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| Hogan: If numbers stack up Air Serbia heading to the US |
James Hogan, President and CEO of Etihad Airways, as well as Vice-Chairman of Air Serbia, spoke to EX-YU Aviation News in Zurich yesterday following a press conference dedicated to the airline’s newly launched service from Abu Dhabi to Switzerland’s largest city. In his comments, Mr. Hogan shed light on developments at Air Serbia as well as the carrier’s equity alliance strategy.
Mr. Hogan says he is “very bullish” about Air Serbia and its progress. “Danny Kondić and his team have done an excellent job in running Air Serbia. Results in the first quarter have exceeded the business plan. Air Serbia will break even at the end of 2014”. Mr. Hogan notes the Serbian carrier has launched a significant number of new routes over the past few months and has brought in new aircraft. Commenting on the recent agreement between Serbian and Turkish aviation authorities, which will see Air Serbia return to Istanbul’s Ataturk Airport later this year, Mr. Hogan admits Turkish Airlines has been dominant on the route but adds a return to Ataturk gives Air Serbia new opportunities.
An important issue which has been raised over the past few months are Air Serbia’s transatlantic aspirations. “I am very keen. We discussed this with the [Serbian] Prime Minister. We are doing a business plan. If the numbers stack up flights will maybe launch at the end of 2015”, Etihad’s CEO says. Furthermore, Mr. Hogan notes that Etihad is looking into Air Serbia’s former maintenance division Jat Tehnika, “We have our own line maintenance that we have established. We are looking and evaluating Jat Tehnika but that’s all we are doing at the moment”.
The CEO of the national carrier of the United Arab Emirates explains his airline has a different approach to that of its competitors. “Etihad has a different strategy to other airlines. We support organic growth with codeshare partnerships, investments in other airlines - were it makes sense - and deep collaborative agreements. Strategic investments in network partners are a key to our strategy. With Air Serbia it gives us strong links to the Balkan market. At the same time, we have strongly linked Serbia with Germany through our partner Air Berlin and linked Belgrade with longhaul flights through Abu Dhabi. The game plan is how to link connectivity”. Mr. Hogan adds Etihad has a long term outlook. “We are looking at how the world will change, how bilaterals will change, how markets will open up and how to advance forward”.
Touching upon criticism from the industry that in addition to equity investments Etihad also exercises effective control of its partners, Mr. Hogan responds, “I can’t sit in Abu Dhabi and manage a Swiss, German or Serbian business but I can be a strong and responsible shareholder. There is a strong local team running each airline. The game plan is how we build connectivity. Our segmentation is different to other transatlantic airlines. Our strategy is about being competitive”. He adds, “What’s important to us is how we knit our network with our partners, which allows us to be competitive. That is what passengers want. We are a responsible competitor and with our partners we aim towards profitability”. Mr. Hogan did not delve deeper into his airline’s ongoing talks with Alitalia over a possible stake in the embattled Italian carrier and how it will impact their equity investments, saying only, “We are in discussion with Alitalia”.
typically, its the same standard answers but then what did we expect...
ReplyDeleteCongratulations EX-YU Aviation. It's excellent that you're able to speak to industry giants like Hogan. Very pleased for you and for the site.
ReplyDeleteOtherwise, Hogan did not say anything new that has not been reported here already. So, no exclusives.
Finally, Hogan's point of where he sits is moot. You can control, of course you can, a business in Europe sitting in Abu Dhabi. You can have local management managing the day to day running of the business while you sit in Abu Dhabi, or even Ulan Bator, and control and direct the business. Management and controling/directing a business are two different things. One could argue that when it comes to transatlantic flights Etihad's control is apparent. The Serbian Prime Minister is essentially asking (discussing, to put it politely) Hogan if they can start these flights and he's saying if the numbers (perhaps not just Air Serbia's numbers, but Etihad's numbers too) add up then maybe they will. Can you prove this in court or in front of a commission is another matter altogether, but one thing is clear, if Etihad do not want Air Serbia to start transatlantic flights then they simply won't happen.
In any case, it's good for Air Serbia to be in the mix with Etihad and all these other developments around them. Will it turn in the long run into another Clinton-Lewinsky partnership with the junior partner on its knees, that remains to be seen.
You mean like LH-OU relationship?
