Belgrade Airport turns fifty

New investments planned

Belgrade Nikola Tesla Airport marked its fiftieth anniversary over the weekend since it opened its doors on April 28, 1962. The airport was opened after four years of construction and replaced what was known as the Dojno polje Airport, which was not too far away from the current airport sight. Later on, a second terminal was built to deal with the big increase in passenger numbers. In the 1980s plans were made for the airport’s development until 2010. However, the plan did not foresee the breakup of Yugoslavia. It outlined the construction of a third terminal and a second parallel runway.

Today, Belgrade Airport is the busiest in the former Yugoslavia. It predicts 2012 will be its best year on record. The airport is currently in the middle of an expansion project, however, further investment is planned. The largest ground handling company in the aviation industry, Siwssport International, has announced it will soon begin work at Belgrade Airport. The company will take over ground handling for several airlines which have requested their services. The company projects that it will employ some 150 people in Serbia. A total of 52 million euros will be invested into Serbia’s busiest hub according to the airport within the next three years.

In 2011, Belgrade Airport handled 3.124.633 passengers making it its third best year on record. This summer the airport will see Norwegian Air Shuttle, Qatar Airways, Croatia Airlines and Air One launch new flights. Below you can view Belgrade Airport’s five most successful years since opening its doors in 1962

Year	PAX
1987	3.311.951
1988	3.277.537
2011	3.124.633
1979	2.839.995
1986	2.822.908

Priština on the up

Numbers surge at Priština Airport

Following a record breaking 2011, numbers at Priština Airport have continued to surge into the new year. In the first quarter the airport welcomed 292.697 passengers through its doors, an increase of 6% compared to the same period last year. In March, the airport welcomed 99.540 passengers, up 9.9% on 2011. Its best month so far was January when it welcomed 112.961 passengers. However, in February the airport saw a slide in numbers, which was echoed across Europe. Due to heavy snow fall and freezing weather flights across the continent were disrupted. During that month, Priština saw a decline of 2%.

With passenger growth continuing in 2012, Priština Airport is highly likely to keep its position as the third busiest airport in the former Yugoslavia, a title it took over last year when it handled 1.422.302 passengers, which was an increase of 9% on 2010. Its closest rival, Ljubljana Jože Pučnik Airport, has seen a 3.7% passenger decrease in the first three months of the year, which is less than originally expected.

The only two other capital city airports in the former Yugoslavia recording growth in the first quarter are Belgrade and Skopje. Podgorica has seen a big tumble in passenger numbers, although Tivat Airport has recorded impressive growth so far in the year. Ljubljana and Zagreb have also experienced a modest decline while Sarajevo has been hit hard by bad weather and B&H Airlines’ woes. On the other hand, Mostar Airport in Bosnia has seen record traffic over this weekend thanks to a large number of charter flights.

Jat to launch Kraljevo flights

Jat from Kraljevo to Istanbul this June

Serbia’s national carrier Jat Airways will launch a two weekly service from the country’s newest airport in Kraljevo to Istanbul. Services will be inaugurated this June twice per week, every Wednesday and Friday, with the 66 seat ATR72. The airline has said it has made such a decision due to strong interest. Tickets for the new service will be on sale from next month. It has long been tipped that Istanbul will be the first city to be served from Morava Airport in Kraljevo since the Turkish government also invested into the construction of the new airport.

The routing of the new service will be Belgrade - Istanbul - Kraljevo - Istanbul - Belgrade. It is believed the route can be successful as Kraljevo is located in the Raška District and is close to the town of Novi Pazar, which has a significant Bosniak and Muslim population with close ties to Turkey. Previously, many in the region opted to fly to Istanbul out of Priština.

Jat’s announcement yesterday that it will launch flights from Kraljevo generated significant media coverage. Work on the construction of Morava Airport’s terminal is entering its final phase with work to be completed by the end of next month. Soon after the extension of the airport’s runway will begin so in the future it can handle larger aircraft such as the Boeing 737. Such construction work will not affect incoming traffic. Jat Airways operated a promotional service from Belgrade to Kraljevo on October 5, 2011 with an ATR72.

Serbia - Montenegro air travel tumbles

Passenger numbers between Serbia and Montenegro take a hit

Passenger numbers between Serbia and Montenegro have sharply decreased over the past four years. The Serbia and Montenegro Air Traffic Services Agency (SMATSA) believes this negative trend can only be overturned if ticket prices are reduced and flights between Belgrade, Podgorica and Tivat operate on an hourly basis. Currently, return ticket prices on the service between the two countries, with flight times of approximately 45 minutes, amount to 100 euros and upwards to 190 euros. A world wide price hike in aviation ticketing in late March has also affected the Serbia to Montenegro services.

On the other hand, some believe that the continuing duopoly between Jat Airways and Montenegro Airlines has also caused travel between the two countries to plummet. From 2008 until 2010 Montenegro Airlines had the upper hand against its Serbian rival on services from Podgorica and Tivat to Belgrade. In 2010, Jat began to claw back passengers and is once again the dominant carrier on the route, thanks in part due to its constant promotional ticketing campaigns. However, in the first quarter air traffic between the two countries is down 7% on last year. A low cost carrier on the route could shake things up but it is unlikely that either the Serbian or Montenegrin government would allow such a move.

