Saving Montenegro Airlines

Government to provide cash to debt ridden Montenegro Airlines

The Montenegrin government is set to pump 36 million euros into the national carrier in order for it to carry out its restructuring plan. The government has also ordered the country’s two international airports, Podgorica and Tivat, to write off Montenegro Airlines’ debt to the tune of 9.7 million euros. In return, the state owned Airports of Montenegro will be given a certain amount of shares in the national carrier. Furthermore, the government will provide funds for one out of the four Embraer E195 jets in the carrier’s fleet, at price tag of 13 million euros. The Montenegrin carrier already receives 400.000 euros from the state budget on a monthly basis. The debt Montenegro Airlines owes to the Serbia and Montenegro Air Services Agency will be covered through compensation. The Montenegrin government will offer the Agency ownership over the three star Park Hotel in the town of Bijela on the coast.

Montenegro Airlines, which keeps most of its business operations a closely guarded secret, was forced to suspend flights to Priština and Skopje due to unpaid fees last year. The Montenegrin government has already written off over three million euros worth of the carrier’s debt and issued state guarantees for a 9.6 million euro loan in 2011. Recently, the carrier has been lobbying for an open sky policy across the former Yugoslavia, which would allow it to launch flights from Belgrade to other countries.

Meanwhile, the head of Podgorica Airport, Milovan Djuričković, was ordered to reduce his monthly salary, which was ten times over the national average. It has now been reduced, under the government’s order, to three average monthly pays. Djuričković, member of the ruling Social Democratic Party, is famed for employing many family and party members at the airport.

Ljubljana Airport struggling

Adria and the economy affect Ljubljana’s performance

Passenger numbers at Ljubljana Jože Pučnik Airport have taken a battering over the past few months, with the airport expecting disappointing end of year results. Passenger numbers are tipped to plummet by 4% compared to 2011, marking the hub's fourth consecutive year of decline. For its poor results, the airport blames Adria Airways’ reduced network as well as the economic crisis which has gripped the country. Revenue is also expected to drop by 5%. In 2011 Ljubljana Airport slipped into fourth place, behind Priština, as the busiest airport in the former Yugoslavia. Ljubljana Airport hopes that Wizz Air’s arrival later on in the year will turn some of its fortunes around. The airport has also stressed the importance for talks to be revived between Adria Airways and Air India in order for potential flights from Mumbai to New York via the Slovenian capital to be launched.

Ljubljana’s disappointing results could have an impact on the airport’s major expansion project, which entails the construction of a brand new terminal. The price tag of the project, due for completion by 2017, amounts to 115 million euros. Some 70 million euros are planned to be invested into the new terminal building. Analysts believe the project should be reconsidered as it would be viable only if passenger numbers picked up and if there were to be a sharp turn in the country’s economy.

Meanwhile, Adria Airways, which holds a 70% share of all flights at Ljubljana Airport, is set to take out another loan to boost its struggling finances. The Slovenian carrier is reportedly planning to take out a nine million euro loan in September. It comes after a 50 million euro bailout was granted to the carrier last year. It is expected that the carrier’s privatisation process will begin next month. Today, Adria is to hold its general assembly at which shareholders will review restructuring efforts and plans for privatisation.

British in Zagreb from December

In Zagreb from December 9

British Airways has set an official date for its inaugural flight from London Heathrow to Zagreb. Services will launch on December 9. Daily flights will operate with the carrier’s Airbus A319, which will face off against Croatia Airlines on the route. The carrier is hoping to attract transit passengers heading to the United States and Canada with tickets already on sale. British becomes only the second airline from the Oneworld alliance to operate flights to the Croatian capital, following its partner Iberia.

Emil Delibashev, British Airways’ Commercial Manager for the region, said yesterday, “We are overjoyed to be launching direct flights between London Heathrow and Zagreb in the upcoming winter season and complement our existing service from Gatwick to Dubrovnik. British Airways has been present on the Croatian market since 2003 and we are happy to be expanding our presence ahead of Croatia’s entry into the European Union”. Delibashev emphasised the importance of transit passengers for the airline.

This winter a total of three airlines are planned to operate flights to London, with Croatia Airlines flying to both Gatwick and Heathrow while easyJet also offers services to Gatwick. Meanwhile, on a flight from London yesterday, Zagreb Airport welcomed its millionth passenger this year. The airport handled its millionth passenger on the same date as last year. Flight details for the new London Heathrow - Zagreb service can be found here.

Croatia Airlines advised to downsize fleet

Advisors suggest smaller fleet

Three consultancy firms, Dutch based KPMG, international conglomerate BDO and Intel, who have been selected to advise Croatia Airlines during its restructuring and recovery programme have proposed for the carrier to downsize on its fleet in order to save costs. The recovery plan, leaked by the Croatian media, suggests the airline should retire two Airbus A320s. Croatia Airlines currently has three aircraft of the type in its fleet with the capacity to seat 164 passengers. The aircraft have already been earmarked for retirement as they are due to be replaced by new Airbus A319s. However, the arrival of the A319s has now been delayed by several years until 2015.

In contrast to the advised, Croatia Airlines has been forced to lease aircraft this summer due to its fleet already being stretched over the busy months. The airline is using one of Adria Airways’ Airbus jets for weekend flights while a Trade Air Fokker F100 has also been operating some flights on behalf of Croatia Airlines this summer. The aircraft is currently being used on flights from Zagreb to Rome, Split and Copenhagen. It is also utilised on services from Split to Dusseldorf and the Italian capital.

