Croatia Airlines and Air Serbia are facing growing competition in Sarajevo after the airport began proactively courting foreign carriers and Wizz Air established its base in the city. Sarajevo Airport has for years relied on network carriers to provide it with connectivity to most parts of the continent. Wizz Air has already become the largest single airline in Bosnia and Herzegovina’s capital in terms of frequencies and capacity. Furthermore, Lufthansa’s new route from Frankfurt, which will grow to double daily next summer season, as well as Swiss’ entry onto the market, is also expected to hamper Croatia Airlines’ and Air Serbia’s performance in Bosnia and Herzegovina’s capital. Swiss has now upgraded the initially seasonal service to year-round operations, with flights to be maintained twice per week over winter, increasing to six weekly during the Christmas and Holiday peak.
Croatia Airlines carries a significant number of transfer passengers on its flights to and from Sarajevo. It has capitalised on the airport’s lack of connectivity to major European cities in the past. However, the airline has slowly begun losing its market share of connecting passengers to and from Sarajevo, now at just 6% of all airport transfers. Based on OAG data, points to major cities in Western Europe dominated as the most popular connecting destinations on the carrier’s Sarajevo flights, among which were Frankfurt, Zurich, Amsterdam and London. In 2020, there was a significant reduction in passenger flow, however, points in Western Europe remained most popular with transfer passengers. This summer, Lufthansa and Swiss launched operations from Frankfurt and Zurich, respectively, which are Croatia Airlines’ most popular destinations to and from Bosnia and Herzegovina’s capital.
Croatia Airlines' top O&D points to/ from Sarajevo in 2019
Croatia Airlines' top O&D points to/from Sarajevo in 2020
Air Serbia has managed to increase its share of transfer passengers on its Sarajevo flights from 3% in 2019 to 6% last year, primarily due to fewer airlines serving the city as a result of the coronavirus pandemic. European destinations dominated Air Serbia’s connecting traffic to and from Sarajevo both in 2019 and 2020. Within the top twenty, New York was the only non-European city, coming in sixteenth two years ago and thirteenth in 2020. The arrival of new carriers is also expected to impact Air Serbia, most notably its Zurich service due to Swiss’ operations, but it also faces strong competition from Wizz, which will be covering major points in Europe, albeit mostly via secondary airports. However, the airline could be more immune as it offers a wider network with more destinations which are not served from Sarajevo.
Air Serbia's top O&D points to/from Sarajevo in 2019
Air Serbia's top O&D points to/from Sarajevo in 2020
Both missed out on doing more in Sarajevo. Now it is too late
ReplyDeleteAirport work hours makes it problematic for either to do more.
DeletePricing is an issue. Both airlines are expensive.
Delete^ they can't decrease costs because Sarajevo is expensive for its category and these two airlines are not getting incentives like Wizz.
DeleteThere was a tender which was more or less created for Wizz.
DeleteWhat tender?
DeleteTender to base a plane in Sarajevo - https://www.exyuaviation.com/2020/12/one-carrier-in-talks-over-sarajevo.html
DeleteAnd like someone said above of course it was geared towards LCCs.
Forgot about that. Thanks.
DeletePassenger numbers will crumble for Frankfurt transfers for both airlines. Neither will be able to compete with two daily LH next summer.
ReplyDeleteNot just that but LH will take away a lot of transfer passengers on other routes like Amsterdam, Paris, London from OU and JU. Especially since they will be double daily.
DeleteAnd FRA is a huge airport with so many connections. It is Lufti's golden airport.
DeleteZlatna koka.
DeleteOS was operating I believe double daily to SJJ, yet OU had alot of transfers to VIE. In 2020, VIE was top 10 transfer destination for OU and JU out of SJJ.
DeletePrice pays a big factor. Not everyone will pay 500-600€ for a direct flight, when a 1 stop route is 200€ for example.
Great to see Swiss going year round to Sarajevo. Finally more and more flights to Europe.
ReplyDeleteLH group finally woke up.
