Niš anticipating new flights

Flights from Verona, Bratislava and Zurich planned

Niš Constantine the Great Airport is anticipating the arrival of new airlines after a low cost carrier from Italy shows interest to launch flights to the city from Verona. Furthermore, talks between local authorities and the Slovakian ambassador to Serbia will be held later next month where potential flights between Niš and Bratislava will be discussed. Bratislava is of interest due to its close proximity to Vienna, which boasts a sizable diaspora from Eastern Serbia, and more affordable prices compared to its Austrian counterpart.

However, Constantine the Great Airport, which has only attracted 12.418 passengers in the first half of the year, is experiencing financial trouble. It owes Montenegro Airlines 470.000 euros in subsidies for maintaining its daily flights from Podgorica. Local authorities say the subsidies will be payed in full within the following few weeks. The Montenegrin carrier has an average load factor of 50% on its services between the two cities. Once again the airline will apply for a license to operate flights from Niš to Zurich during the 2012/13 winter season. Although it received the all clear for the flights from Serbian authorities last year, Swiss authorities declined to issue a license to the Montenegrin carrier.

In order to assist Niš with its financial woes, Belgrade Nikola Tesla Airport recently approved a 260.000 euro donation to the airport. Since reopening its doors in 2004, Niš has been served, besides Montenegro Airlines, by Jat Airways, Thomson Airways and WindJet, while several Turkish charter airlines also operated flights to the city during summer months over the years.

The changing face of Belgrade Airport

Belgrade Airport expansion progresses

Intense construction work is ongoing at Belgrade Nikola Tesla Airport as part of its multi million euro upgrade. During the week all of the overhauled and expanded gate areas at terminal one are set to open to the public while work has already begun on the expansion of the terminal two gates, with gate C1-2 now being reconstructed. Earlier this year, security and passport areas were expanded and a new business class lounge was opened.

Furthermore, the airport recently announced the opening of a casino in the transit area. Tender procedures are in their final stages for the selection of the casino’s operator. The casino will cover an area of 150 square metres. As a result, Belgrade will become one of the rare airports in the world to feature such facilities.

As July comes to a close, Nikola Tesla Airport is recording respectable passenger figures. Just over a week ago a total of 15.640 passengers passed through its doors in a single day, an all time 24 hour record. The management anticipates the airport will handle some 3.5 million passengers by the end of the year, the most since opening its doors. “With such results our growth has been significantly higher than other airports in the region”, a statement from the airport reads. In the first half of the year, Belgrade’s passenger numbers rose 11% on 2011.

Croatia Airlines gets new CEO

Krešimir Kučko takes over

Croatia Airlines has named Krešimir Kučko as the new CEO of the national carrier, taking over the reins from Srećko Šimunović. Up until now Kučko has served as the airline’s representative for the Benelux region, based in Brussels. He has previously been the airline’s representative in Switzerland and the Netherlands. Šimunović will have the option to either leave the carrier, with a hefty bonus, or stay without additional pay. Kučko’s appointment this Friday hasn’t gone down well with employees since the new CEO has been accused of harassment.

This January, Krešimir Kučko was handed a final notice prior to dismissal for harassment of female colleagues. In 2011, Kučko was involved in several incidents. On a Croatia Airlines flight from Amsterdam to Zagreb he hurled verbal insults at a cabin crew member when she protested that Kučko’s wife was not allowed to enter the aircraft with her pet dog, local media report. A few months later he again insulted an airport employee in Amsterdam after she informed him his carry-on luggage was too heavy. A female staff member working with Kučko at Croatia Airlines’ representative office also reported him for harassment for which he was ordered to appear in front of the carrier’s Ethics Committee. The female employee in question is now suing the airline. All of incidents took place in the span of last year.

The newly named CEO has retaliated to the abovementioned accusations saying recently that employees wouldn’t be happy even if Sir Richard Branson was named to run the company. It has now also emerged that the new CEO is a former neighbour and good friend of Croatian Prime Minister Zoran Milanović.

Banja Luka Airport saved

Extra funds just in time

The entity government of Republika Srpska in Bosnia and Herzegovina has approved a 1.7 million euro cash injection for Banja Luka Airport in order for it to maintain its international operating license. The money will be used to finance shortcomings at the airport, which include the lengthening of taxiways, purchase of new security equipment and the installation of a new security fence. The airport has only a month to carry out the necessary work before an international monitoring body decides whether the airport is fit to continue serving commercial flights.

It is not the first time the airport has been given additional funds on top of the allocated annual budget of nearly half a million euros. Banja Luka Airport welcomed 2.580 passengers in the first half of the year, down 27.5% on 2011. The airport is served by four weekly B&H Airlines flights from Sarajevo, which continue on to Zurich.

Once the drama with its international operating license is resolved, Banja Luka Airport can focus on trying to attract foreign airlines. It has offered Serbia’s Jat Airways subsidised flights from Belgrade, which, upon government approval, would continue on to Vienna. On the other hand, the airport unsuccessfully tried to lure the small charter airline Di Air to operate flights from Tivat this summer. Furthermore, the airport has stated it will look into attracting Austrian to launch flights to the city next summer season. The Austrian carrier once operated scheduled services to Banja Luka. Its inability to attract foreign carriers raises questions whether smaller airports in the region such as Osijek and Niš can operate without large subsidies offered to customers.

Adria gaining ground

Passengers gradually returning to Adria

Adria Airways has slowly begun to claw back passengers despite a significant reduction in flights. The Slovenian carrier welcomed 453.117 passengers in the first half of the year, down 4.2% compared to 2011 when it welcomed 472.864 travellers. The airline’s figures were boosted significantly by charter flights over the the past few weeks. Adria is currently behind Croatia Airlines and Jat Airways in the EX-YU region when it comes to passenger numbers but is well ahead of Montenegro Airlines and B&H Airlines. In the first half of the year Croatia Airlines welcome just under one million passengers while Jat Airways stood at 585.363 passengers.