The Air Traffic Services Agency has proposed for seventeen daily rotations between Belgrade, Podgorica and Tivat. They believe that some 300.000 passengers could be carried on the route, while ticket prices should amount to 60 euros. This would be achieved through reduced handling fees at airports, the elimination of the security tax and other measures. Reacting to the proposal, Jat Airways says there is no possibility for ticket prices to be any lower, noting that the fuel tax itself amounts to 25 euros. Jat recently moved its Podgorica and Tivat departures to terminal one at Belgrade Airport in order for the airport tax to be reduced for passengers. Services to Ohrid, Split, Pula and Dubrovnik will also enjoy the lower terminal one tax.

Do you think that the proposal made by the SMATSA is viable? What do you believe is the main reason for the overpriced services between the two countries? Leave a comment.

Skopje to Dubai by the end of 2012

New flights to Macedonia this year

The Macedonian Civil Aviation Directorate has confirmed that flights between Skopje and Dubai will commence by the end of the year. EX-YU aviation news exclusively reported last week that Flydubai has begun a feasibility study into launching flights to the Macedonian capital, with word of a possible two weekly service. The Directorate states that the flights will be possible from September onwards when Macedonia and the United Arab Emirates finalise an air services agreement. “By the end of the year the route should be launched”, the Directorate says.

Skopje has become of interest to the low cost airline due to attractive subsidies being offered by the Macedonian government to no frills carriers. From next week, airlines will be able to apply for the subsidies with the government expecting six new destinations from Skopje Alexander the Great Airport by the end of the year. Although Flydubai was considering launching flights to Zagreb, it decided against the move due to its distance. Flydubai only operates flights to cities within a five hour radius, in order to allow the same cabin crew to work on the return leg. Crew duty times would just be exceeded on the return Zagreb service.

Until Flydubai’s arrival, Macedonia will also see several other airlines launching flights to its two international airports. This week Turkey‘s Borajet launched a seasonal one weekly service to the Macedonian capital from Istanbul’s Sabiha Gokcen Airport. Germany’s XL Airways will operate flights from Stuttgart to Skopje from June 30, once per week. Details can be found here. Finally, Finnair will launch a seasonal service to Ohrid this summer from its hub in Helsinki.

Air Vallée suspends Mostar

Air Vallée scraps Mostar as B&H’s ATR returns to the fleet

The Italian airline Air Vallée, which was supposed to operate two weekly flights from Abruzzo Airport near Pescara on Italy’s eastern coast to Mostar, has cancelled its services after operating only the inaugural service. Earlier in the year an agreement was reached between local authorities and the airline for Air Vallée to operate a total of 52 flights until the end of October. There was even a pre contract in place for services to continue throughout the winter season.

No official reason has been given behind the suspension. Flights between the two cities were operated by B&H Airlines at the end of last year’s summer season with much success. As a result, Mostar will not see scheduled services this summer although the airport enjoys numerous charters, catering exclusively for pilgrims visiting Medjugorje. Late last year the Bosnian national carrier expressed interest to expand operations out of Mostar, with proposals for the airline to set up a mini hub at the airport with daily feeder runs to Sarajevo. These plans, however, did not materialise.

Meanwhile, B&H Airlines’ second ATR72, which has been sitting in Germany for the past several months, made a comeback in Sarajevo yesterday and will resume operations for the Bosnian carrier soon. It is believed that the Bosnian government paid outstanding debt on the aircraft’s lease enabling it to return. The aircraft is much needed as has been demonstrated over the past few days. B&H was forced to cancel all of its flights on both Sunday and Monday as its sole operating ATR72 travelled to the Belorussian capital Minsk. Operations are set to resume today with two flights to Istanbul.

Wizz Air in Belgrade and EX-YU region

Wizz Air marks first Belgrade anniversary

The low cost airline Wizz Air has been celebrating its first year since basing its Airbus A320 jet in Belgrade. The venture has turned out to be a successful one so far. Wizz Air is now the second busiest airline operating out of Belgrade Nikola Tesla Airport behind only Jat Airways. Since launching its first flights to the Serbian capital in late 2010, the airline has handled over 340.000 passengers and operated more than 1.160 flights. Currently, from Belgrade it offers direct services to cities in Germany, Sweden, Italy, the United Kingdom, Belgium and the Netherlands. However, many expected for the pace of expansion to be somewhat swifter.

Last year, Wizz Air also launched flights to the Macedonian capital from London as well as Treviso in Italy. There were strong indications that the no frills airline was planning to open a base in Skopje as several routes were also planned to be launched. With incentives soon to kick in for low cost airlines to operate to Macedonia and with airport operator TAV in a desperate search for an airline willing to base an aircraft in Skopje, new destinations could soon be on the cards.

Wizz Air has also tried its luck in both Croatia and Slovenia. However, flights to both Zagreb and Ljubljana have failed. Still, the airline will maintain its presence in Croatia this summer with five weekly flights from London to Split on a seasonal basis. Planned summer flights to Dubrovnik have been scrapped in face of strong competition. Earlier in the month it was reported that a low cost airline is seeking to launch flights from London, Rome, Dusseldorf and a Swedish city to Sarajevo later this summer. While the airline hasn’t been named Wizz Air is being tipped as a possible candidate. So far, Wizz Air is the only low cost airline to have a base in a city in the former Yugoslavia.