DeleteIt is odd considering that Croatia Airlines is their close partner. You would think they would leave Sarajevo to them.
DeleteIt shows how little they care for regional partners.
DeleteYeah, especially going double daily.
Delete@An.09.27
DeleteI agree, would just change "regional partners" for feeders and servants. Suits much more. As as you say, their attitude shows it all
I remember a couple of years ago Croatia Airlines wanted to establish a base in Sarajevo. That would have come in handy now had they gone with it, especially with FR aggressively attacking them in Zagreb.
ReplyDeleteFleet shortage in summer was a major issue at the time.
DeleteSame thing will happen in LJU one day too.
Deleteyes, with twice a week to Zurich and double daily to FRA. Very favourable outcome for Ljubljana
DeleteCroatia Airlines should first and foremost focus on Zagreb otherwise they will be completely destroyed by Ryanair.
Delete@ANONYMOUS 09:39, I think they should do the opposite. Zagreb in a few months will be a lost case for them, maybe they should focus on the coast, perhaps Ljubljana, Sarajevo, Skopje.
DeleteYou can't OU with a strong presence on the coast, but weak in ZAG.
DeleteThese new European routes are long overdue. If it impact two state dinosaurs, so be it.
ReplyDeleteExactly. They had long enough to establish themselves on the market and get a customer base. If they are unable to compete their problem.
Delete^Agree!
DeleteGreat. I hope Sarajevo Airport will continue to work in securing more nonstop connections to Europe.
ReplyDeleteBoth will need to make themselves more competitive with good fares.
ReplyDeleteJU should have flown there double daily.
ReplyDeleteThey could have flown double daily if their plane could have stayed the night in Sarajevo.
Delete* and departed early in the morning, before the airport actually opens at the moment.
DeleteTrue, plus in that case they would not be able to offer connections to the night wave of departures. However, seeing the numbers above, the latter was not even needed.
DeleteWould it be worthy to make all that effort/cost of having a plane off base for the night for the number of passengers they could have been able to get?
@09,15
DeleteProblem with that is the morning arrival would miss all connections in BEG. I believe that the minimum connecting time in BEG is 45 minutes?
A split morning/evening rotation could work well.
JU110 0630 0720
JU111 0800 0850
JU114 2030 2120
JU115 2200 2250
This would open transfers to markets with little competition: ATH, SKG, KRR, ROV, TIA, SKP, OTP, TGD, TIV, LCA, LHR, SVO, JFK.
Seems like Sarajevo was missing from the man with the strategic plan ....
DeleteIt's actually quite sad that these two airlines have such small share in transfer market from SJJ with so many unserved routes.
ReplyDeleteVery interesting
ReplyDeleteAnd this won't stop. Wizz is opening new routes in December and more to come next summer.
ReplyDeleteWonder which other destinations we might see.
DeleteWill we see Wizz and/or Ryan launch ZAG?
DeleteHighly doubt. The sector is way too short.
DeleteWhich means it is uneconomical?
DeleteConsidering OU is the one that has more transfers and has been forced to even suspend Sarajevo last winter (they had double daily flights), I would say it has much more to loose.
ReplyDeleteI'm just glad Sarajevo will finally get some decent traffic and cover some decent routes.
ReplyDeletewithout the need to transfer on the way to the most basic of European destinations every airport should have.
DeleteTrue dat.
DeleteThere is no doubt both of these airlines will be impacted. I'm assuming Austrian too. But like someone said in the comments above, they can find a solution if they are smart with pricing, advertising etc (if these passengers are important to them which depends how much money they generate from them).
ReplyDeleteWho is number 1 transfer airline at Sarajevo?
ReplyDeleteTurkish Airlines of course.
DeleteProbably lots of transfers to mid-East.
DeleteOf course. Like Pegasus. Those are 100% mid-east transfers.
DeleteWhat about for western Europe?
DeleteSoon it will be LH.