Speaking to the Slovenian “Finance” portal, Adria Airways CEO, Klemen Boštjančič, believes that Adria’s cost cutting measures and financial restructuring will prove successful and will allow the airline to break even by the end of 2013. Still, there are further measures to be introduced. “We are finalising the reduction of all of our non profit businesses and all types of additional costs”, Boštjančič explains. This year the aviation industry has been hit by rising fuel prices and a volatile euro. Adria last posted a profit in 2008.

Earlier this month, Boštjančič announced plans to reduce the carrier’s fleet, which he reiterated in a recent interview. According to his statements, the airline is looking to get rid of its Airbus jets, making the CRJ900 the centrepiece of the carrier’s fleet. There are plans to privatise the Slovenian carrier this year, however, the planned tender procedures have not taken place yet.

Zagreb looks to 2013

Hopes, fears and expectations

Zagreb Airport is set to be transformed next year as the construction of its long awaited new terminal begins. The airport’s new operator, Aéroports de Paris, anticipates that the new state of the art facilities will turn Croatia’s busiest hub into a regional powerhouse and a transit point within the Balkans. Furthermore, Croatia’s entry into the European Union next summer is also set to provide a significant boost in passenger numbers, as has been the case with recent new EU members such as Bulgaria and Romania.

However, unlike other airports in Croatia, Zagreb hasn’t had an impressive run so far in 2012. The airport welcomed 1.038.479 passengers in the first half of the year, down 2.3% on last year. Another challenge the airport could face in the coming months is the “Ljubljana scenario”. If its main customer, Croatia Airlines, carries through with proposed network and frequency cuts, the airport could be affected similarly to the way Ljubljana Airport has been hit by Adria’s cost cutting measures.

On the other hand, recently there has been good news for the airport. Due to strong numbers on Qatar Airways’ Doha - Budapest service, which continues on to Zagreb, the Qatari carrier plans to increase capacity from next month. The airline will replace the Airbus A320 utilised on the route with the 177 seat Airbus A321 from August 2. Qatar operates daily flights from Doha to Zagreb via Budapest.

How do you think the new terminal and Croatia’s entry into the EU will affect Zagreb Airport? What is behind this year’s slump? Send a comment with your thoughts.

EX-YU awaiting US flights

EX-YU without links to the US

Almost all of the countries of the former Yugoslavia have a desire to be served by direct flights to the United States. Last year Belgrade and Zagreb came close when Swift Air announced it would launch services from Chicago to the two capitals. In the end, the inaugural flight, with 221 passengers onboard, was cancelled minutes before it was meant to depart due to problems with the Federal Aviation Administration (FAA). This year there has been no talk of flights between the United States and EX-YU, however, there have been some developments.

Earlier this month Croatia Airlines and US Airways signed a bilateral code share agreement, allowing the Croatian carrier to code share on US Airways’ services from Europe to Philadelphia and Charlotte. The Croatian national carrier also added its code on US Airways flights from Philadelphia to Cleveland, Detroit and St. Louis, making it the only airline in the former Yugoslavia with its own codes on US bound flights. Zagreb Airport says that some 105.000 passengers travel on a yearly basis between the United States and the Croatian capital with 64% of passengers originating from the States. Furthermore, Dubrovnik Airport notes that approximately over 3.000 passengers travel from New York to Dubrovnik each year. So far, no American based airline has expressed interest to inaugurate flights to Croatia.

Meanwhile, Jat Airways is locked in negotiations with a foreign airline to launch flights from Belgrade to New York in cooperation with the Serbian carrier. The flights would operate in a similar fashion to those in 2004 when Uzbekistan Airways flew between Tashkent and New York via Belgrade. However, if an agreement is made, flights won’t be launched until the 2013 summer season. Next month the FAA will assess whether Serbia has met necessary safety standards which would allow both American and Serbian airlines to operate between the two countries, granting Serbia a category one ranking. Recently, Belgrade Airport launched a feasibility study, exploring the potential of transatlantic flights from the Serbian capital.

Last August Macedonia and the US signed an Open Skies Agreement. It allows unrestricted access by airlines from each side to fly to, from and beyond the other’s territory, without restriction on how often carriers fly, the kind of aircraft they use and the prices they charge. The agreement came into effect immediately upon signing. Montenegro followed suit in December 2011 by ratifying the same agreement. Adria Airways has discussed a potential partnership on transatlantic flights with Air India which would see the Indian carrier operate some of its services from Mumbai to New York via Ljubljana. However, talks have stalled with Air India dealing with its own financial woes.

JAT in New York, March 1981

Priština Airport was the last to be served by direct flights from the United States, several years ago from New York as a seasonal charter. In the late 1980s the former Yugoslavia had direct links to New York, Chicago, Cleveland, Detroit and Los Angeles. Flights to the US were operated by JAT Yugoslav Airlines and Pan Am.

Jat unveils new cabin interior

Jat Airways’ new look economy cabin

Jat Airways has begun rolling out its new business and economy class cabin product. The airline will be introducing new seating, with two Boeing 737-300 aircraft (registration YU-ANJ and YU-AND) already featuring the new layout. It marks the first overhaul of Jat’s business class product since the black leather seats were introduced in the summer of 1999. In economy, Jat changed its seats in 2010 but has opted for a new look once again.

The new seats bear a striking resemblance to Lufthansa’s economy class prior to the introduction of the new short haul cabins. The slimmer seats have allowed the Serbian carrier to add an additional row in economy class. In business the seating will be the same as in economy, however, the middle seat will be used as a tray table and will not be sold, giving passengers more space. The new seats also allow Jat to use an all economy class layout for its aircraft, which will come in handy for its numerous charters. The new product will also be featured on the ATR72 aircraft with the first one to enter service next week.