Montenegro pushes for airline unification

Montenegro Airlines, Jat, Adria and Croatia Airlines to meet next month

The CEO of Montenegro Airlines, Zoran Djurišić, has invited the executives from the former Yugoslavia’s three busiest carriers, Croatia Airlines, Jat Airways and Adria Airways, to meet and discuss the proposal set out by the Association of European Airlines for the flag carriers of the four former Yugoslav republics to merge into a single airline. The meeting is set to take place on May 19 on the Budva Riviera.

The four sides will discuss the implementation of a free skies agreement between the countries of the former Yugoslavia, which would allow unrestricted access for all of the airlines involved to operate flights to each other’s countries. Furthermore, a fleet exchange plan will also be discussed, which would allow airlines to exchange aircraft amongst each other in accordance to their needs. Also on the agenda will be the proposal for the airlines to trade staff, maintenance and catering. The fourth and final point to be discussed will be a unified approach on the international market through unified representation of all four airlines.

In his letter to the three CEO’s, Djurišić notes that as a result of the global economic crisis and the aviation crisis which has hit Europe, regional airlines are facing a challenging future. Djurišić notes that foreign airlines are gaining the upper hand in the region against local carriers. While many airlines began to recover in 2011 after the economic crisis, it was Montenegro Airlines and Adria Airways which were hit hard. Montenegro Airlines has seen a big slide in passenger numbers, especially to its key market - Belgrade, while its losses have mounted. However, it is not alone as all of the former Yugoslav carriers are operating with significant losses. Both Croatia Airlines’ and Adria’s passenger figures have been plummeting this year, while Jat’s losses increased by several million euros in 2011. Last month, the Association of European Airlines warned that national carriers of the former Yugoslavia will disappear if they do not merge. The claims were supported by the CEO of Adria Airways which said that the Slovenian carrier would support the move if its privatisation process fails this year.

Jat returns to growth

Passenger numbers on the rise at Jat

Jat Airways has seen its passenger numbers rise in March compared to the same month last year. During the month, Jat welcomed 83.369 passengers on board, an increase of 4% compared to March 2011. The average cabin load factor stood at 68% which is up from last year’s 60%. Jat operated 4% less flights than last year but managed to see a passenger increase of 3% on scheduled services, which was within the airline’s planned growth outlook.

Services to Montenegro, which have seen a constant passenger surge over the last year, were hit by a 9% decrease last month, although the number of flights operated to and from Tivat and Podgorica were also down by 4%. Despite a 5% decrease in the number of flights on the all important Euro Mediterranean services, the number of passengers increased by 5%. However, it was charter flights that proved to be the strong point with the number of passengers surging 823%.

In the first quarter of 2012, the Serbian national carrier has handled 220.566 passengers - an increase of 2% compared to the same period last year with an average cabin load factor of 65% and a decrease in operated flights by 7%.

Month	PAX	Change (%)	Average load factor (%)
JAN	74.908	▲ 8	66
FEB	62.289	▼ 9	63
MAR	83.369	▲ 4	68

Priština terminal construction progresses

New Priština terminal rising

The construction of Priština Airport’s new terminal is advancing. Currently, work is being carried out on the construction of the new passenger terminal, which should stretch up to 45.000 square metres. For comparisons sake, the new Skopje Airport terminal has 40.100 square metres. The new terminal in Priština will be followed by the construction of a new apron and a new car park in front of the terminal building with the capacity to accommodate 1.750 vehicles, according to the project outline. A total of three air bridges will be in use at the new terminal. A new control tower and air traffic control building is already under construction and is located on the western side of the runway.

However, there have been some delays in the construction of the new terminal as the airport’s primary operator, Lymak Holding from Turkey, has had several disagreements with local authorities over the airport’s management practices and policies. The official opening date of the new terminal is set for January 2013. The price tag of the project amounts to 120 million euros.

Last year Priština became the third busiest airport in the former Yugoslavia, behind only Belgrade and Zagreb. The city is being served by fifteen scheduled airlines this summer season with Belle Air having the largest share of flights.

PM: We won’t cheat the Turks

Hope for B&H as owners work out their differences

A truce between the owners of B&H Airlines (the Bosnian government and Turkish Airlines) seems to be on the horizon after the Turkish carrier rebuffed claims it is selling its 49% stake in the Bosnian national airline following several rounds of talks with the government. The feud between the two has paralysed the carrier since the start of the 2011/12 winter season back in October last year with numerous temporary cancelations of routes, dumped network expansion plans and a fleet reduction. Turkish Airlines is unhappy with the way the government has conducted itself in regards to B&H, while the Bosnian government claimed that the Turks themselves were not adhering to the privatisation contract.

However, Nermin Nikšić, the Prime Minister of the Federation of Bosnia and Herzegovina, says the government will comply with its obligations towards both B&H and Turkish Airlines and voices his understanding for the Turks. “The Turkish state, government and people have special relations with Bosnia and Herzegovina and its people. I am touched by the attention and respect the Turks have shown towards Bosnia, but unfortunately many Turkish investors have been played”, Nikšić says. The Prime Minister goes on to note, “I understand the position Turkish Airlines is in. It is the third airline in the world and certainly doesn’t have to bother with some Bosnian company which annually carries the number of passengers Turkish does in three days. We held a series of talks with our Turkish partner and it is clear they won’t be cheated”.