DeleteNo, OU is getting it in the ass (btw I'm from HR)
DeleteExpectations must be very positive. growing of AirSERBIA going ahead. Equity investment from ETIHAD, only raising strengths for ETIHAD AVIATION GROUP, and build commonwealth of airlines in fundamental target. Delivering of safety, responsibility, service to people on ground, in flight and to making money, achieving profit. Naturaly every single member must proofing them self. No "samouprvljanje, kukaci, bakraci" & co. "Love is over". Time for Serbia to be serios country. After over 65 years in wild! Frendly greetings. Rodney. Sydney /// Kraljevo
ReplyDeleteHe's a really down to earth guy. I really like his approach to these things.
ReplyDeleteMr. Hogan is a very clever man. He hunts run down airlines, that have no choice. Either bancrupty or take over by Etihad. Etihad then "helps" them by giving huge loans (as is the case with Air Berlin- at very high interest rates) or collects money from the governments like Seychelles, Serbia, Italy through open or hidden subsidies. At the same time the employees are being fired (Air Serbia), salaries cut ( Air Berlin). The only purpose of these satellite airlines is to bring traffic to their premium Abu Dhabi hub and so contribute to the revenue of Etihad. In Serbia Air Serbia is now heavily subsidized by not paying airport fees to belgrade Airport. This is breach of laws, since the Airport is a public entity. So tell me, is there a difference if JAT makes 20 mio € losses or the Air Serbia breaks even but Airport belgrade lost 20 million € taxes?
ReplyDeletewell, airport is public entity with approx. 90% stakes owned by GoS, so i don't see how is that breach of laws (and which laws, btw)
DeleteBravo An.@11:01. I'll sign for each your word :)
DeleteActually, I've been saying often here that at the end Serbian taxpayers will be those contributing to Etihads profits. But instead of hearing any argument that opposes my claims, I was simply declared a troll, hater, idiot... So, be prepared...
Anon @ 2.59pm .. are you someone with genuine good intent and righteous protector of Serbian taxpayer interests ? Because if you are, then if you had the benefit of more than that one eye in your head, you would've acknowledged long ago, the windfall gain that the Serbian taxpayer has already gained through Etihad's investment in Air Serbia. How so ? Remember the USD23.5m PDPs paid by the former Yugoslav govt back in 1998 to Airbus for the aircraft order which the govt later reneged on ? Oh yeah - I hear you say .. "whatever happened to that" ?? To cut a long story short, this would've ended in disaster for the govt and Serbian taxpayers. Airbus had taken the USD23.5m as a cancelling fee and the govt was staring down the gun barrel of a USD500m + lawsuit, which they would've lost. However, when Etihad arrived on the scene, not only was their leverage over Airbus brought to bear, in having Airbus drop their lawsuit (I suppose when you order 200 + aircraft, that gives you some muscle), but they were also able to squeeze out of Airbus, reinstatement of the otherwise gone USD23.5m PDPs to be used against the future order of JU's Airbus A320neos ... all in all, I would say a massive saviour to the govt, which, had the lawsuit have continued, would've punched a lethal blow to the already strained Treasury. So before you think about what damage the Serbian taxpayers are and will suffer as a result of this deal, get real and acknowledge the already awesome thing that this deal has delivered ... You might get taken a bit more seriously next time .... This message applies equally to all the other naysayers who talk nothing of gloom and doom about this deal b/w Etihad and the Govt of Serbia ... Wake up and smell the coffee people - they have already saved us inexcess of USD500m !!
DeleteOh really? I only know that they money was paid by stupid Milosevic government. Etihad managed to convert the order for A320 neos, but honestly, where is the money???? By the time the A320 are going to be delivered EY might be out of controls ( remember- commitment for Air Serbia is 5 years). The money incl. interest rates is presently in UAE pockets not in Serbian!!
Delete23m cancellation fee plus, and 73m losses cover minus, for GoS, make 50m loss, not 500m save.
Delete3 dots contract parts for costs of lease, flight ops, maintenance etc etc are not there for JU but for EY who is not in JU for love, emotions, charity or friendship, but for profit. Not regularly, like in AZ or AB, but illegally.
That's why Hogan "loves" JU that much, and it will be you to wake up and smell coffee if, or when, anything goes wrong, and EY pulls out, old Airbuses go back to lessors, and Neo order remains wih EY or transfers to AZ.