The news comes after it was suggested the carrier will need to shed its international network to make a profit. Many have insinuated that Lufthansa, which already carries a large portion of transit passengers from Croatia Airlines, would benefit most from the carrier’s downsizing. In January, the Union of Croatia Airlines Pilots slammed its employer, suggesting that the Croatian carrier is being mismanaged and controlled by Lufthansa. “All of our services are adjusted to Lufthansa as can be seen with flights to Munich, Frankfurt, Vienna and Zurich. Croatia Airlines serves as a classic feeder airline which, through the abovementioned cities, fills Lufthansa’s flights. Croatia Airlines has only seven code share agreements with Star Alliance member airlines, four of which are owned by Lufthansa and the remaining two are heading in that direction”, the union said at the time.

Last chance for Banja Luka Airport

Farewell Banja Luka International Airport?

Banja Luka Airport has been given a final lifeline before it loses its international operating license. The airport was ordered to fulfil several technical requirements by June 20 including the lengthening of taxiways, purchase of new security equipment and the installation of a new security fence in order to keep its license. However, none of these requirements have been met. The airport has now been given another two months by international monitors to do so. If it fails to adhere to international standards it will lose its license, effectively forcing the airport to close.

Banja Luka Airport has said it does not have the money to finance the needed upgrades. The airport faced similar problems last year, while its employees have also staged several protests over unpaid wages. A total of 460.100 euros is allocated for the airport on an annual basis, while the entity government has been forced to inject additional funds in the past few years.

Banja Luka Airport is currently served only by B&H Airlines. 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. Jat Airways was invited to launch flights from Belgrade and onwards to Vienna this summer season but the Serbian national carrier’s fleet is stretched to the limit with its existing network. Meanwhile, talks with Di Air to launch summer charters from Tivat have broken down with the airline showing little interest for the route.

Tough times ahead for Croatia Airlines

Croatia Airlines to suspend several routes

Croatia Airlines is planning a major shakeup of its international network with flights to Podgorica, Priština and London Gatwick to be suspended as part of its restructuring and financial recovery programme. The airline has shortlisted flights to London Heathrow, Paris, Istanbul and Copenhagen for suspension unless the routes do not start making money in the foreseeable future, Croatian media reveal. The suspensions have been proposed by the three financial consulting companies the airline hired to assist with its recovery programme. The Croatian carrier is expected to boost ticket prices to London, Paris, Istanbul and Copenhagen in a last ditch attempt to make the services profitable. In spite of this, financial advisors have proposed for Croatia Airlines to sell some of its lucrative slots at both London and Paris.

Some domestic services are also struggling including flights from Zagreb to Split and Dubrovnik. However, Croatia Airlines receives state subsidies for its domestic network, a practice which will be banned once the country enters the European Union in the summer of 2013. Other regional routes are also recording losses, though flights to Skopje and Sarajevo will be kept as they currently carry large amounts of transit passengers. Croatia Airlines’ most profitable flights are to Lufthansa’s major hubs - Munich and Frankfurt.

It has been estimated that Croatia Airlines will need somewhere between 80 and 130 million euros in order to come back up on its feet. The Croatian government is planning to provide at least part of the cash injection in coherence with European Union laws and regulations. Local aviation analysts believe that the major network reduction planed for the Croatian national carrier starting this winter could serve as major blow to the airline and its reputation.

Kuwait – Sarajevo flights launched

New Middle East link for Sarajevo

Regular charter flights between Kuwait City and Sarajevo were launched during the week, making the Bosnian capital the only in the former Yugoslavia to have a direct air link to the Gulf city state. Flights will operate once per week although some months see additional services. The route will run until the end of summer. Flights are being operated by US registered Gryphon Airlines with a leased Boeing 767-200 jet from Jet Asia Airways. Tickets are available for purchase through the airline’s website.

Sarajevo Airport was once no stranger to flights to the Middle East. In the late 1980s JAT Yugoslav Airlines operated direct services from Sarajevo to Baghdad, Amman and Damascus. Belgrade was the last capital in the former Yugoslavia to have a direct air link to Kuwait, as Jat Airways operated the flights in 2004 and 2005, as a technical stop to Dubai with full commercial rights on the Kuwait - Dubai - Kuwait sector. Today, Kuwait City is not the only air link Sarajevo has to the Middle East. The Lebanese national carrier, Middle East Airlines, continues to maintain a one weekly charter service to the Bosnian capital from Beirut with its Airbus A321. The flights mostly cater for Christian pilgrims visiting the Medjugorje sight.

The new arrival should help boost passenger numbers at Sarajevo Airport. While numbers this year have contracted mostly due to B&H Airlines scaling down its operations, the decline has been softened by the numerous charter services operating to the city this summer, which include flights to Tunis, Antalya and Izmir.

Final touches for Morava Airport

Construction work complted

Construction at Serbia’s newest international airport in Kraljevo is coming to an end. Security equipment is currently being installed inside the terminal building and final touches are being made as Morava Airport prepares to open its doors. However, it could be several months before the new airport handles its first flights as bureaucratic procedures will now have to take place. Ljiljana Mijatović, from the Serbian Ministry of Defence, says that the building will receive an operational license within twenty days. “Following the license grant we have to obtain all necessary documentation from the Serbian Civil Aviation Directorate, the police and customs”, she adds. The airport is set to receive a new IATA code as well.

Once the airport is completed Jat Airways will launch two weekly flights to Istanbul with an ATR72. Work will also immediately begin on the second phase of the airport project which will see the extension of the runway by 300 metres, allowing larger aircraft to take off and land. The Morava Airport terminal building features a duty free shop, exchange office, commercial office space, a detention centre, clinic and a cargo depot. A new control tower has also been built.

