croatia Airlines

Croatia Airlines has been forced to cancel many of its flights today as the union of Croatia Airlines pilots, cabin crew, airline technicians and the “Novi sindikat” planned to begin a 24 hour strike. However, late last night they announced they were cancelling today’s strike. Nevertheless all of the planned flight cancellations remain in place. Despite spending over a year discussing the terms of their collective agreements with the airline’s management, no solution has been found. Today's strike was only supposed to be a warning to the management and further industrial action could be taken in the coming months if no agreement is reached. Despite the fact that the strike was supposed to last from 06.00 this morning until 06.00 tomorrow morning, the Croatian national carrier was forced to cancel its evening service to Sarajevo yesterday, since the aircraft would be unable to return to Zagreb in the morning and several flights will be cancelled tomorrow as well. Furthermore, passengers can expect delays on early morning flights tomorrow until operations resume to their full capacity.

The unions note that Croatia Airlines will be operating 80% of its scheduled services. Today, the airline has cancelled its flights to Frankfurt, Amsterdam, Brussels, Zurich, Dubrovnik, Split, Rome, Priština, Vienna, Munich, Pula, Zadar, Sarajevo and Skopje. As a result, return flights from Pula, Zadar, Sarajevo and Skopje, which are scheduled to operate on March 9 have also been cancelled. It should be noted that on some of these destinations, Croatia Airlines operates more than one daily flight and in most cases only one of the daily flights has been cancelled.

Croatia Airlines’ management is fuming over the planned walk out by staff saying that the industrial action is unnecessary. It has been further angered after employees said that they wouldn't strike with the airline unable to resume normal operations today. The carrier claims that the terms set out by the unions go against the airline’s cost cutting measure while seven of the eleven conditions set out by the unions go against Croatia’s state laws. Furthermore, the management says the strike will cost the airline 200.000 euros. Croatia Airlines is offering passengers the opportunity to be either rebooked on other flights or compensated to the full amount of their ticket price. Latest strike details can be found on the carrier’s website here. Those interested in viewing the collective agreement from 2011 that unions want to be changed can view it here (PDF document - in Croatian).

February blues for Adria

Passenger numbers continue to tumble at Adria

Passenger numbers have continued to decline at Adria Airways in February. The Slovenian national carrier handled 58.013 passengers. Compared to the same month last year the airline’s figures have slumped by 5.1%. Back in February 2011 the carrier handled 60.946 passengers. However, it should be noted that this February had an extra day as 2012 is a leap year. Still, there are some encouraging signs as Adria welcomed more passenger in February than it did in January. Since February had two days less than the previous month and is usually the slowest month of the year, the trend is encouraging. In 2011, there were 5.000 passengers less in February than that of January, while this year there were 2.000 passengers more than in the first month of 2012.

The slump in numbers can also be attributed to the suspension of a number of routes. Still, Adria operated several special flights including those from Torino to Belgrade since the airline has signed a contract to carry Fiat employees from Italy to the Zastava-Fiat car manufacturer in Serbia. The airline will hope its new flights to London Luton and seasonal flights to Barcelona, Manchester and Lulea in Sweden will boost passenger numbers while continuing to implement cost cutting measures.

Meanwhile, the crisis hit Adria Airways Tehnika, which has been separated from its parent company Adria Airways, could be reintegrated into the national carrier as the Slovenian government looks for a solution to the aircraft maintenance company’s problems. Tehnika has managed to come to an agreement with aircraft leasing company ILFC for the return of Spanair jets which found themselves in Ljubljana as the Spanish airline collapsed. As has been previously mentioned, Spanair was Adria Tehnika’s second biggest customer.

Talks on B&H future begin

New hope for B&H Airlines

Members of Turkish Airlines’ management flew into Sarajevo yesterday for talks with the Bosnian government over a deepening row regarding B&H Airlines, three weeks ahead of the 2012 summer season. The government, which is B&H’s majority stake holder, is unimpressed with the way the Turks have managed the carrier and are requesting for Turkish Airlines to adhere to its takeover contract. Local media report that Turkish Airlines has not fulfilled many of its obligations which it signed up to back in 2008 when it took a 49% stake in the carrier. The Bosnian government is further angered that it has had to pump in 3.4 million euros into the national airline on an annual basis, despite Turkish’s presence.

Recently, in retaliation, Turkish Airlines took back its Airbus A319, which was operated by B&H and flights to Amsterdam were suspended with little warning. The return of the A319 to Sarajevo was discussed in yesterday’s meeting and progress is said to have been made. In February, B&H Airlines saw passenger numbers stumble 40%. It not only battled with constant flight cancellations as a result of its spat with Turkish Airlines but also saw extreme weather conditions.

Only last week, the Bosnian government approved a 1.3 million euro cash injection to cover B&H’s operational costs. Today, the carrier will only operate one return flight to Istanbul with other services cancelled. Furthermore, one its ATRs is undergoing maintenance leaving the carrier with a single ATR72. Yesterday’s meeting between Turkish Airlines and the Bosnian government is said to be going in the right direction, bringing hope to employees and passengers that the situation can be resolved.

UPDATEDCroatia Airlines to launch Split - Belgrade

Soon in Belgrade

The Croatian national carrier will compete against Jat Airways on the Split - Belgrade service this summer season, a source close to the airline says. Croatia Airlines has applied for a license from the Serbian Aviation Directorate. The flights will replace last year’s summer service from Dubrovnik to Belgrade. They are to be operated by the Bombardier Dash 8 aircraft.

