Twenty years in the making

Split - Belgrade flights commence tomorrow

Excitement is building ahead of the first commercial flight between Split and Belgrade in over twenty years which will take to the skies tomorrow, June 1. Croatia Airlines will have the honour of operating the first flights between the two cities, twice per week, every Monday and Friday. Services will be carried out with the 76 seat Bombardier Dash 8 aircraft. In just over a month, on July 3, the Serbian national carrier, Jat Airways, will compete against its Croatian counterpart on the route with another two weekly flights. So far, booking numbers have been strong for both.

Belgrade Nikola Tesla Airport is preparing ahead of the arrival tomorrow. Television crew and local officials will attend the arrival ceremony. Meanwhile, the fire department is rehearsing the water cannon salute for when the jet taxis towards the gate (as can be seen in the video below). The last flight to operate between Split and Belgrade was on August 6, 1991 as JAT Yugoslav Airlines flew for a final time on what was then still a domestic service.


This Saturday, Jat will resume flights from Belgrade to Pula. On June 15, the Serbian carrier will also resume flights to Dubrovnik, its third destination in Croatia. The two countries will see the most flights between one and other since the dissolution of Yugoslavia. This summer, “aviation diplomacy” will serve as another tool towards reconciliation between the two countries.

EX-YU aviation news will have insight on the exact passenger numbers for each of the abovementioned flights and will publish them in the days to come.

Route	Airline	Launch date
Split - Belgrade	Croatia Airlines	01.06.2012
Belgrade - Pula	Jat Airways	02.06.2012
Belgrade - Dubrovnik	Jat Airways	15.06.2012
Belgrade - Split	Jat Airways	03.07.2012

Adria’s decline slows

Recovery in sight

With some delay, Adria Airways has published its passenger results for the first quarter of 2012. In the first three months of the year the Slovenian national carrier welcomed 185.347 passengers. Compared to the same period last year, when Adria handled 198.711 passengers, numbers fell by 7.1%. However, some encouraging trends are emerging. After a disastrous January the rate of decline has steadied. In March 71.120 passengers used Adria’s services compared to 72.580 the year before, a decrease of only 2%. While the results are still in negative territory one must take into account the large scale of destinations which were terminated by the airline late last year in order to cut costs. In the first three months of the year Adria generated a financial loss of eight million euros, which is “according to plan”, the airline’s CEO notes.

Adria’s closest rival in the region, Jat Airways, welcomed 220.566 passengers in the first quarter or some 19% more than its Slovenian counterpart. Adria will hope to boost its passenger figures through the numerous charter flights the airline will operate this summer. Furthermore, the carrier will soon decide whether to extend its seasonal service from Ljubljana to London and, as a result, compete with the low cost Wizz Air and easyJet in the winter.

Meanwhile, Adria Airways Tehnika, which is looking for a new owner is struggling to do so as no one has answered the international tender call. There seems to be no interest in the maintenance company which has suffered from recent airline bankruptcies across Europe. Experts are now suggesting for Adria Airways to take over Tehnika. The Slovenian carrier was its original founder, however, Tehnika was separated from the carrier and taken over by Ljubljana Jože Pučnik Airport and state owned PDP company a year ago.

British Airways to suspend Priština service

British Airways unamused with Priština Airport owner

British Airways is planning to suspend its flights from London Gatwick to Priština Airport later this year, local media report. The move comes following British’s growing dissatisfaction with the airport’s new primary owner, Limak Holding. Limak angered airlines after it significantly increased handling fees at the airport. Furthermore, British was furious after the airport owner terminated contracts with British Petroleum for the supply of aircraft fuel and selected the Kosovar Ex Fis company instead. As a result, on its flights to Priština, British Airways introduced refuelling stops in Dubrovnik.

British Airways operates three weekly flights from London Gatwick Airport to Priština and would prove as a big loss to the airport as it is the most established carrier operating flights to the city. “Yes, it is true, we will cease flights from Kosovo”, the airline said in a statement to the “Zëri” newspaper. Up until now Priština has provided subsidies for certain airlines operating flights to the city, however, the new management has now suspended them.

Limak has had to deal with criticism from all sides. Earlier this year it was involved in a spat with local authorities which accused it of violating the concession agreement in respect to the asking price for rent of commercial space at the airport. However, the Turkish company continues to the deliver on its main promise and that is the construction of a brand new terminal, to be completed next year. British Airways’ subsequent pull out will benefit Turkish Airlines the most which will be able to scoop up the remaining transit passengers. On the other hand, the city will be left without a direct air link to the British capital.

Croatia and Adria merger talks to begin

Government announces merger talks

The Croatian Minister for Sea, Transport and Infrastructure, Siniša Hajdaš Dončić has announced that talks with the Slovenian national carrier, Adria Airways, regarding a possible merger will begin soon. Speaking to the Croatian media, Hajdaš Dončić says that Croatia Airlines and Adria should create a holding company with both airlines to maintain their own brands. However, the two carriers would share routes, passengers, code share agreements and slots all in the name of cutting costs. The first such proposal by the Minister included Montenegro Airlines within the holding company, however, it now seems that there wouldn’t be a place for the Montenegrin carrier in this business venture.

According to the Minister, Croatia Airlines will be restructured this year. “The company can expect major changes”, he says. Hajdaš Dončić notes that Croatia needs a national carrier but it shouldn’t function the way it has up until now. Foreign consultancy firms are working on the company’s restructuring program. The Minister avoided answering when the carrier’s new management will be named. The government has proposed for Krešimir Kučko to be appointed as CEO, to the dissatisfaction of many employees. Furthermore, it has been confirmed that Croatia Airlines’ delivery of four new Airbus A319s, which were supposed to arrive next year, has been pushed back into late 2015 and early 2016. The request for the delivery delay was made by Croatia Airlines itself.

