Air Serbia mulls future fleet options

Air Serbia is weighing up options for the make-up of its future fleet as it implements a strategic transformation plan aimed at ensuring its long-term profitability and sustainability. As EX-YU Aviation News learns, the airline currently plans to retire part of its Boeing 737-300 fleet this year and take delivery of the Airbus A320neos. The first of the Boeing jets, all of which are operated under the Aviolet charter brand, was taken out of service earlier this month, with a second expected to follow later this week. As a result, the carrier will have two B737s at its disposal over the summer for its lucrative charter operations. Following criticism from tour operators that the two jets will be unable to handle the high demand for leisure flights this year, Air Serbia deferred its planned new service to Geneva to make available an additional Airbus A319 jet, which, along with the planned cuts in frequencies on several routes, will be able to cater for charters and replace aircraft on scheduled flights in case of technical issues. "Air Serbia has transferred its capacities, originally intended for flights to Geneva, to charter operations. The decision was made due to increased market interest in the past for charter services. Since last year was a record for charter operations, the company has decided to supplement its capacities with an aircraft originally intended for transporting passengers and goods to Geneva", the airline said recently.

Last year, Air Serbia's Chief Operations Officer, Declan Keller, said the carrier could invest in the B737 jets and thus extend their utilisation by a further four to five years. However, such a move would require a costly engine overhaul and cabin refurbishment. Alternatively, Mr Keller noted that the airline would consider the retirement of two B737s by the end of 2017. All four of the Boeing 737-300s are owned by Air Serbia and were delivered new to the airline over thirty years ago. Despite their old age, most have had a low utilisation rate since the majority were grounded for the better part of the 1990s. Air Serbia plans to run three rotations per day with the B737s this summer.

According to current plans, which are subject to change, Air Serbia is expected to take delivery of its first Airbus A320neo at the end of the year, despite initial uncertainty over their future. Several others would follow in 2019, however, the airline is unlikely to take all ten of the Etihad-ordered jets. Another Etihad Airways Partners member, Air Seychelles, which itself announced a major cost cutting initiative last week, has said it will replace its two A320s with next-generation aircraft, presumably the A320neos, that would likely come from the Air Serbia order. The Serbian carrier secured ten of the narrow-body aircraft as part of a major fleet order by its equity partner Etihad Airways in 2013, for up to 117 Airbus jets. They were set to completely replace Air Serbia's existing fleet of A319s and A320s. Instead, the airline now plans on returning two of its leased A320s at the end of the year. The delivery of the neos is slated in between 2018 and 2020. A previous deposit payment made by JAT Yugoslav Airlines for eight A319s in 1998 has been credited against the pre-delivery payment for the neos.