Officials hope that the new airport will stimulate business and investment in the area. Since the airport lies between several industrial cities, there is hope that the likes of the Italian run Fiat-Zastava car manufacturer will make use of the airport. The company currently ferries its workers on specially chartered Adria Airways flights from Belgrade to Torino. Construction work on Morava Airport began last year.

Wizz Air plans further Skopje expansion

New Wizz Air flights to Skopje in 2013

Wizz Air plans to introduce flights from Skopje to Brussels, Rome and Barcelona next summer season, depending on interest shown by passengers. The low cost airline will open a base in the Macedonian capital from October 28 and launch flights to Eindhoven, Bergamo, Memmingen, Basel Mulhouse, Dortmund and Malmo, in return for 3.5 million euros in subsidies. However, some media outlets have criticised the government, arguing that the subsidies are too high for only six new destinations. In its defence, the government claims that Wizz Air’s entry onto the Macedonian market will stimulate the economy by bringing 400.000 new passengers and employing some 300 locals.

Tickets for Wizz Air’s new flights from Skopje, which launch in autumn, are already up for sale, with prices starting at nine euros. "For us it is important to provide links for our citizens to European hubs at cheap prices. I expect that the offered locations will be quite attractive to the public”, Mile Janakieski, the Macedonian Minister for Transport and Communication said. The head of Skopje Airport says that the subsidies are a win win situation for all sides - Wizz Air, Skopje Airport and the government.

The low cost Eastern European airline inaugurates its new flights from Skopje on October 28 with services to Dortmund and Eindhoven. On October 29 flights will be launched to Malmo, Bergamo and Memmingen while flights to Basel Mulhouse launch on October 30. Click on the links for more flight details. The already existing services from London and Treviso continue as normal. The destinations differ slightly to those Wizz Air operates from its Belgrade base, from which the airline flies to Stockholm, Gothenburg, Memmingen, Dortmund, London, Rome, Eindhoven, Malmo and Charleroi.

Zagreb and Ljubljana lose Prague link

CCA suspends all flights

Both Zagreb and Ljubljana Jože Pučnik Airport no longer have direct air links to Prague after Central Connect Airlines (CCA) suspended all operations on Tuesday. The Czech national carrier, ČSA, relegated its Zagreb and Ljubljana services to CCA earlier in the year due to poor loads, as well as its own financial headaches. It followed ČSA’s pullout from Belgrade in 2011 and Skopje at the start of the 2012 summer season. As a result, there are no more direct flights between Prague and any EX-YU capital city.

In a statement the airline said, “Given that the statistics did not confirm the long term ticket sales, profitability was not achieved. Therefore, the management has decided to temporarily suspend operations on all existing scheduled CCA flights in order to optimise the restructuring plan“. Central Connect Airlines operated flights to Zagreb and Ljubljana with the 36 seat Saab 340B aircraft.

However, there is still hope that the services from Prague will resume in the coming future. ČSA is set to take over some of CCA’s destinations, though Zagreb and Ljubljana are momentarily unavailable for booking. CCA has said that passengers booked on flights that will not be relaunched by ČSA will be compensated. Zagreb was ČSA’s first international destination, launched back in 1930. The airport has already lost two customers due to bankruptcy this year - Malév and Spanair. However, Qatar Airways has replaced Malév’s flights from Budapest while Vuleing will be operating services to Barcelona this summer.

Air Méditerranée cancels Sarajevo flights

Skipping Sarajevo

The French airline Air Méditerranée, which was to commence seasonal summer flights from Paris to Sarajevo next month, has cancelled all planned services. Flights were supposed to operate once per week, every Tuesday, and were to be inaugurated on July 3. The service was to run until September 4. A 217 seat Airbus A321 was scheduled for the route with return ticket prices, taxes included, set at 190 euros.

Stefan Buljat, the head of the tour operator which initiated the new service, says there is still hope that the route will be launched this summer in August. However, tour operator Point Africa, which was also involved in the project, explains that there was little interest from passengers for the flights. On the other hand, it is also claimed that Point Africa’s financial problems are the real reason behind the cancellation.

The former national carrier of Bosnia and Herzegovina, Air Bosna, used to operate flights from Sarajevo to Paris prior to its bankruptcy. At one point Air France also served the Bosnian capital. In May, Sarajevo Airport welcomed 55.107 passengers, down 3% on the same month last year. So far, in the first five months of the year, Bosnia’s busiest airport handled 201.106 passengers, a decrease of 5% compared to last year.

Jat starts off strong to Croatia

Jat back in Pula and Dubrovnik

Over the weekend Jat Airways launched seasonal flights to Dubrovnik and Pula, with solid passenger numbers recorded on all flights. The airline’s service to Dubrovnik on Friday saw 63 passengers, out of a total 66 seats onboard the ATR72. The return leg to Belgrade also fared well with 32 passengers onboard. Jat resumed flights to Dubrovnik last year after almost two decades. In 2011 it had to compete with Croatia Airlines but this summer it will be the sole carrier on the route.

Meanwhile, on Saturday, Jat resumed flights to Pula which last operated in 2010. A total of 55 passengers boarded the ATR to the seaside town while 16 people flew on the return leg. The Serbian national carrier has signed a three year contract with Pula Airport to operate flights to the city until at least 2015. “I am certain that after a two year break this route will be successful. Last time around the average cabin load factor amounted to 90%. Our aim is for these flights to become an all year round service, even if it means having a one weekly flight because there is interest for them”, Bruno Rogović, the General Director of Pula Airport said.