The possible merger between Croatia Airlines and Adria Airways would make the most sense out of all the merger plans which have been proposed in the aviation industry in the region recently. Both have similar fleets and both are part of Star Alliance. The two companies already have a fleet exchange agreement, with one of Adria’s Airbus jets operating Croatia Airlines’ weekend flights to Istanbul. Furthermore, Croatia will join Slovenia in the European Union next summer.

What next for Jat?

Jat and other EX-YU carriers face an uncertain future

With the elections in Serbia done and dusted, everyday problems will once again come into the spotlight. The future of Jat Airways, which in less than a month celebrates 85 years of operation, will once again be up for discussion. Prior to the elections, held earlier in May, it was suggested that local businessmen were gearing up to buy a 50% stake in the carrier. According to media reports, this idea is still probable and could be pushed through later on in the year when the new government is formed.

The Serbian carrier’s most pressing issue is an outdated fleet. Despite immense competition, the airline has seen passenger numbers rise this year, with aircraft full on key routes such as London, Amsterdam, Brussels, Moscow and Paris this summer season. However, the airline also suffers from an unprofessional, politically appointed management. The new Serbian government, which is expected to be formed soon, will most likely be made up of the same parties which led the country in the past four years. One of the key election promises of all the major players was for politically appointed management boards and CEOs in government owned companies to be replaced with professionals chosen upon merit rather than party lines. It remains to be seen whether this promise will be kept and whether Jat will benefit from it.

The two attempts to privatise Jat have both failed. In 2008 no airline answered the government’s tender call while in 2011 only Baltic Aviation System bought the tender documentation but decided not to pursue it further. At a time of severe economic turbulence in the aviation industry, particularly in Europe, it is highly unlikely anyone would be interested in purchasing the carrier. Jat’s most valuable possessions are its numerous expensive slots at airport across Europe such as London Heathrow as well as a loyal diaspora. For now the status quo at the airline is being maintained. The issue of Jat has been put under the carpet for years with no one willing to take any serious action. It is unlikely that such a stance will be taken for another four years.

Other national carriers from the former Yugoslavia are also experiencing problems. Adria’s future will be decided this year as the airline awaits privatisation after being bailed out by the government last year. Meanwhile, Croatia Airlines is suffering from sliding passenger numbers and rising discontent amongst employees as well as a non functioning management awaiting to be replaced. B&H Airlines is fighting for survival as its owners feud over the carrier while the government in Montenegro recently forbid its country’s airports to enforce taxes on Montenegro Airlines due to its mounting debt.

SAS denies Sarajevo plans

Maybe next time

SAS Scandinavian Airlines has denied claims it will launch services from Copenhagen to Sarajevo by July this year. In a statement to EX-YU aviation news, the airline states it is unaware of any plans being made for the carrier to inaugurate flights to the Bosnian capital this summer. Last week, Sarajevo Airport, on its official Facebook page, informed its followers, “The management of Sarajevo Airport is constantly working on attracting new airlines, both low cost and others. We are proud to announce that from July SAS will launch flights Sarajevo - Copenhagen”.

The airport has since clarified its statement. It now claims it has made an offer to the airline to launch services to Sarajevo this summer season and is awaiting their reply, which is in stark contrast to the airport’s initial announcement. SAS was once active in the EX-YU region, particularly through its now defunct subsidiary Snowflake. However, the major problem for passengers proved to be extremely high ticket prices set out by the carrier, which led to their subsequent pull out of both Sarajevo and Belgrade. SAS is currently present in Priština on an all year round basis. The airline also operates seasonal summer flights to the Croatian coast.

Meanwhile, Sarajevo Airport has managed to shrug off two months of passenger decline to see numbers in April rise by 0.4%. Last month Bosnia’s busiest airport welcomed 49.709 passengers. In the first four months of the year Sarajevo handled 145.999 passengers, which is 5.8% down on last year. With large amounts of charter and seasonal traffic on the horizon, Sarajevo is likely to overturn its downward trend in the following months.

Novi Sad Airport in the works

Future look of Novi Sad Airport

The government of Serbia’s northern province of Vojvodina has announced its intention to develop Novi Sad’s recreational airport into a commercial one, despite it being only seventy kilometres away from the capital Belgrade. According to plans set out by the local government, the airport will cater for low cost flights, business aviation as well a cargo flights. The design of the new terminal has been completed and shares similar proportions to the airport in Tivat.

The Prime Minister of Vojvodina, Bojan Pajtić, says, “The airport will be beautiful, functional and will serve as a monument to Novi Sad, Vojvodina and Serbia”. He adds that the airport will likely be financed through a public private partnership with construction expected to begin in 2014. Novi Sad Airport has a single runway and is some fifteen kilometres north of the city. In 2004, the private charter airline Di Air, from Montenegro, operated a promotional service from Tivat to Novi Sad with some twenty passengers onboard the L-410 Turbolet aircraft. According to a state study, out of all the airports in Serbia, the one in Novi Sad experiences the least fog affected days.

Whether Novi Sad needs an airport is up for serious debate. The city is close to Belgrade and is connected with a highway directly to Nikola Tesla Airport. Furthermore, Novi Sad Airport is not part of the central government’s airport development strategy which outlines the development of Užice Airport in western Serbia and Belgrade’s second airport in the suburb of Batajnica (which is even closer to Novi Sad) in the following few years. Serbia will open its newest commercial airport, in Kraljevo, next month

Turkish withdraws from B&H management

Turkish exit on the horizon?

