Air Serbia plans to replace the majority of its 144-seat Airbus A319 fleet with the larger A320s in the coming period. The carrier has one A320 in service with another expected to arrive soon. “We are starting to shift from A319 to A320s. We got the last Airbus A319 in June and the next aircraft that we are getting will be an A320. Future replacements, once leases expire, will mostly be A320s. By doing so, we are also taking advantage of the attractive terms that exist on the leasing market right now. Additionally, we plan to grow approximately by one jet each year. If we see opportunities, we might move faster”, the carrier’s CEO, Jiri Marek, told the "AeroTelegraph" portal.
Mr Marek explained that the Serbian market showed its resilience during the coronavirus pandemic, giving the carrier confidence that larger-capacity aircraft can be filled during the winter too. “We are a smaller regional airline and want to grow with the market in a profitable and sustainable way. Before the pandemic, the A319, in combination with the ATR72 turboprops, worked well for our hub and spoke model where we prefer frequencies over size. The A320s would have definitely worked well for a couple of months during the summer, but you would have had difficulties filling them during the winter back then. However, during the coronavirus crisis we saw that our market proved to be relatively stable and it is recovering fast. This gives us some confidence that the market here is growing at a faster pace organically than what was expected before. On top of that, the propensity of travel per capita is growing faster in Serbia than in the rest of Europe”.
The CEO noted that the switch from the A319s to the A320s might open the door for the airline to take on regional jets sometime in the future. “Between the A320s with 180 seats and the ATRs with 72 seats there’s a gap. It could be filled with a third model, not in the short-term, but in the medium-term”. He added, “Either we choose the Airbus A220 or the Embraer E2. Both have advantages and disadvantages. But there’s also a third option. Right now, you can get favourable terms for the secondary market of Embraer E1 representing good value for money. And then there is even a fourth option, the Embraer turboprop. It is still a project and exists on paper only, so we must see what they will really offer. But it sounds interesting to us. Having up to 92 seats, while maintaining the two-member cabin crew requirement, would represent an interesting niche versus regional jets. So, we will for sure be looking at the Embraer turboprop, as well”
Marek is the best thing that happened to JU in a very long time
ReplyDelete100% agree. YU is very proactive with him and maximizing on opportunities. I also think that regional jet would be a great addition for them and they will actually be crushing with it. Sooner the better for Embraers or 220-100 in the AirSerbia fleet.
DeleteThat is a stupid idea. They should transition to A220 like sucessfull and smart companies do.
DeleteIndeed transition to A220 would be a great move and improve the passenger experience compared to ATR.
DeleteI don't think that would go with "taking advantage of the attractive terms that exist on the leasing market right now." mentioned in the article.
DeleteA220 are hard to come by and are expensive to lease. Plus they need a bit more capacity that a 320 can offer.
I feel like he is preparing for the political career keeping himself in medias every week. Knowing he is not Serbiain so not politicia, makes me confidente he is serious about what he talks.
DeleteOr maybe he just likes the spotlight.
DeleteToo bad they cancelled the neos. It would fit their current plans perfectly.
ReplyDelete+1
DeleteBack in that time, they would have gone bankrupt had they not cancelled that order.
DeleteI wish they hadn't cancelled the A320neo order. They could have just downsized the number of aircraft.
DeleteIt was way to expensive for Air Serbia at the time, especially with two massive loans they had (which they have thankfully paid off).
Delete@anon 9.11
DeleteThey would go banckrupt long time ago without state aid (of all sorts).
Luckily they have something to show for the investments made by the state so far.
DeleteGlad to hear they considering Embraers and A220.
ReplyDeleteYes but not any time soon, as he says.
DeleteIn a previous interview that was published here, Marek said how regional jets will be considered in 5 years. So it's not going to happen soon.
DeleteIt makes sense. That's probably when the last A319 lease expires.
DeleteSukhoj superjet is not an option? Can you imagine what would happen now if JU actually took some of those.
ReplyDeleteObviously it isn't. You should give it a rest.
DeleteHaha Sukhoi Superjet with which avionics and components? Everything is under sanctions.
DeleteRight now the Russians are trying to restart production of the Tupolev 204 with Russian engines and all Russian suppliers. Maybe JU should get that.
