Montenegro Airlines dumps new routes
Montenegro Airlines has suspended services to Milan and Brussels which it launched just over a month ago. The service to Milan was inaugurated on April 8 with 3 weekly flights while services to Brussels launched on April 15 and saw the same number of frequencies. Both services operated out of Podgorica, however, the airline failed to attract any interest. The Montenegrin national carrier announced that as part of its cost cutting measures it was bound to cancel the two new routes. It has also been announced that the airline will suspend its flights to London Gatwick, although services to the British capital remain in the airline’s timetable for now.Montenegro Airlines now plans to redirect its aircraft to Belgrade. It will add an additional 2 daily frequencies to the city, one from Podgorica and one from Tivat after reducing its services to the Serbian capital for the summer season by 15 flights when compared to the same period last year. The additional flights will commence if an agreement is reached with Belgrade Airport.
Montenegro Airlines is latest amongst the former EX-YU carriers to trim its destination network in the past few weeks. Recently B&H Airlines suspended flights to Frankfurt and Vienna while Jat dumped its flights to Trieste.
off topic:
ReplyDeleteFinnair started today with their weekly charter: Helsinki-Ohrid
WIZZ AIR SOON AT SJJ APT!!!
ReplyDeleteWe wish we have YM to nis-vienna route.
ReplyDeleteWIZZ AIR SOON AT SJJ APT!!!
ReplyDeleteAny guesses about their destination(s)?
^ It’s been reported here several times. The last time on Thursday
ReplyDeleteWizzair in SJJ? Is this true???
ReplyDelete@Ex-YU
ReplyDeleteI just looked at that article and it was only mentioning Skopje aka SKP, SJJ is Sarajevo.
Back to the topic, the question we have to ask ourselves here is, did YM reduce the frequencies on the MNE-Belgrade market because of the tougher competition from Jat (which has been recording high numbers) or did they do it in order to explore new markets?
If the answer is the first one then they are in for a treat. They will try to compete with Jat which will continue to beat them. Not to mention that Jat has revised their network and offers better connections from MNE via BEG. This means that Jat has reduced the dependency on the O&D passengers between the two markets. This is very good for them, especially if the market between the two countries gets liberalized. The YM and Wizz will be competing for the O&D marketshare where as Jat will be filling with transit passengers and a share of loyal O&D travellers.
If the answer is the second part then they have nothing to worry about.
However the fact is that Jat has been recording growing numbers on its flights to Montenegro, which makes me think that the answer will be number on.
Even at the time when YM dominated the market, surprisingly, Jat managed to make a much greater profit. This was only due to the fact that they operated turboprops. This is not my assumption but actually I was told this by people working in Jat.
@ Anonymous sorry, I thought you said SKP not SJJ.
ReplyDeleteService to Milan and Brussels from Podgorica didn't start on April.
ReplyDeleteThats flight was be on stand by and still so.!!!
The beginning of the end for YM.
ReplyDeletePerhaps being bought out by JU solves both problems - YM can't run any flights with new planes, and JU desperately needs newer planes to remain alive.
As for yesterday's postings, hilarious to read and i'm sorry I missed out on all the fun. But given this is an aviation problem, why discuss politics??
@frequentflyer
ReplyDeleteAnd where exactly would Jat find the money to buy out YM? They can ask the government but I doubt they would give them coz they are pretty much broke as well.
However I will fully agree with you that these Ejets would suit Jat perfectly. Only if they could also inherit the E175 order. That could actually save Jat.
On a side note, I know that it might be bad, or unwise but maybe Jat can get YM's F100s.
They are not in bad shape, it's a good aircraft and I am sure that YM would not mind giving them away.
Additional source of income plus they would reduce the overall capacity.
I said F100 as I am sure that YM wouldn't be ready to lease out/sell their new birds.
@ frequentflyer
ReplyDeleteeginning of the end for yM??
My son is approaching the digit of one million passengers per year, with half as many planes and destinations of JAT?
So see if you stand your conclusion.?!
Of course it will suspend flights where there is enough interest.
Market situation is such that there are many competitors, the price of fuel is too high, the buying power of passengers getting smaller, and must take into account the cost of each flight.
Air traffic is not a children's toy boy.!
A constantly increasing passengers and purchase new aircraft it shows the seriousness this EX-YU Airlines.(YM)
It would be better for our JAT retracing through the rationalization, and as soon as possible!
I believe that OS would be interested in acquiring any Fokkers in good shape.
ReplyDelete@South Serbia:
ReplyDeleteHmm... did you just wake up from a decade long sleep?
The Montenegran government has openly said that YM is becoming a burden to heavy to carry. They have also expressed their nuisance with airline's incapability to make money by allowing foreign carriers to operate into the country. The fact that YM is almost carrying 1.000.000 passengers is simply because the government doesn't allow free and fair competition. If the Serbian government adopted the same policy, Jat would be carrying 2,500,000 passengers today!