High ranking members of B&H Airlines’ management from Turkey have been withdrawn on behalf of the carrier’s 49% stake share holder Turkish Airlines. One of the terms set out by the Turks, after it purchased shares in B&H, was for its own management to take over. As the spat between the government and its Turkish partner has worsened over the past few months, the “Dnevni Avaz” daily is tipping that Turkish will sell off its shares in the carrier soon and is looking for an exit strategy. Earlier in the year Turkish Airlines Executive Committee Chairman stated, “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”.

Some of the casualties of Turkish’s management withdrawal include CEO Altan Buyukyilmaz, as well as the Managing Director for Marketing and the Executive Finance Director. The government is expected to name a new CEO in the coming months, with rumours circulating that former Sarajevo Airport Managing Director, Bakir Karahasanović, who led the airport for seventeen years, is the front runner to take the job.

So far B&H Airlines has not commented on the changes taking place in management. Enver Bijedić, the Minister for Transport and Communication in the Federation government says that so far he has not received an official notice of Turkish Airlines’ intention to back out of the ownership deal. Since 2008, when Turkish took over the reins at B&H things steadily improved, with the airline operating up to three aircraft and opening new routes to Scandinavia and Amsterdam. However, things begun turning sour late last year with Turkish withdrawing its Airbus jet from the B&H fleet and another aircraft grounded. As a result, the airline was forced to cancel many of its flights. Today, B&H carries outs its operations with a single aircraft, maintaining services to Istanbul, Copenhagen, Zurich and Banja Luka.

No change in EX-YU airport race

Belgrade tops first quarter passenger numbers

The busiest airports in the former Yugoslavia have held their 2011 end of year positions throughout the first quarter of 2012. Belgrade Nikola Tesla Airport remains the busiest in the region with added growth while Zagreb holds on to second place with a slight decrease in passenger numbers. Besides Belgrade, strong growth in the first quarter was recorded at Skopje Alexander the Great Airport and Tivat Airport. On the other hand, the airports in Podgorica, Ljubljana and Sarajevo saw numbers slide.

Priština Airport has also recorded modest growth by handling 292.697 passengers in the first three months. Amongst the smaller airports in the region, Niš Constantine the Great has seen growth exceed 20%, while Mostar Airport is also recording record traffic. Despite performing better in both January and February of 2012, numbers at Banja Luka Airport plunged in March. As a result, the airport handled 230 passengers less than in the same period last year.

Below you can review the results of the busiest airport in the former Yugoslavia. Missing from the table are Podgorica and Tivat which have, so far, only provided figures for the first two months of the year.

Airport	Q1 PAX 2012	Q1 PAX 2011	Change (%)
Belgrade	604.210	530.317	▲ 14.0
Zagreb	402.590	424.461	▼ 5.2
Priština	292.697	280.171	▲ 4.5
Ljubljana	230.800	239.633	▼ 3.7
Skopje	160.750	127.805	▲ 26.0
Sarajevo	96.290	105.435	▼ 8.7
Split	72.705	76.213	▼ 4.6
Dubrovnik	60.428	63.898	▼ 5.4

Crunch time for Adria

Privatisation nears

The Slovenian national carrier Adria Airways is expected to be privatised this year under a cloud of heavy financial losses, sliding passenger numbers and rising fuel prices. The tender call for the privatisation of Adria will be prepared by next month, according to a statement released by the airline. Rumours have circulated that both Qatar Airways and Turkish Airlines have shown interest in Adria. However, similar speculation was made for other privatisation attempts of former Yugoslav carriers, all of which ultimately turned out to be false.

In the first quarter of the year, Adria Airways generated a loss of eight million euros. The airline’s CEO, Klemen Boštjačič, claims that the losses are at the same level as last year but adds that fuel prices have significantly increased over the past few months. Furthermore, Adria has been unable to either lease or sell two of its grounded aircraft as there is simply no interest on the market. The carrier has also reacted to Wizz Air’s new flights to Ljubljana. Adria says that while the public have blamed the airline for reducing the mobility and connectivity of Slovenians to the rest of the world, Wizz Air will launch flights on routes already operated by Adria (Brussels and London). The airline says that it is yet to make a decision whether to extend its seasonal flights to London throughout the year, but adds that Wizz Air’s arrival will be taken into account.

Meanwhile, Adria Airways Tehnika, the airline’s technical division which it sold to Ljubljana Airport as well as the state run PDP restructuring firm, have published an international call to offload their 100% holding of Tehnika. The maintenance company has been plagued by financial losses and further impacted by the loss of its second busiest customer, Spanair, which declared bankruptcy earlier in the year.

EX-YU carrier in eight years

EX-YU airlines agree on closer ties

Over the weekend the CEOs of Montenegro Airlines, Adria Airways, Jat Airways and Croatia Airlines met in Budva to discuss closer cooperation which could eventually lead to the merger of the national carriers. Montenegro Airlines CEO, Zoran Djurišić, says he expects the formation of single national carrier for the nations of the former Yugoslavia within the following five to eight years. “Before the breakup of Yugoslavia, the market counted some ten million travellers, of which seven million were carried by JAT and Adria while the rest by foreign airlines. Today we have a market of eleven million but only four million use these four national airlines”, Djurišić notes.

During the meeting the four sides agreed on closer cooperation. Also discussed was the implementation of a free skies agreement between the EX-YU countries, a fleet exchange plan and a unified approach on the international market through unified representation of all four airlines. Today, all four airlines will form task groups which will work on the abovementioned issues with the next meeting of the CEOs to take place in a month’s time.