And there are at least 50:50 chances for that at the moment
I love engaging with people who can only count to 3 .... so Einstein, you accept in your opening salvo that Etihad retrieved the USD23.5m PDPs on behalf of the GoS - hence your ledger balance starting with +23m. I have seen the agreement that Milosevic's govt signed with Airbus and I can tell you that it is excruciatingly onerous. It was signed and executed under extenuating circumstances, with the French having played a role best described as xxnts. Nonetheless, a deal was signed and the deal was not honoured after the French participated in the NATO bombing of then Yugoslavia. Unfortunately, courts do not recognize political reasons for not fulfilling commercial agreements/contracts - meaning that the GoS has had the prospect of a USD500m lawsuit hanging over its head, with Airbus waiting to see what JU would do with its fleet renewal program. A move to purchase new Boeings, would've been suicidal - thereby triggering Airbus' lawsuit ... With EY having come along and leveraging its muscle over Airbus, this issue has now gone away (which means no lawsuit which would've amounted to USD500m +)... Since you are not a coffee lover, you shouldn't be suffering from my supposed lack of clarity ... so pls tell me (since you are the man with all the answers), what would've happened if Etihad didn't come in as an investor, as it relates to the binding contract that the former Govt of Yu signed with Airbus ? you think Airbus would've let them off the hook just because they're good guys ??
DeleteEY ima 5 god Menedzment u JU.
DeleteNece otici posle tih 5 god sto bi mnogi ovde voleli.
INN
Ugovor je 5 + 5 I Etihad odlucuje na produzenje, ne GoS
DeleteDa li vi namerno zajebavate Ljude ovde ili sta vec.
DeleteEtihad Airways je vlasnik 49 % Air Srbije, oni mogu da odu tek kad prodaju svojih 49% nekome.
Izgleda se ovde malo njih razume u trgovanje Akcijama.
INN
Being a shareholder and having a management contract are not mutually exclusive .... you can still be a 49% shareholder, even if you do not have the mgt contract. Furthermore, you can have the mgt contract to run the business without having to be a shareholder - hotel mgt contracts are the perfect example
DeleteApologies, I meant to say "are MUTUALLY exclusive" ....
DeleteWhat is happening with the fleet?? Today , more B733 are in the air than Airbuses..A6-SAA is sitting in BEG, A6-SAB flying only to AUH, YU-APG is lost in MUC, and no sign of 8th A319. I am confused.
ReplyDeleteA6-SAB today fly to SKG,CPH and tonight to AUH,not true that fly only to AUH,A6-SAA get a new registration,possibly on sunday or monday will begin to fly,
DeleteA6-SAB flew 2 days only to AUH, i checked on flightradar and on skyliner there is not new registration for YU-API ....skyliner is the best site for new registrations
DeleteAnd, by the way, i still remember how new management of Air Serbia promised that all fleet would renovate until the end of the March and have summer season with 10 Airbuses, 5 ATRs and only 4 B733 in charter division...so we are in the summer and their promises gone with the wind. I never promise to my family something i could not finish, and for me, it is an ethic standard. And AirSerbia likes to call their passengers as guests and some kind of family...
DeleteWould be renovated*
DeleteYesterday flew to SKG,ARN,AUH,not sure but on wendsday flew to SKG,ZRH and AUH,every day had tree rotation,chek in flightradar again,as for the A6-SAA I think he got the night before
DeleteI think he came the night before
DeleteI would never post something i am not sure or rumors...checked twice on flightradar because after coming of A6-SAA i was curious to see what would happen with A6-SAB, well it flew to AUH only according to flightradar two days...
DeleteI checked again and you were right about A6-SAB, i think it was a glitch on flightradar, i am sorry....
DeleteThat's ok, mistakes happen
DeleteA6-SAA came back from AUH and it is expected to enter the traffic this evening flying to SVO.
DeleteBut still as A6-SAA, not YU.....that is all i wished to say about new registration
DeleteDusan @ 12.14pm .... give it a rest Bro ... you sound like a broken record ... we have also been promised the Second Coming for generations and to date, it hasn't happened but I don't see millions of people leaving the faith .... When you deal with lessors, you have no control over what condition aircraft get returned from lessees ... Some are great but some are crap and so you need to ensure that they are received in good condition. Besides, the lessors compensate for late deliveries, so JU is not out of pocket ... So they now have 9 and it is now mid Jun - they missed their initial target by 3 mths - big deal ! ANA were late with their first 787 by 3 years despite their initial promises as to when it would enter service - who really cares ?? Everyone seems to know that these are matters out of an airline's control - except you ....Take a chill pill dude and relax - go worry about more important things like getting your prostate checked or buying that cream to sort out your hemorrhoids ...
