More ATRs to join the fleet
The acting CEO of Jat Airways, Vladimir Ognjenović, has told Radio Television of Serbia that the carrier will purchase 2 ATR72-500 aircraft in January 2012 in order to strengthen its regional fleet, currently made up of 4 ATR72-200s. He says that routes in the former Yugoslavia are made profitable when using this aircraft even with only 10 passengers onboard. He believes that by introducing newer generation ATR aircraft, the airline’s fleet will become more efficient. “The ATRs that we have now and the ATR72-500s that we plan to introduce into the fleet next year are extremely efficient for our regional market”, Ognjenović said. Jat has seen a big spike in bookings on regional flights for the upcoming summer months.The ATR72-500 has the capacity to seat between 68 and 74 passengers. Jat currently operates the ATR72-200 model while in the early 1990s the airline also used ATR42s. Jat also hopes to finalise an outstanding order for 8 Airbus A319 jets, by refining the 13 year old agreement. Some have suggested the agreement could be finalised next month when Serbian President, Boris Tadić, visits France.
Meanwhile, the Serbian Ministry for Infrastructure has announced that Jat will be privatised by the end of the year. There are continual conflicting messages amongst members of the Serbian Government in regards to Jat’s future.
"profitable when using this aircraft even with only 10 passengers onboard" ???!!
ReplyDeleteHighely unlikely. The situation in Jat Airways is not good, even if they saw the significant increase of passengers.
ReplyDeleteI doubt they will purchase those planes.
Profitable when 50-55% of the aircraft are filled
ReplyDeleteThis is another 'believe it when it arrives' methinks, and just 10 pax on board is farfetched - unless the flight is coming from a destination where most of the seats are heavily subsidised??
ReplyDeleteGeronimo has the figures right - its over 50% that it becomes profitable, so in JUs case, that would actually be around 35 seats. The Q400 can be profitable in the high 40-percentile over the right distance, but figures may change as fuel prices continue to increase. The AT7 is not as thirsty, but lacks the speed and comfort of the Q400.
Honestly if the route is less than 1 hour long which within the ex-yu region could be less than 40 mins flight time 10 pax could just and I mean just break even. Then again I guess I've got no idea about airport fees at either end, or the CASM per pax.
ReplyDeleteIt would be dream come true if Jat were to renew its fleet but this seems highly unlikley and Im sorry to say this. Privitisation in the long term is not the answer. As long as Serbia remains with Tadis's retarded government neither Serbia nor Jat will go anywhere forwards. The lyrics to this song accuratley describeJats management and Serbia's government:
ReplyDeleteNe veruj u idole U lica sa filma i naslovnih strana Ti mozes bez njih Ne slusaj sta ti kazu Sve je to biznis, sve je reklama Sve je to trik Ne ne ne veruj u idole 3x Ne veruj u idole I oni su ljudi od krvi i mesa isto k'o ti Ne slusaj sve te lazi Oni se samo prodaju dobro Lova je cilj ! Ne ne ne veruj u idole 3x
"He says that routes in the former Yugoslavia are made profitable when using this aircraft even with only 10 passengers onboard".
ReplyDeleteWhat an expert! Jatovanje again
Passenger Break-even point is relative. Flight can be profitable even with 2 passengers, provided that each passenger pays $5000 for a ticket.
ReplyDeleteHaving said that 10 pax is very low even for rip-off airline like JAT
I'm not defending JAT here at all, but on a 30 minute flight or what ever they operate at, the CASM per pax could mean 10<20 pax of a 70 seat ATR could prove to be break even
ReplyDeleteAlthough heck, why would you be happy with 10 our of 70 seats full?
Cost of one hour flight on ATR 72-500 is 3.000-7.000 EUR. That means 10 seats must be sold for 300-700 EUR one way!!!
ReplyDeleteBefore break even on ATR 72-500 was around lf 50%. Today it is around 60-65% because of high fuel costs.
So, let's say I board with 10 people on the ATR and I fly SKP-BEG. Ussualy Adria charges me from 150 do 200 EUR return ticket SKP-LJU-SKP, so let's count that SKP-BEG will be 200 EUR return ticket. That's 100 EUR per flight. 9 other fools like me on the flight, that's 1000 EUR for the trip revenue. After I pay the fuel which will come to around 320kg/hr/eng with today's prices of 2 EUR/kg = 1280 EUR for the fuel only! I think the dubmbass of a director hopes not to pay any salaries, ATC, airport fees and use only 1 engine for it's trips? Than, yes it will be very profitable.
ReplyDelete…and leasing of aircraft + insurance + maintenance + provision for sale ticket (or costs of internet or phone sale) + administration + advertising + ........
ReplyDeleteAnd I thing that on BEG-SKP you will spend around 880 kg of fuel.
200EU from SKP-BEG?????? Insane! I can book today flights from Moscow to Vladivostok with Aeroflot for 150EU one way!! That is freeze type of ticket which is special but not a sale price.
ReplyDeleteFor you to fly SKP-BEG-SKP I will fly to Vladivostok for 50EU cheaper! But obviously return is twice as much
As long Jat is in the hands of the government it can make losses for years, tax payers and loans from imf and ebrd will secure jats presence even in the future-look at Sas in scandinavia-they make 7-8 more losses then Jat with a fleet of 140 aircrafts-Jat has about 15.
ReplyDeleteThe odd thing is why jat do not lease some aircrafts for some years before they get planes from airbus?!it does not cost so much.
Even the manufacturer of the plane doesn't quote such optimistic break-even figures. However we have to take into account that he does limit these figures to the ex-yu region since there you can make up any figure you like and half the people will believe it.
ReplyDeleteI think I will start an airline in the region and it will be profitable with just the crew on board. All I need is a nationalist slogan, name, and flag and some ultranationalist politicians will provide the money so that I am set to go. That is of course until it goes bankrupt and all the taxpayer money is wasted, but by then I'll be rich.
@Smrt RSu, Nezavisna Vojvodina, Nezavisan Sandzak
ReplyDeleteYou're very funny.
"I think I will start an airline in the region and it will be profitable with just the crew on board." Hahaha... :)
I can improve on your proposal. Why pay the crew on board when you can keep the money in your pocket and have a profitable grounded airline? How about opening a café/bar on board a grounded aircraft with discounts for plane spotters?
@Starbucks Airways
ReplyDeleteThat is a great idea, but to truly follow the successful business models of ex-yu airlines you need to have the cafe close on random days with little or no notice to the customers and only work hours inconvenient to most people.