The Serbian President Aleksandar Vučić has asked the Emir of Qatar, Tamim bin Hamad Al Thani, for Qatar Airways to study the possibility of acquiring a stake in Air Serbia and becoming its strategic partner. During a visit to Doha, Mr Vučić said, “Today, Air Serbia is completely in Serbia’s hands. It has a clean balance sheet, but we want to avoid future risks because developments on the market are not dependant solely on us. I have asked the Emir of Qatar to help us in the future and to see whether they have interest in becoming our strategic partner. This would be an extremely important investment for us. We will discuss it in further detail during the Emir’s future visit to Serbia”.
The President added, “Air Serbia belongs to Serbia. Today it is a profitable company, but we are looking towards the future. It is doing good business at the moment, but whether that will always be the case does not depend on us but on market conditions. We can see that a number of carriers are failing. Air Serbia is the only airline in the region that is developing”. Air Serbia and Qatar Airways recently concluded a wide-ranging codeshare partnership that has seen the two carriers exchange their designator code and flight numbers on each others’ services as of this February. Qatar Airways has been maintaining flights between Doha and Belgrade since 2012.
The national carrier of the United Arab Emirates, Etihad Airways, still officially holds a 16.42% stake in the Serbian airline, down from 49% it acquired through a shareholder’s loan on January 1, 2014. At the time, the Emirati carrier signed a five plus five-year contract which ends next January. Etihad has had little influence over the airline since 2019 and has withdrawn from all its other equity partnerships including Air Berlin, Alitalia, Virgin Australia, and Air Seychelles. Air Serbia recently said, “Etihad Airways is a minority shareholder but has no involvement in the company’s management”.
New Wings of Europe 2.0
ReplyDeleteLMAO
DeleteWhat's your point?!
DeleteWhat a "sponzorusa" of an airline JU has become :)
DeleteWhat's in it for bata Andrej?
DeleteWell, someone needs to fund all that megalomania!
DeleteWhy sell profitable company??
DeleteThought their cozying relations might eventually lead to this.
ReplyDeleteAnyone remember Air Italy?
ReplyDeleteIt was a good airline until QR pulled out.
DeleteActually until QR stepped in. Previously they were a mid-sized carrier - Meridiana, which rebranded into Air Italy, compliments of QR.
DeleteQR's involvement is what killed Meridiana-Air Italy.
DeleteSo Etihad is definitely pulling out.
ReplyDeleteThey just have a minor ownership stake on paper. They have no influence on JU.
DeleteWhat happened to JV with Turkish?
ReplyDeleteThey are working on it. Both sides said it takes time to develop a JV. Recently Air Serbia began servicing some of its aircraft in Istanbul.
DeleteThis is a great question. Just shows how opportunistic Serbian politicians are, with no clear vision and strategy.
Delete^ you have your answer above.
DeleteActually, Serbian politicians involved in the air sector are far from opportunistic. I'd say they are very proactive. That's why JU is the only viable airline in our region. They should keep as many doors open as possible and not sit on their laurels like others have done for years.
DeleteUnfortunately it seems so... Politics are ok to a certain level if the airline is government owned (which JU is) but, when your team running the airline is not made of professionals but rather party supporters "professionals" who won't give room for real professional management to run this place,then that's not good.
DeleteYes, Marek is really not a professional but a party supporter. What are you on?
DeleteJU has one of the best CEOs it has had in years. To call him an apparatchik is silly. The man has transformed the airline in such a short period of time. Some other regional CEOs should take notes from him.
DeleteWhat does the JV with Turkish have anything to do with this? British Airways has a JV with American Airlines but Qatar has the biggest share in BA's parent company.
DeleteAmerican Airlines and Qatar are (i) in the same alliance and (ii) not competing for the same transfer market.
DeleteNo one said anything about CEO. We're talking about the entire team... Many people there are just to fill seats. And those who want to improve and strive are usually stumbled and denied to give their full potential because of those same people
DeleteWhat does JV actually mean? They make a company, legal entity? Or just regulates wide range of "shared activities?
DeleteOr something else?
it can be several things but in terms of JU-TK it is the second one you mentioned. They coordinate and cooperate in certain areas. For example they could have JV on Belgrade-Istanbul route so they coordinate pricing, capacity, scheduling. Usually in such cases greater room has to be given to a competitor (in this case Pegasus) so it does not turn into a monopoly.
DeleteNot sure QR will be interested. We will see.
ReplyDeleteJU is fast becoming a prospective medium-sized carrier. QR is not known for acquisitions but you never know. If there's money to be made, they might consider. Let's see what transpires when Al Thani comes to Belgrade later this year.
