Air Serbia plans to further expand its fleet with the lease of an Airbus A320 aircraft, in addition to a second A330-200 and a further two ATR72-600 turboprops. “Air Serbia has launched procedures to lease an A320 aircraft. This reinforcement will depend on market conditions, but the company will negotiate the best possible terms for the aircraft”, the carrier’s CEO, Jiri Marek, said. He previously noted, “The oversupply of A320s on the market means that some lessors are open to the winter power-by-the-hour model”. This kind of lease involves the lessor providing the aircraft for a fixed cost, usually driven by per flight hour.
Air Serbia has also begun talks over the lease of its second wide-body A330-200 jet. “Negotiations and the procurement process regarding the lease [of the A330] are currently underway. We plan for the aircraft to arrive in Serbia in October this year and enter into service shortly after”. Last week, the carrier took delivery of its third ATR72-600 turboprop aircraft, registered YU-ALX. The airline plans to take on a further two planes of the same type, one in September or October and the other in November or December. It has also signalled the lease of additional units in the coming period. “The optimal size of the [ATR72 fleet] I would say is ten because then you can start benefiting from some economies of scale”, Mr Marek recently noted.
In the short-term, the airline has no plans to renew its fleet of mid-age narrow-body Airbus aircraft, however, more jets of the same will be added in the future. Mr Marek acknowledged that eventually newer aircraft would have to be introduced into the fleet. Since both the A319-100neo and the B737-7 are niche aircraft, the airline could upgauge its narrowbody fleet and then make room for the addition of regional 100-seater jets. However, the carrier’s CEO emphasised this is not a short-term prospect for them for the time being. The carrier has been forced to wet-lease four aircraft this summer, complementing its fleet of ten Airbus A319 and one A320 aircraft.
Wonder how soon will we see the A320 added.
ReplyDeleteSoon since they talk about having it over winter.
DeleteAround a week ago an A320 registered OE-IOC came to BEG and went to Jat Tehnika. It's not flying for any airline at the moment. Could be going to Air Serbia.
DeleteIt's true that it came but it actually came to BEG for storage.
DeleteAs soon as JU starts flying from YYZ, the number of pax using LH, AC and other Star Alliance partners as transit routes will drop dramatically. At that point AC will realize it is losing money and start direct to BEG. This will no doubt result in us seeing the AC Boeing 777-300ER flying over Belgrade.
Delete2pw can't lead to anything dramatic. Sure, LH is not happy about any long haul launch and I would forecast some issues for Swiss when Chicago starts. Zurich is prime destination out of BEG, JU is highly competitive on the route, and without these transfers it's not gonna get better for Swiss. But they'll fight, JU should be ready.
DeleteThey should ditch the A319 and focus on the A320, especially as their network grows and with it the number of transfer passengers. I think they need to be around 5 million passengers per year to truly profit from economies of scale.
ReplyDeleteWinter is their biggest enemy and they need to work on boosting their sales during that period.
I am not professional in this industry, but it seems to me that due to high seasonality, Air Serbia should focus on acquiring 1-2 AT76 on short-term (even immediately) and postpone lease of A320 for S2023. Thus, it will serve its hub with sufficient frequencies from more regional destinations with decent LF on AT76 and reduce risk with A320, even it is leased on PbtH basis...
DeleteMy 2 cents...
Don't forget that the difference between A319 and A320 is just 30 seats. It's not such a huge difference and operational economics aren't that different. There is a reason why most carriers ditched the A319 in favor of the A320. If I am not wrong, even Airbus gave up on the A319neo as they couldn't get enough orders. I believe it was Qatar who put the final nail in the program's coffin when they cancelled their order some years ago.
DeleteA320 has one extra loading section which means that there is more room for cargo transport, both in high and low season.
If they keep on boosting their regional network, there are going to be more transfers and this might cause problems on certain high volume routes where the A319 was already doing well even in winter. Some of these destinations are AMS, CDG, SVO, IST...
With a lower CASM thanks to the A320, they could also offer a larger number of cheaper tickets and thus be more competitive vs Wizz and others.
Btw remember before covid when they even managed to boost VIE from ATR to A319 on some days thanks to considerably increasing the number of morning arrivals. I remember back then they would get 15 to 20 transfers from KRR alone. By increasing capacity and comfort on this route, they instantly became more competitive on the O&D market where OS has/had the upper hand (better equipment, a loyal base, corporate traffic...).