On the other hand, Jat has been forced to cancel many of its planned peak summer season frequency increases due to a fleet shortage. Unlike last year, this summer season Jat is operating numerous lucrative charter flights, stretching the fleet to the limit. Some of Jat’s aircraft have been late in coming out of maintenance forcing the airline to rebook passengers on other flights. Over the weekend Jat’s most popular services were it’s sold out flights to Girona, Moscow, Antalya, Amsterdam, London Heathrow and Bodrum in Turkey.

Skopje to become Wizz Air’s 17th base

Wizz Air in Skopje expansion

Skopje Airport will become Wizz Air’s 17th base as the airline plans to station an aircraft in the Macedonian capital by the end of the year. From October 28 the airline will launch flights from Skopje to Milan, Eindhoven, Dortmund and Munich (Memmingen). All of the services will operate twice per week. Two weekly flights to Malmo in Sweden will launch on October 29 while on October 30 the low cost airline will inaugurate three weekly services to Basel. All of the services will be subsidised by the Macedonian government over the next three years. The low cost airline will continue operating its existing flights from London and Treviso to Skopje.

Wizz Air has also been offered the opportunity to launch flights from Skopje to Brussels. In case of any further expansion at Skopje, the no frills airline will launch the route. Towards the end of the year Wizz Air will base an aircraft in the Macedonian capital. On Thursday, the airline will hold a press conference and announce the new route launches, providing more details on scheduling.

Wizz Air’s expansion in Macedonia comes as a result of the government’s subsidised flights scheme. The only other airlines to have shown interest in the tender procedure besides Wizz Air were Croatia Airlines and easyJet, however they did not put in an offer. Skopje will be Wizz Air’s second base in the former Yugoslavia following Belgrade. Furthermore, in October the airline will launch flights to Ljubljana and still maintains a seasonal service to Split. Earlier in the year talks with Sarajevo Airport broke down after the airport’s management stated that “great demands” were placed by the airline.

Jat turns 85

85 years in the air

Jat Airways is today marking its 85th birthday as the airline is the successor to Aeroput and JAT Yugoslav Airlines. The Serbian national carrier is today the eighth oldest airline in the world still in operation behind only KLM, Qantas, Aeroflot, Czech Airlines, Finnair, Delta and Tajik Air. However, it’s been a tough ride and the carrier still faces tremendous challenges. Following World War Two Jat struggled to get aircraft in the air and was banished by both the East and West. However, its major rise would begin in the 1960s as foundations were laid for Jat’s “golden years” which took place during the 1970s and 1980s. In 1987, Jat carried the most passengers in its history - 4.531.000 (2.255.000 on domestic flights). The number has never been surpassed.

Since 1927, Jat has had 26 CEOs with the first one being Tadija Sondermajer. However, it will be Vidomir Krunić, who led the company from 1963 to 1975 that will be remembered for building Jat into a brand and revolutionising the airline at the time. The first scheduled service by Aeroput was operated on February 15, 1928 between Belgrade and Zagreb. 84 years later there are no flights between the two cities. The first international service was launched in 1929 from Belgrade to Graz and Vienna via Zagreb.

Today, Jat will be marking its anniversary by rolling out its new frequent flyer programme - Extra Flight Club. Gifts will also be issued to passengers onboard. Jat has survived World War Two, the 1970s oil shock, the loss of more than 40% of its market, international sanction and the 1999 bombing of Yugoslavia. Today, it is still has to battle with political interference, corruption and managerial incompetence. What lays ahead remains to be seen as Jat Airways enters its 85th year.

Croatia Airlines shows interest in B&H

Croatia Airlines in the running for shares in B&H

According to sources close to the company, Croatia Airlines has expressed interest in taking over Turkish Airlines’ 49% stake in B&H Airlines. In 2008, the Croatian national carrier was also keen on becoming a minority stake holder in B&H but in the end decided not to participate in the tender procedure. Croatia Airlines is looking to spread its influence in the region with possible talk of a future tie up with Adria Airways. Furthermore, the Croatian carrier also requested documentation from the Macedonian government to take part in the subsidised flights scheme tender, which was recently on offer, but in the end did not lodge a request to open a Skopje base.

During the working week, the Bosnian government officially took back the 49% stake in B&H it sold to Turkish Airlines. The Turkish carrier gave its shares back for free, despite paying 19 million euros for them back in 2008. Goran Jovanović, the President of B&H Airlines’ Supervisory Board, said yesterday, “Turkish tried to create a company within the Balkans and invested a lot in the project. But the situation in the industry in the region is very difficult. All the regional companies are reporting losses. B&H Airlines is already negotiating with two companies interested in future partnership, one of which is an airline from the region”.

The other airline rumoured to have expressed interest for a stake in B&H Airlines is Buraq Air from Libya. On Wednesday, Turkish Airlines bid farewell to the Bosnian carrier with Hamdi Topcu, Turkish Airlines’ Executive Board Director, stating, “Since we wanted B&H Airlines to be a strong company we provided all the support and expertise we possibly could. If this company had been able to succeed it would have been a success for all of us, but especially for Bosnia. However, the Bosnian government was unable to fulfil its obligations”.