Following the weekend meeting, Adria Airways CEO Klemen Boštjančič said, “We have agreed on how we can help each other. We will put in motion all of our decisions”. Jat Airways’ CEO, Vladimir Ognjenović, was also happy with the end result, “Through this cooperation all four airlines will benefit as well as passengers who will be able to get to their destination quicker and cheaper”. First on the agenda will be the creation of code share agreements. Ognjenović says the first results of the weekend meeting will be visible in less than a month. Members of the Serbian, Croatian and Montenegrin governments have shown support for some type of merger between the national carriers of the former Yugoslavia.

Zagreb numbers take a hit

Passenger numbers decrease at Zagreb Airport

Zagreb Airport has recorded its fifth consecutive month of sliding passenger numbers. However, the good news is that the rate of decline has slowed. In April, Croatia’s busiest airport welcomed 187.974 passengers, down 1.6% compared to last year’s 191.032. The figure can be explained by the sharp fall in the number of operated flights. There were a total of 3.292 departures and arrivals, a decrease of 10.3%. Zagreb has lost two airlines this year - Malev and Spanair, while easyJet discontinued its Dortmund flights. On the other hand, the airport has attracted new arrivals such as Qatar Airways and British Airways, with the latter expected to launch services during the winter.

In the first four months of the year, Zagreb Airport welcomed 590.564 passengers, down just over 4% compared to last year. Most airports across the country saw a record breaking 2011. Croatia’s second busiest airport, Split, has also seen its numbers decrease by over 5% this year while Dubrovnik has recorded a moderate increase of just over 2%. On the other hand, Osijek Airport, which is suffering both financial and managerial problems, has felt the full impact of Ryanair’s pull out. Numbers have so far plunged over 90% on last year. After a disastrous few years, Rijeka is back reporting strong figures.

Later on in the month April results for all of Croatia’s airports will be published. Visit tomorrow to read what went down at the meeting between the CEOs of the national carriers of the former Yugoslavia, which was held in Budva. The topic at hand was closer cooperation with discussion of a possible merger.

SAS to Sarajevo

Soon in Sarajevo

Sarajevo Airport has announced on its Facebook page that Scandinavian Airlines SAS will launch scheduled services from Copenhagen to the Bosnian capital this July. The announcement is yet to be officially confirmed by the airline. “The management of Sarajevo Airport is constantly working on attracting new airlines, both low cost and others. We are proud to announce that from July SAS will launch flights Sarajevo - Copenhagen, while Turkish Airlines will introduce a further three weekly flights to Istanbul”, the airport says.

The new route launch will be welcomed by travellers but could serve as a major blow to B&H Airlines which operates flights between the two cities. Officially B&H carries out three weekly flights between Sarajevo and the Danish capital, however, some services are often cancelled due to an ongoing fleet shortage. Furthermore, the journey with B&H is made less attractive as the flight to Copenhagen is operated by an ATR72, significantly prolonging journey time.

SAS once operated services to Sarajevo. Currently it is present in the EX-YU region with flights to Priština and seasonal services to Croatian coastal cities. With these new flights, as well as additional frequencies from Turkish and seasonal services to Paris, to be operated by Air Méditerranée, Sarajevo Airport will hope to overturn its passenger decline. In the first quarter Sarajevo Airport welcomed 96.290, down 8% on last year.

Six new routes from Skopje

Low cost airline apply for subsidised flight

The Macedonian government has announced an open call for all low cost airlines willing to launch flights from Skopje to six new destinations in Europe. The services will be subsidised over the next three years by the Macedonian government. The tender outlines that the six new routes must include at least one city in Spain, Italy, Scandinavia, the Benelux region as well as central Europe. The new routes are expected to be launched by the end of the year. “The introduction of new flights is important for both tourism and business but also to those living abroad which have to change several aircraft, increasing expenses”, Nikola Gruevski, the Macedonian Prime Minister, said yesterday.

Wizz Air is being tipped as a favourite to apply for the subsidies. The airline already operates flights from Treviso and London to the Macedonian capital. However, low cost airlines from Turkey are likely contenders as well. The move to subsidise flights from Macedonia came after the Turkish operator of Skopje Airport, TAV, was unable to find an airline willing to base an aircraft in the Macedonian capital. EX-YU aviation news can now reveal that in 2011 talks were held with both Jat Airways and Turkish Airlines to base an aircraft in Skopje. Flights to Rome, Zurich and Amsterdam were in play for both airlines. However, in the end, both declined.

Despite not having a home carrier, both Skopje and Ohrid airports have seen a boom in traffic this year. In the first four months of 2012, the two welcomed a total of 239.364 passengers, an increase of 20% compared to the same period last year. In April alone the two airports handled 68.343 passengers, up 19% on April 2011. Earlier last month it was revealed that the low cost Middle Eastern airline Fly Dubai is considering launching flights to Skopje by the end of the year

Summer strike at Croatia Airlines

Unhappy employees on strike from June 1

Croatia Airlines pilots, cabin crew, airline technicians and the “Novi sindikat” union plan to go on strike on June 1, the second time this year. Workers are unhappy that they haven’t negotiated the terms of their new collective agreements and have lost many benefits. The unions add that the strike will last until all of their demands are met. The industrial action will come at a sensitive time for the national carrier, at the start of busy summer holiday season when the airline carries the majority of its passengers.

“The situation inside the company is bad. There has been no communication between employees and the management for months. For the first time in history we have entered the summer season without a collective agreement. Many are looking for work elsewhere and pilots have begun applying for jobs in other companies”, the Union of Croatian Pilots says in a statement. In a scathing attack directed at the management and government, the union further notes that the company hasn’t negotiated charter flights for the summer and is unprepared to compete against Qatar Airways.