DeleteI think Croatia Airlines should have really used its position much better. They have a good image in BiH and had two daily flights. They get a lot of transfers to/from SJJ. Wizz Air, Lufthansa and Swiss will definitely have an impact.
ReplyDeleteYou snooze you lose.
DeleteGood luck to both
ReplyDeleteInteresting that Air Serbia's new route to Oslo in 2020 immediately made it onto the list with top Sarajevo transfers.
ReplyDeleteThey said several times the route has been very successful for them. As for Sarajevo, it helps that Norwegian is has been struggling.
DeleteThat was last year. Let's see if it will be in their top connecting markets from SJJ now that Norwegian has resumed nonstop flights.
DeleteWIZZ air has been establishing flights from Sarajevo to Oslo since December. Big hit for Norvegian, airserbia and Croatia Airlines
DeleteThis will impact legacy carriers no doubt about it
ReplyDeleteTime for Wizz Air to consider Skopje-Sarajevo :D I'm surprised OU has transfers between these two.
ReplyDeleteIt is the logical option for them to transfer, rather than go to Vienna or Frankfurt. What's surprising is that Skopje isn't in Air Serbia's top ten.
DeleteMe too. love that we get some insight into this.
DeleteWizz can't start flights between Skopje and Sarajevo. As an EU registered airline, they can't fly between two non-EU countries.
DeleteSKP can't be high on the list for JU because both SKP and SJJ depart BEG in the same wave. You get extremely long transfer times in BEG.
DeleteSarajevo is a very small market for Air Serbia. Essentially it is not needed. It's not where the numbers are nor where the money is. But Wizz lives on little markets like Sarajevo. So kudos to them for finally deciding to increase traffic from Sarajevo.
ReplyDeleteAir Serbia constantly plays up its regional connections, even when launching any new route. Their existing slogan is "Region and the world". So how come Sarajevo is "essentially not needed"? In that case they might not fly to the region at all. The only market they regionally perform well in is Montenegro.
DeleteWhen JU gets destroyed by another airline on market Miroslav says that this market is not important for them :)
DeleteBased on what have they been destroyed? If you read the article, it says Air Serbia's share of transfer passengers at Sarajevo has doubled. But I agree it is a small share so Miroslav's comment to some extent is correct. It isn't a major market for them in terms of transfers.
DeleteIf it were important to them, they would be flying more than one daily flight and sending equipment other than ATR72. Look at how they developed their Tirana operations.
DeleteSarajevo is very important to JU in terms of their regional coverage.
DeleteIm surprised SJJ isn't on the A319 by now.
DeleteI guess the high taxes in SJJ doesn't stimulate O&D travel because ticket prices become expensive.
I thought they lowered thoses taxes recently.
DeleteTo some extent OS will be affected as well.
ReplyDeleteIt's time for Transavia to start flying to Sarajevo!
ReplyDeleteAnd maybe ASL Airlines to Orly.
DeleteIt's sad that the pockets of a Hungarian airline are being filled due to incompetence of state and individuals to set up a small successful national airline where money could be kept in the country.
ReplyDeleteIt's sad that in 2021 people still don't understand that you can't have a small successful national airline in a low-yielding market.
DeleteThat's the reality.
DeleteHave there been any changes in fares by JU and OU from SJJ since Wizz Air's announcement?
ReplyDeleteI don't think Air Serbia will be affected. Most of their Sarajevo passengers are P2P.
ReplyDeleteHow do you know?
DeleteBased on the fact that only 3% of Sarajevo's transfer passengers are handled by Air Serbia.
DeleteJU also has amongst the smallest capacities in SJJ. TK, LH, OS all use larger aircraft and with more frequencies. OU has more capacity on their Dash 8's and double the JU frequencies. Naturally their share will be smaller.
DeleteIt's very important which routes are being opened. They are opening routes in Sarajevo where OU and JU were the most used airlines (if you actually read what's written). Both airlines were really affected by Wizz Air starting flights to Skopje because they flew to destinations which passengers mainly used to transfer through Belgrade and Zagreb.