This summer season, Jat Airways will operate two weekly flights between the Serbian capital and Split. In 2011, the two airlines went head to head on the Belgrade - Dubrovnik line twice per week. The Serbian national carrier on average, per flight, carried approximately 45 passengers on its 66 seat ATR72, while an average of 30 passengers chose Croatia Airlines. However, flights were sold out during peak season. So far, Jat has been selling return tickets for its Split service at a price of between 113 and 130 euros.

This summer will see the most air links between Croatia and Serbia since the breakup of Yugoslavia, with services between Pula, Split, Dubrovnik and Belgrade. During the 1980s the Belgrade - Dubrovnik flights were JAT Yugoslav Airlines’ most popular with thousands of passenger per year.

UPDATE

Since the publication of this news item Croatia Airlines has officially confirmed it will launch services between Split and Belgrade, twice per week, every Monday and Friday from June 1. Flight details can be viewed here.

Croatia Airlines strike imminent

Strike details revealed

Croatia Airlines employees and the carrier’s management have failed to reach an agreement over new terms of their collective agreements. As a result, unions will go ahead with their planned strike action scheduled to begin on Thursday, March 8. The strike will begin at 06.00 CET in the morning and will last a full 24 hours. The strike should in theory effect only 20% of flights but in practice many employees might simply not show up for work.

The management says that new requests by employees would harm the airline’s plans to break even this year and report a profit in 2013. They estimate the carrier will lose up to 200.000 euros during the one day strike action. Croatia Airlines pilots are requesting for a decision on minimum rest periods to be overturned. Meanwhile, cabin crew want the management to stop hiring new staff through agencies while all want for a new recovery plan to be drafted.

Croatia Airlines has in the past few years been hit by a series of strikes. In 2010, the airline’s cabin crew staged a four day walkout. Last May another strike was planned but was averted at the last minute. In November 2011, many flights were affected as employees at Zagreb Airport walked off the job.

Jat Tehnika expands

New hangar for Jat Tehnika

Jat Tehnika has announced the construction of an additional hangar at Belgrade Nikola Tesla Airport which will be able to handle a Boeing B737 next generation aircraft as well as the Airbus A320. Furthermore, necessary equipment is being purchased in order for the maintenance company to begin work on servicing Airbus jets this summer. During the week, the Serbian government gave its approval for Tehnika to take out a five million euro loan in order to finance its new endeavours. The loan will be repaid within the next five years. Jat Tehnika, which was separated from Jat Airways in 2006, expects to see an increase in business as a result of the new investments.

Tehnika currently has three hangars at its disposal at Belgrade Airport. Two are used for medium sized aircraft and can fit three jets each at one single time while the third hangar is for larger aircraft and can fit two Boeing 747-400s. Besides Jat, the company currently provides maintenance to airlines such as Jet2.com, NordStar Airlines, Astraeus Airlines and Transaero.

Meanwhile, Jat Airways has announced that it has resumed operations at terminal two at Belgrade Airport. The carrier was forced to move to the older terminal one due to expansion wok being carried out at Serbia’s busiest airport. Furthermore, the airline has launched a new frequent flyer program for passengers on March 1.

Turkish takes back B&H’s A319

B&H left with two aircraft as it suspends Amsterdam flights

Turkish Airlines has taken back possession of its Airbus A319, which has been operated by B&H Airlines for the past two years as the crisis within the Bosnian carrier deepens. The A319 jet, which is registered in Turkey (TC-JLR) left for Istanbul on scheduled flight JA106 on February 27. Problems appear to have emerged between the minority and majority share holders of the airline - Turkish Airlines (49%) and the government of Bosnia and Herzegovina (51%). Turkish is unhappy that it has been unable to buy a majority stake in the carrier, which it has been hoping to do so since late 2010.

In a further show of problems, B&H Airlines has now suspended services to Amsterdam indefinitely. The flights were to be temporarily suspended during March and resumed in April with four weekly services. In 2011 the Bosnian state auditor said in his report that B&H was better off prior to the Turkish takeover, noting that losses at the airline have increased ten times.

Turkish Airlines has delivered little on its purchasing agreement with the Bosnian government signed in 2008. It was supposed to spend five million euros for the lease of two jet engine aircraft and make a further five million euro investment. According to plans in early 2009 the airline’s fourth jet was to arrive in the summer of last year.

March 8 strike at Croatia Airlines

Unhappy unions plan flight disruptions

Four Croatia Airlines unions will go on strike next Thursday, March 8, if their demands for a revised collective agreement are not met. The four trade unions count approximately 650 employees. They have put up ten demands to the airline’s management. If their demands were to be met, Croatia Airlines will have to fork out an additional 2.3 million euros in 2012 and a further 3 million euros in 2013. The additional costs would offset the carrier’s plans to further cut down on its losses. The airline finished 2011 with a loss of 10 million euros, which is down 52% on 2010.

There has been growing discontent amongst Croatia Airlines’ pilots who are unhappy with work conditions and what it sees as incompetent management. Their hundred page revival plan for the company was struck down by the management earlier in the year. Things were made worse when a daily newspaper published an article claiming that Croatia Airlines’ pilots are overpaid and work the least in Europe, an article the pilots believe was planted by the management. It came after pilots told the media that the carrier’s Dash 8s are unsafe and experience constant technical faults. Besides the pilots, cabin crew are also unhappy with their work conditions. Only the airline’s technicians and engineers have managed to come to an agreement with the management.

Croatia Airlines claims that if the strike action goes ahead on March 8 it will cost the carrier 200.000 euros and disrupt flights and passengers. Meanwhile, the Croatian government yesterday formally awarded Aéroports de Paris the concession over Zagreb Airport, much to the discontent of the airport’s unions.