The four abovementioned unions held a 24 hour strike on March 8, disrupting many flights. Part of the problem lies in the fact that Croatia Airlines has an outgoing management and board while a new one is yet to be officially named. Furthermore, unions claim that they cannot get into contact with the new Mister for Maritime Affairs, Transport and Infrastructure in the Croatian government, Siniša Hajdaš-Dončić. Croatia Airlines has seen its passenger numbers slump this year although has so far managed keep its losses steady at the same amount as 2011.

Wizz Air in Ljubljana from October

Wizz Air to begin Ljubljana flights

The low cost airline Wizz Air will launch flights from London Luton Airport and Brussels South Charleroi to the Slovenian capital from the start of the 2012/2013 winter season. The service from Brussels will operate twice per week while flights from the British capital will see three weekly flights. Currently, Adria Airways operates services to Luton Airport, although the flights run on a seasonal basis until the end of summer. Another low cost airline, easyJet, operates year round flights to Stansted Airport and will compete with Wizz on flights to the British capital. On the other hand, Adria currently holds a monopoly on flights to Brussels, although Wizz Air will be flying to Charleroi Airport, some 45 kilometres from the Belgian capital.

Daniel de Carvalho, the Corporate Communications Manager at Wizz Air says, “We are excited about this new route from London-Luton to Slovenia, which in the current recession really is something to celebrate. We are focused on delivering value for money flights for business people and tourists travelling to/from London and this new route to the Slovenian capital means that these travellers can now take advantage of low fares on yet another Wizz Air route”.

Wizz Air operated flights from both Brussels and London to Ljubljana back in 2006 but failed to attract too much interest to keep the routes going. Services from Brussels Charleroi will launch on October 29 with details available here. A day later flights from London will be inaugurated with more information available here. Tickets are already on sale.

More from Monday’s press conference can be viewed at Sierra5.

Croatia proposes merger deal

Croatia, Adria and Montenegro in merger proposal

The Minister of Maritime Affairs, Transport and Infrastructure in the Croatian government, Siniša Hajdaš-Dončić, has announced the possibility of merging Croatia Airlines, Adria Airways and Montenegro Airlines into a holding company. Speaking to the media over the weekend, Hajdaš-Dončić said that the situation within Croatia Airlines is tough but that some problems will be resolved once the new CEO and Board are named. However, the minister notes that if the new management fails solve the national carrier’s problems a merger between some of the airlines of the former Yugoslavia could be the key.

The minister suggests for Croatia Airlines, Adria Airways and Montenegro Airlines to form a multinational holding company, similar to International Airlines Group, which has been created by British Airways and Spain’s Iberia. Hajdaš-Dončić emphasises that within this holding, Croatia Airlines would be the dominant carrier and would initially exclude Jat Airways from the arrangement. Both Croatia Airlines and Adria are members of Star Alliance. The announcement comes days before all the airlines of the former Yugoslavia, with the exception of B&H Airlines, sit down for talks in Budva over the weekend.

Reacting to the announcement from Croatia, Adria Airways said, “We know nothing about it. There have been no such talks”. Croatia Airlines and the Slovenian national carrier already cooperate on fleet exchanges. Croatia Airlines is currently using an Adria Airbus jet for its weekend flights to Istanbul. The idea to merge the national airlines of the former Yugoslavia came earlier in the year from the Association of European Airlines which warned that the carriers will go bust if they don’t put their difference aside and cooperate. All of the national airlines in the EX-YU region ended 2011 with multi million euro losses. As it stands now, 2012 is not looking any better.

Jat sees big April surge

All smiles as Jat records significant growth

Jat Airways has posted impressive growth for the fourth month of the year. In April, Jat welcomed 107.555 passengers, a notable increase of 21% compared to the same month last year. The average cabin load factor stood at 78%, an eight point boost. The Serbian national carrier saw a large amount of transit passengers from the United States, Canada and Australia, filling up its flights from London Heathrow, Amsterdam, Rome and Frankfurt. As a result, passenger numbers on Euro Mediterranean services surged 23%. Despite operating the same amount of charter flights as in April 2011, passenger numbers increased 41%. The positive trend was also felt on flights to and from Montenegro as the airline welcomed 6% more passengers than last year.

In the first four months of the year a total of 328.121 passengers boarded Jat’s aircraft. Compared to the same period last year, figures have improved by 7%. The cabin occupancy rate for the first four months averaged at 68%, which is eight points up on last year. The positive figures were recorded despite a 3% slump in the number of operated flights.

Month	PAX	Change (%)	Average load factor (%)
JAN	74.908	▲ 8	66
FEB	62.289	▼ 9	63
MAR	83.369	▲ 4	68
APR	107.555	▲ 21	78

Wizz Air back in Ljubljana

Soon in Ljubljana

The low cost airline Wizz Air has announced that it will be returning to Ljubljana Jože Pučnik Airport. At a press conference tomorrow, the no frills airline will provide more information regarding the new services. The conference will be attended by Wizz Air CEO, József Váradi, and the General Director of Ljubljana Jože Pučnik Airport, Zmago Skobir. The press conference begins at 13.00 CET. Wizz Air flew to Ljubljana back in 2006 from London and Brussels. However, like other low cost airlines which launched flights to Slovenia following the country’s European Union accession, it failed to attract many passengers as Adria Airways proved dominant on most routes.

Ljubljana Airport is trying to fill in the void left by the suspension of several key routes by the Slovenian national carrier late last year. The airport has been explicit in trying to win over several low cost airlines although earlier in the year admitted that talks with Ryanair have broken down. In the first quarter, passenger numbers at Ljubljana declined 3.7% compared to the same period last year.

Slovenia will become the fourth country in the former Yugoslavia to which Wizz Air will offer flights from. The low cost airline has a base in Serbia, operates flights from Treviso and London to the Macedonian capital and maintains a seasonal summer service to Split in Croatia. The airline intended to launch flights to Sarajevo, however, terms between the two sides could not be agreed upon. The airline is expected to expand in the following years with 121 jets on order.