ReplyDeletePresence of Air Serbia in region except Montenegro and so so Albania is really low and without any goal what they want from that market. But probably part of a strategic planning.
ReplyDeleteSure thing sport.
DeletePlease, just compare the presence of OU in region, on international flights, it's only SKP and SJJ, while JU flies to SKP, SJJ, LJU, ZAG. TIA, SPU, ZAD,DBV, PUY, not to mention SOF, BUH, SKG, which mihht also be included in region, or at least are regional flights. All those, and much more missing for OU, and feeding own network, growing traffic in BEG, and bring some income for JU. So, please don't bash JU strategic planning, yes, of course it could be better, but it's not bad at all, comparing with many others, OU being champion of missed opportunities with no planning at all, strategic or ad hoc
DeleteYes, and I forgot two biggest money makers - TGD and TIV
DeleteWell said pozz from Riki.
DeleteAnd no politics in his entire reply. ;-)
DeleteThere are never politics in my posts except for those who want to see benign comments and comparations as politics.
DeleteC'mon man.
DeleteMaybe this is the problem with us in ExYu.
DeleteSee if we compare JU to OU in its regional presence, then it is fantastic.
We chose with whom we want to compare. The only thing that seems to matter in ExYu-aviation (or anything in ExYu basically) is that you are bigger and better than your neighbor.
Yet all countries surrounding us still have a reason to laugh at us. We need to widen our scope and start thinking about opportunities rather than sitting down knowing that there is at least one country/airline/business performing worse than ours. This attitude will never get us any higher than 'second-to-last'
I can't believe how SJJ suddenly opened up during the last 2 years. More European connections, more Gulf flights even to Saudi Arabia. Now it's LH with double daily Frankfurt and not to mention the Wizzair expansion.
ReplyDeleteClearly, the airport management is doing the right job!
really, they opened up in the last year. I think it is down to the new management, as well as the government removing that silly tax which was only applied for passengers flying to or from Sarajevo.
DeleteI'm really glad that Sarajevo is finally getting the attention it deserves and more and more flights.
DeleteI think Lufthansa is much bigger threat to both than Wizz Air. JU and OU offer routes via BEG or ZAG on daily basis while with W6 you can fly from SJJ mostly only 2 times weekly.
ReplyDeleteLufthansa entering SJJ is much bigger hit for OU as LH will be flying double daily to SJJ leaving OO with no connecting possibilities to FRA via ZAG at all.
ReplyDeleteSwiss will not fly so often from ZRH to SJJ as LH from FRA so the main connecting destination for Air Serbia SJJ-BEG-ZRH will be still much more profitable.
Could LHs double daily be too much capacity? What plane type will they be using?
DeleteMaybe at first until they get more market share.
DeleteWhich position is SJJ in ex-Yu? Did it surpass LJU in number of passengers since the beginning of the year?
ReplyDeleteYes long ago. Sarajevo already has more passengers at this moment than Ljubljana will have by the end of the year. Ljubljana is competing against Tuzla.
DeleteSad. LJU should be ashamed of themselves.
DeleteSarajevo Airport will probably be 7th to 9th busiest in ex YU this year, depending on how Podgorica and Tivat will to this year. Before Covid Sarajevo was 10th: Podgorica and Tivat were not too far from Sarajevo numbers.
DeleteWe might have something like this by the end of 2021:
Delete1. Belgrade
2. Pristina
3. Zagreb
4. Skopje
5. Split
6. Dubrovnik
7. Sarajevo
8. Tivat
9. Podgorica
10. Zadar, Tuzla or Ljubljana?
It won't be like that. Split will be busier than Zagreb this year and Skopje is still ahead of ZAG so far this year.
DeleteI wouldn't bet on any of the combinations. However, with summer season ending, SPU will see significant reduction in traffic, while ZAG gets 3 stationed FR planes and lots of new flights and passengers, which might affect current SKP position as well, even PRN. But whatever the list would be, it will be tight, and the differences will be minor
DeleteSKP used to be neck to neck with PRN but I don't see that happening again. After all there is a stagnation and all the routes are basically covered.