Absolutely, they should get one of each for Aviation Museum in Belgrade.
DeleteI read the original article and he said Superjet was never an option for Air Serbia... Clearly a political story...
DeleteSo as each lease ends they will be replacing them with A320s. I wonder is the upcoming A320 replacing any A319?
ReplyDeleteI think A320 is still too large for most JU routes, especially in winter.
ReplyDeleteSeasonality will continue to be reduced in next few years
DeleteWhile in summer they could easily fill the A321 on many routes.
Delete^ Tey filled the A330 on some European routes this summer too.
Delete*they
DeleteA330 was mostly a one off, especially around the final 4 tournament. BCN was the only European destination to see the A330 regularly this summer.
DeleteMarek also mentioned the intention to increase frequencies so we can safely assume BCN will be increased. Spanish routes saw the A320 quite frequently.
A few charter destinations will also move over to seasonal scheduled routes next year to better combat seasonality issues. This could be a sign that they are happy with the performance of routes such as VLC, PMI, BRI. A320 will be a way to offer additional capacity to pax (both O&D and transit) outside of the capacity that the travel agencies take up.
A few TIA rotations have moved over to the A319, while agencies have started offering Albanian packages with JU, buying a certain amount of seats. I think we will see more of this in their network. Perhaps even A319 destinations might move over to the A320 (SKG comes to mind). The full transition to the A320 won't be immediate anyway so they will have time to review and react.
Another plus is that the larger aircraft could help them to better compete with LCC's and offer lower fares.
In the last 3-4 days there have been some JU A319/A320 flying BEG-TIA-BEG under weird flight numbers (on top of the regular scheduled flights). Anyone know what's up?
DeleteProbably because of the Open Balkan fair in Belgrade.
DeleteThanks
Deleteand yet, Wizzair has no problem keeping their A321s full in Belgrade
DeleteLot's of interesting stuff from them lately. ATR72 freighter conversion, second A330 lease, network expansion, potential regional jets...
ReplyDeleteLet's just see what becomes a reality out of it.
DeleteMost likely all of it.
DeleteAgree. Time to bite the bullet and go with the neos.
ReplyDeleteYou can't find neos being offered for lease on the market at this time.
ReplyDeleteA220 in Air Serbia livery would look amazing :)
ReplyDeleteA220 is the perfect choice
DeleteAgree. They should stick with Airbus and would then have an all Airbus fleet. ATRs are also an Airbus joint venture.
DeleteI was saying this when OU new regional fleet was discussed, and will say again here in JU case : Embraer, Embraer and Embraer
DeleteWhy so anti Airbus pozdrav? Not the first time anyway.
Delete@pozdrav
DeleteWhy would they mix fleet with Embraer? They have A320, A330, even ATR is Airbus owned. A220 is same platform, that would be logical choice.
1. Price, much lower then A220, the most important
Delete2. Capacity, exactly between existing types, competitor too big for regional ops
3. Order/lease size, big enough to sustain new manufacturer, with growth expected
4. Type rating/philosophy differrent for 220 as well, which is not Airbus but Bombardier
5. And once again after price, price, price, much lower and justifyin everything else
As EU country Croatia will get good price as an incentive. Plane prices aren't set in stone. And capacity difference? What, like 10 more seats?
DeleteYes and brand new B787s would make more sense than second hand A330s but realistically that's what they can afford. The same way Embraer jets are the most likely candidate here. Air Serbia isn't swimming in cash and I doubt the government would be too generous to finance A220s when there is a cheaper and more than viable alternative on the market.
DeleteAir Serbia needs aircraft in between the ATRs and A320s. I'm glad they are thinking about that.
ReplyDeleteDefinitely. But obviously not in their short term plans.
DeleteAnd it seems the short term strategy will be wet leases year after year.
ReplyDeleteWet leases are there due to a huge jump in demand for travel for 3 months. It doesn't make sense to dry lease aircraft for this demand. However, Marek has mentioned that they want to start moving charter routes to seasonal scheduled, which should reduce this seasonality problem and reduce the need for wet leases. This was tested with routes such as VLC, PMI and BRI and they seem happy with how they performed. I'm guessing routes such as CTA, CFU and JSI might be amongst the first to transition to this model.