DeleteThanks God i am healthy man, my prostate is ok, never had hemorrhoids and i imagine you in new fashion shoes with briefcase and suit with lots of gel in your hair and no brains at all like so called new Serbian yappies....and i drink Jim Beam for relaxing because i like it, don't need pills. If you were read my post it was about promises from AirSerbia management. Why did they promise modernization of all fleet until the end of March, nobody here pulled out their tongues.And when it didn't happen they are silent. But you can't read, only know to be rude. Your gel in your hair is funny.
DeleteDude - I suggest that you stay off the JB - your writing is slurred, so clearly you are way relaxed and have had one too many to write lucidly ... come back when you have sobered up ...
Deletecan somebody please help out here and tell us all what a "YAPPIE" is ? Dusan's had one too many JB's and is not making much sense ...
DeleteWhat happened to Dusan the"ethic standard" ?? He's gone quiet ...
DeleteDusan, please come back !! we miss your great story telling, which surpasses all expectations in your exceptional 'native' broken English ... Hurry back before I have to wash the gel out of my hair ...
DeleteNije kulturno ismejavati Ljude i ako pogrese u necemu , sto dosta osoba radi ovde.A nije kulturno ismejavati pogotovo Kapetana Boeing-a .Dusane svaka cast na Komentarima:)
DeleteINN
A6-SAA no longer exists, it's re-registered now as YU-API and it had its maiden flight to Moscow last night.
Delete"Danny Kondić".... well,well,well.... lats talk about personal relationships, Mr. Hogan.....
ReplyDeleteYes, these 2 Aussies go way back ....
DeleteSta im je?
ReplyDeleteMalo mi je nerealno da ih Air Serbia bas toliko rastura na liniji za Cirih.
Sto se tice Zeneve, oni imaju one vrlo povoljne tarife gde povratna kosta 120 evra bez checked-in prtljaga. Plus konekcije...
Zanimljivo je kako se clanice Star alijanse nisu pretrgli da se izbore za svoje mesto na aerodromu.
Germanwings, Swiss...shall the entire Star Alliance leave BEG, we dont need their arrogance and moaning through the media. Theres a lot of politics in all their decisions.
ReplyDeleteVery clear strategy. Air Serbia builds huge capacity and dumps fares until competetion gives up. Germanwings is also closing down the route to ZRH. LH decreased MUC from 3 to 2 daily flights.1. consequence, sooner or later fares will go up. 2. consequence financial troubles for BEG airport, since we learn that Air Serbia does not pay service fees. With less foreign airlines, less income! So that's Hogans strategy: the losses of JAT are now transferred to BEG airport. Nije sija nego vrat people would say. In the end the Serbian tax payer will pay!
ReplyDeleteIn October BEG airport will be under concession and your theory would be wiped out....No one concessionary would let any airline to not pay taxes...i am real tax payer because i have really big pension and i like to pay my taxes for benefit of Serbian aviation industry. And you made me laugh because you are trying to be a psychologist and to read Hogans minds....so funny
DeleteEtihad agreement keeps bearing fruits for BEG.
DeleteI hope the European Commission reacts, now that there are clear evidence of foul play and intention to go on with it.
Why are you so obsessed with EC, they are in mess now,Brits are on their knees, French selling war ships to Russia, Angela Merkel is trying to stop American influence into Europe, so do you think that European Commission doesn't have more importan things to solve than AirSerbia-Ethihad contract
DeleteEC is not in any mess to protect its own interests. ...do not count on that that Air Serbia & Etihad will not be on their table very soon
DeleteSouthern stream has much more importance than airline company with 15 old aircraft leased from everywhere.....what is EC interest there, AirSerbia is so small airline
DeleteAgree .... but there are not the same people and the same body ... EU has its own body for transport and withit the air transport ... they have to excuse their saleries .... so if LH an its SA just make a move (or AF/KLM or Iberia or BA) ... EC will do it
DeleteI agree with you that Government aid to Air Serbia was enormous and not transparent but still , Serbia is not in EU yet and i don't think LH or KLM would make any move regarding that KLM has code share with JU. Iberia is near bankruptcy, SAS are not interested in Balkan market, Alitalia would become Etihad slave....BA is an colonial airline, so only LH might make a move because AirBerlin, not because AirSerbia
Delete"Very clear strategy. Air Serbia builds huge capacity and dumps fares until competetion gives up."