Yes, the fleet and pax numbers of YM are on the rise...so are their loses! The latter shows that they are just another failed carrier.
Unlike other airlines in the ex-Yugoslav region they will not be able to cope with the growing competition. The main reason for this is that unlike Jat or Croatia, YM have over-capacity.
As frequentflyer stated, they are at their end.
As for Austrian and Fokkers, I do not think they would go for the Fokkers. The whole point behind the acquisition of the Dash-8 fleet was to slowly replace the Crj-200 and certain older Fokkers. There are very few customers for the Fokker 100 aircraft, maybe Carpatair would be interested since they are the ones who took Malev's Fokkers. Even KLM is replacing them with the E-jets.
Simple interline agreement would do the work, maybe kinda merger. Code-share flights between BEG and TIV/TGD with no flights departing within 15 minutes from one another, but to make timetable convenient enough to have 6-8 daily flights every 2 or 3 hours during the whole day to/from BEG to/from TGD(TIV) - ie at 0630, 0830, 1130, 1430, 1630, 1830, 2030, 2230.
ReplyDeleteOn heavier routes they should employ 733s and E195s, and on regional routes they should use combination of Fokkers and ATRs from both hubs. Look at Lufthansa slash Swiss slash Austrian. Any clues!? :)
733/195 (13+2 a/c): LHR, CDG, AMS, BRU, ARN, CPH, FRA, DUS, TXL, STR, ZRH, plus charters, plus frequency increase, plus possibility of introduction of new routes.
AT7/100 (9 a/c): INI, SKP, OHD, SJJ, BNX, LJU, ZAG, VIE, GVA, (TXL), BUD, OTP, FCO, MXP, SKG, ATH, IST plus BEG-TGD/TIV.
Of course, to eliminate monopoly, both countries should allow ie WZZ or any other airline to open (semi)low-cost routes between SRB and MNE.
Think about that. :)
@ Neemje
ReplyDeleteAs first,low cost carriers in Montenegro no one defends the fly, but they sad they do not have too much interest to fly from Montenegro (small country).
Secondly, I heard the CEO of YM Djurisic who confirmed that the Montenegrin government has not made the last 4 years the euro single airline, and the citizens of Serbia from the budget pay for JAT 25 million minimum per year, to cover his debts. (In addition to Montenegro Airlines has a debt today of only 4-5 million to be paid by the end of the year, and the leasing of aircraft is not late even one day, confirmed the Embraer factory!)
Third, Montenegro Airlines is now it seems to me the most successful airlines in EX YU space, while Adria, Croatia and the JAT in big big problem every day, with only the market and nothing more ...for now.
You're talking about 2.5 million passengers flock to the Jat could have ... this is what would happen if it were ... Today reality is about 1 500 000, then in half, to the end of the year by which time the fleet will be able to withstand the maximum, you have confirmed.
And do not forget JAT flies from Belgrade Serbia from 6 million people and only Belgrade 2 500 000 potential passengers and Montenegro has 700 000 inhabitants.
That is why the greater success of Montenegro Airlines compared with JAT, as they fly from much smaller countries.
And in the end, if I well knew, and I had, Montenegro has received loans for new planes E 175 and E 195 with no guarantee of the Montengrin goverment but only from the Brazilian National Bank, which best shows how the company has stable sources of funding and what is economically strong, of course, nowadays it is not easy.
So much of how you are properly informed??
And that Wizz Air, which is so mentioned, do not be surprised if it breaks one day when they stop subsidizing it all live (and known and unknown financiers and tycoons who want to destroy the national carriers, and then assume a monopoly)
So where can a return ticket on any route to cost 20-30 Euros, you know that cost just as airport taxes, and where is the fuel, and flight crew salaries are especialy high and airport'si service aircraft, plus the rate for the lease Airbus aircraft and more ...
Hope you're not crazy to think that there are places to go on another earnings even if their plane was full 100 % and tested know it's not because I'm flying with them very often. Average is 70-75 percent.
From Milano to Ibiza on my flight availability was 30% in April,
Think about it and a bit! Pozzz from South of Serbian
Nemjee, can your posts be a bit shorter, Thanks *sigh*
ReplyDelete@Anonymous,
ReplyDeleteAre you talkinga about me or South Serbia coz my posts are not that long.
@South Serbia
First of all, you are wrong. Lowcost airlines had expressed their interest in serving Montenegro BUT Montenegro Airlines has vetoed their flights every time. If there wasn't an interest we would not have Air Berlin this year flying.
Also, there is a study going on now for Ryanair to start flights there.