DeleteWhat's the catchment area for SJJ, a million people or so?
ReplyDeleteCorrect: Sarajevo Canton and East Sarajevo (480.000), Central Bosnia + Zenica-Doboj Canton; although this region gravitates toward Tuzla as well (600.000), and eastern Bosnia which gravitates toward Sarajevo (not too many people though, cca 70.000-100.000).
DeleteThanks for the detailed reply.
DeleteSo a million people aviation market. Not that big, but in ex-yu terms somewhat significant.
Plus, on average, I would think less than half of those people would travel once per year by plane.
What do you guys think, fair assumption?
I would say this, only in recent years flying has become somehow "normal" in Bosnia. I think it has to do something with prices (it's cheaper to fly these days), and the fact standard of living is not as bad as 10-15 years ago so people can afford flying instead of taking a bus to Berlin, Stockholm or Copenhagen (although people still do it in huge numbers).
DeleteUnfortunately or fortunately for the airports in Bosnia, the amount of people who left the country since 2013-2014 until today helps Bosnian airports to grow. Sarajevo Airport has been known for small number of flights, bus-station style service at the airport and huge taxes.
We used to fly from Sarajevo only when we had to: now that is changing and you have 1.000.000 people who can reach the airport within two hours or less. Actually, the largest chunk of population live close enough to A1 highway and you are at the airport in 60-70 minutes.
I believe the real results will be visible in the next 3-4 years: SJJ is getting new, although relatively modest terminal, the runway will be rebuilt, some services will be added at the airport and so on...And most importantly, there are many new flights!
However, It is still strange to see SJJ so low on the list of airports in the EX YU area. It's the capital city, central position, not a small city for EX YU standards, the economy of the city is not so bad yet the airport is just meh. I am talking about the current capacity and facilities.
That is fair analysis. As you said, the more people that leave is better for the airport, as in other parts of ex-yu, as these people will return to visit 'home' every 1-2 years, with some coming back every six months or so if they find cheap flight. (But it is bad for BiH when people leave, obviously).
DeleteI wish Sarajevo good luck with improved living conditions, and more leisure travel for SJJ.
With cheap flights offered by Wizz and Ryanair I think coming "home" 2-3 times a year is more realistic because, once you pay your ticket 35 EUR instead of 235 EUR, you feel like going back to visit for a few days suddenly makes sense. Instead of coming once per year and staying home for a longer period of time during summer of winter season.
DeleteIs Sarajevo really that important ?
ReplyDeleteTo me it seems overhyped .
Sarajevo is the main hub for Asia, and there are more and more flights to Europe, and flights to America will start soon.
DeleteSarajevo is the main hub for Asia, and there are more and more flights to Europe, and flights to America will start soon.
DeleteSarajevo is the fourth largest urban area in the EX YU with 450.000 people in the mentioned area (I am not talking about administrative limits and borders, I am talking about the functional urban area) and 1.000.000 people in its catchment area, but it is only 10th busiest airport in the same region at the moment. Maybe 9th, 8th. Still low from what it should have been.
DeleteIt is not overhyped, but it only now gets the attention it deserves. SJJ is still far from performing great, but it is getting better. The reasons are known: horrible decisions by the management, "uhljeb" mentality of the same management (airport as a tool for employment vs airport as a tool to provide services to citizens), isolation of Bosnia from almost all relevant events in aviation in Europe, fear of low-cost airlines (because negotiations with them often require losing some "uhljeb" money, I mean high taxes that serve only "uhljebs" and not really development purposes), culture of flying not developed etc... Also, relying on seasonal explosion of flights and passengers from Arab countries turned SJJ into a seasonal airport at one point which does not make too much sense for a city where tourism is not the main income generator. Now that is changing. And more importantly, there are two other airports in Bosnia doing a good job, Tuzla and Banja Luka.