DeleteLet me see if I can change "Air Serbia" with "Lufthansa Group" to describe how LH destroyed every attempt to launch North American routes from East Europe in the last decade or more. Yes, this was EXACTLY their strategy:
"Very clear strategy. Lufthansa Group builds huge capacity and dumps fares until competition gives up."
I am waiting for your reactions after some of the companies other than Air Serbia increases their frequencies to Belgrade. Maybe easyJet or Darwin?
DeleteOh, wait, it can't be Darwin (Etihad regional). You might say: it is all Hogans or Vucics evil scam.
If Easyjet increases frequency, they could be accused on this forum of supporting Air Serbia.
DeleteNeradi to samo JU.
DeleteLH je takodje na liniji FRA-HAM kad je dobila konkurenciju od AB bila snizila neverovatno cene Karata i AB je odustao od te linije nakon 3 Meseca .
INN
But do not forget that Serbia is a candidate state. ..and that EU will not allow this kind of dumping approuch...soon or later the transportation cheaper will have to be closeed...enjoy as long as you can
DeleteSo you are saying that EU will also go after LH for their behaviour?
DeleteThat happens whan you protect your national company with 100% discount. Lufthansa group with 300.000 passengers in Belgrade should have at least 25% discount if Air Serbia gets 100%. That is not business. That is criminal protectionizam. And at the end you will have in BEG decrease of passangers and just one company which pay nothing. How will they work? Or you really thing that Luftansa will pay for subventions.of Air Serbia?
ReplyDeleteisnt zurich the largest city in switzerland not geneva?
ReplyDeleteYes, they launched flights to Zurich.
DeleteStar Alliance Fail
ReplyDeleteSA will be back for sure...soon or later. ..Their is no point to make business on so very protected market. .I think that the belgrade airport an air Serbia will soon be an issue
ReplyDeleteYou can flank out everybody if you do not play by certain rules.... within 2 years Belgrade airport will see no one other airlines but AirSerbia, Etihad and its doughter companies.... if of course EU won't react
ReplyDeleteKoja se BRUTALNA kampanja vodi ovde protiv Air Serbie i njenog uspeha. Sram Vas bilo sve koji ciničnim komentarima pljujete po jednoj od retkih uspešnih stvari u Srbiji otkad su na vlast došli ovi presvučeni nesrećnici. Air Serbia je krenula od raspalog JATa koga su se svi stideli i rugali mu se. Zašto vaši žuti lideri, marketinški magovi i slične veličine dok su bile na vlasti nisu rešavale proble Jat Airwaysa? Da im nije propala kombinacija, jer dok je Jat pravio gubitke oni su delili profit od raznih stranih kompanija, zatvarale su se rute jer niko nije hteo da plaća kakvo takvo održavanje aviona, a najveći dug Jata prema Aerodromu i Jat Tehnici i ko zna kome još je nastao u vreme dok su oni bili na vlasti. Zašto tada niko nije spomenuo pitanje protekcionizma? Nego je Jat propadao, smanjivala se flota, a na napuštene destinacije su dolazili strani prevoznici u dilu sa tadašnjom vladajućom garniturom. Ugovor sa Etihadom je bilo jedino rešenje otkako su marketinški magovii njihovi koalicioni partneri napravili da pasiva Jata bude neuporedivo veća od aktive. Za osam godina otpustili 80% zaposlenih a udvostručili gubitke. Kako? To tad nije bilo ni bitno, sada udarite po Air Serbiji koja je zlato za Jat Airways, jer su talovi gorepomenutih sa stranim kompanijama propali. I nek idu ako im se ne svidja i Wizz i Swiss i Germanwings. Dolaze Vueling, TAP(Star Alijansa tokodje), Air Cairo, na jesen će biti još stranih kompanija, možda će Wizz opet pojačati linije. Ljudi koji su godinama unštavali i to SVESNO naše civilno vazduhoplovstvo sada plasiraju tendenciozne naslove u novinama, kao da je taj 4U imao 250 letova nedeljno prema 40 gradova. Naši mediji žele da unište svaki pokušaj progresa u ovoj opljačkanoj i napaćenoj zemlji, a Air Serbia je i pored svih problema koje svakako ima, pogotovu sa flotom, ipak na putu uspeha svidjalo se to nekome ili ne. A vi ovde koji postujete anti-JU komentare odmorite glavu od raznoraznih agirtatorskih novinskih tekstova i mućnite svojom glavom, ne njihovom!