British Airways to Zagreb

Soon in Zagreb

British Airways has announced that it will launch services from London Heathrow Airport to the Croatian capital at a press conference dedicated to the company’s financial results for the first quarter. “'Airports across the UK and beyond have contacted us about starting services and, subject to reaching satisfactory agreements with them, we plan to also launch flights from Heathrow to Leeds-Bradford, Rotterdam and Zagreb and increase frequencies to existing key destinations”, Willie Walsh, the CEO of British Airways owner, International Airlines Group, said.

British Airways has operated services to the Croatian capital in the past. Currently, in the EX-YU region, it maintains all year round flights to Dubrovnik as well as Priština. Until late 2010 British Airways operated daily flights to Belgrade but the carrier was hard hit by the arrival of Wizz Air and competition from Jat Airways.

Both Croatia Airlines and the low cost easyJet will have to compete with British Airways on the route to London. Over this summer season, Croatia Airlines is operating nine weekly flights to Heathrow and a further four flights to Gatwick Airport. easyJet on the other hand operates five weekly services to London Gatwick. A launch date for British Airways’ new flights to Zagreb have not been specified yet.

Air Méditerranée to Sarajevo

Soon in Sarajevo

Air Méditerranée will commence seasonal summer flights from Paris Charles de Gaulle Airport to Sarajevo, connecting the two cities with an air link for the first time in many years. Flights will operate once per week, every Tuesday, and will be inaugurated on July 3. The service will run until September 4. A 217 seat Airbus A321 will be used on the route. A return ticket, with taxes included, will set passengers back some 190 euros.

The new route is aimed at the Bosnian diaspora living in France. “Bosnia will be at hand, because within two hours you will get from Paris to Sarajevo”, Stefan Buljat, the head of the tour operator which has initiated the new service, says. There are also plans to attract French holiday makers to visit the country. Special weeklong tour packages will be offered. However, individual tickets are also on sale and can be purchased through travel agents.

Meanwhile, Sarajevo Airport is seeing a boom in charter and seasonal traffic from Turkey this summer. Flights are being operated by airlines such as Atlasjet and Pegasus. B&H Airlines has now indefinitely cancelled its morning service to Istanbul but will maintain its evening flight, with the aircraft returning to Sarajevo early next morning. Those services will operate on a daily basis. Over the peak summer period, Turkish Airlines will add an additional two weekly flights from Istanbul to the Bosnian capital.

Jat back to Malta

Soon in Malta

Serbia’s national carrier Jat Airways has made a final decision to resume services to Malta, over a year after they were suspended when tensions in Libya broke out. While the return to Malta was previously announced for this summer, Jat decided against the move later on. However, tickets are now on sale with services to the island nation to operate on a seasonal basis. Malta has traditionally been a popular holiday destinations for Serbs, with the airline aiming to cash in from various tour packages which will be offered over the summer. Furthermore, Malta has a sizeable Serbian diaspora.

Flights to the island will be inaugurated on June 23 and will operate every Saturday with a Boeing 737-300 which will be in an all economy class layout. Services will be operated until September 15. Half of the seats on the aircraft are pre-reserved for tour operators. This summer Jat is introducing a range of seasonal flights. In addition to last year’s seasonal services to Girona, Ohrid and Dubrovnik, which will operate this summer as well, the airline will also launch flights to Pula, Split and London Gatwick. In June Jat will also inaugurate flights from Kraljevo Airport.

Services to Malta were previously operated as a triangle service, which included Tripoli with the routing Belgrade - Malta - Tripoli - Belgrade. Details regarding the new service can be found here.

Qatar Airways inaugurates Zagreb flights

Qatar Airways launches Zagreb service

Qatar Airways has today inaugurated flights from Doha to Zagreb, marking an important event for the airport. Qatar Airways will be the only Middle Eastern airline with scheduled all year round flights to the Croatian capital. Flights will operate every day via Budapest. QR947 took off this morning bound for Zagreb. The return flight will depart Croatia's busiest airport in the afternoon. Services will operate with the single aisle Airbus A320. While Qatar won’t be competing with anyone directly, it is bound to take a share of the passengers heading to the Far East and Australia, which have up until now been shared amongst Croatia Airlines, Lufthansa and Turkish Airlines.

Qatar Airways has been granted full operating rights between Budapest and Zagreb, allowing it to sell tickets on the sector. It will make Zagreb the only capital city in the former Yugoslavia with a direct air link to Budapest. All of the major airports in the EX-YU region were left without flights to the Hungarian capital following Malev’s demise earlier in the year.

The inaugural flight from Doha to Zagreb has not been sold out. There are many seats left in economy class. While the business class section is fully booked on the Doha - Budapest sector, the majority of passengers will leave the jet in Hungary, with the twelve seat business class section mostly empty on the Budapest - Zagreb leg. The situation is similar on the return service. However, like any route, time will be needed for it to attract customers which might not be familiar with the service at the moment. Zagreb is Qatar Airways’ first destination in the former Yugoslavia. The airline will also launch services to Belgrade later in September. Flight details for the Doha - Zagreb flights can be found here.

Banja Luka Airport faces closure

Banja Luka could close while B&H numbers take a hit

Banja Luka Airport is facing a tough battle to keep its international operating license. It has less than a month to fulfil several technical requirements, including lengthening the taxiways, purchasing new security equipment and installing new security fencing, in order to keep its license. However, all of these measures require money while there are problems with land ownership when it comes to the taxiway lengthening. The Minister for Traffic and Infrastructure of the entity government, Nedeljko Čubrilović says, “Investments are needed at Banja Luka Airport as international standards have changed when it comes to security”. Čubrilović adds the government will do everything it can in order for the airport to keep its international status.

