Air Serbia - Etihad in talks over fleet options

Air Serbia has said it is in discussions with Etihad Airways over its fleet development after its part-owner cancelled an order for ten Airbus A320neo aircraft, which were destined for the Serbian carrier. In a statement, Air Serbia said, "Discussions on the long-term development of our fleet continue to be a part of strategic talks with our partner. The airline industry is experiencing significant competition, which is becoming stronger. With changes in demand and aggressive competition, as well as fluctuating fuel prices as the biggest fixed cost for any airline, all carriers are carefully examining the long-term development of their fleets. This is the primary reason Etihad decided to cancel the order for the ten aforementioned aircraft".

Following costly experiences with Alitalia and Air Berlin, Etihad will be reluctant to put in any more money into other airlines, although it is expected to transfer surplus aircraft to its equity partners if they need new equipment. Last Saturday, an Etihad Airways Airbus A330-200 aircraft, registered A6-EYQ, entered into service on behalf of Air Serbia. The aircraft will be used on flights between Belgrade and New York on a temporary basis until February 14, while Air Serbia's own jet of the same type undergoes scheduled maintenance checks at Etihad Airways Engineering in Abu Dhabi ahead of a busy summer season. In its flight permit application with the US Department of Transportation in 2016, Air Serbia foresaw and applied for the use of Etihad equipment on its US-bound flights.

Etihad A330 (A6-EYO) at Belgrade Airport

Air Serbia will soon require replacements for some members of its fleet. The airline has said it plans to phase out its remaining three Boeing 737-300 classic jets, used by its dedicated charter brand Aviolet, by 2020. All of them are owned by the airline and were delivered new to its predecessor over thirty years ago. The jets are also used as a replacement on mainline operations in case of technical issues or delays with other aircraft. The carrier has also previously said it plans to replace its ageing ATR72 turboprop fleet "over the coming years". "Our strategy is to start flying double daily to a number of cities and to get new regional planes. We will see whether they will be turboprops or jet-engine aircraft. With these, we can cover points in the region", the company previously said. It also noted that such a decision would depend on a range of factors such as pricing and other terms and conditions. However, it said that leasing equipment, rather than ordering them from the manufacturer, could be a simpler solution due to the longer time required to deliver newly ordered aircraft.

Russian plane manufacturer Sukhoi and the Japanese Mitsubishi have in the past both approached Air Serbia in regards to its future regional fleet operations. Previously, a delegation from the Sukhoi Civil Aircraft company, which manufactures the SSJ100 commercial jet, visited Serbia where they held talks with representatives from the country's aviation sector including Air Serbia, aircraft maintenance company Jat Tehnika and the Serbian Civil Aviation Directorate. Vladimir Lavrov, the Chief Designer at the Sukhoi Company, said at the time, "It is safe to say that talks with our Serbian colleagues were very successful. We found a few ideas that we will develop jointly and received a number of interesting proposals from our Serbian counterparts". The Mitsubishi Regional Jet (MRJ), which will be able to seat between seventy and ninety passengers, will begin deliveries in mid-2020 following a number of production delays. Last year, the company said it hoped to secure Air Serbia as its customer. "The last thing we need to achieve for the time being is to get an order from a European nation. Air Serbia is a core target for us. It has strong backing from Etihad and is looking to expand its network", the manufacturer's President for Europe said.