Jat Airways' old cabin interior

Since late June, the Serbian national carrier has been forced to cancel many scheduled flights as it has taken on too many charters while its aircraft have been held up in maintenance due to the slow arrival of spare parts. However, all flights are set to operate normally by the start of next week. “We have a few problems with our suppliers, even though all has been paid for in advance. The overhauled aircraft, which are now entering the fleet, will ease constraints and allow us to add more flights on our overbooked services, particularly to Montenegro”, Zoran Čimburović, Jat’s fleet coordinator at Jat Tehnika says.

Special thanks to the Aviokarta.net portal for the featured photos of the new cabin.

Wizz Air to suspend Belgrade - Rome

Wizz Air’s Belgrade - Rome goes seasonal

The low cost airline Wizz Air will discontinue services from its Belgrade base to Rome in late September. The flights will operate on a seasonal summer basis instead. Despite strong passenger figures, the airline explains that they are only recorded during the peak summer season. The two weekly flights will be discontinued from September 24. The airline will continue to operate flights to Charleroi, London, Gothenburg, Malmo, Memmingen, Stockholm, Dortmund and Eindhoven as normal.

Wizz Air has been recording strong passenger figures to and from Belgrade. All of its flights have seen an average cabin load factor of over 80%. The news of Wizz’s Rome cancellation will be warmly welcomed by Jat Airways and Alitalia. However, the two airlines carry a different set of passengers to that of Wizz Air. Both Jat and Alitalia rely heavily on lucrative transit passengers from the United States and Canada on the route. On the other hand, Wizz almost solely handles point to point passengers. The Serbian capital will continue to see both Jat and Alitalia on the route this winter. Next month the low cost Air One will join Jat on flights to Milan.

Late last year Wizz Air was considering basing a second aircraft in Belgrade, however, for now, those plans seem to have been shelved with the airline focused on expanding into new markets and developing its Budapest base. Wizz Air will be spreading its wings throughout the EX-YU region this winter. At the start of the 2012/2013 winter season it will open a base in Skopje while flights will also be launched from London and Charleroi to Ljubljana.

Italy in Mostar takeover

Italian dream for Mostar Airport

Several Italian airports, in cooperation with the Italian government, intend to take over Mostar Airport and invest in what has become Bosnia and Herzegovina’s second busiest airport. “Mostar International Airport is on the brink of a new era”, a spokesman from the Italian Ministry of Foreign Affairs stated earlier in the week. The Italian government intends to form a strategic partnership with the airport. Italian tourists, visiting the spiritual Medjugorje sight, have greatly contributed to the airport’s recent impressive passenger growth.

The Italian government states that it plans to expand Mostar Airport, improve airport safety, introduce scheduled traffic and assist with staff training. A development plan, which is in the works, is expected to be presented to the public in the foreseeable future. Sladjan Topuzović, an advisor at the Italian Ministry of Foreign Affairs, in charge of coordinating the project, says that a provisional agreement with local authorities has been reached. “The interest for Mostar Airport in Italy is primarily due to Medjugorje. That is why we have begun talks on a strategic partnership which would mark a new era for Mostar”, Topuzović notes.

Mostar Airport has had a bumper year. In the first half of 2012 it welcomed 32.402 passengers, an increase of 158% compared to the same period last year. This is despite the fact that Mostar does not have any scheduled flights. Mostar has also been touted as a potential hub for low cost airlines wishing to operate to Bosnia and Herzegovina. The government recently abolished the compulsory passenger tax at Mostar Airport, making it more appealing to potential future customers.

Montenegro modifies fleet plans

New jet to arrive in 2014

Montenegro Airlines has delayed the arrival of its final Embraer jet by a year. The aircraft is now set to touch down in Podgorica in April 2014. Furthermore, the carrier has opted for the Embraer E190 jet, instead of the E195 version. Montenegro Airlines already boasts three E195s in its fleet. The E190 has minor variations to the E195 but also a lower price. In 2011 the airline expressed interest to purchase the smaller E170 version but has changed its plans. The Montenegrin government has said it will cover the cost of the ordered aircraft. Currently, the airline has eight aircraft in its fleet.

The news comes after it was revealed that the carrier has made a 5.5 million euro loss since the beginning of 2012, totalling to an accumulated loss of 17.5 million euros. The airline blames high fuel prices and a volatile euro for the negative trend. However, the good news is that the airline has managed to see its passenger numbers rise thanks to a strong tourist season this summer. In the first half of 2012, passenger figures were up by 6% thanks in large part to a strong June when numbers rose 16%. The airline has also managed to claw back passengers on its main market, Serbia, and is recording impressive figures on flights between Podgorica, Tivat and Belgrade this summer season.

Taking a swipe at a recent article published by EX-YU aviation news, Montenegro Airlines CEO, Zoran Djurišić, said that the government is the one that decides who is competent enough to lead a company based on concrete results rather than “rotten internet portals and opinions of non-governmental organisations”.

Saving Banja Luka Airport

Banja Luka’s fight for survival begins

Banja Luka Airport has just over a month before it loses its international operating license. The airport has been ordered to fulfil several technical requirements including the lengthening of taxiways, purchase of new security equipment and the installation of a new security fence. If it fails to adhere to international standards it will lose its license, effectively forcing the airport to close. The airport’s management says it does not have the necessary funds to carry out the required improvements. A total of 460.100 euros is allocated to the airport on an annual basis, while the entity government has been forced to inject additional funds in the past few years.