Adria to revive Air India talks

New chance for Air India’s Slovenian venture

Adria Airways is to revive talks with Air India in order for the Indian national carrier to launch its once planned flights from Mumbai to New York via Ljubljana. Last year Air India and Adria Airways signed a memorandum of understanding which was to see Air India code share on Adria’s regional flights, while in return the Indian national carrier would operate some of its services to the United States via the Slovenian capital. Plans were set for flights to be launched either during the 2012 summer season or the 2012/2013 winter season. However, Air India requested lower fuel prices at Ljubljana Jože Pučnik Airport and an exemption from paying fees in order to launch services to the Slovenian capital, all of which were denied.

The Slovenian government, together with the petrol provider, Ljubljana Airport, Adria and Air India are now prepared to get back to the negotiating table to discuss possible cooperation. Talks are already said to have taken place at the Indian Embassy in Ljubljana. Several months ago, the head of Ljubljana Airport, Zmago Skobir, commented on the issue, “I stress that this project could be beneficial for both the airport and Adria but it must be approached on an intergovernmental level”.

Air India itself is experiencing major operational problems. Many of its pilots have gone on strike over anger relating to who gets to fly the Boeing 787 Dreamliner. Furthermore, the carrier’s finances are also in negative territory. In April the Indian government provided a major bailout package to the carrier and has approved subsidies of up to 7.3 billion euros.

Qatar gets all clear for Belgrade flights

Qatar Airways granted license for Belgrade flights

Qatar Airways has been granted a license to launch flights from Doha to Belgrade after the two countries signed a bilateral air traffic pact. In an e-mail sent yesterday, the Serbian Civil Aviation Directorate informed that the pact is similar to Europe’s Open Skies Agreement, allowing carriers from Qatar to operate as many flights as they wish to Serbia. Similarly, this also applies to Serbian based airlines wishing to launch flights to Qatar. “This is a very modern act that will lead to traffic liberalisation between Serbia and Qatar”, the Serbian Directorate says.

Qatar Airways is to inaugurate four weekly flights from Doha to Belgrade this September. The service is set to operate via the Turkish capital Ankara. The airline is now intent on receiving rights to carry passengers between Ankara and Belgrade and vice versa. However, Turkey is unlikely to grant such rights. Despite the trend towards liberalisation, there remain considerable government restrictions on airline operations to and from Turkey, according to a recent IATA report. Both Croatia and Serbia have had problems with Turkey prior to this year’s summer season when it came to agreeing on frequencies and granting licenses to charter airlines.

Last month, the Qatari national carrier launched daily flights from Doha to Zagreb via Budapest. The airline has been granted rights to sell tickets on flights between Hungary and Croatia. So far, Qatar Airways has had respectable loads on the route.

Peaceful parting

Government to approve Turkish exit

The Federation government of Bosnia and Herzegovina is set to approve Turkish Airlines’ exit from its 49% stake in the Bosnian national carrier, B&H Airlines, this week and take over all of the airline’s shares. The government is looking to make the “divorce” between B&H and Turkish Airlines as painless as possible so as not to have an impact on passengers or the carrier’s employees, which have been caught in the middle of the spat that has lasted for half a year between the two sides. Up for discussion will be code share agreements between the two carriers as well as other arrangements the two companies had over the past four years such as staff sharing at foreign airports.

The main objective of the newly appointed management at B&H Airlines will be to boost passenger numbers and revenues while at the same time decrease costs. For the time being, the airline will have to do so with a single aircraft. In the first quarter passenger numbers decreased 43%. The government will also have to decide whether it will try to find a new partner for the carrier. However, such a move is unlikely to come immediately, despite informal talks with potential investors. The Bosnian government has ruled out any possibility for it to become a minority stake holder in the company, meaning it will hold on to its 51% share in any future arrangement.

In late 2008, Turkish Airlines took over a 49% share in B&H. By May 2010 it provided the airline its first jet engine aircraft, a Boeing 737-400, allowing it to launch flights to Vienna, Prague, Berlin, Copenhagen, Stockholm, Gothenburg and Dusseldorf. However, this hasty expansion led to the termination of flights to Prague and Berlin due to poor interest. Similarly, newly introduced flights to Podgorica were also cancelled. In 2010 the B737-400 was replaced with an Airbus A319. The airline continued to expand with new flights to Amsterdam, Belgrade and Zagreb, with the latter two cancelled shortly after. In 2011, the airline cancelled its flights to Vienna, Dusseldorf, Stockholm and Gothenburg. The relationship between Turkish Airlines and the Bosnian government deteriorated after the New Year with the A319 taken back by Turkish Airlines leading to the suspension of its popular Amsterdam flights and the grounding of an ATR72. Now, a new chapter begins for B&H Airlines.

New flights from Skopje announced

Wizzair tipped for Skopje expansion

Skopje Alexander the Great Airport will soon see flights to six new destinations. The new routes come as a result of the international tender call to low cost airlines which offers government subsidies to those willing to operate flights to the Macedonian capital. The Macedonian Prime Minister, Nikola Gruevski, said yesterday that the tender is in its final phase and details are soon to be released. However, he did confirm that the new destinations will be Munich, Dortmund, Basel, Eindhoven, Malmo and Milan.

It is being tipped that Wizz Air, which already operates flights from Treviso and London to the Macedonian capital will operate the bulk of the newly announced flights, while easyJet will take the Basel - Skopje route. However, precise details will be announced on June 21. All of the new services are set to begin at the start of the 2012/2013 winter season in late October. The flights will be subsidised over the next three years. Recently, Flydubai also announced its service launch to Skopje from Dubai on October 18.