A total of 460.100 euros is allocated for the airport on an annual basis, while the government has been forced to inject additional funds in the past few years. During the summer of 2011 the airport was on the verge of losing its license due to a possible closure of its account, before the government intervened with additional finances. Banja Luka Airport is currently served by only B&H Airlines. However, there have been more cancelled then operated flights this year as the national carrier deals with its own problems. In 2011 Adria Airways operated subsidised flights from Ljubljana to Banja Luka but cancelled the service once the subsidies dried up. The airport has announced that it plans to negotiate with Austrian Airlines later this summer for the carrier to restart flights from Vienna in 2013.

Meanwhile, B&H Airlines has been hit by its cancellations in recent months. The airline welcomed 15.495 passengers in the first quarter, a decline of 44% compared to the same period last year, the Bosnian Civil Aviation Directorate reports. It should be taken into account that the number of flight operated by the airline almost halved on last year. Recently, B&H resumed its temporarily suspended routes to Zurich and Copenhagen but is still operating with only one aircraft, which has forced it to continue to cancel certain flights. On the other hand, there is not much the airline itself can be blamed for since it is being affected by the dispute between its two owners - the government of the Bosnian Federation and Turkish Airlines.

Morava Airport ready for flights

New airport to open soon

Construction of the passenger terminal at Kraljevo’s Morava Airport has been completed. Final work is being carried out on the aprons and taxiways before the first commercial flight takes off from the airport later next month. Equipment such as security scanners are to be installed within the next weeks when the building will officially be granted an operating license. With this, the first phase of the project will have been completed. The second phase, which should begin immediately afterwards, will see the lengthening of the runway by 300 metre in order to accommodate larger aircraft. Currently, the airport can handle one aircraft at a time. During the second phase the apron will also be extended so it can handle more aircraft at the same time.

The construction of Morava Airport began in 2011 with work on a new control tower and access roads. The airport is being shared with the Ladjevci military air base, which will receive a new jet hanger as the second phase of the airport project progresses. Within a month the airport will also receive new international codes. The ICAO identifier will be changed from LYKV to LYMO. The first flights from Morava Airport will take off in June, with Jat Airways to operate two weekly flights to Istanbul’s Ataturk Airport.

According to Serbia’s transport development strategy, the next airport to be converted from military into commercial use will be Batajnica Airport in Belgrade. Batajnica would be used as an alternative for low cost airlines operating to the Serbian capital. The airport recently received a new control tower, has two runways and is well connected to the city with a rail link. The first aircraft to land at Batajnica Airport is expected in late 2016 according to the current development plan.

Mostar’s time to shine

Records broken in Mostar

It has been a week of celebrations at Mostar Airport in Bosnia and Herzegovina. On April 27, Mostar broke its all time record by handling 2.500 passengers in a single day. The Directorate of Civil Aviation of Bosnia and Herzegovina tells EX-YU aviation news that this is the largest amount of passengers the airport has welcomed within 24 hours since it opened its doors in 1965. The month of April itself saw 9.169 passengers, a post war record. Compared to the same month last year, Mostar saw a 318.1% passenger increase.

The results are even more remarkable when it is taken into account that Mostar does not have any scheduled flights. All passengers arriving and departing Mostar do so on charter flights, the vast majority being pilgrims visiting the Medjugorje sight. Most passengers this summer are arriving on numerous flights from Italy. The positive trend is continuing in May as well.

Mostar Airport was opened for domestic flights in 1965 with links to Belgrade and Zagreb. International flights from the airport were launched In 1984, in time for the Winter Olympic Games in Sarajevo. Last year, Mostar was Bosnia’s second busiest airport behind Sarajevo, handling a total of 36.807 passengers.

Belgrade’s growth continues in April

No slowing down for Belgrade

Belgrade Nikola Tesla Airport has recorded its 25th month of consecutive growth, as the airport looks to end the year with a record numbers of passengers. Serbia’s busiest hub welcomed 267.354 passengers, 27.072 more than the same month last year or an increase of 11.3%. The airport recorded a total of 3.627 flights departing and arriving, up 4.3%. During the first four months of the year Nikola Tesla Airport saw 871.564 passengers pass through its doors, which is 100.911 passengers more than the same period last year.

Growth in April was fuelled by Jat Airways which had an exceptional month passenger wise. In a statement the airport says, “In the following months we expect to see significant growth in traffic. We predict that this year almost 3.5 million passengers will be registered at Belgrade Airport. With the airport celebrating its 50th anniversary it will mark a historic record”. Belgrade Airport’s busiest year was 1987, considered the golden year of Yugoslav aviation. During that year, the airport welcomed 3.311.951 passengers.

At some stage during this month Belgrade will surpass the one million passenger mark. Commenting on recent news that the world’s largest aviation handling company, Swissport, will soon begin operations at Nikola Tesla, the airport says that it looks forward to more competition and that the arrival of the handling giant will fuel even more interest from foreign airlines. It adds that it has already revised its handling prices in order to compete. Airlines will have the choice between three handling companies at the airport. Besides Swissport, at hand will be Belgrade Airport handling as well as SU-PORT, which is a Jat subsidiary.

Passenger slump at Croatia Airlines

Passenger numbers down while losses steady

Croatia Airlines carried 295.014 passengers in the first quarter of 2012, a 2% decrease compared to the same period last year. The airline welcomed 212.727 passengers on international flights while 80.607 passengers boarded the carrier’s domestic services. Another 1.680 passengers were carried on charter flights. The airline blames the global financial crisis and strong competition for the passenger slump. However, over the past three months, Croatia Airlines saw its staff stage a 24 hour strike, cancelling numerous flights, and endured negative publicity at the beginning of the year as the spat between pilots and the management became public.