DeleteAt least they are talking about fleet renewal. Until a year ago it wasn't even on the agenda.
ReplyDeleteNot only are they talking about it, they have already started it with the ATRs.
DeleteTrue
DeleteGreat to see Air Serbia expanding.
ReplyDeleteRight now Air Serbia is flying A319 from LJU to BEG.
ReplyDeleteI believe it is because of increased demand. The other day when they used the A319 to LJU there were over 100 passengers. Probably end of holidays so more demand.
DeleteGood to hear
DeleteGood example of why regional jets are needed.
DeleteToo bad that there won't be any Boeings in their fleet anymore :(
ReplyDeleteI'm surprised they haven't looked into the Boeing MAXs.
DeleteWhy on earth would they do that?
DeleteI don't get one thing. He says how they will grow by 1 aircraft per year. Does that mean that they will expand the fleet by one plane each year or will they just be replacing one plane by one each year?
ReplyDeleteYes, this is not clear to me either. Will their fleet size be static and just renewed or will it grow?
DeleteConsidering their constant announcements of new routes, I believe it will grow.
DeleteIf they say grow they mean grow, not replace
DeleteIf they plan to have 100 destinations in 5 years of course that they are going to need more airplanes.
DeleteIt's already obvious that they won't be able to manage next summer with current fleet.
ReplyDeleteLumiwings better get ready for another summer.
DeleteWe already have 1 A330 + 1 A320 confirmed as additions next summer. I think we can expect another A320 and an ATR or 2 joining the fleet next summer for a total of 4-5 additional aircraft.
DeleteWouldn't CRJ be an option too as a regional aircraft?
ReplyDeleteto expensive to operate
DeleteCRJs are too expensive?
DeleteYes
DeleteBut cheap to lease. Plenty of CRJ900 and even 1000 in the market.
DeleteExpensive to operate vs latest-generation aircraft? Yes. But still cheaper to operate than Embraer E1.
They desperately need larger aircraft. I think switching to the A320s is a good idea.
ReplyDeleteAnonymous 09:14
ReplyDeleteYes you can. Dozens of airlines are leasing NEOs from lessors. Leasing companies have each ordered hundreds of NEOs exactly for that.
Maybe you mean that hey can't find NEO to lease for the price of a 15 year old CEO.
New Embraer E2 jets are the best option for them with the capacity range going from 80 to 120 passengers.
ReplyDeleteIt is not because smaller 175 E2 is again delayed - no orders because it doesn't "fit". It is questionable if it is ever going to be truly deployed. This is the very reason why Embraer suddenly started to push for a turboprop project which might end up as a very interesting one.
DeleteHope they do it sooner rather than later.
ReplyDeleteWonder what their fleet will look like in 5 years. Anyone care to guess?
ReplyDelete4 x A330
Delete7 x A320
6 x A319
4 x regional jet (ERJ190/195)
10 x ATR72
I would like to see more A319s & A321s (perhaps 10 each) to support the 4-5 A330s.
DeleteGenerally, agree with JATBEGMEL, would just make it slightly different :
Delete4 x A330
2 x A321
6 x A320
4 x A319
8 x ERJ9
10 x ATR
4 x A332
Delete4 x A320
10 x A319
10 x ATR76
@anon 16:09
DeleteOnly 4xA320 + 10xA319 without regional jets, is it enough for medium range feed of 4xA330?
Probably they can follow Swiss fleet concept with A320 and A220-300 and couple of A321 and A220-100.
DeleteYes but unlike LX, they are not operating out of an affluent market whose residents have a lot of disposable income to spend. In addition to that, BEG is unable to offer 25 minute connections like ZRH does.
DeleteThey can lease A320s from Etihad. Apparently EY will get rid of its A320 fleet.
ReplyDeleteLeases from EY haven't been a smashing success for JU so far 😁
DeleteI’m confident that a general switch to the A320 as a base plane in the fleet will result in one or two A321s as well.
ReplyDeleteI think so as well. I don't think that will happen before at least 5-6 A320's in the fleet.
DeleteI have to say I'm positively surprised by Marek's willingness to engage with journalists since he took over as CEO. He seems to strive to give detailed responses that show a bit of the strategic thinking behind the airline, not just respond to the question in the curtest, most direct way possible. Truly a cut or two above other aviation executives in ex-YU.