ReplyDeletePrijatelju, ne zesti se , dobices visok pritisak, dobro je poznato da je aviokarta.net mrzitelj svega sto nije Jat,ja znam ko stoji iza njih ali necu o tome ovde.Mnogo alkoholicara sam susetao u Jatu, ako pilota tako i direktora koje su postavljali ne samo tzv zuti vec i druge stranke kao sto i sad postavljaju svoje lepljace plakata. To je sudbina svih zemalja u tranziciji a na zalost moja Srbija je poslednja krenula u tranziciju. Ja sam leteo za Jat kada je to bila ugledna kompanija gde se nije moglo dogoditi da avion koji ima neki sitan kvar poleti. Poslednjih 15 godina Jat je rasturen i zaposednut od raznoraznih amatera. Ovi ssto se sad javljaju i pljuju AirSerbiju su jatovci koji su popili otkaz jer nisu polozili obican srednjoskolski test is Engleskog jezika a bili su junaci po kafanama i trpali porodicu i prijatelje u avione za Tivat bez karte.Hvala bogu sto sam se penzionisao pre raspada i kolapsa Jat-a inace bih verovatno dobio infarkt. AirSerbia ima probleme ali sam siguran da ce ih, u dogledno vreme, prevazici.
ReplyDeleteNije tebi lako.
ReplyDeleteNot one realized that Geneva reduction was not because of Air Serbia competition because Air Serbia does not fly there.
ReplyDeleteIt was because Swiss, Easyjet and Darwin all started within a few months. It was expected at least one would have to retreat, and it was clear from the start Swiss is the least competitive on the route.
Dušane ovde se uopšte nisam žestio i nervirao, samo sam iznosio činjenice, koje naravno i ti znaš a i ja imam neke insajderske informacije i znam na šta je ličio Jat pre nekoliko godina, kakver su sve njuške bile tamo. Za Air Serbiu nemam baš mnogo insajderskih info, osim u svojstvu putnika, usluga je jako dobra, bolja nego jatova i iako ima još oldtajmera u floti to su ipak dobri i pouzdani avioni a i pretpostavljam da je razlog za odugovlačenje sa obnovom flote ušteda da se plaća što manje lizing naknade i rente. Kao bivši Jatovac i kapetan znaš da se za B733 ne plaća nikakav lizing i kredit pa iako više troše goriva, njihova eksploatacija je jeftininja a i usluge Jat Tehnike su jeftinije (mada se i one ne plaćaju ali se nisu plaćale ni tada). Samo hoću da dodam da lično nisam mislio na sajt aviokarta.net nego na B92 i njihov jako tendenciozan jučerašnji tekst vezan za prestanak operacija Germanwingsa u Beogradu. Tu ne zaostaju ni ostali mainstream mediji poput blica, kurira i ostalih. Ovakva agitacija ima motiv u političkoj borbi izmedju vlasti i opozicije (ne držim stranu ni jednima ni drugima, ja samo navijam da Air Serbia postane profitabilna i postane izvor ponosa za sve Srbe, da kad kažete nekome napolju da ste iz Srbije on vam odgovori prvo kako imate dobru aviokompaniju a ne da vam spomene ratove, kriminal i ostale naše "izvozne proizvode" iz prošlosti, a da mi imamo na dohvat ruke što više zemalja i destinacija do kojih se stiže bez presedanja.
ReplyDelete„We are doing a business plan. If the numbers stack up flights will maybe launch at the end of 2015”, Etihad’s CEO says
ReplyDeleteNumbers don’t stack up. They only way to build sustainable, year-round, A330 (or similar capacity) based North American route(s) is to ADD passengers to Air Serbia’s own O&D and transit feed. Even with planned Air Serbia regional route/frequency expansion they will not have enough to fill both J and Y several times a week, let alone daily, to ORD, JFK and YYZ.
The ONLY way is to have Etihad „top-up“ Air Serbia’s passengers with its feed from Abu Dhabi on their way to North America. Etihad would need to commit to this coordinated feed effort to preserve their investment in Air Serbia and channel more passengers through BEG to North American destinations. It would help Etihad on resticted routes, such as 3x weekly limit into Canada, where Etihad could send their passengers on other days with AUH-BEG (EY metal) + BEG-YYZ (JU metal).