However, Banja Luka could be given a lifeline by the government of the entity of Republika Srpska. Its Prime Minister, Aleksandar Džombić, says his cabinet won’t allow the airport to be shut down. He insists that local authorities will discuss possible ways to help the airport carry out the necessary improvements. “On an annual basis we allocate significant funds so the airport can continue to operate. From them we expect a clear financial analysis on how the airport can function. In such case, the government will help”, Džombić says.

International monitors will arrive at Banja Luka Airport in mid August to assess whether the airport has done enough to keep its operating license. Closing down Banja Luka Airport would prove as a disaster for the authorities ahead of local elections taking place in Bosnia and Herzegovina on October 7. Banja Luka is currently served by B&H Airlines with flights to and from Zurich. In 2011 the airport welcomed 8.367 passengers.

Skopje and Ohrid maintain strong growth

Passenger numbers on the rise in Skopje and Ohrid

Macedonia’s two international airports have seen strong growth in the first half of the year. Skopje and Ohrid airports handled a combined total of 400.188 passengers, a surge of 18.4% compared to the same period last year when they welcomed 337.888 passengers through their doors. The increase can be attributed to a range factors including an increase in the number of scheduled flights which rose from 3.487 last year to 3.766 in 2012, representing a boost of 8%. In June alone the two airports saw a passenger increase of 14% compared to 2011 when they welcomed 88.092 people, despite a decrease in the number of operated flights.

July has also started on a strong note. This past weekend Skopje handled 153 flights and 14.062 passengers. Numbers are set to surge in the winter season as well as Wizz Air opens its base in the Macedonian capital and Flydubai launches its services from Dubai. However, this year Skopje has also seen some airlines suspend flight to the city. Malév ended services after declaring bankruptcy while ČSA Czech Airlines pulled out as it struggles with its own financial problems.

Meanwhile, Ohrid Airport has received confirmation that it will be served by the Turkish-Dutch charter company Corendon Airlines until the summer of 2015. The airline will operate six weekly flights to the lake side town next summer. “We've decided to extend the contract with our Macedonian partner Fibula Air Travel for three more years. As of next season, two more weekly charter flights from Brussels will be introduced. We are planning on bringing over 20.000 tourists from the Benelux region to Ohrid", Corendon manager, Atilay Uslu, said.

Qatar’s Belgrade service in doubt

Turkey blocking Qatar Airways’ Belgrade flights

Qatar Airways is reconsidering launching flights to the Serbian capital since Turkey has refused to grant rights for services between Doha and Belgrade to operate via Ankara, a source close to the airline tells EX-YU aviation news. The flights were originally planned to launch in late September, however, they are now in doubt as Turkey does not want to grant fifth freedom rights to the Qatari carrier, which would allow it to sell tickets on the Ankara - Belgrade - Ankara sector. Qatar Airways plans to operate the service four times per week with an Airbus A320. Similarly, the airline operates flights to Zagreb via Budapest but has been given full rights to sell tickets between the two European capitals.

A recent IATA report states that despite the trend towards liberalisation, there remain considerable government restrictions on airline operations to and from Turkey. “Most of the air service agreements to which Turkey is a signatory remain restrictive in nature, with many having limits on capacity, designated airports and, in some cases, approved airlines and pricing”, the report states. 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, Qatar and Serbia signed a Free Skies Agreement, allowing airlines from Qatar to operate as many flights as they wish to Serbia.

Meanwhile, the national carrier of the United Arab Emirates, Etihad Airways, has opened its sales office in the Serbian capital. The Etihad office will cover not only Serbia but also Albania, Bosnia and Herzegovina, Croatia, Macedonia and Montenegro. Jat Airways has a Special Prorate Agreement with the Gulf carrier, selling tickets to Australia in cooperation with Etihad.

Croatia Airlines to break million mark

Croatia Airlines awaits its millionth passenger

Croatia Airlines is preparing to handle its millionth passenger of the year on Wednesday. The million mark will be reached in Zagreb as the carrier’s passengers disembark flight OU417 arriving from Frankfurt. The result comes two days ahead of last year. While the year started slowly for the national carrier, Croatia Airlines has now levelled to last year’s passenger numbers. In the first seven months of 2011, the airline handled 1.065.913 passengers, which is set to be reached again this year.

In 2011, the airline welcomed the highest number of passengers since it began operations in 1991. Croatia Airlines handled 1.880.000 passengers, an increase of 15% compared to 2010 while the average cabin load factor stood at 67%. Passenger wise, the airline is the busiest in the former Yugoslavia, ahead of both Jat Airways and Adria Airways respectively.

However, the good run could be spoiled if some of the carrier’s planned cost cutting measures come into force later this year. While they still haven’t been approved, financial consultants have suggested the suspension of several high profile destinations. They include Podgorica, Priština and London Gatwick. Furthermore consultants have shortlisted flights to London Heathrow, Paris, Istanbul and Copenhagen for suspension unless the routes do not start making money in the foreseeable future. Similar measures, introduced by Adria Airways late last year, had a severe impact on the airline’s passenger numbers.

EX-YU airport development boom

Belgrade, Zagreb, Priština and Ljubljana plan big for the future

Airports across the former Yugoslavia are being renovated, expanded and overhauled. Some cities are planning for the future while some are already seeing cranes and trucks building new terminals. The four busiest airports of the former Yugoslavia all have impressive plans.

Belgrade Nikola Tesla Airport is undergoing a major expansion project. The airport’s terminal one departure gates are being expanded, changing the exterior of the terminal building and modernising the interior after more than twenty years. It is to be followed by the expansion and refurbishment of the terminal two gates this autumn and will culminate with the construction of an additional new floor stretching over 4.900 square metres, to be built above the current terminal two building, in 2013. During next year a new control tower will be built and will be ready to use by 2014. The airport currently has the capacity to handle eight million passengers. The project’s price tag amounts 53 million euros (not including the control tower which is being treated as a separate project).