DeleteTrue. That's why I think even the A321 is not that much of a leap for JU. It would serve them great in summer and would not cause a huge cost difference to operate in winter. Thecgas burn is negligible when you put everything in the perspective.
DeleteThank you Nemjee (Anon, 9:10)
DeleteI think good option for them would be a220 aircrafts.
DeleteAgree with Nemje. A320 should become standard for JU in the next 2-3 years when it comes to narrow-body. The main competitors are sending bigger and bigger birds to BEG and with longhaul expansion it shouldn't be problem to fill those extra seats. During winter too, that's one of the key long-haul benefits: reducing the seasonality. But I hope they'll go with some MENA destinations, JU needs (trully needs) year-round operations in Israel, UAE, Egypt...
Delete@Nemjee,
DeleteAirbus didn't ditch the A319neo, it's possible to order it, however most of the airlines either change existing orders into A220 or opt for A320neo instead.
A319neo has it's own perks, due to the hot&high capabilities that are crucial for some airlines, especially in South America, but so far most of the deliveries were the ACJ versions.
I think China Southern will be the first one to take the commercial version.
It's worth saying that A220 ate a huge portion of this aircraft order, and Airbus was well aware of this, so they purchased it.
Thank you, I thought they didn't offer it anymore since it never became a hit (A319neo that is).
DeleteI think that at the end of the day, if passenger numbers keep on climbing, they will have no other option but to boost capacity. The fact that they are bringing back a second A320 shows that they are going in that direction.
I mean all of their equipment is leased at the moment. They can just change it when the lease period ends.
DeleteGreat to see Air Serbia expanding.
ReplyDeleteAir Serbia needs aircraft in between the ATRs and A319s.
ReplyDeleteNew Embraer E2 jets are the best option for them with the capacity range going from 80 to 120 passengers.
DeleteI'd rather they stuck with airbus and go for the A220 instead of the embraer jets.
DeleteThat's really unneccessary.
DeleteHow many aircraft have they added to their fleet this year? I know a few A319s came, Atr72s...
ReplyDeleteMost are just replacements.
DeleteIs the lease for any other Airbus jet expiring soon?
ReplyDeleteWhy not get -300 series A330 instead of -200?
ReplyDeleteThe -300 is too big for them.
DeleteA330-200 has better range. A333 would be too big.
DeleteDidn't realize -200 has better range than -300.
DeleteYep. Range for A330-200 is 13,450 km and for A330-300 it's 11,750 km
DeleteNice, I always would have thought that A333 had the better range. Learn something new every day.
DeleteThe bigger the seat capacity which goes hand in hand with cargo increase, ends up hurting the range as you burn more fuel to lift that extra weight. B777-300has more seating capacity vs B777-200, but the smaller one is the range champion:)
DeleteNow with introduction of A350XWB and 777-900 that will soon change.
Maybe the should look at getting a couple of Boeing MAX aircraft?
ReplyDeleteWhy would they move from all Airbus/ATR fleet to B737?
DeleteI consider myself an amatuer here, but you have rocketed me to the professional skies...
Delete09:12 Lol
DeleteAdding MAXs would make absolutely no sense.
DeleteNot to mention there aren't any on the leasing market.
DeleteSo from what will know until now , they will expand by 2 airplanes since the other 3 ATR's 600 are replacements of the 1 atr 500 and their owned left 2 atr 200 , right ?
ReplyDeleteWill= We
DeleteThere will be more ATRs coming next year.
DeleteThey needed A321 as hell.
ReplyDeleteIt would only make sense to get an A321 through a wet-lease and it is questionable if they were available.
DeleteA321 is great aircraft with almost same operating cost per/hrs as A320 . They can definitely use it on high dentistry routes , go deep in to Middle East , and grow other destinations like India central Russia and Africa
DeleteWish one day they would actually get brand new planes from the factory.
ReplyDeleteAlmost happened with the neos.
DeleteThey would go bankrupt if they bought brand new planes.
DeleteStrictly hipotetically speaking they can get some one to buy them a new plane and then lease it from that company for a fixed minimum amount of time. It's not something new or unheard of.
DeleteAn excellent year for Air Serbia all round.
ReplyDeleteOf course, they receive a lot of taxpayers money they can play with.