In the first quarter of the year, Croatia Airlines’ overall loss amounted to 12.3 million euros, which is roughly the same as last year. The airline warns that the price of fuel has increased in 2012. During the same period last year the airline had to fork out $962 for a tonne of fuel while this year it spent $1.069 for the same amount.

Croatia Airlines is currently undergoing a restructuring process aimed at decreasing losses and increasing efficiency. The government has said that after the restructuring is completed it will consider privatising the national carrier. Restructuring began on March 26 and will last for up to a year. It will entail financial and operative restructuring as well as the creation of a strategic development plan, which will be drafted by the consultancy firms KPMG, BDO and Intel following detailed analysis of the carrier’s business.

CEO confident in Adria sale

Adria hopes for new partner to solve financial problems

The CEO of Adria Airways, Klemen Boštjančič, is confident that the airline will be successfully privatised this year. “We are trying to find a strategic partner. There are many that are trying to do this but I truly believe we will find one”, Boštjančič says. Recently, Adria selected its privatisation advisor. Barons Financial Services, an advisory investment banking firm headquartered in Geneva with a subsidiary in London, will manage Adria’s privatisation effort. Currently there have been no airlines which have openly shown interest in purchasing a share in the struggling carrier. At one point Qatar Airways was rumoured as a potential investor, however, the Middle Eastern airline denied such claims.

Analysts worry that if a cure for Adria’s woes is not found soon, the airline will be insolvent come September. A former member of Adria’s Board of Directors, Vinko Može, is critical of the management who recently ousted him from his post. Može claims that Adria is focusing too much on taking out loans rather than stimulating ticket sales. He is also critical of the decision to ground some aircraft in order to cut costs. In the first two months of the year, the Slovenian carrier handled 114.227 passengers, which is down 9.8% compared to the same period last year.

Adria’s CEO has said that if the airline’s search for a strategic partner fails, it will be inclined to work on forming a unified national carrier for the countries of the former Yugoslavia. The governments of both Montenegro and Serbia have so far openly backed the proposal, however, Serbia’s Minister for Infrastructure has said that such a joint venture is unlikely due to the self interests of general managers at the airlines. Croatia Airlines has ruled out any unification although notes that some form of regional cooperation could work. The CEOs of Adria Airways, Croatia Airlines, Jat Airways and Montenegro Airlines will meet for talks on May 19 in Budva.

Wizz Air to skip Sarajevo

Taxes pose obstacle for Wizz Air’s Sarajevo endeavour

The general director of Sarajevo Airport, Ivan Veličan, has confirmed that talks between the airport and the low cost airline Wizz Air have collapsed. “We were in negotiations with Wizz Air, however, all of the low cost companies place great demands upon the airport”, the general director says. He adds that Wizz will avoid the Bosnian capital for the time being due to taxes. However, Veličan explains that if the airport was to reduce taxes for Wizz Air it would have to do so for all other airlines, which wouldn’t be viable. He notes that the airport’s only source of income is the passenger services tax which amounts to 18 euros. Sarajevo is not entirely without no frills airlines. Both Germanwings and Norwegian Air Shuttle operate flights to Bosnia’s busiest airport, although both are now classified as semi low cost carriers.

Several weeks ago it was announced that a low cost airline was looking into launching flights to Sarajevo from London, Rome, Dusseldorf as well as Sweden, with Wizz Air tipped as being the interested party. The low cost Vienna based Niki also recently announced it was looking into launching flights to Sarajevo after crunching its numbers. Since then there has been no news on the possible new service.

Despite the absence of low cost airlines, Sarajevo has been enjoying a bounty of charter flights this summer season along with Mostar Airport. The vast majority carry Christian pilgrims visiting the Medjugorje sight. The Lebanese national carrier Middle East Airlines operates a one weekly charter service from Beirut with its Airbus A321. Furthermore, Sarajevo Airport has also seen a boom in charter flights from Turkey this season. Veličan says that today Sarajevo is served from more destinations than ever before. However, he notes that Sarajevo must also develop into a tourist destination in order to see sustainable growth. “All air traffic here is based on visits from our diaspora as well as employees from international organizations whose number used to be much larger”, the general director concludes.

Zagreb gears up for Qatar launch

The countdown begins

Qatar Airways will launch daily services from Doha to the Croatian capital on May 9, with flights to operate via Budapest using the Airbus A320. Zagreb Airport is marking Qatar Airways’ arrival as an important occasion as it will become the first non European airline to operate scheduled flights to the city on a yearly basis after many years. “We are becoming an important destination on the global stage”, the airport says, commenting on Qatar’s imminent arrival. Malaysia Airlines was the last big non European carrier to operate scheduled flights to the city with two weekly services from Kuala Lumpur via Vienna.

The Doha based carrier says it has good reason to introduce the new flights. “We enter new markets only if they fit our business model. A corporate team has been working hard, exploring the local Croatian market because Qatar Airways supports connecting underserved markets with the rest of the world. That’s why we are introducing flights to Zagreb”. On the other hand a Qatari analyst says, “Everything Qatar does it does so with a reason. Introducing flights to Croatia is part of a wider interest in the region”. The airline also plans to launch flights to Belgrade via Ankara in September. Over the past few months it has been rumoured that the airline might be interested in purchasing Adria Airways.

Zagreb Airport is not immune to more exotic airlines which are not present elsewhere in the region. They include Japan Airlines and Korean Air, however these only operate flights as charters during the summer. Zagreb will be Qatar Airways’ 114th destination. Flight details for the upcoming service can be viewed here.