Zagreb Airport’s wait for a new terminal will be finally over in 2013 when construction on the much anticipated and delayed passenger building begins. New owners, Aéroports de Paris, plan for construction to begin in early 2013. This year, project and design plans will be finalised while construction will take a total of two years to be completed. The French will invest 236 million euros in the first phase of the project while the second will begin once the airport reaches capacity of five million passengers per year.

Priština Airport is looking forward to a brand new terminal which is currently under construction. Stretching over 45.000 square metres, the building will feature three air bridges and will be accompanied by a new apron, control tower and a car park with the ability to serve 1.750 vehicles. The investment, worth 120 million euros, is scheduled to open early next year.

Ljubljana Jože Pučnik Airport is also anticipating the construction of its new terminal building later this year. Stretching at 31.200 square metres, the new terminal will have the capacity to handle 1.800 passengers per hour and will be accompanied by a logistics and cargo centre. While the economic crisis may delay the project, valued at 70 million euros, it is currently expected for the new terminal to be opened in 2015. However, work is already ongoing at the airport as a new landing system is being installed to allow aircraft to land at reduced visibility. Furthermore, a five kilometre road is being built at the southern tip of the airport to be used by maintenance, security and other airport staff.

This year has also seen the completion of EX-YU’s newest international airport - Morava in Kraljevo. The 3.000 square metre terminal building is set to open within weeks. Expansions are either ongoing or have been completed in Zadar, Dubrovnik and Split as well. Last year saw the opening of the brand new passenger terminal in Skopje, which has given new life to the airport. Plans are also being made for the expansion of Tivat Airport in Montenegro.

Sarajevo delays terminal expansion

Sarajevo Airport expansion on hold

Sarajevo Airport won’t go ahead with its planned terminal expansion for the time being, managing director Ivica Veličan confirmed recently. Despite being granted a 25 million euro loan in 2010 from the European Bank for Reconstruction and Development for the expansion and overhaul of its facilities, the airport had decided against the move as it is still unnecessary to expand capacity. “Since we handled only around 600.000 passengers last year, we will most likely cancel the expansion project for the time being”, Veličan told the Sarajevo Airport Magazine. The current terminal building has the capacity to handle one million passengers per year.

The much talked about expansion of Sarajevo Airport was planned to begin in 2011 but was then moved to 2012. It involved the addition of 7.000 square metres to the terminal building, the construction of a new apron and the overhaul of the existing jetways. The final price tag of the project was estimated at 32 million euros. While the airport is still functioning effectively, capacity constraints are starting to emerge at peak hours with security and duty free facilities in need of expansion.

The current terminal building was overhauled and refurbished in the early 2000s. In 2005 Sarajevo Airport was named the best European airport to handle up to 1 million passengers. Last year Sarajevo Airport welcomed 599.978 passengers. Numbers have declined some 5% this year mostly due to the sharp decrease of flights operated by B&H Airlines.

Croatia and Adria among Europe’s best

Praise for Croatia Airlines and Adria Airways

For the first time, two former Yugoslav airlines have found themselves amongst Europe’s best airlines. At the World Airline Awards, organised by Skytrax at the Farnborough International Airshow this week, both Croatia Airlines and Adria Airways made it into the top ten best airlines in Eastern Europe. Croatia Airlines was voted Eastern Europe’s fourth best airline, while Adria settled at number seven. The two carriers beat the likes of TAROM Romanian Airlines and S7 from Russia. Transaero was awarded the best airline in Eastern Europe followed by Aeroflot and ČSA Czech Airlines. Croatia Airlines was followed by LOT Polish Airlines and Wizz Air.

The World Airline Awards are the most prestigious within the aviation industry and awards are given out based on passenger experience. Air travellers were surveyed by telephone, questionnaires and online about their experiences with airlines on the ground and in the air during a 10 month period. The survey measured passenger satisfaction across more than 38 key performance indicators of airline front line product and service, including check-in, boarding, onboard seat comfort, cabin cleanliness, food, beverages, in-flight entertainment and staff service.

Overall, Turkish Airlines was named as Europe’s best carrier. Star Alliance, of which both Croatia Airlines and Adria Airways are members of, was voted the best alliance in the aviation industry. Qatar Airways maintained its position as the world’s best airline. This year marked the first time that any airline from the EX-YU region made it into the awards list.

Slow year for Zagreb Airport

Zagreb numbers decline as Dubrovnik and Split boom

While most Croatian airports are recording strong growth in 2012 with some seeing record figures, Zagreb Airport is lagging behind on last year. Croatia’s busiest airport welcomed 1.064.000 passengers in the first half of 2012, a slight decrease of 1.8% compared to the same period last year. The airport managed to level to last year’s results in mid June when it handled its millionth passenger on the same day as in 2011, however, numbers declined in the coming days. Zagreb has lost Malév, Spanair and Central Connect Airlines to bankruptcy but has welcomed Qatar Airways, which will be joined by SkyWork Airlines and British Airways later on in the year. “This year we have handled 18.400 passengers less than in 2011. The primary reason for this is the financial crisis”, Zagreb Airport spokesperson Jadran Kapor notes.

On the other hand, Dubrovnik saw its best June on record. The airport has also started strong in July as it welcomed 5.000 passengers more than last year. Croatia’s second busiest airport also has new routes planned for the upcoming slow winter season. Croatia Airlines will extend its seasonal summer service from Dubrovnik to Zurich throughout the winter. Flights will operate twice per week while Swiss International Airlines will code share on the service. It comes after Lufthansa announced it will be operating flights from Munich to Dubrovnik throughout the 2012/2013 winter as well.