DeleteActually Qatar like making strategic purchases. They are a major shareholder in IAG the group which includes Iberia and British Airways. Not sure how active they are but I guess any Qatar involvement may also lead to One world discussions for Air Serbia
DeleteWhy would the state share ownership of ASL now that is profitable?
ReplyDeleteRead the article, he gives his reason.
DeleteI don't see any valid reason that the state should share on JU profits with a foreign carrier instead of reinvesting them in the airline and its development.
DeleteWell just because you don't see a valid reason, doesn't mean others don't.
DeleteInterconnectivity opens up new business opportunities. QR is one of the top 5 airlines in the world when it comes to service offering. Plus, JU has acquired a bit of the ME3 ethos from its previous dealings with Etihad, which would make closer cooperation with another carrier from that region easier.
DeleteIt is profitable because the state printed new shares and bought them.
DeleteExactly the reason for any outsider not to invest into JU- they would be diluted into oblivion.
I'm glad you know their finances without seeing their financial report. Btw the recapitalization was less than the amount the Croatian government recapitalized OU.
DeleteJU will be profitable without a cent from the government this. So what will you be crying about then?
DeleteI don't need to see their financial report- it was published here recently.
DeleteAnd btw, what does OU have to do with today's story?
You make wild assumptions without the need to consult their financial report? Good for you.
DeleteNo, the financial report has not been published. You have no insight into their revenue, expenses or yields to make assumptions as you did. Their financial report will be available in July. They purely reported their net profit which is +21 million.
OU is a great comparison due to some past similarities with JU. 10 years ago it was the most promising ex-YU carrier and now it's sadly where it is. JU was there too but has outgrown the region. Hopefully we can soon compare it to some other more significant market players. Goes to show the importance of partnerships and good management. Government handouts alone can't get you far if you don't get out of the Balkan business mindset. Good luck to OU, they need it.
DeleteAnother scam by pussymouth
Delete😂😂😂
DeleteWhy does someone need a partner since they say that everything goes wonderful??
ReplyDeleteAgain, try reading the article.
DeleteActually if you want to make maximum return and want to capitalize on your asset, now is the best time to find a partner. Your airline has no debt and is turning a profit.
DeleteThe original comment shows the Balkan mentality regarding foreign ownership. Companies are not sold because they are failing. And even if QR shows interest it is highly doubtful they will have a 49% steak. They will more likely have something between 10-20%
DeleteBecause we don't exist in a bubble, Anonymous09:19. That's how free markets work. You try to penntrate as many as you can as q
Delete...quickly as possible.
DeleteThis could also have something to do with the fact that the government is not subsidizing Air Serbia as of this year anymore.
ReplyDeleteThere is no need for further subsidising. Although it was initially pivotal so that the company could stand on its feet and reach profitability. JU has something to show for its grants. Unlike some other charity recipients well known to us.
DeleteQR's ownership stakes
ReplyDeleteIAG 25.1%
10% LATAM
10% Cathay Pacific
5% China Southern
And they are in talks to buy 49% in Rwanda Air.
DeleteSome really big airlines there.
DeleteMr President, please do your job, I‘m pretty sure the CEO knows better!
ReplyDeleteWell, he does exactly that. Serbia is the owner, owner want to share it with someone and they are looking for it.
DeleteDon't think this is done behind the back of AirSerbia, but even if it is, nothing wrong in it formally.
It's up to prime minister to negotiate, not the president though...
DeletePussymouth is an expert for everything
DeleteInteresting development. Let's see what happens.
ReplyDeleteGovernment needs money, that's all
ReplyDeleteAnd you need to brush up on Economics 101, that's all.
DeleteMogucim ulaskom Er Srbije u partnerstvo sa Qatar Airways,
ReplyDeleteomogucice projektovani rast i razvoj. Uz Qatar Airways postace osnaeni komercijalni centar Istocne i Juzne Evrope, i sire. Indirektno ce omoguciti kroz partnerstvo mnogostruko uvecano prisustvo. Prvenstveno na trzistu Australije i Novog Zelanda. Nsta manje i u Jugoistocnoj Aziji i najvecim delom Afrike. Verujuci u sklapanje pozitivnog partnerstva Srpskog avio prevoznika sa Qatar Airways -om, neka bude uspesna letnja sezona i uspesan
tandem ovih kompanija. 😀🛫🇷🇸🌐✈
Rodney Marinkovic and Aviation Enthusiast Associate Group. ✈🌐🛫😀✈
Vi kao u bajkama da zivite, isto se pricalo za Etihad...