DeleteAt least they do something positive with taxpayers money and try to expand and improve service. Unlike some other airline that get taxpayers money and do nothing with it other than pay wages to staff.
DeleteJU isn't even in the top 10 state-owned companies in Serbia ranked by the amount of subsidies they get. If there are truly concerned Serbian taxpayers on this website, I suggest they start from the top, because the argument is getting really tired.
DeleteThe A330 addition was really unexpected for this year.
ReplyDeleteI'm glad they didn't go with their original plan of wet leasing a second A330 over summer.
DeleteWhy not? We would have already had a second long haul route that way.
DeleteIt's better for your own product and image if you are operating your own plane(s).
Delete@Anon 09:46, Agreed, especially widebodies on long haul routes!
DeleteHonestly it's nice to see an ex-Yu airline expanding, adding new routes and growing its fleet. There is too much stagnation in the region, virus or no virus.
ReplyDelete+100
DeleteCool
ReplyDeleteLots of great work has been done at JU in recent months and I think the airline is well set up to exploit several key opportunities and grow and make BEG into a decent hub for the region.
ReplyDelete+1
DeleteIt was an ideal year. Lot's of new routes, aircraft and long haul development.
DeleteLet's hope that this will be reflected in the financial results as well.
DeleteIt will but it might take a couple of years for new long haul routes to mature and start giving results. Flights are starting in 2023 but would need a year or two, so 2025 results should reflect this. Financial results for 2025 will be published mid 2026. Can you be patient until then?
DeleteI also don't think their financial results will be amazing this year, considering they are replacing their fleet (owned aircraft with leased ones) and have launched many new routes which usually require a financial investment before they make a return.
DeleteSometimes you got to invest money to make money.
DeleteThey don't need more planes until they fix their ability to fly them on time or at least around time. Just this a few to mention this AM: CHP=37 min late; LED=77, RHO=44, FCO=47, TGD=76, BER=31. And let's not go into the theory of overcrowded skies and airports because this delay trend with Air Serbia is a routine rather than a random exception.
ReplyDeleteOvercrowded skies and airports are a routine in Europe this summer, not a random exception.
DeleteEurocontrol Slots... Come on buddy, you know that by now. Maybe a few genuine mechanical or crew staffing issues but majority is outside of their control
Delete@Anonymous09:46 Did u fly recently with any other airline? Doesn't look like.
Delete@anon 10:23
DeleteFully agree with you. It is really shame how ATC delays flights.
I have been flying often BEG-FRA and alsmot every time when plane is ready passengers need to wait up to 1 hour to get clearance from ATC. Really terrible.
There is another issue no one is talking about: BEG.
DeleteThere is currently a shortage of workforce there as well. This is also leading to delays.
Sounds promising
ReplyDeleteIn general, they first need to focus on punctuality. There are not serious ones, but such of up to 30-40min are common for example today.
ReplyDeleteIt is also common these days that airports are understaffed causing delays to flights which create a knock on effect for all flights during the day since planes don't do a single rotation per day or have hours in between flights.
DeleteYes, they should be punctual but they are not able to make it at the moment, same as all other airlines in Europe. It's not like you have better alternative: Wizz and LH are cancelling flights, KLM is late or doesn't even appear, luckily TK is not cutting BEG for now. I get all the frustration of the people trying to get to the vacation or business destination but it's gonna be much easier for you if you realize we will not be having punctual flying in Europe for the next two months.
Delete@11;36 so how do you explain that KL noon flight arrives more or less on time to BEG while JU has an average of 60 min delay ALMOST every day? Same sky, Schiphol airport for both, same Eurocontrol ...etc. Also let's take an example of JU LED / SVO flights no one added the necessary flying time necessary to fly over Lithuania and Latvia; it shows still 3 hrs as before when the flight was going over Ukraine / Belorussia. Obviously bomb treat or no bomb the flight will be late and not because of Eurocontrol, slots but because of poor planning and over ambitious AC utilization (read greadiness).
Delete^ you seem to know everything. Completely detached from reality.
DeleteActually it takes JU 30 min in average from end of boarding until dispatched aircraft in SVO + time for taxi so average is 40-45 min delay almost every flight. Check https://www.svo.aero/en/departure/timetable they have a very good site with boarding start-end / dispatch / take off times. Aeroflot closes the gate 20 min prior to departure and that rule in strictly reinforced so their punctuality was always very good.