Macedonian airports are recording the strongest growth in the region this year. The positive trend continued in May as well. Skopje and Ohrid handled a combined total 75.479 passengers, an increase of 14% compared to the same month last year. The exceptional result is despite a sharp decline in the number of operated flights of up to 15%. In the first five months of the year, the two airports welcomed 314.854 passengers through its doors, up 20% on 2011.

Jat’s busiest May in 12 years

Record May for Jat Airways

Jat Airways has recorded its best May results since 2000. The Serbian carrier welcomed 122.273 passengers on board, an increase of 16% compared to the same month last year. Furthermore, its average cabin load factor stood at 78%, an increase compared to 2011’s 70%. The airline’s most popular destinations were London Heathrow, Paris, Frankfurt and Zurich. Jat’s new evening service to Moscow and its red eye return flight have also proved to be a hit with passengers. The airline has also seen sensational results on flights to Skopje and Sarajevo, with the bulk of passengers on the flights transiting from Australia and the United States.

In the first five months of this year Jat Airways has welcomed 450.394 passengers, up by 9% on last year. So far, its average cabin load factor has stood at 71%. In the coming weeks Jat will introduce flights to Pula, Dubrovnik, Split, Malta, Girona and London Gatwick which will all go towards boosting passenger numbers.

Meanwhile, Egypt Air and the Egyptian government have announced their interest in entering a strategic partnership with the Serbian national carrier. “Serbia must not sell Jat, rather it should find a strategic partner. We have many examples in Africa where airlines were sold but this wasn’t a good move. A national airline forms is a part of the country’s identity and therefore it must stay government owned”, Huessin Massoud, the Egyptian Minister for Civil Aviation said. At the same time Egypt Air has announced that its subsidiary, Air Cairo, will commence regular scheduled flights from the Egyptian capital to Belgrade this coming winter season. The airline already operates summer charters from Hurghada and Sharm el-Sheikh.

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
MAY	122.273	▲ 16	78

Lufthansa all year round to Dubrovnik

Lufthansa staying through the winter in Dubrovnik

The German national carrier, Lufthansa, will schedule Dubrovnik as a yearlong destination. The carrier will operate a one weekly flight from Munich to the seaside town with a Bombardier CRJ900 and the possibility for the flights to be boosted to twice per week. Lufthansa already operates seasonal flights to Dubrovnik from Berlin, Hamburg, Dusseldorf and Frankfurt, in addition to Munich. The German national carrier will be only the third airline to operate flights to Dubrovnik outside of the summer holiday season. Croatia Airlines and British Airways maintain year long flights.

The news comes after talks between the airport’s management and Lufthansa lasted for almost a year. Dubrovnik will be the only airport in Croatia (with the exception of Zagreb) that will have up to three airlines operating during the winter months, which begins on the last Sunday in October.

The new, yearlong route will help boost passenger numbers. Like most airports in Croatia, Dubrovnik experiences high seasonality, with 80% of annual traffic coming in during the summer months. Despite a slow start to the year, Dubrovnik Airport has seen its passenger numbers increase since March. In the first five months of 2012, Dubrovnik welcomed 299.590 passengers through its doors, an increase of 4.7% compared to the same period last year.

Belgrade Airport surpasses million mark

Belgrade maintains growth momentum

Belgrade Nikola Tesla Airport handled 284.522 passengers in May, just over 21.500 more than the same month last year. As a result, the airport recorded an 8.2% passenger increase, despite a fall in the number of operated flights. There were a total of 3.744 departures and arrivals, down 2.6% on May last year. Two airlines operating flights from Belgrade stood out in May. They were Jat Airways and Wizz Air, both of which had a sensational month. Montenegro Airlines is also regaining momentum on its flights to and from Serbia’s capital.

During May, Belgrade managed to break the one million passenger mark. In the first five months of the year the airport welcomed 1.156.086 passengers, up 11.8% compared to the same period last year. May 2012 marks the airport’s 26th month of consecutive growth with the last decline recorded back in 2010 during the Icelandic ash cloud drama.

The airport expects that its passenger numbers will be propped up over the summer by numerous charter flights. According to the General Director, Velimir Radosavljević, the airport will see a 20% increase in charter flights in the coming months. Aviogenex, has begun operating services out of Belgrade with two Boeing 737-900ER jets leased from Turkey’s Sky Airlines for the summer season. Other airlines operating charters to the Serbian capital include Air Cairo, Tunisair, Pegasus Airlines, Nesma Airlines and Jat Airways. The majority of the charters will be heading to Turkey, followed by Egypt, Greece and Tunisia, although, there will also be charters to Spain and Italy as well.

Turkish Airlines pulls out of B&H

Turkish Airlines and B&H Airlines part ways

The Federation government of Bosnia and Herzegovina has confirmed that Turkish Airlines is leaving the Bosnian national carrier in which it had a 49% ownership stake, thus ending four years of partnership. “We shouldn’t hide the fact that Turkish Airlines is leaving B&H”, Enver Bijedić, the Minister for Transport and Communication said yesterday. The Minister added that talks have already begun with future potential investors. Rumours are circulating that Buraq Air, a Tripoli based airline which operated flights to Sarajevo prior to the uprising in Libya last year, is interested in taking over Turkish’s stake.

Ominous signs that something was wrong between the two owners of B&H Airlines (the government and Turkish Airlines) surfaced late last year. They continued into 2012 with B&H cancelling many of its flights, Turkish grounding the Airbus A319 it had been leasing to the Bosnian carrier and finally the withdrawal of the Turkish management from B&H several days ago.