ReplyDeleteFully agree, was thinking the same.
DeleteI don't know the arrangements JU has for fuel procurement in Serbia, but I'm sure it's easier for them as a state-owned entity to negotiate a discount on fuel for their CEOs rather than relying on the efficiency of the significantly more expensive NEOs.
ReplyDelete@Anon 09:59
ReplyDeleteThere is no free Neo on lease market. Those leases you mention have been agreed years back for brand new aircrafts. Even those ment for Russian airlines have been leased already to different airlines.
I think the best scenario would be to exchange 319s & ATRs with E175/E190/E195 for services to European smaller cities (not just hubs) and to grow frequency to offer better connectivity for BEG hub. They could start with E1s and then switch to E2s. Then they could use 320 (ceo or neo) on trunk routes in Europe and 321LR/XLR neo on medium haul (Arab Gulf, Central Asia). As of long haul 330-800/900neo might be an interesting solution to develop.
ReplyDeleteLeave ATRs. They are much needed.
Delete321LR/XLR? With what money?
DeleteState money
DeleteNonsense.
DeleteThey won't drop ATRs because they are cheaper to operate and easier for maintenance
Delete@Anon 9:59
ReplyDeleteYou really don't have a clue what are you talking about...
I don't understand the logic behind this announced move. Their LF is about 70% in good times which indicates that even A319 is way too big for their operations. Then need a new DC9 type (90-110 seater) and perhaps 2-3 each A320. That's all they need to cover main cities and for charter.
ReplyDeleteThis is planning, they can't have 100 passengers in A319 forever. Now they don't need too many A320 but in 3-5 years... The forecasts for aviation are still solid, specially on the markets that still can grow a lot (almost entire Balkans).
DeleteIf thry are planning for 3-5 years ahead they should really go for NEOs instead of CEOs.
DeleteNo. They are going for the CEOs exactly because they want to be around in the next 3 to 5 years. They need affordable planes that have cheap leases. Getting A320neos and A220s is not the way forward for them, especially not before they have consolidated their brand both in Serbia and abroad. Besides MNE I don't think there is any other market where we can say that they have a truly strong brand awareness.
DeleteAnonymous 12:01
ReplyDeleteSaid someone who doesn't know that a leasing market exists and almost all airlines of the world participate in it.
Air Serbia finally has a good CEO at the helm. He is a daring, pro -active visionary.
ReplyDeleteHe is "daring" for sure, but his previous employers were Malev, CSA and Alitalia, and I don't see any of them around.
DeleteHe wasn't the CEO in any of them or working for them at the time of their bankruptcy.
DeleteStep in the right direction and I suppose advance bookings for this winter must be solid if they are so ambitious when it comes to their future.
ReplyDeleteThat said, I think this winter will be the real test for their strategy. We've seen so many winters in the past when JU published an overly ambitious timetable and then ended up cancelling dozens of flights. This was partly because of a failed commercial strategy which didn't fill those empty seats and boosted revenue to desirable levels.
This year we have a new CEO and a new CCO. Let's see what they come up with and how successful they are going to be at executing this new strategy. It's in Air Serbia's interest to tackle seasonality as that was killing them in the past. Will they be successful? We don't know yet but their chances are better this year. It also helps that the Serbian market is staying strong but then again their competition are also going to try to profit from that.
Will be interesting to see what they all plan for the upcoming winter season. For next year, I really hope JU grows a pair and boosts BEG-CDG to 21x.
@Anon 12:01
ReplyDeleteYou really don't have a clue what are you talking about...
^^ this one was for Anon 14:25 actually....
ReplyDeleteCharter company by side, Aviolet, Aviogenex, whatever, A340-300 you can find for 2-3 milion or A340-500/600, slightly more expensive, all economy class charters, money maker in a High Season to Greece, Turkey, Egypt and others.
ReplyDeleteRyanair was asking not less than 350 euros to average tourist destinations.
It's crystal clear that you are ignorant.
ReplyDeleteSAS hoce da se otarasi 3 A320NEO, eto prilike
ReplyDeleteKako se zove onaj novi kineski avion te klase. Uzece srbija bar 2 komada od brata xia
ReplyDelete