The Prime Minister reveals that the Bosnian government is responsible for financing two leased aircraft (ATR72s) and that the means will be found to fulfil these obligations. The government has so far payed half of the two million euros needed to finance the B&H fleet. “I honestly hope there won’t be any sudden turnaround in all of this and that we will be able to make all our payments in the coming period”, Nikšić says adding that the two aircraft won’t be taken out of the airline’s fleet. Currently one ATR72 is operating for B&H with the other in Germany for the past few months. Although officially the aircraft is undergoing maintenance, it is likely that necessary leasing payments were not made.

Government sabotaging Ryanair arrival

Blame game for Ryanair’s absence from Montenegro begins

Following another failed attempt to lure Ryanair to Montenegro, tour operators are blaming the country’s government for the airline’s disinterest. Operators warn that Montenegro is already an isolated island when it comes to cheap air fares. They believe that the government doesn’t want low cost airlines to come to the country in order to protect Montenegro Airlines’ monopoly. “You make it look as if you want to sign an agreement with a low cost airline but in reality you purposely stall the entire process. How come Croatia is so dumb to allow 22 low cost airlines to operate to its airports and we are so smart not to allow a single one”, a representative from Yugotours, Vukašin Ćulafić, told Deutsche Welle recently. Tourism professor, Silvana Djurašević, claims that subsidising low cost airlines is the least the country can do, as the return from the investment will be much greater.

Earlier in March the government said it had negotiated for Ryanair to launch flights to Podgorica from three cities in June. However, the announcement was followed by an angry reaction from the low cost airline, unhappy that details of the agreement were made public. It then decided not to sign the agreement with the Montenegrin government citing expensive fees at Podgorica Airport as its motive to stay away. Currently, out of all the former Yugoslav republics, Ryanair offers seasonal flights only to Croatia. This summer Ryanair is adding 270 new routes to its networks, although will shed 130 routes from last summer.

The Minister for Sustainable Development and Tourism, Predrag Sekulić, says he will review the pricing policy of Airports of Montenegro, which runs both Podgorica and Tivat. “Low cost airlines have a policy to open routes where they are subsidised. Their arrival will boost tourism. Low cost airlines don’t bring tourists who are not willing to spend, on the contrary, these tourists want to have more money to spend during their holiday”. In its defence, Airports of Montenegro says that it is playing a constructive, not a destructive role in bringing low cost carriers to the country. Despite Ryanair’s absence the airport’s management is certain that it will record strong passenger growth this year from May to September.

Morava rising

Morava Airport in Kraljevo to opnen this summer

The newest international airport in the former Yugoslavia, Morava in the central Serbian town of Kraljevo, should open its doors by June. The project is several weeks behind schedule, which officials blame on bad weather throughout February. Most of the exterior work on the 3.000 square meter terminal building has now been completed, with construction moving inside. Necessary equipment, such as x-rays and scanners will be donated by Belgrade Airport.

The Serbian government believes that the new airport will manage to attract airlines. They trust that during this summer season charter flights from Kraljevo to Turkey will be launched. The Turkish government itself has invested ten million euros out of a total of 32 million spent on the airport. Furthermore, the government insists that Morava has a catchment area of two million people, as it is located between three towns, and has the potential to steal some Turkey bound passengers away from Priština Airport.

The new airport shares a runway with the Ladjevci military air base. Construction work began in the summer of 2011.Later on in the year the airport’s new control tower was opened and the first promotional flight was operated from Belgrade with Jat Airways’ ATR72. However, there is still scepticism whether the money has been well spent since Niš Constantine the Great Airport, in eastern Serbia, has not experienced major success since it reopened for commercial use in 2004.

EXCLUSIVEFlydubai considering Skopje launch

Skopje on Flydubai’s radar

Flydubai has begun a feasibility study into launching flights to the Macedonian capital Skopje, a source at the airline has confirmed for EX-YU aviation news. The low cost airline is pondering at the prospect of tapping into the Macedonian market, following last year’s launch to Belgrade. Currently, data and costs are being crunched, although the airline has been enticed by subsidies which are being offered for low cost airlines by the Macedonian government. The subsidies are set to run until at least 2015. Furthermore, there is a sizable number of transit passengers the airline could carry from Macedonia.

Before a decision was made to look into Skopje, Flydubai was considering launching flights to Zagreb. However, the airline decided against the move due to operational purposes. While Flydabai’s Boeing 737-800s can make it to Zagreb, the crew’s duty times would expire on the return leg. Thus, this would require a mandatory rest period for the crew in Zagreb, which would increase costs for the low cost airline.

Late last year, the Macedonian Civil Aviation Agency said that flights between Skopje and Dubai would be launched in 2012, although it never revealed the airline in question. This summer, Flydubai will operate five weekly flights to the Serbian capital, its only destination in the former Yugoslavia. It has so far had mixed success on the route. Flydubai’s potential service to Skopje would indirectly compete with Turkish Airlines, which takes the bulk of Macedonia’s transit passengers (some 14% so far in 2012). If all of the numbers add up, Flydubai will launch services to Skopje later on in the year.

CAPA: Croatia to take charge of EX-YU airline

Debate over single national carrier for EX-YU continues

The Centre for Aviation (CAPA), an aviation intelligence, analysis and data services company, is the latest to weigh in on the debate whether national carriers of the former Yugoslavia should unite to form a single airline in the name of economic rationalisation. The debate was originally set off by the Association of European Airlines which urged Adria Airways to play a key role in the unification of Croatia Airlines, Jat Airways and Montenegro Airlines (along with itself). The proposal was followed by Adria’s CEO stating that such plans should be put into motion if the privatisation process of the Slovenian national carrier fails this year.