In January, the Association of European Airlines warned that B&H Airlines would go bust if Turkish Airlines was to withdraw. However, the government assures that it will keep the national carrier in the air. The airline has two ATR72s, one of which has been grounded in Germany since January with many of its parts now missing. The other is in operation on B&H’s flights to Istanbul, Zurich and Copenhagen. The two aircraft are being leased but should be in the airline’s ownership by 2016.

Flydubai to launch Skopje in October

In Skopje from October 18

As was exclusively reported by EX-YU aviation news back in April, Flydubai will be launching flights to the Macedonian capital this year. The low cost airline has scheduled its inaugural service for October 18. A total of two weekly flights will operate between Dubai and Skopje using the Boeing 737-800. It will be the airline’s second destination in the EX-YU region, complementing its existing five weekly flights to Belgrade. At the same press conference Flydubai announced it was also launching services to the Romanian capital Bucharest.

Flydubai's CEO, Ghaith Al Ghaith, said, "Our two latest routes illustrate Flydubai's commitment to expanding connectivity from the Middle East to new destinations that have historically been underserved. This offers more choice to our customers, increasing international travel options and avenues for trade. Furthermore, our base in Dubai provides the sizeable Romanian and Macedonian expatriate populations around the globe with affordable links to their home nations".

The new service will most likely have an impact on Turkish Airlines which has so far enjoyed a bounty of transit passengers who choose to fly via Istanbul to various points in the world. Flydubai will also hope to catch the attention of the Macedonian diaspora in Australia who will be able to transit via Dubai to Skopje. The airline has so far been unsuccessful in attaining a major share of Serbian diaspora passengers from Australia on its services to Belgrade. Flight details for the Dubai - Skopje flights can be found here. Tickets are already up for sale.

New CEO for B&H Airlines

New CEO for better times?

Bosnia’s Federation government has named B&H Airlines’ new CEO following the withdrawal of key people appointed by part owner Turkish Airlines. Amir Jažić will lead the company over the next six months, after which the CEO post will be up for discussion once again. Jažić has already served as the acting CEO of B&H Airlines back in 2010 prior to the appointment of the Turkish management. He has also been the airline’s Executive Director for Financial Affairs.

The new acting CEO has a tough task ahead. The airline has seen its passenger numbers plunge almost 44% in the first quarter. The carrier is currently operating flights to three cities with an ATR72, since the other is grounded in Germany. B&H’s underperformance this year has played into the hands of its competition. Airlines operating out of Sarajevo Airport are increasing capacity and have been able to boost ticket prices. The Bosnian management will now also take charge of finances and marketing, which have been handed over by the Turks.

Former B&H CEO Altan Buyukyilmaz as well as the Managing Director for Marketing and Sales Ali Rıza Mortas and the Executive Director for Financial Affairs Mehmet Fatih Guclu handed in their resignations last month. A further three airline board members appointed by Turkish Airlines have also been stood down. It should be noted that all of those mentioned held very high positions within Turkish Airlines before transferring to B&H. The move is seen as a possible exit strategy for Turkish Airlines whose relationship with the Bosnian government has turned sour in the past few months. Turkish Airlines CEO, Temil Kotil, said late last week that no decision has been made on whether Turkish will withdraw from its 49% stake in B&H Airlines.

Do you think the change in management will make a difference at B&H and which direction will the airline take if Turkish Airlines were to withdraw from its ownership stake? Send a comment.

Solid start for Croatia Airlines

Water cannon salute as Croatia Airlines touches down in Belgrade

On June 1, Croatia Airlines launched services from Split to Belgrade, connecting the two cities for the first time in almost twenty one years. Many are anticipating seeing as to how the route will perform. For its inaugural flight, the Croatian carrier recorded solid figures, despite a nonexistent marketing campaign with the exception of several news articles. A total of 33 people boarded Croatia’s Dash 8 Q400 jet in Split, a cabin load factor of 43%. On the return service from Belgrade a total of 58 passengers were welcomed on board equalling to a respectable load factor of 76%. Yesterday, for the airline’s second flight on this route, Croatia Airlines saw 46 passengers both from and to Split.

Croatia Airlines’ Commercial Director, Tonko Rilović, said on Friday, “This year the flights are seasonal, operating twice per week. However, from next summer the service will be strengthened with the possibility of the flights operating all year round”. Rilović added that the Croatian carrier is considering launching flights from Zagreb to the Serbian capital but conceded the service would, for now, be unprofitable. “We will talk to Jat about it”, Rilović concluded.

Jat Airways will be launching its flights to Croatia on June 15 with services to Dubrovnik, followed by flights to Pula on June 16 and services to Split on July 3. Flights to Pula were originally planned to launch last Saturday, however, the airline pushed back the launch date some time ago due to operational circumstances. On the day Croatia Airlines launched its flights to Belgrade, the busiest flight operating from the Serbian capital was that of Nesma Airlines, with 177 passengers headed to Hurghada. The busiest incoming service was operated by Wizz Air from Memmingen with 170 passengers. Jat’s best for the day was its packed service to Skopje with 122 passengers on board.

Belgrade completes terminal upgrades

Belgrade’s time to shine

Belgrade Nikola Tesla Airport has begun opening its newly expanded and refurbished terminal one gates as the airport completes the first phase of its multi million euro expansion. Gates A1 to A6 have received the new updated look for the first time in decades. Every two gates will now share the same departure lounge while the new glass façade offers complete sound isolation from outside tarmac traffic, the project manager says. All of the gates will be opened for passengers by mid June.