After a slow start, Split has also turned its fortunes around. The airport handled 471.692 passengers so far this year, an increase of 10.1%. Split Airport ended 2011 by handling 1.300.381 passengers and is expected to comfortably surpass that figure by the end of 2012. Zadar and Pula are also recording strong growth. The only airport which has taken a big hit this year is Osijek which has suffered greatly from Ryanair’s exit.

Skopje chasing millionth passenger

Strong passenger growth anticipated for Skopje

With strong passenger growth and several new airlines lined up, Skopje Alexander the Great Airport is forecast to handle one million passengers within a year by the end of 2013, the first time in thirteen years. In June, Skopje and Ohrid airports handled 88.092 passengers, an increase of 14% compared to the same month last year. In the first half of the year, the two airports welcomed a combined total of 402.946 passengers, a surge of 19%. The results were achieved despite a notable decrease in the number of flights operated to the two airports.

In the following months, Wizz Air will launch new services from Skopje as it opens its own base in the Macedonian capital. In neighbouring Serbia, Wizz Air has captivated a completely new market of travellers, rather than simply taking passengers away from the competition. The low cost airline has already announced the possibility of expanding its operations from Macedonia in the summer of 2013. Furthermore, Flydubai will be launching flights to Skopje this October, connecting the city with a direct air link to the Middle East. According to airport officials, negotiations are under way for a new service to be launched from Moscow to Skopje.

Skopje Airport handled a record 1.000.200 passengers in 2000. However, this impressive figure had more to do with the political situation in the region rather than natural growth. In 2011, Skopje welcomed 759.928 passengers through its doors, its best year since the 2000 record. Skopje is currently the seventh busiest airport in the former Yugoslavia behind Belgrade, Zagreb, Priština, Ljubljana, Dubrovnik and Split. The three busiest airlines operating out of the Macedonian capital in 2012 are Austrian, Jat Airways and Croatia Airlines, all of which rely heavily on transit passengers on their flights to and from Skopje.

Winds of change

New government to deal with Jat’s old problems

The newly formed Serbian government is set to take office on July 23. Many are looking to see as to how the new government will deal with Jat Airways and its impending problems. So far, it is only certain that the Serbian carrier will get a new CEO. Vladimir Ognjenović’s Democratic Party is heading to the opposition benches and is unlikely to hold onto his post. The Serbian carrier has had a bad run of general managers recently as politics has taken centre stage over professionalism.

According to a coalition agreement between the parties that have formed the new government, all state owned companies will get a professional management without party affiliation and interference. However, it remains to be seen whether the government will deliver on its promise. Many old faces will be back in office. They include Milutin Mrkonjić as the Minister for Infrastructure. Mrkonjić has proposed for a new national carrier to be formed as a successor to Jat Airways with the help of local businessmen. Also returning to government will be Velimir Ilić, part of the 2004 - 2008 cabinet under whose order various Jat divisions such as Jat Tehnika and Jat Catering were divided from the carrier and set up as new companies, a move which has hurt the national airline.

The new coalition agreement outlines that Belgrade Nikola Tesla Airport will be one of several state owned companies which will not be privatised within the next four years. However, Jat is not on the list. The new management will have to deal with both a shortage of aircraft and an aged fleet, debt and a surplus of employees which counts over 1.200. The management will also have to deal with the 1998 order for eight Airbus A319s, which have never been delivered to the carrier. Ironically, many entering the new government were in power when the damaging Airbus order was made. Despite all the odds being stacked against it, Jat has had a relatively good year so far with record passenger numbers over the past few months and an increase in revenue, despite widespread competition.

Historic June for Dubrovnik

Records broken at Dubrovnik Airport

Dubrovnik Airport saw its busiest June in history. The airport on the Adriatic coast welcomed 206.576 passengers, an increase of 13.7% compared to the same month last year. The growth is being fuelled by a solid year for the Croatian tourism industry. By the end of 2012 the airport plans to see an increase in passenger numbers of 6% compared to 2011. In the first half of the year, Dubrovnik welcomed 506.166 passengers through its doors, an improvement of 8% on last year.

As has been the case for most airports in the former Yugoslavia, Dubrovnik’s busiest year on record was 1987 when the airport handled 1.460.354 passengers. A total of 586.742 passengers arrived on domestic flights while 835.818 passengers jetted in on international services. The 1987 record hasn’t been surpassed so far but the airport is in striking distance of achieving the figure. Last year, Dubrovnik welcomed 1.349.501 passengers, making it the fifth busiest airport in the former Yugoslavia. It was the airport’s third busiest year on record behind 1987 and 1988.

Meanwhile, Airports Council International (ACI) named Dubrovnik Airport as one of the best airports in Europe in the one to five million passenger category. While the prize ultimately went to London City Airport, Dubrovnik received an honourable mention. Edinburgh took the honour in the 5 - 10 million category, Hamburg in the 10 - 25 category and Amsterdam was named the best airport in Europe with over 25 million passengers. In 2005 ACI awarded Sarajevo Airport as the best in Europe with under a million passengers.

Jat returns to Split

Strong numbers for Belgrade - Croatia summer flights

Last Monday, Jat Airways touched down at Split Airport for the first time in almost 21 years. Flights were launched without much fanfare and will operate twice per week. The Serbian carrier inaugurated the flights to Split on a strong note with 66 passengers onboard the sold out ATR72. On the return leg Jat welcomed only 18 passengers (on its second flight 65/23). Jat will compete against Croatia Airlines on the route which launched its flights a month ago. Last Monday, Croatia Airlines carried 64 passenger to Belgrade and 73 passengers on the return leg to Split with a total of 76 seats available on the Dash 8. Since launching the service, Croatia Airlines has had an average load factor of almost 80%.