However, CAPA believes that Croatia Airlines, as the only EX-YU carrier with a domestic network, should be instrumental in the unification of these rival airlines. “Croatia Airlines, if it is part of the merger, could have the muscle to direct the base of the merged operation to Croatia. While Croatia’s capital, Zagreb, is not the central point in the former Yugoslavia, its airport infrastructure is presumably more able to handle a larger operation than the bases of the other involved airlines, considering Croatia Airlines is currently the largest airline in the region”, CAPA believes.

However, the intelligence company notes that any unification will be “politically challenging”, noting that next year both Slovenia and Croatia will be part of the European Union while the other states in question won’t, making a merger more complicated. Furthermore, it notes that issues such as choosing hubs would present a problem. However, CAPA notes that a regional railway company was formed between EX-YU countries and that other multi national airlines, such as SAS Scandinavian Airlines and TACA Airlines, have managed to function.

Could this mixture of fleets, destinations, markets and politics ever really work out?

Airline	Fleet size	Destinations	PAX 2011
Croatia Airlines	13	27	1.880.000
Jat Airways	14	28	1.219.703
Adria Airways	13	21	1.163.016
Montenegro Airlines	8	13	590.000
B&H Airlines	2	5	NA

~ HAPPY EASTER ~

Ohrid, Macedonia

To all celebrating the holiday today

Happy Easter!

Hristos voskrese! Vaistinu voskrese!
Христос вoскрeсе! Ваистину вoскрeсе!
Христос воскресе! Навистина воскресе!

Belgrade, Serbia

Visit tomorrow for the latest news

Herceg Novi, Montenegro

Zagreb Airport in French hands

Construction of Zagreb’s new terminal to begin in 2013

The concession contract to build and manage Zagreb Airport was signed this week between Aéroports de Paris and the Croatian government, paving way for the construction of the long announced new terminal, which is set to transform Croatia’s busiest airport. The concession will see the French run Zagreb for the next thirty years and requires them to build a new terminal with the capacity to handle five million passengers within the next three years. The price tag of the project’s first phase will amount to 236 million euros, while the thirty year concession fee adds up to 1.9 billion euros.

The head of Zagreb Airport, Tonči Peović, says, “The new Croatian Government evaluated the offer as exceptional and the decision on its adoption was unanimous. Our French partners have properly assessed the current situation in the Croatian construction sector, so the offer is significantly better than what was required. Money will be saved in the long run, for when the airport reaches five million passengers, or in 20 years at the latest, the second phase must begin, which will expand capacity to eight million passengers”.

However, the first shovels and cranes will not to be seen this year at Pleso. Construction is expected to begin in early 2013. This year, project and construction plans will be finalised while construction will take a total of two years. However, the Union of Zagreb Airport Employees is less than happy with the concession. They are in fear for their jobs and note that employees did not receive a promised 10% stake in the airport ownership structure. Last week the union sued the government and is requesting for the courts to eradicate the concession agreement.

Jat leasing B737-800s

Prompt lease of two 737-800s for Jat

The TangoSix portal has reported that on Wednesday Jat Airways began procedures for the lease of two Boeing 737-800s, as the government plans a ten million euro cash injection into the carrier. According to the portal’s sources, the airline will resume services to Dubai, a profitable route suspended without explanation last year. The leased aircraft will also be deployed to other popular routes, including Paris. The French Civil Aviation Authority has come down on Jat in recent months, unhappy that the carrier is sending old aircraft to the French capital. Only two of Jat’s youngest B737-300s in operation are sent to Charles de Gaulle.

The Serbian national carrier, which will use 2.5 million euros for the lease of the aircraft, originally intended to lease one jet of the type, currently based in Romania, which was to arrive by May 1. However, ultimately the jet did not satisfy the airline’s needs. According to TangoSix, Jat has now requested a broker house, which it cooperates with, to find two available aircraft of the type for an immediate dry lease.

It is not the first time the Serbian carrier has wanted to lease aircraft in recent years. In 2009, all was set for the lease of two Boeing 737-700 jets from AeroMexico. However, in the end the then CEO, Srdjan Radovanović, inexplicably cancelled all plans. Since politics plays an integral part in the running of Jat, the airline might not have received the all clear from the government at the time. However, with elections less than a month away and the current administration’s two failed attempts to privatise the carrier (2008 and 2011) there is much to gain from good publicity.

Russians coming to Ljubljana

Soon in Ljubljana

Two Russian airlines will launch flights to Ljubljana Jože Pučnik Airport this summer season. As a result, the Slovenian capital will be connected to Moscow’s three largest airports - Domodedovo, Sheremetyevo and Vnukovo. The new arrivals will put an end to Adria Airways’ long running monopoly on the route.

The Russian charter company Kuban Airlines will inaugurate flights to Ljubljana on April 2. Flights will operate from Vnukovo Airport, which is served mostly by charter airlines and carriers from the former Soviet republics. Kuban will be followed by RusLine, which will launch services to the Slovenian capital from Moscow’s busiest airport - Domodedovo. Flights will operate twice per week from July 2 with a Bombardier CRJ200. Details can be found here. Originally, RusLine was to launch flights to Ljubljana last year, however, later decided against the move. The new arrivals will compete against Adria which is offering eight weekly flights to Sheremetyevo Airport. The Russian national carrier Aeroflot code shares on Adria’s service, despite the two being from rival airline alliances (Star and Sky Team).