As I explained in SSC post the other day, mixing this approach with 9W mini scissor hub in BEG would open up even more opportunities.
who says they don't ?
DeleteAirCEO, you don't think that JU could fill a daily A330 to JFK or ORD?
DeleteAn A330-200 is about 260 seats, and a -300 is about 300. Considering that Belgrade to Zurich, Moscow, or Vienna all average about 500 seats per day, I don't think 300 seats to America will be too big of a deal, especially considering that no other airport in the region serves North America, so passengers either have to fly through Belgrade or through Western Europen hubs.
There is a reason no other airline in the region serves North America on a year round basis, excluding LOT. They are actually a good example why it is a big deal to make this work. It is highly seasonable, low yield, mostly VFR type of route, with extremely competitive and aggressive LH Group feed into their hubs at FRA, MUC, ZRH, VIE etc with massive NA capacity and number of destinations they offer. Long haul routes and their yield management is a completely different beast from European routes.
DeleteU potpunosti se slazem u vezi B733 koji su i dalje u floti, to je pouzdan i siguran avion i veoma dobro odrzavan, vise volim Boinge od Airbusa ali to je moj subjektivni stav ali sam protiv olako datih obecanja i rokova koje je menadzment AirSerbia tako obilato delio na sve strane a kad se to nije ostvarilo, oni cute i kriju se....ako su dvadest puta rekli da ce celokupna flota biti obnovljena do kraja marta onda nije u redu da ne kazu zasto se to nije ostvarilo i zbog kojih razloga. Takve stvari ne prolaze u svetu, bili bi razapeti na krst u medijima. Sto se mene tice a i iz podataka koje ja imam cak i YU-AND moze da leti jos 3-4 godine bez problema. I da ne zaboravim,svi AWACS avioni Americkog vazduhoplovstva su B707 ili B720, samo modernizovani,iako su stari 40-50 godina.
ReplyDeleteEvo sad je na SSC forumu neko postavio finansijske izveštaje Aerodrom Nikola Tesla koji samo potvrdjuju ovo. Ne plaća se, ali se nine plaćalo Aerodromu ništa ni ranije. Ako je Air Serbia na putu da predje prelomnu tačku u 2014. onda će krajem godine ili početkom sledeće biti sposobna da uzme povoljan kredit kojim bi pokrpila sve dugove. A i imaće izgrađenu mrežu libijami obim poslovanja koji će joj omogućiti da vraća i taj kredit, i kamatu i da plaća usluge koje nastanu tokom vremena. Sad verovatno ne bi bila u stanju da to sve servisira, jer i kredit koji bi sad dobila ne bi bio povoljan jer se još vide gubitaški izveštaji. Teško jeste, ovo je najveća ekonomska kriza od 1930ih i mnogo veće kompanije od JU imaju ogromne gubitke, čak i moćni TK, AZ, AF imaju ogromne gubitke koji rastu. Rešavanje problema likvidnosti nije moguće rešiti preko noći. Mora se od nekud krenuti. Sem toga ceo posao razvoja Air Serbie vode strani stručnjaci, mnogo veći stručnjaci iz oblasti aviosaobraćaja i odnosnog finansijskog poslovanja, marketinga i menadžmenta nego što je bilo ko od nas ovde koji posećujemo ovaj blog i ostavljamo komentare, pa zašto bismo im se petljali u posao raznim insinuacijama? Samo zato što neki plaćeni novoinarčić napiše neki tendenciozni naslov u nekom dnevnom tabloidu? Hajte molim vas.
ReplyDeleteI am sure if all backyard business including Belgrade Airport would be revealed, that the Etihad "take over" of JAT is on of the biggest scandals in recent Serbian politics. The Etihad - Air Berlin deal is now under scrutiny because of smelly business with the board of directors and dirty tricks with the stockholders voting power etc. At the same time AB has sold tremendous assets that it owned including aircraft in order to service the loans granted by Etihad (at very high interst rates). This tactics is very often used be hedge funds who "buy" a company and then the bought one is repaying the credit that is used by the hedge fund to finance the deal. Don't even dream that Mr. Hogan invested a single real penny into JAT. The Airbus deal from 1998 of 23,5 million € is already in their pockets and JAT slots at LHR are worth more than 25 million......
ReplyDeleteyes, Demokratska Stranka Airlines was better. Even though their unofficial slogan was "Your flight is cancelled"...
DeleteDude, you have been reading too many "who shot JFK" books ... My take ?? Early signs of paranoia - go get help man - AND FAST !!!
