15 million Euro loss
Jat will end the year with a 15 million Euro loss on its balance sheet, 10 million Euros less than expected. Srdjan Radovanović, the airline’s CEO, said that the annual loss was considerably lower than anticipated. “Jat Airways had a 12 million Euro loss for the first 6 months of the year and it was expected that the annual loss would amount to 25 million Euros", Radovanović said. He said that Jat now needs approximately 20 to 32 million Euros for the necessary maintenance of its aging fleet, including an engine overhaul for its Boeing B737 aircraft. The CEO believes that Serbia’s national carrier will end 2010 with a profit.Recently, Jat launched a tender to find the company which will offer Jat’s passengers free travel insurance for destinations within the European Union. The tender will be closed on January 4 and passengers should enjoy this aminity from the start of the 2010 summer season.
All national carriers within the former Yugoslavia are expected to post an annual loss. The status of Montenegro Airlines’ finances are unknown.
Congrats, apparently the management of Jat is not that incompetent after all! Let's see what happens with all these taxi services and insurance.
ReplyDeleteDoes anyone know where the 737-700's will come from and what the configuration will be, and will there be IFE?
the leased B733 ex-Aero Continente (YU-AON) is said to have been returned to its owner. Next to go will aparently be YU-AOS in the next 2 or 3 months.
ReplyDeleteThe B737 which Vlaisavljevic ordered to arrive in September was supposed to come from Aeromexico (registered N853AM, config C12/Y112)...who knows from where JAT will receiven the 2 B737.
I dont think we will see anything from the taxi services, and will be interesting to see if insurance will actually be free..
Hope too see some changes made, especially to its destinations. I think Malta, Trieste, Banja Luka and Abu Dhabi should go and JAT recomence Venice, Sofia and Dubai.
Abu Dhabi is doing okay. What JAT might consider is to eliminate the Larnaca stop for their Tel Aviv flight. Keep Trieste, that route is holding up well by load factor. Yield is a bit shaky tough.
ReplyDeleteAbu Dhabi is horrible, especially the connections with EY. JU94 lands in AUH at 0655, but your connecting flight with Etihad to MEL (EY460) for example is at 2235! That makes 15 hours of transit time! This became the reason why I and several of my family members stopped flying JAT and now fly BA/QF or TK/EK as they are the 2 best options now available. Just a lose for JAT. DXB was once 5 p/w!
ReplyDeleteI think Venice could probably do better than Trieste.
Isn't this the same guy who first said that they are going to transport 50k out of BNX just to drop the line 2 weeks later.
ReplyDeleteHow can you trust him now?
It would be interesting if some journalist had balls to confront him with this.
@ 1st Anonymous,
ReplyDeleteNot so quickly. What does it tell you about their competence when, a month before this report, they stated that they will be in the red by about 25 mil?
It just means that these guys have no idea what is happening on that company. They haven't done anything that would make such drastic change, they even cried about losing 500,000$ during the Jat Tehnika strike...so where is this sudden cut in losses coming from?
Look at the two profit reports for NIS in 2008. NIS reported big profit in 2008, then the Russians came, revised it, and it turns out that they were 100 mil in the red. That is why I consider this report to be nothing more than "hot air".
We will be able to see more from their financial report for 2009 which is public.
ReplyDelete@ Ex-Yu Aviation,
ReplyDeleteGiven the situation with NIS, I doubt that that report will be useful. Ironically, there was a news article today on B92 about the "mistakes" made by the accountants (yeah, right) which resulted in some "irregularities" with the budget spendings.
http://www.b92.net/info/vesti/index.php?yyyy=2009&mm=12&dd=10&nav_category=11&nav_id=397481
The point I'm trying to make, not to be cynical or anything, is that nobody knows what the money is going for. I firmly believe that, given the mess with the Serbia's finance system, that it is impossible to tell whether Jat has lost 5 mil, 10, 50, or whatever.
But, I hope the things will change - one day...
why would Larnaca be dropped? Please if you don't know don't speak... The route that should be dropped is Tel Aviv, the other day JU 073 had about 10 passengers from TLV and 88 from Larnaca. The flight before that 69 pax came out in Larnaca. So, tell me, based on what source you think LCA should be dropped?
ReplyDeleteAs time goes by LCA become more and more popular and the load factor is getting higher. Serbs are moving to Cyprus especially to study, so I wouldn't be surprised if they add another frequency in summer. The most we had was 5x week in 2002 I think on a 727 and 737
This is a very old trick.
ReplyDeleteTell the public your losses will be 25 million which you purposely inflate so when it turns out to be 15 million, it looks like you somehow some where saved the company 10 million and the public and others start to think you actually doing a good job.
@Q400
ReplyDelete15 or 25 it is still a decrease! And the fact that they went from a minus 30 to minus 15 means something, and it also means that the current management is not that incompetent. After all they are the ones to (finally) introduce new planes into JU's fleet.
@ last Anonymous,
ReplyDeleteThat argument makes no sense. If they inflate the loss to X amount knowing that the actual loss will be X-Y, hoping to make themselves look good by saying that they have saved Y dollars, that does not make them competent. It just makes them lying as*holes who are playing a dangerous game.
Perhaps, part of the answer for this sudden change comes from the fact that they have employed a high-school graduate as a CFO. Apparently, according to the CEO, university degree does not mean that those who have them, have the adequate knowledge (wtf?). While I agree that there may be some truth in that, I would like to point out that that can't be true for ALL university graduates, and that if he were to pull any of the companies of the Fortune 500 list and beyond, that it is very unlikely that he would find a single CFO on that list who does not hold at least Bachelor's.
Article is in Serbian, at the bottom of the main article:
http://www.danas.rs/vesti/ekonomija/pripremanje_za_loukostere.4.html?news_id=178858