Several days ago, the Finnish national carrier Finnair resumed its seasonal service from Helsinki to Ljubljana with up to four weekly flights onboard the Airbus A319. Services will operate until the end of the summer season, in late October. Ljubljana Jože Pučnik Airport recently announced that it is working on bringing low cost airlines to the Slovenian capital from the 2012/2013 winter season, although, as previously reported, talks with Ryanair have broken down.

Fresh suspensions at B&H

B&H temporarily suspends most flights

B&H Airlines has temporarily suspended services to Zurich, Copenhagen and Banja Luka, leaving the carrier with a single daily service to Istanbul. Services to Zurich, via Banja Luka, will resume on April 24, while flights to the Danish capital return to the airline’s network on May 2. The suspensions highlight continuing problems the carrier is having with its part owner Turkish Airlines, which has taken back its Airbus A319 from the B&H fleet, unhappy with the government’s attitude towards its national carrier.

B&H currently has one ATR72 in its fleet. The other is formally still undergoing maintenance. However, there is hope that the aircraft will return soon. According to the official schedule the carrier will increase services to Istanbul to double daily from April 25, operate five weekly flights to Zurich and three weekly services to Copenhagen. The current scheduling would require a second aircraft.

Airlines operating to and from Sarajevo have profited from B&H’s woes and Malev’s demise. With inflated prices, Austrian is now operating two daily flights to the Bosnian capital, with much success. Jat Airways will be doubling capacity during the peak summer months as the Serbian carrier will operate flights with its Boeing B737-300 instead of the ATR72.There is still no word from Niki which is conducting a feasibility study into launching flights to Sarajevo.

Belgrade aims for historic year

Terminal expansion on schedule at Belgrade Airport

Not only is Belgrade Nikola Tesla Airport celebrating fifty years since it opened its doors, it also expects that it will handle the most passengers on record and greatly improve facilities. “With an increased flight offering we will cement our position and continue to record growth at a faster pace than other airports in the region”, the head of Serbia’s main hub Velimir Radosavljević says. “Our goal is to handle more passengers this year than Zagreb and Ljubljana combined and finally gain the upper hand over Sofia Airport”, he notes.

So far this year Belgrade Airport has seen a 14% passenger increase on last year by handling an additional 74.000 passengers. In March the airport welcomed 216.025 passengers, an increase of 14.4% compared to the same month last year. Since January the airport has handled 604.210 visitors. 2011 marked Belgrade Airport’s third busiest year on record behind 1987 and 1988. Its best result came 25 years ago when it saw 3.311.951 passengers, a year which is still a record breaker for several airports in the former Yugoslavia.

Meanwhile, work on the expansion of the airport’s gate area is continuing. A total of 9.000 square metres is being redeveloped and another 10.000 square metres will be added. Work is currently being carried out on the first phase of the project. The first refurbished terminal one gates will be opened progressively from late May until late June. Recently the airport refurbished its business class lounge and completed the expansion of its security and passport control areas, adding new X-rays, shoe scanners and cutting queue times. The entire reconstruction and expansion project is being financed through the airports profits.

United in air

EX-YU airlines react to unification proposal

Airlines in the former Yugoslavia have begun to react after the Association of European Airlines announced that the only solution for the aviation industry in the region is the formation of a single national carrier for the EX-YU countries. The news was followed by Adria Airways’ statement that it would take a leading role in the creation of the new airline if its privatisation process, which will take place this year, fails. Jat Airways has said it has learnt about the initiative via the media while B&H Airlines stated that it still hasn’t been contacted on the matter. Croatia Airlines claims that any such idea is unrealistic and unacceptable, although notes that a united front in the marketing division is possible only if the Croatian carrier takes a leading role.

However, the idea of a more united approach in the region was first suggested by Jat Airways in 2010 when it proposed an EX-YU alliance. The alliance was to function so airlines of the former Yugoslavia had lower handling fees at each other’s airports, would code share on each other’s flights and have an integrated booking system. Montenegro Airlines and Skywings International from Macedonia (which has since gone bankrupt) both agreed to the alliance, while Adria showed interest, although said it would have to take control over the alliance if it were to join. Croatia Airlines rejected its invitation. In the end the alliance never saw the light of day.

Today, the airlines of the former Yugoslavia handle some five million passengers annually, which is just a fraction above what JAT Yugoslav Airlines handled back in 1987. The central problem for all of the national carriers is that they are losing money at an alarming rate and all rely on government subsidies - some more, some less. With the exception of Croatia Airlines, all of the EX-YU carriers have at least one code share agreement with another airline in the former Yugoslavia. On the other hand, Croatia Airlines and Adria enjoy a common business plan model agreement. The two airlines agreed to strengthen ties and cooperate on jet leasing as a means of improving efficiency and streamlining fleet utilisation. The Association of European Airlines concludes, “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”.