DeleteKL's noon flight to BEG was cancelled 2 times in the previous 7 days. You will not convince me JU has the poorest punctuality at the moment on the continent.
Delete@11.33 Aeroflot, even in the busiest of times has planes sitting on the ground for 2 hours prior to departure between every flight.
Delete^^ most important is that you are attached and connected to reality by trying to find all kind of excuses so that we can't improve on anything. Great strategy!
DeleteI don't think you have bad intentions but we must do some reality check from time to time - flying all over Europe is mess at the moment. Sure, BEG was not prepared for this traffic, I don't think JU was fully ready either, but almost noone is. Dirty toilets at the airport? Horrible and unacceptable, it can be changed literally in a day. Arrival mess? It can be changed in a week. Punctuality - not so easy right now.
Delete@11:37 not truly correct! I have been flying SU actively since 2002 all across Russia and Aeroflot was (is) a very organized company. In severe weather conditions a plane would be turned around within 1 hr and 1:30 depending on type in Western Siberia. In Moscow they had a bit longer times between domestic and international flights (as you say about 2 hrs) but what is wrong with that? ... in my opinion better than being late and adding the delays to every subsequent flight.
DeleteYou can have 2 hour turnaround times when you have a fleet of almost 200 aircraft like Aeroflot, not 18 like Air Serbia. Because if Air Serbia had turnaround times of 2 hours then they would have 20 destinations and then you would all be complaining how they don't fly anywhere.
Delete@Anon 11:56, You said what I was thinking of this whole time! +1
DeleteCongratulations Air Serbia
ReplyDeleteAs I predicted earlier this year, the new CEO is development oriented and won't shy away fro launching new routes and developing the fleet.
ReplyDeleteThat’s good, because at first many were criticizing him and saying how he didn’t care about long haul expansion, and that with him we wouldn’t have any more widebodies, blah blah blah…So it’s good to see that he does care, though some were saying VINCI is pressuring JU? I don’t know.
DeleteYou are correct...The guy critisizing JU CEO finally dissapeared.
DeleteIt seems it became finally clear to him too that JU is spreading its wings and becomes truly significant player in the wider region.
Yup!
DeleteBecause most people here want everything to do be done overnight and immediately and it is simply not possible because of range of reasons.
DeleteSeven year wait is not exactly the same as overnight. Two widebodies should have been there from the start but that's not Marek's fault.
DeletePersonally I'd wait before giving a medal of honor to the new CEO. There are still many, many issues that need to be addressed and first being what their network is going to look like in winter. Like I already wrote once before, everyone can fill planes during the busy summer months. It takes great leadership to motivate your employees to do a good job so that your loads are decent once winter comes. Then there is the issue of alliances, staffing, corporate program, loyalty schemes and so on.
DeleteJU's network department did a fine job, no one can argue with that, but there's still a lot more work to be done in other segments.
Any idea who they will lease the A330 from?. Considering delivery is expected in October I would assume they have already found who the plane is going to come from.
ReplyDeleteIt will be intresting to see. My first thought was AerCap, since all of the new ATR's, and ARB are leased from them, but its unlikely since they only have 20+ y/o A332s on their books, which i doubt ASL is intrested in. But hey who knows maybe they free something else up.
DeleteIn other news, AerCap recently retook an ATR76 which is relatively young. Possibly one of the next ATR's for JU?? reg. OE-IHF
Ideally it would be a former Aerflot bird so the cabins match. Then again ARB will go out of service for a while when ARC comes so it is possible that ARB gets new cabins and they match whatever ARC has.
Delete*aeroflot
Delete@Anon 20:51 The business cabins on ARB are relatively new, so they probably wouldn’t want to change them, unless ARC gets something really good? Economy definitely needs a bit of a refresh, especially the IFE screens. Maybe touchscreen, larger, sleeker, and of course a better range of options.
DeleteA lot of planning woll have to go with their product for China. This means Chinese option for good, Chinese language option in entertainment system etc
DeleteI don't know how they the passengers and the crew will understand each other on those China flights tbh.
DeleteWell it's not the first foreign airline that will fly to China.
DeleteIs it just mean or is the engine on the plane in the photo missing some colour?
ReplyDeleteYeah. It's a part that has been replaced.
DeleteI would be happy to pay double the taxes for Air Serbia 🤣
ReplyDelete