Besides Split, Jat is also operating flights to Dubrovnik and Pula in Croatia this summer with both routes recording strong passenger figures. During last week, Jat carried 65 passengers to Pula while on the return flight it welcomed 35 passengers onboard the ATR72. Similar results were seen on the carrier’s Dubrovnik flights with 54 passengers heading to the Adriatic city while 62 passengers boarded for the return leg to Belgrade.

The strong passenger numbers, which are set to strengthen as the peak summer season approaches, are a further sign that there is interest for air travel between the two countries. Pula Airport believes that there is a big enough market for Jat to continue its flights to the city during the winter season at least once per week. Thanks to a recently signed agreement, the Serbian carrier will operate seasonal flights to Pula until at least the summer of 2015. On the other hand, Croatia Airlines has announced that it will boost frequencies on its flights from Split to Belgrade next summer season and will consider extending the service into the 2013/2014 winter season. The airline is interested in launching flights from the Croatian capital to Belgrade but says it will need to work with Jat in order for the short flight to be successful.

Adria sale postponed

Search for Adria’s new owner at a later date

Despite plans to put Adria Airways on sale this month, the Executive Board has decided to postpone the search for a new strategic partner until at least the fall of 2012. The decision comes days after it was revealed the carrier will be trimming down its fleet by phasing out its Airbus jets. While no official reason has been given for the sale push back, Slovenian media report that there is currently no interest in the carrier.

A final decision on Adria’s ownership structure will be made by its majority share holder - the government. Other shareholders, comprised of various Slovenian banks want the carrier sold as soon as possible. Originally, the Slovenian government was expected to announce the amount of shares it is willing to offer to a potential strategic partner 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. 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. 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.

UPDATE
Adria Airways’ Corporate Communications Department has since denied that any action has been taken by the Executive Board to postpone the sale of the carrier.

Belgrade continues to grow

Strong start to summer at Belgrade Airport

Belgrade Nikola Tesla Airport has recorded its 27th consecutive month of passenger growth with 325.896 passengers passing through its doors in June. The result represents growth of 8% compared to the same month last year. The number of operated flights also increased to 4.241 arrivals and departures. So far this year, Serbia’s busiest airport has handled 1.481.982 passengers. It is well ahead of the competition within the former Yugoslavia, with second placed Zagreb just breaking the million mark in late June. However, Belgrade is still some way off from its closest regional rival, Sofia Airport.

In June several airlines recorded impressive results on their flights to and from Nikola Tesla Airport. Besides Jat Airways, airlines such as Montenegro Airlines, Lufthansa and Swiss International Airlines were operating at full capacity. Wizz Air continues to record outstanding results on all of its services from the Serbian capital.

Meanwhile, several hundred kilometres away, Niš Constantine the Great Airport saw 12.418 passengers pass through its doors in the first half of the year, an increase of 25% compared to the same period last year. The airport is currently being served only by a daily flight from Podgorica, operated by Montenegro Airlines. Its busiest month so far has been April when it handled 2.869 passengers.

Mostar Airport smashing records

Busy times ahead

Mostar Airport is recording one of its best years on record. In the first half of 2012, Bosnia and Herzegovina’s second busiest airport welcomed 32.402 passengers through its doors, almost the same amount it handled for the whole of 2011. The growth is being driven by numerous charters operating to the city, carrying Christian pilgrims visiting the Medjugorje site. It is important to note that the airport does not have any scheduled flights. In June alone, Mostar handled 11.922 passengers.

Several weeks ago the government of Bosnia and Herzegovina abolished the compulsory passenger tax at Mostar Airport. Local authorities believe the move will stimulate interest from low cost airlines, which will see it as an alternative to the pricy Sarajevo. In recent times, the only scheduled airlines to have shown interest in flying to and from Mostar were B&H Airlines from Sarajevo and Air Vallée from Pescara. However, late last year B&H Airlines requested an exemption from fees at Mostar Airport during its first year of operations and asked for the flights to be partially subsidised by the Mostar city authorities. The deal never went through.

In a statement to EX-YU aviation news, the Federal Civil Aviation Directorate of Bosnia and Herzegovina said that Mostar is recording outstanding figures despite having only twenty full time employees. It also noted that the airport set a daily record on June 29 by handling 2.404 passengers. 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.

Adria to phase out Airbus fleet

Big fleet cut for Adria

Adria Airways will be phasing out two Airbus A319s and one A320 as the Slovenian national carrier announces its fleet restructuring programme. The aircraft will leave the Adria flock by the start of the 2012/2013 winter season in another attempt to cut costs. “Our fleet is our biggest challenge. It is not ideal for our market”, Adria CEO, Klemen Boštjačič said yesterday. The CEO emphasised that the carrier’s Bombarider CRJ200 jets are also too costly to operate even with a 100% load factor.

With the three jets set to leave, Adria will no longer have Airbus aircraft in its fleet. In November last year, Adria attempted to sell its A320 to the Iranian airline Yas Air but received a stern warning from the United States to shelve such plans, leaked diplomatic cables show. Over the summer, Adria has been loaning the jet to Croatia Airlines. Following the Airbus phase out, Adria will have four CRJ900s and six CRJ200s at its disposal. Boštjačič says Adria should have the same aircraft model across its fleet, a proven cost cutting measure employed by low cost airlines.

Despite promises that Adria will be put up for sale this July, so far there has been no progress. Yesterday, Boštjačič ruled out a possible merger with Croatia Airlines but says the carrier is looking to improve commercial cooperation with Jat Airways and Montenegro Airlines. Slovenia has been hit by economic problems recently with talk of a possible European Union bailout for the country. The economic climate hasn’t aided the airline in its year of restructuring. It is expected that Adria will take out a nine million euro loan in September to cover its debt.