~ HAPPY EASTER ~

Piran, Slovenia

To all celebrating the holiday today

Happy Easter!
Sretan Uskrs ~ Vesele velikonočne praznike

Visit tomorrow for the latest news

Split, Croatia

No “new” Jat

Jat brand to live another day

Despite rumours, announcements and plans, sources close to the Serbian government have confirmed that there are currently no plans for the creation of a successor national carrier to Jat Airways, which will continue to operate as normal. Sources suggest that due to the close proximity of the upcoming elections no action will be taken in the privatisation or rebranding of Jat for the time being and that this “hot potato” will be another government’s problem. In a leaked letter to Airbus, Serbia’s Prime Minister, Mirko Cvetković, apologised for his government’s lack of ability to renegotiate a 1998 deal for eight Airbus A319 jets, ordered for the then Yugoslav national carrier. In the letter, the Prime Minister pleads with Airbus for more time. The letter from the Serbian Prime Minister seems to have calmed relations between the two sides. Airbus has decided not sue the government, which it threatened to do so only several weeks ago. It has since emerged that the task group, which was assigned to renegotiate the Airbus deal, has been dismantled under the orders of the Prime Minister. The task group, which was set up several years ago, has not met even once. Instead, the government has now given more power to Jat to head the negotiations.

The Serbian Minister for Infrastructure, Milutin Mrkonjić, has, over the past few weeks, constantly claimed that Jat’s successor will be set up by the start of May. However, experts believe that this is indicative that the Minister is unhappy that the Jat “issue” has been taken from his portfolio by the Prime Minister. Stanislav Novaković, who specialises in airline industry law says, “These stories come from a man who has absolutely no basic knowledge of the airline industry or commercial aviation”, referring to Mrkonjić. “Unfortunately, as a Minister he is not even remotely interested in Jat Airways except when it comes to giving statements to the press. Why would the state set up a new airline when it already has an existing one? If it is unable to deal with its current national carrier it means that the state is incapable of dealing with another. It would simply destroy a new carrier it set up”, Novaković concludes.

Although Jat, as the successor of Aeroput, has been around for 85 years, the actual JAT brand name was set up on April 1, 1947. Its first flight under the name took place that day from Belgrade to Ljubljana on a Douglas DC-3.

Dream run for Macedonian airports

Busy times for Skopje

Macedonia’s two international airports, Skopje and Ohrid, have so far this year reported growth of over 20%. In March, the two airports combined welcomed 57.596 passengers, an increase of 24% compared to the same month last year, despite the loss of both ČSA Czech Airlines and Malev Hungarian Airlines. During the first few months of the year, most passengers departing Skopje Alexander the Great Airport were heading to either Zurich (26%) or Istanbul (14.3%). So far this year the airports have seen an average passenger increase of 23.5%.

“Following the modernisation and concession of Macedonia’s airports, there has been continual passenger growth. Last year Macedonia’s airports handled 834.273 passengers, which represents an increase of 15% on the year before”, the Ministry of Transport and Communication said in a statement. The airports have also seen an increase in flights despite the loss of the above mentioned big players.

Skopje Airport handled the most passengers in its history in 2000 when it welcomed 1.020.000 passengers through its doors. Ohrid Airport saw its best year in 1999 with just over 80.000 passengers. This year it should surpass its record in the lake side town. During the 2012 summer season, Macedonia won’t see too many new airlines on the market. Jetairfly will begin seasonal flights from Brussels to both Skopje and Ohrid in May and Jat Airways will resume its seasonal service to Ohrid. On the other hand, Kon Tiki Sky, the controversial new start up airline, which has promised to launch numerous destinations from Macedonia’s capital, hasn’t been issued a license.

New CEO accused of harassment

Bad record for new CEO

Krešimir Kučko, the CEO in waiting at Croatia Airlines, received in January a final notice before dismissal for harassment of female colleagues. Two months later the Croatian government nominated him as their candidate to take over the reins from Srećko Šimunović at the carrier. Kučko is currently Croatia Airlines’ General Manager for the Benelux region, based in Brussels. In 2011, Kučko was involved in several incidents. On a Croatia Airlines flight from Amsterdam to Zagreb he hurled verbal insults at a cabin crew member when she protested that Kučko’s wife is not allowed to enter the aircraft with her pet dog, local media report. A few months later he again insulted an airport employee in Amsterdam after she informed him his carryon luggage was too heavy. A female staff member working with Kučko at Croatia Airlines’ representative office also reported him for harassment for which he was ordered to appear in front of the carrier’s Ethics Committee. The female employee in question is now suing the airline. All of the abovementioned incidents took place in the span of last year.

Employees have been increasingly voicing their anger at the proposed new CEO. Last week Kučko retaliated by saying that employees wouldn’t be happy even if Sir Richard Branson was named to run the company. It has now also emerged that the CEO in waiting is an ex-neighbour and good friend of Croatian Prime Minister Zoran Milanović.

Croatia Airlines has had a tough start to the year. The carrier has seen a decline in passenger numbers and received negative publicity as the feud between pilots and the management heightened in February. In March, the airline’s employees staged industrial action which led to many flight cancellations. There is hope that things will pick up and improve over the summer, during Croatia Airlines’ busiest time of the year. The airline is aiming to end the year break even and see profit in 2013.

Austrian to Banja Luka in 2013?

Austrian could make Banja Luka comeback

Austrian Airlines could begin flights from Vienna to Banja Luka, after the head of the airport, Davorin Mišić, said he put in a request for negotiations with the carrier to begin this summer. Talks are likely to be held in either May or June. During the late 1990s Austrian operated scheduled flights to Banja Luka. “It is very important that we have at least a daily flight to one big city, operated by an established airline, to either Vienna or Belgrade”, Mihić says, adding that Austrian could begin flights to the city either during the 2012/2013 winter season or the 2013 summer season. Jat Airways was offered to operate subsidised flights to Vienna via Banja Luka, however, due to its fleet being fully utilised over the summer, the Serbian carrier rejected the offer.

