Air Serbia completes hybrid transition

Air Serbia will mark the completion to its hybrid transition this week as it unveils a new fare structure and announces the introduction of a buy on board scheme. The airline is set to publish three different fare types for economy class passengers (white, blue and red), the lowest of which will offer only carry-on luggage, while all other services, including meals, seat selection, checked-in bags and mileage accumulation will be available for a fee. The highest of the three economy fare types provide all of the standard features available to passengers under its existing pricing, including free meals, airport check-in and checked baggage free of charge. Complimentary services offered to business class travellers remain unchanged. The so-called unbundling of fares will reduce ticket prices for those seeking only the basic of services and marks the airline's departure from its full-fare legacy business model.

The Serbian carrier has previously said that the changes are necessary in order for it to remain competitive. "Traditional commercial approaches are no longer sufficient in making an airline competitive enough to ensure its long term profitability. Passenger numbers are booming, competition has intensified, and low cost carriers have made the aviation industry even more dynamic and tougher than ever before. But most importantly, with flights more affordable than ever, travellers are paying more attention to factors outside of price that differentiate airlines", the company said. Legacy airlines are increasingly indistinguishable from their low cost rivals in terms of the fares they charge and the service they offer with the cost gap between traditional and budget airlines falling considerably over the years, partly because legacy airlines have abandoned old differentiators like free baggage and in-flight catering on short haul flights.

Air Serbia has previously noted that the abovementioned transformation, will not result in it becoming a low cost airline. "Air Serbia is not transforming into a low cost company. Air Serbia serves and continues to serve primary global airports, such as JFK in New York, Heathrow in London, Charles de Gaulle in Paris and others. Low cost companies mostly use smaller alternative airports. Air Serbia also boasts a state-of-the-art Premium Lounge at Belgrade Airport, the best in the Balkans, which is not the case with low cost airlines. Air Serbia has its own frequent flyer programme - Air Serbia Etihad Guest - which now counts over 110.000 members. Low cost companies fly from A to B (point-to-point), while Air Serbia offers tickets to 42 destinations via its hub in Belgrade, as well as hundreds of other cities through its codeshare partners. Therefore, Air Serbia cannot in any way transform into a low cost company", the airline noted.

UPDATE: Air Serbia rolls out new fare structure