Jat continues record run

Jat’s busiest June in 21 years

After a record breaking May, the Serbian national carrier has recorded its best June passenger results since 1991. The airline welcomed 134.969 passengers onboard, up 16% compared to the same month last year. Figures were particularly impressive on Jat’s Euro Mediterranean flights with 100.665 passengers choosing the Serbian carrier. The average cabin load factor stood at 74%, up 2 points on last year.

Jat’s most popular destinations continue to be towards its traditional markets - London, Moscow, Amsterdam, Paris, Frankfurt and Zurich. However, this June also saw full planes to Skopje, Sarajevo, Girona and Athens. In the first half of the year Jat has handled a total of 585.363 passengers, an improvement of 11% compared to the same period last year.

In late June Jat was forced to cancel numerous flights because it has obliged itself to operate hundreds of charter services while its fleet goes in for regular maintenance, leaving the airline without enough aircraft to operate its full schedule. The situation will worsen in July. While the charters will substitute the regular flights, thousands of passengers on Jat’s regular services have been rebooked onto other airlines or have been compensated, making the move extremely costly. As a result, it remains to be seen whether Jat will maintain its strong passenger results in July as well.

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
JUN	134.969	▲ 16	74

Jat Tehnika in Airbus deal

New Airbus training centre in Belgrade

Jat Tehnika and Airbus will set up a new training centre in Belgrade ahead of the maintenance company receiving necessary certificates to service jets from the European plane manufacturer. A training centre for some 200 local mechanics and 50 engineers for the Airbus A310 and A320 aircraft will be opened in the Serbian capital following the agreement signed last week in Toulouse.

Between October and December this year Jat Tehnika will receive the necessary certificates to service Airbus jets after which the training centre will become Airbus’ regional centre for training both local and foreign mechanics and engineers. “This will open up a big market for us because some 60% of air traffic in the region in south eastern Europe is carried out with Airbus jets”, Srdjan Mišković, Jat Tehnika CEO said. The new Airbus license is expected to see Jat Tehnika’s revenue rise by 30%. The maintenance company already services Boeing and ATR aircraft.

Simultaneously, the largest of three Tehnika hangars at Belgrade Airport will finally be completed after more than two decades. While the hangar is in use, it’s construction has never officially come to an end. Two hangars are used for medium sized aircraft and can fit three jets each at one single time while the third hangar is for larger aircraft and can fit two Boeing 747-400s. Besides Jat, the company currently provides maintenance to airlines such as Jet2.com, NordStar Airlines, Astraeus Airlines and Transaero. Earlier this year the Serbian government approved a five million euro loan to finance the completion of the facility.

Untouchable

One mistake too many

Despite multi million euro losses, debt, conflict of interest and corruption allegations, Zoran Djurišić has managed to maintain his position as the CEO of Montenegro Airlines for the past 18 years.

Questions whether Djurišić is competent enough to head the national carrier have been raised after the full amount of debt owed by Montenegro Airlines was revealed. The airline owes 1.6 million euros to its fuel provider Jugopetrol, 9.7 million to Airports of Montenegro, four million to the Serbia and Montenegro Air Services Agency and 634.000 to Belgrade Airport. However, the list goes on. Eurocontrol is waiting for 386.000 euros from the carrier while Fokker is also expecting 364.000 for servicing the Montenegro fleet. The flag carrier is also in debt to GE Capital Aviation Servicing to the tune of 553.000 euros while a further three million are owed to various other providers. There has also been descent amongst the carrier’s pilots with some supporting Djurišić while others have written to the government to voice their dissatisfaction with the CEO.

On top of its financial woes, Montenegro Airlines’ management is also being investigated for the way it set up its planned Serbian subsidiary, Master Airways, in Niš in 2006. In addition, the company is being scrutinised for the lease of a Fokker F100 to the now defunct Albatros Airways from Albania several years ago. Late last year police seized documents from the national carrier’s head office in Podgorica in an ongoing corruption investigation. The seized documents relate to the way Montenegro Airlines has debited airport taxes since 1994 until 2009.

However, Djurišić is unlikely to face any consequences as he has a good standing within the governing Democratic Party of Socialists. Djurišić’s wife, Milica Pejanović Djurišić, the former Montenegrin Ambassador to France is now serving as the Minister of Defence. She is a high ranking member of the Democratic Socialists which has dominated Montenegrin politics for the past 22 years. The Montenegrin government recently announced measures to write off debt and pump millions into the national carrier. It has ordered the country’s airports to lower fees only to its main customer. Up until now no one has been held accountable for the state in which the carrier has found itself in.

Croatia Airlines in US deal

Croatia Airlines to code share on US international and domestic flights

US Airways and Croatia Airlines have announced a new bilateral code share agreement after receiving approval from the Croatian Civil Aviation Agency and the United States Department of Transportation. Croatia Airlines will code share on US Airways’ services from Europe to Philadelphia and Charlotte (flight numbers OU5000 and upwards). The Croatian national carrier will also add its code on US Airways flights from Philadelphia to Cleveland, Detroit and St. Louis. In the future, there are plans for US Airways to code share on Croatia Airlines flights from Europe to Dubrovnik and Split.

Speaking of the new arrangement, Andrew Nocella, US Airways' Senior Vice President for Marketing and Planning said, “US Airways' new codeshare agreement with Croatia Airlines will provide our customers with expanded options to reach Zagreb, the capital of the Republic of Croatia, with a convenient single ticket purchase”. He added, “We look forward to strengthening this bond and expanding travel options to our customers visiting Croatia and for Croatia Airlines customers visiting the United States”.

Through the new agreement, Croatia Airlines is hoping to lure away transit passengers from the likes of Air France and Austrian but also Oneworld rival British Airways, which expects to carry large amounts of transit passengers to the United States once it launches flights to Zagreb this December. Croatia Airlines is currently the only airline in the former Yugoslavia with its own codes on US bound flights. US Airways is also a member of Star Alliance like Croatia Airlines.