Nevertheless, Banja Luka Airport’s management has made a last ditch attempt to lure Jat. It has proposed for the airline to make a stop in Banja Luka on its services to Pula and Split, which are set to launch this summer. The Serbian carrier discontinued services to Banja Luka several years ago due to extremely poor loads. Similarly, Adria Airways operated flights to Banja Luka in 2010 and 2011. After the airport could no longer afford to subsidise the flights, which saw only a handful of passengers, Adria suspended its service from Ljubljana.

Meanwhile, a private Montenegrin airline has expressed interest to begin charter flights to Banja Luka from Podgorica and Tivat this summer. While the airline in question hasn’t been officially named, sources suggest it is the Podgorica based Di Air. Flights would be operated with the 19 seat L-410 Turbolet aircraft. Banja Luka Airport has been struggling to attract passengers lately. B&H Airlines’ woes with Turkish Airlines, which has led to constant flight cancellations over the past two months, have had an impact on Banja Luka Airport whose only customer is the Bosnian national carrier with flights to Zurich.

Ryanair rejects Montenegro deal

No deal

Ryanair’s Board of Directors has rejected an agreement to launch flights to Montenegro after months of negotiations with the Montenegrin government. Last week, the government publicized details of the agreement, a move which angered the no frills airline. It outlined that Ryanair would launch flights to Montenegro this June from London, Milan and Brussels and operate services on a seasonal basis. The number of destinations would be progressively increased over the next four years. It has since been confirmed that flights were to operate to the country’s capital, Podgorica.

Ryanair has said that it will not fly to Montenegro as taxes at Podgorica Airport are 2.5 times greater than those in other markets. “Having in mind that this is a new market, it represents a high risk and low profit business venture in the first few years”, the airline says. The airline is willing to renegotiate the terms of the agreement but is requesting significant reductions in landing and handling fees. In neighbouring Croatia, Ryanair is exempt from paying any taxes.

It now seems that another summer will pass without a single low cost airline operating scheduled flights to Montenegro. It is the only country in the former Yugoslavia that doesn’t enjoy low cost flights, despite its expanding tourism industry. As a result, other airports in the region continue to profit, especially Dubrovnik Airport which is served by over thirty airlines over the summer season.

Jat brand to disappear?

Future owners want new name

Yesterday marked 65 years since the introduction of the JAT/Jat brand, however fresh reports suggest that the potential new owners of the Serbian carrier, a group of local businessmen, wants the name retired. Miroslav Mišković, Miodrag Kostić and Miroslav Bogićević are tipped to invest 25 million euros into the new carrier in return for a 50% share in the airline. The new owners also want the next CEO to be an expert in the aviation industry from abroad. As EX-YU aviation understands, Miroslav Mišković, who is set to invest the most into the new carrier, recently hired the Deloitte financial consulting company to provide a review of Jat’s current business.

Despite the Serbian government claiming that Jat will have new owners by May 2012, before general elections are held in the country, reports surfaced yesterday that Jat’s privatisation and subsequent rebranding will be left to a new government. The current administration was to begin tender procedures in search of a new owner for the carrier this month but a deepening feud with Airbus cancelled such plans. Airbus, which is considering on suing the government over a 1998 order for eight A319s is said to have been further angered when it heard the government has been negotiating with Boeing over an aircraft order.

The “JAT” brand was introduced following World War Two. The recognisable “egg” livery was introduced in the 1950s. Following the breakup of Yugoslavia and the easing of international sanctions on Yugoslav air travel, the “flame/wing” livery was introduced, in 1994. Finally, in 2003, as the name Yugoslavia became history and the country was renamed to Serbia and Montenegro the airline changed its name to Jat Airways and introduced the “dot” livery created by a Slovenian design team, seleccted through an international competition.

A February to forget

Croatian airports struggle in February

Airports across Croatia saw a significant plunge in passenger numbers in February. Not a single airport in the country managed to improve on last year’s results. However, it should be taken into account that some airports were closed due to the weather conditions, which hampered most of Europe during the first half of February.

Out of Croatia’s three busiest airports (Zagreb, Split and Dubrovnik), it was Split that experienced the biggest fall in passenger numbers. During the month it welcomed 20.214 passengers, a decrease of 11.5% compared to the same month last year. The number of flights operated to and from the city plunged by over 15% on last year. Zagreb recorded over 8.000 passengers less than last February, making it its third consecutive month of declining passenger numbers. The average decrease for the smaller airports in the country stood at 44%. Brač on the other hand was the only not to see numbers slide. It didn’t manage to welcome a single passenger, as was the case in February 2011.

Below you can review the performance of Croatia’s airports in February 2012. Overall, Croatian airports handled 155.666 passengers, a decrease of 8.8% compared to February 2011. The statistics have been provided by the Croatian Bureau of Statistics.

Airport	Passengers FEB 2012	Passengers FEB 2011	Change (%)
Zagreb	117.725	125.978	▼ 7.0
Dubrovnik	15.725	17.485	▼ 10.1
Split	20.214	22.548	▼ 11.5
Zadar	1.275	1.853	▼ 45.8
Pula	658	1.172	▼ 43.9
Rijeka	42	73	▼ 42.5
Osijek	13	80	▼ 83.8
Brač	0	0	-
Mali Lošinj	18	132	▼ 86.4