DeleteEtihad je transformisao JU i tek onda postao trom.
DeleteSada su transformisani i ne treba im konsalting iz Katara da namecu svoje stavove i potencijalno pogresne odluke, Marek je sposoban da sam vodi Er Srbiju i odlicno mu ide
DeleteRadi se o jos jednoj dogovorenoj kradji na drzavnom nivou
DeleteWhy would they tie themselves to another Middle East company?! Completely different mentality and way of doing business, completely different structure of clients. Is this something like Sukhois - politics trying to meddle where it shouldn't? Or is this just an introduction to "Arab" investment into Air Serbia? The only reason why Air Serbia is doing well is because it has a professional management and so far they were able to keep politicians out. Don't mess it up!
ReplyDeleteBecause Middle Eastern companies have the funds and will to invest in others.
DeleteExactly, let the professionals do their job. This is so humiliating, Marek is in the charge of company!
Delete@ Anonymous 10:12
DeleteSo? Everybody who has funds is willing to invest. What kind of argument is that? Is money the only criteria?
Yes, it's the primary criteria in an open market, among others, like the prospective investor's track record, which is pretty solid in this case.
Delete@ Anonymous 10:49
DeleteNo, I do not think so. If that is your primary criteria, you will not be running your business for long in this "open market". Synergy, compatibility, benefits for the company and so on are more important aspects. And I also disagree that QR has a "pretty solid" track record. QR is led by Akbar Al Baker and owned by Qatar, neither of them are famous for their mild temper and benevolence, and have only their own interest in mind (as is normal in "open market"). They wouldn't think twice to abuse or flush a small company like JU if that serve their interests. So, maybe worth looking into it a bit deeper than just "open market" money. Because otherwise, I am getting a notion that the only criteria is lining some people's pockets.
Anons 10:44, 10:49
DeleteCriterion is the singular form, and criteria is its plural.
@Anonymous 23:51
DeleteWhat an exceptional example of nit-picking. Even Merriam-Webster acknowledges increased usage of "criteria" as a singular form (which is not uncommon for English words taken from Latin and Old Greek).
Today on my flight to Zurich, they advertised a Probiotic on the head covers and distributed magnesium samples... I don't see this product fitting in with a five-star airline...
ReplyDeleteMagnesium, potato chips, toto cookie and mini water - What a meal combination, only in JU
DeleteOn British Airways short haul you have the worst legroom in Europe (worse than Ryanair) and no service whatsoever. Yet QR has a 25% share in their owner. LATAM has no business class - not even euro business - on its narrow body fleet. Yet it is owned 10% by Qatar. What does on board service have to do with ownership stakes?
Delete@10.22
DeleteYou are right, Lufthansa is better. You get nothing.
Why do you always compare JU to other airlines where service is bad? There are also some companies with quite decent on board service such as A3 or TK, I have never seen anyone trying do defend JU so badly on this one.
DeleteI know that service on LH is the worst, you don't have to teach me. Let's look up to some positive examples!
Oh no! You got a freebie! I'm so sorry for that. Hope it never happens again! Must be the worst experience one can imagine while flying. Btw, to avoid such despicable offerings in the future, you can also fly Swiss to Zurich and rest assured you won't get anything.
Delete@10.34
DeleteWhat is exactly the issue? You get cookies/chips and a bottle of water. If you want more you can pay 3-4 euros and get it. The flight to Zurich is an hour and a half.
It's the downgrade what JU even used to have as a meal
DeleteWhat annoys me with JU ist that they could make a small effort to achieve a much improved onboard product, both in Economy, but especially in business class. But no one seems to bother, rather, they promote a Probiotic. Yes, I know, other airlines also have brand partnerships, but at least with brands that somehow match their own (e.g. Swiss and Breitling or Lufthansa and Sixt). This is just a sad attempt at making some ad revenue in complete disregard of their own brand...
DeleteFirst anon @10.49 and that is how they became profitable. By decreasing costs. You would be the first to complain why they have a full meal but are loosing money.
DeleteThey will have to invest in their product if they want to continue raising their transfer share. With direct links service and service quality might not matter as much, but if you transfer the price is just one of many factors when choosing your connection. If you compare Belgrade Airport and Air Serbia against other carriers and their hubs the offering is just subpar, both in the air and on the ground. With a few twists they could considerably improve their product.
DeleteAir Serbia wasn't struggling financially because they were serving meals onboard. They struggled because they overexpanded and offered transfer tickets for next to nothing. BEY was deeply in the red despite being overbooked on almost every flight. Anyway, we all know what came next.