When you talk about the debt, do not forget that Jat had to inherit the debt of Jat Yugsolav, which was massive. YM started fresh, with a clean slate. This means that the credit rating for Jat is much worse than for the other airlines. Yet, with all this Jat has managed to survive so much that had come its way in the past 20 years, where as YM is failing the second the government announced the end of its protectionism.
You can compare the markets, but then again Jat doesn't have the tourist industry in its home base country. Montenegro Airlines has the summer charters it can operate. For example the national carrier of Cyprus carries 1,700,000 passengers per year whereas the island itself has less than 1.000.000 (820.000 to be more precise). Larnaca airport handles around 6.000.000 passengers per year. So comparing the market by the number of people doesn't make sense.
As for the rest of the post, I am honnestly bored to decode what you mean so I will just say what I said before. Yes, Montenegro has a younger fleet and it's losses are less. However Montenegro Airlines has overcapacity which is much worse than undercapacity. They have too many aircraft that they do not have where to fly them. They are failing bit time. The fact that the MNE government decided to liberate the market says a lot on how much they care bout the airline. You do not see UAE neglecting their airlines, naturally that is because Emirates, for example, contribute to 25% of the Dubai budget!
To conclude, one argument you can not go against is that, no matter how bad the state of Jat, Croatia or Adria is their planes and employees were never brought to such a position that they could not land an aircraft just because their owners didn't pay the landing fees at an airport.
Wait wait Serbia has only 6 Million population?!
ReplyDeleteI think it is about 7.5 Million.
Btw. YM achieved pretty much for the state size.Much more than the other republics even compared to Sloveenia.This is a fact
@ South Serbia,
ReplyDeleteSerbia has about 7,300,000 people - dont post facts acting lke your right and a genius when you are WAY off... and you dont make sence, JAT constantly has growing pax due to more people traveling, transit pax and etc. :P Montenegro airlines is failing im sorry but it is true. I believe JAT and Montenegro should merge, JAT take over everything.
Haha, people dont forget that Serbian solely airport BEG (excluding INI) has a constant number of passengers EVERY month during a year. (of course, not to mention a rise in the last 18-19 months because of the visa liberalization.)
ReplyDeleteIn the other hand look at MNE or CRO for example. Coastal airports make a huge increase of passengers during summer months witch is absolutely normal. But please, don't forget that if MNE were continental country without coast (like ie Serbia and Macedonia are) and with same number of habitants it wouldn't have that much passengers flown throughout their airports. Simple logic and pure mathematics :)
A o nasledjenim dugovima JATa posle raspada SFRJ ni ne treba da govorimo :)
Cheers!
WIZZ AIR managment is holding talks with Sarajevo Airport.
ReplyDeleteAt know i can't confirm which routes, they have planned for Sarajevo.
I have this source from one, which is working at Sarajevo Airport.
Maybe London-Luton, as there is no direct flights beetween London and Sarajevo?
@Nemjee
ReplyDeleteOS is very interested in Fokkers. In fact, they are keeping their F70/100 fleet until 2020.
http://www.flyfokker.com/Fokker-FLYFokker-News-Fokker-Services-signed-Fleet-Lifetime-Agreement
Last anonymous,
ReplyDeleteYes yes, I never said that they were unhappy or anything else, just that I do not think their Fokker fleet will grow. It's a shame as I love that aircraft, it's quite comfortable and nice.
I think if they were to purchase any new plane of that size it would be the Dash-8 or if a larger aircraft is needed then the Ejet (since they can get some early slots thanks to LH) or the C series...
@Nemje and anonymus
ReplyDeleteMontenegro Airlines currently has seven or eight aircraft, but will in the next 3 years to have six completely new Embraer E195 and E175 and will have the most functional and most younger fleet on the Balkans.
Jat not only has a legacy of debts, he makes up huge debts, has a fleet for Historical Museum,(ATR-72 ?!!!,) the oldest flight attendant, obnoxious catering, very few friendly staff. These are facts and until that changes can only boast figures monopolism from Belgrade and nothing more, and it will come because it will end soon in Belgrade and Montenegro Airlines will be able to fly directly to Europe, according to 5.freedom in Open Skies.
As for the cost-hunting in Montenegro, Air Berlin is not a real low cost.(see their pice)
And as he came, and soon will go after the tourist season will end, while Ryan Air will not start to fly in montenegro just as it started out of Nis to fly before a 1 years while there was no economic crisis.
That is the true.
@South Serbia,
ReplyDeleteI have no will or intention to discuss any aspect of aviation with someone who said that Jat has monopoly in Belgrade. This statement only goes to show how 'vast' your knowledge in aviation is. I will not waste my time.
Have a great evening.
@ Nemjee
ReplyDeleteOK, you are all right for everything, Fly you with good airline JAT AIRWAYS, with very good ATR 72 at confortable seat, and let out us from southern Serbia to fly with uncomfortable and slow Embraer 195 with Montenegro Airlines from NIS.
POZZZ