Etihad’s takeover process of Jat progresses
Etihad Airways will submit its offer for a minority takeover of Jat Airways by the end of this week. The offer will be submitted to the Serbian government. It will outline the amount of shares the national carrier of the United Arab Emirates is willing to purchase and at what cost. The acting CEO of Jat Airways, Velibor Vukašinović, is in Abu Dhabi this week where he will meet up with key people from Etihad Airways. The timeframes set out for the takeover, as outlined in late April, are being upheld. The screening process was scheduled to be completed by mid May while an offer is expected to be sent, as initially planned, by the end of this month.
Etihad completed its screening process of Jat’s business last week. The airline’s team of experts scrutinised Jat’s sales, destination network and overall business operations. The team also payed attention to Jat’s most recent 2012/13 winter season. Etihad is currently in the process of opening its office in the Serbian capital.
Etihad Airways CEO, James Hogan will visit Belgrade in June where he will hold talks over the proposed takeover deal. As part of the takeover, Etihad is expected take complete control over Jat’s management, naming its own CEO, head of finance and operations. Etihad will also partially finance the 1998 order made by Yugoslav Airlines for eight Airbus A319s, which have never been delivered. The national carrier of the United Arab Emirates would provide the pre delivery payment, allowing the aircraft to begin arriving in Belgrade. Etihad and Jat are also set to integrate frequent flyer programs, airport lounges and handling at airports both airlines operate to. Furthermore, Etihad will codeshare on 23 Jat Airways destinations from Belgrade while Jat would place its flight numbers onto seventeen Etihad destinations as part of the deal.
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ReplyDeleteYou forgot to take your medicine this morning?
DeleteThe only airline that Jat will have a strategic partnership with is Kingfisher.
ReplyDeleteJat is in the process of forming an alliance with Malev, MAT, Spainair and Kingfisher.
Delete...and soon Air B&H, Adria and Croatia Airlines will submit their application.
Deletethey won't get in. Their fleets are not of the standard of Jat.
Delete...and funy enough, MA, IN, Spanair and Kingfisher had modern fleets. JP's A320's is just about the same age as JAT's B733.
DeleteOf course, we can't have a Jat-Etihad announcement without the regular army of hater and jealous bitches. Personally, I am happy this is moving forward as it will make sure we avoid the scenario which is currently taking place in Croatia.
ReplyDeleteThat said, I want to point out that I hope Croatia Airlines survives as if it shut down we are most likely not going to see a new carrier. The Hungarians tried it and failed, the same will happen in Croatia.
It is interesting how this etihad deal keeps getting smaller. In the first reports Etihad was going to make full payment on the Airbus order, now it's only partial payment. Jat was to codeshare on the entire Etihad network, now it's only 17 routes.
DeleteNot to mention the other "stories" that have since died such as. Etihad was to arrange training for Jat staff on Airbus, Etihad was going to purchase Jat Technika, and the like.
I'd rather be a hater than a gullible stooge.
If you choose to be hater than be a proper one and not based on the wrong information. It was mentioned on the beginning of this story that Etihad will HELP Jat Airways to re-activate its Airbus 319 orders by getting better contract conditions, but not to pay them fully.
DeleteIt was also not mentioned that Jat would codeshare on all Etihad routes as it is simply not possible taking in consideration administrative boundaries for certain countries.
Etihad had nothing to do with Jat's Airbus trainings as it was decided back in January/February when Etihad was not even mentioned as Jat's potential partner.
I hope you do know that Jat Tehnika and Jat Airways are two different companies owned by the same owner so whatever happens to Jat Airways does not have to be anyhow related to Jat Tehnika.
Let's be clear here, there are many so called experts would do anything this deal with Etihad to be spoiled as they would still have much space to continue with their business inside of Jat Airways and even Government is helping them by spoiling the promises to Etihad during Mr. Hogan's previous visit to Belgrade.
But, these reasons are really not good enough for all haters who would more then anything like this deal not to work. Especially now when the situation with Croatia Airlines is under big question sign.
I wish Croatia Arlines not to be closed, but if that happens could you imagine how it would be taken in the neighbouring country that their national Airline (often mentioned as allegedly the best one in Ex Yu) gets closed and Serbian one taken over by successful Etihad? Is actually the fear reason for hate?
Why would ANYONE invest in an airline that cannot keep it's flight schedule? in the last 2 weeks 75% of Jat flights have been delayed. Who would want to be associated with that?
ReplyDeleteI agree with the first post, sounds like a pile of Bullshit to me too.
Time will tell,guys wait and you will see, dont make any early judges...GREETINGS FROM SERBIA
ReplyDeleteThis coming winter Aeroflot will..
ReplyDelete- keep Belgrade flights as double daily.