Deleteoff topic
ReplyDeletesomebody notice beg-bnx yesterday saab 2000?
Yeah - how cool !! Every Tue, Thu and Sun
DeleteGood day in Belgrade today. 90 passenger flights and 4 cargo flights.
ReplyDeleteSeven flights to Tivat.
Overall 16.500 PAX yesterday.
DeleteAir Serbia alone had 53 flights yesterday, nine departures around midnight!
DeleteA što ti lupaš, majke ti? Imaš li ti uopće i najmanjeg pojma o čem pričaš?
ReplyDelete1. Air Serbia nema dugova. Nekih 250 + 70 = 320 milijuna EUR preuzela Srbija, tj. porezni obveznici. Dakle nema vračanja dugova osim onih napravljenih od 1.1.2014., a takvih navodno neće biti jer će JU biti na pozitivnoj nuli do kraja godine.
2. Air Serbija ne plača Aerodromu Beograd ništa, tj. oslobođena je svih plačanja i to nema veze sa profitabilnošču. Istovremeno od putnika naplačuju aerodromsku taksu od 19 EUR i time krše zakon jer kao posrednik naplačuju uslugu koju dalje ne plačaju davatelju usluge (nekada davno aerodromska taksa plačala se direktno na check inu, ali je sada prijevoznik posrednik u plačanju te takse, u ovom slučaju zapravo se radi o ozbiljnoj prevari). No, kako Lufthansa, Wizz, Turkish, Aeroflot i ostali taj iznos moraju plačati, Air Serbija zapravo ide u dumping sa novcem tih kompanija protiv njih samih. Ako Air Serbija postane profitabilna ona i dalje neće plačati takse od 19 EUR po putniku Aerodromu Beograd iako ih od putnika naplačuje.
Vi prvo ocistite svoje dvoriste i pokusajte prodati bilo nekoj Aviokompaniji OU.
ReplyDeleteAir Srbije nije jedina sto neplaca sveAerodromske takse, ni OS ne placa u letnjoj sezoni sve takse na Aerodromu u Innsbruck-u,Zimi dobijaju najbolje Slotove.
INN
I do not see why so many people are stressing over Belgrade's reduced income. For years and years now, they have been ripping off Jat while they were giving favourable fares to the competition. This was especially apparent when we compare Montenegro Airlines vs. Jat Airways. So no, I have absolutely no sympathy for that company nor for its incompetent management.
ReplyDeleteOn top of all this, for decades now they have undermined Jat Airways and its employees by always looking at them as if they were some sort of untermenschen. Today, when they are supposed to show good management skills and cope with Air Serbia's growth they are falling apart and they are incapable of doing absolutely anything. This only goes to prove that someone professional must step in and take over otherwise Air Serbia and the entire country will be at a loss here. Look at the evening bank of departures, most flights are late because they have around two teams working in the luggage sorting facility! Connecting luggage takes so long to be sorted out and that's why Beirut is chronically delayed (since it's 100% made up of transfer passengers). But who takes the blame? Air Serbia of course. It is not uncommon for flights like Larnaca or Beirut to be missing 20-30 luggages at the time of scheduled departure. The worst thing is that the airport knows this and they refuse to hire more people or to introduce more modern technology... why? Well, because like this they make more money. Or why isn't anyone talking about the fact that we need around 50 more foremen for the summer season? Why isn't this poor airport, that's being bullied by JU, doing the right thing by hiring more of these people? A few days ago there were two loading teams for seven departures!!!! Four flights were delayed because there was no one to load them... But who cares as long as Air Serbia is blamed in the end.
Let me present you with a quote of BEG CEO which was said yesterday during our meeting:
'Whoever decides to strike will be fired.'
Go on, protect and defend this nest of corruption and nepotism which was overlooked for all these years just because they were filling the government coffers.
Greetings from BEG. ;)
Neistina!!!! Austrian placa a eventualno moze dobiti istu privilegiju kao bilo koja druga kompanija, pod vrli definiranim uvjetima i razlozima. U protivnom bilo bi to najvece moguce krsenje zakona u EU i bilo bi sankcionirano od strane EU.
ReplyDeletei daj ne srackaj o srbizmu, pa ti ne znas ni jednu recenicu na srpski napisati.
A tek bi bili nezakonito kao posrednik naplatiti aerodromsku taksu i onda je ne uplatiti aerodromu.
ReplyDelete