Following the summer rush, work is expected to begin on the upgrade and expansion of the terminal two “C” gates. Furthermore, an additional new floor stretching over 4.900 square metres will be built above the current terminal two building with construction to begin next year so as to separate arriving and departing passengers. Additionally, the Serbia and Montenegro Air Traffic Services Agency has announced that it will finance the construction of a new control tower at Belgrade Nikola Tesla Airport. Construction will begin next year and is set to be completed by 2014.

Velimir Radosavljević, the General Manager of Belgrade Airport, said the new upgrades represent only the beginning of the modernisation and expansion of Serbia’s busiest airport. Last Friday he said, “Today we welcomed Croatia Airlines, soon Air One and Qatar Airways will be coming. We have several other airlines lined up but we will announce their names once we are sure of their arrival”.

Together with the terminal one upgrades, Belgrade has also recently refurbished its business class lounge and expanded its terminal two security and passport control areas. Belgrade Airport has the capacity to handle eight million passengers annually and expects to welcome record passenger numbers this year. “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. Our goal is to handle more passengers this year than Zagreb and Ljubljana combined and finally gain the upper hand over Sofia Airport”, Radosavljević said. The price tag of the entire project amounts to 52.9 million euros. It will be financed entirely through the airport’s own funds.

Special thanks to Aviokarta.net for the photos featured in this article.

SkyWork to Zagreb

Soon in Zagreb

SkyWork Airlines will commence scheduled flights from Bern to Zagreb this winter season. Within the region, SkyWork already operates services to Belgrade and maintains seasonal flights to Rijeka and Split. The new route from Bern to the Croatian capital will operate every Monday and Saturday with the 31 seat Dornier 328 aircraft, starting October 29. SkyWork was set up in 1983 but only recently began operating commercial flights. This year has seen the airline expand its operations to several new destinations across Europe.

SkyWork’s arrival will be welcomed news at Zagreb Airport which has managed to attract several new airlines this year including Qatar Airways, Vueling and British Airways, which is expected to launch flights to the Croatian capital during the winter season. On the other hand, the airport has lost Malev and Spanair due to bankruptcy. The new airlines should help overturn Zagreb’s disappointing 2012 passenger results after a record 2011.

Flight details for the Bern - Zagreb service can be found here.

Turkish: Undecided on B&H pull out

No end in sight for B&H drama

Turkish Airlines CEO, Temel Kotil, said yesterday that the carrier is still undecided whether it will pull out from its 49% stake in B&H Airlines. However, B&H’s chances have been somewhat boosted after Turkish Airlines announced it was leaving takeover talks of LOT Polish Airlines. In a statement the airline said that a possible deal would have made a limited contribution to its medium to long term plans. B&H has been struggling to maintain passengers in the last few months as Turkish accused the carrier’s majority owner, the government, of not adhering to the 2008 share purchase agreement.

Employees at B&H Airlines have been aggravated by the growing spat and the uncertain future of their company. The final hit from Turkish came when it decided to suspend B&H’s lucrative morning flights to Istanbul and replace it with its own services. Due to a fleet shortage the carrier has also been forced to move around flights and passengers.

Last week Turkish Airlines withdrew the management it appointed to the Bosnian carrier. “We love to grow. But we can stop the growth if it makes sense for passengers”, Kotil said. The Centre for Aviation, an aviation analysis group, says B&H could soon follow in the footsteps of Cirrus Airlines, Czech Connect Airlines, Malev, Spanair, Cimber Sterling, City Airline, Skyways and Spain’s Mint Airways which have all declared bankruptcy this year. It should be noted that in 2008 Turkish Airlines was not the only one to answer the tender call for a 49% stake in B&H. Also bidding were Royal Jordanian Airlines and Malaysia’s Comintel Corporation. However, the government gave the Jordanian consortium a mark of 32.20 (out of a possible 100) for the bid while Comintel was ruled out due to the fact that it did not deliver all necessary documentation. The Turkish carrier received a mark of 82.50.

Adria on sale this summer

Adria tender expected in July

Adria Airways is likely to be put up for privatisation early next month. On June 29, the government will discuss about the current state of the Slovenian national carrier and will review the work of the airline’s privatisation advisor. A tender call is expected to be announced soon after. Over the past few years Turkish Airlines, Qatar Airways and even Lufthansa have been rumoured as potential investors, however all seem to have interests elsewhere. Turkish Airlines is already experiencing problems in the region with its 49% stake in B&H Airlines and is eyeing LOT Polish Airlines, which will be put up for sale later on in the year. Qatar Airways ruled out any interest in Adria late last year and has had bad experience in Europe when it tried to negotiate an unsuccessful takeover of the now defunct Spanair. Lufthansa on the other hand is trying either sell off or restructure its recent acquisitions in Europe.

The amount of shares the Slovenian government is prepared to sell is still unknown. Such questions are expected to be answered on June 29. Adria could be attractive to potential investors due to its strong regional network and absolute home market domination. On the other hand, its weaknesses are its accumulated debt and a potentially complicated relationship with the government and workers unions.

The CEO of Adria Airways, Klemen Boštjačič, has said that if the privatisation process fails, the airline will look at merging with the carrier’s of the former Yugoslavia. Yesterday, the Croatian and Slovenian ministers in charge of transport met to discuss possible future cooperation between Croatia Airlines and Adria Airways. The meeting comes days after the Croatian Minister for Sea, Transport and Infrastructure, Siniša Hajdaš Dončić, announced a possible merger between the two carriers.

Do you think Adria Airways will be privatised this year and who do you think are the possible potential investors? Send a comment.