- increase Zagreb from four weekly to daily.
This deal is impossible it will take Etihad years to fix all Jats problems and what does Etihad get out of this deal?? can anyone give a realistic answer. Im not a hater im a realist.
ReplyDeleteSo why are they looking into Jat in the first place?!
DeleteThe amount of surplus crew is good enough, as many cockpit crew could be offered jobs in AUH with EY.
DeleteAs well, BEG isnt a conjested airport with room for growth and is not restricted by night curfews.
JAT has alot of slots that are unused to places where EY have been restricted rights. In cooperation with JAT, EY can offer more frequencies to more destinations, even serving markets via JAT that for EY would be unviable with their own metal ie: SJJ, SKP, TGD, SPU, DBV.
Traffic coming from BEG could increase their pax loads with AUH becoming a more interesting hub for transfer pax.
I am not saying that everything is a field of flowers and JAT is the ideal company to invest in, but it isnt all that bad either. The main issue is the years of mismanagment of the airline with a lack of plan, vision, growth and marketing. The Serbian government has taken the initiative to rid the airline of debts, although Im not impressed that my taxes will pay for their stupidity, it will make the airline more attractive for investment.
Everyone here is expecting EY to bring miricles, but that will only come if those in JAT and the Serbian government will allow for it to happen.
Hey, how about a topic about JAT delays and their tracking? I can see they only fly 5 737-300 plus a AGX 737-200 for the ambitious summer flight schedule. Where are the other 4 737-300, as one will for sure not fly for good?
ReplyDeletewhat are the chances of starting direct flights from Belgrade to North America?
ReplyDeleteNone or even less. It's not the option on today airline bussiness chart to fly from small, poor area to overseas destinations.
DeleteIt was possible before the big alliances come to power.
The only way it could possibly happen would be as a transfer flight a la Uzbekistan Airways ex. AUH-BEG-ORD or BEG-BER/DUS-JFK or GYD-BEG-JFK for instance.
DeleteI would agree with the anonymous 7:25 PM. Unless, however, Croatia and Serbia try to consolidate - in theory it'd be possible. Both countries have large diaspora in the similar areas of US(NYC and Chicago), and so combine that with Croatia's tourism potential... you could easily have US city - Zagreb - Belgrade flights and back.
DeleteThe problem is in the operator, and the category (several levels of freedom) - so the chances in practice - are really small.
Croatia may get 1 or 2 direct flights if Air France, as a largest ADP customer, base 1 aircraft in Zagreb, after French take over.
I see this happening with 1 flight only (probably NYC) and for the summer season only, not the entire yer...
We'll see.
Jedino resnje jeste model slican SASu :) Dajte ljudi, unistise Jugu polako ce i sve nas, sve je to isplanirano.Neka nam je sa srecom svima...
DeleteI can see North America flights to Croatia soon, (within next 5 years) but only in the summer as a charters service. Very similar to what we already have with JAL and Korean coming to Zagreb.
DeleteIt won't be long before some American travel agent realise they can make money selling holiday packages to Croatia and when that happens I think we will see direct charter flights.
In terms of direct year round RPT service, someone could try it but it wont be profitable and there are enough 1 stop options covering most of the Americas via a number of European cities which is already very competitive. It will be nice to see but very unlikely.
On a side note, what is interesting is possible flights to Asia and Australia from the region.
JetStar (not my favourite airline) had a huge order for the 787 Dreamliner about 80 confirmed and another 80 options. This has been revised to just 14 aircraft at this time. They are also trying to set up another Asia base in Hong Kong, they already have one in Singapore.
The plan when they had the 80/80 order/option for some of these aircraft where apparently to act as Asian hub busters for the Qantas group from where it was mentioned Jetstar may one day expand into Europe again. Probably Ex Yu was not high on the list and places in Asia followed by European cities like Rome, Paris and Athens would have been serviced first but it was still an interesting strategy and one I'm not sure they are still perusing.
'Jetstar may one day expand into Europe again'
DeleteWhat I meant to say here is that Qantas via Jetstar might one day expand into Europe again.
Anyone, a word on Belgrade's numbers for April ?
ReplyDeleteHopefully around the same level as last year... yes no ?
Please no more fake Yugo brotherhood.
ReplyDeleteEnough with Belgrade-Zagreb to consolidate
Just a word on why this would make sense for Etihad. I don't pretend to know ins and outs of aviation industry but they are getting portion of the airline for next to nothing, they'll have the controlling rights regardless of the % they decide to buy, might be able to utilize JAT's slots at European airports to their advantage. All in all they don't have much to loose. On the other hand they don't have much to gain because in the big picture this is very small deal for them. It might be the political side of the story that is pushing them into this direction.
ReplyDelete