DeleteAs for the Hemofarm ads, they have been around for a while now. At least two years if not more. Before the probiotic they used to have Magnesium ads from the same company.
If I remember correctly, several millions were saved when they switched to a buy on board service. Just in beverages alone, if I remember right, saved them roughly 3 million However, it'll be nice to at least bring back complimentary coffee and tea to accompany the service.
Delete@10,49
Everyone has downgraded their service, so why should JU push a product that simply doesn't work on the European market? They tried it and it didn't work.
I am happy with a bag of chips and a bottle of water. I just think with a little effort here and there, they could set themselves apart from the competition so that price is not the only argument for a transit passenger to choose Air Serbia. On transfers they are competing with other airlines and hubs in the region. For example they could review their BoB programme, awful selection, awful design, it doesn't really make me want to buy anything. This was done with 0 creativity, for example they could include local products, tell some stories, etc.
DeleteSame goes for the lounge, they had table service which set them apart, this was pointed out in most reviews of JU that I read or watched. Now it is a buffet with the same amount of staff and probably a considerable amount of food waste.
They could invest in their business class, having three food options on a short flight is nice, but the food is "just ok" and the presentation lacks. Why not some Serbian dishes? Why the soggy cracker with the cheese on every morning flight.
Many things they implemented make sense from a business perspective, but with just a little bit of effort and polishing they could elevate themselves and their product considerably. Invest some efforts and get it from 75% to a 100%.
Well, a business will always save money when removing an expense. No doubt about that. However they didn't need to go all the way. After all, LOT and Aegean have kept some onboard service and both of them are performing really well when it comes to finances.
DeleteMind you, LO went full buy on board only to reintroduce the current concept they have. I think Lufthansa will be next. I see them reforming their onboard product especially now when they rolled out their brand new premium product which seems fantastic.
Between EY and QR I would definitely choose QR.
ReplyDeleteAre those really the only options? When you put it like this, it seems as if they HAVE to have EY or QR shareholder, so we need to chose the less bad option. How about none of the above?
DeleteBecause very few other airlines are looking to invest in other airlines.
DeleteThese are in many ways some of the few benchmark airlines in the world. And they have deep pockets. It's a no brainer, really.
DeleteAgree with last anon. Makes sense
DeleteAt least now we know why they are being so difficult when it comes to salaries. They probably need to keep costs as low as humanely possible while taking their revenue to a new high.
ReplyDeleteThey definitely need to have shiny books in order to increase their value and to come across as an attractive investment.
The other day I was at the airport and we were sitting in the coffee shop upstairs. I was looking at the crew that was passing, at least 50% of them were extremely young. Hopefully they do a better job at talent retention because from what I heard and read online, people are not exactly happy over there.
I agree with you. I don't see any logic in the fact that profitable company simply doesn't want to share one small part of its profit on increasing salaries. It would motivate their stuff and help them achieve better results this year.
DeleteI hope young people working there will have a solid chance to make career in aviation sector.
If this thing with Qatar happens, I just hope it won't end up like it was the case with Air Italy.
Mozda je neko rekao da je doslo vreme da se JU obuzda i uspori
ReplyDeleteWho and why?
DeleteMaking things up
DeleteNe sam Aleksandre, ne sam!
ReplyDeleteI would love to see Qatar Airways buying the share of Etihad. LOL 😁
ReplyDeleteOva tema iritira medije u Beogradu danas, svako za svoje interese. Mislim da JU ne bi trebalo do dokapitalizuje nijedna kompanija iz Evrope jer je to glavno tržište za JU. Obzirom da je država dokapitalizovala kompaniju ne bi trebalo da kupljeno od Etihada prodaje Qatar Airways-u. Qatar Airways bi mogao da kupi udeo od Etihada. JU bi trebalo da leti za jednu zalivsku državu, npr. za Kuwait kada se završi letnja sezona, a sa Bejrutom i Amanom se već kasni.
DeleteI knew Air Serbia had to join with another another airline. because in Europe there are no successful independent flag carriers. Lufthansa is a massive group that owns other airline such as Austrian air. Air France and KLM had to join together, even British Airways and Iberia had to join together. For Air Serbia to be stable they do need a strategic partner, personally their relationship with Etihad was great I hope Qatar would be as equally as productive. I thought Air Serbia would have been better off creating a joint venture with another strategic airline to grow, such as carrier of Bulgaria, Georgia or even set up with Slovenia since they want to launch a new carrier and doing it with Air Serbia would be very profitable for them.
ReplyDeleteQatar was unable to grow Belgrade route to widebody service in over a decade. They don't need Air Serbia regional network as QR will expand service to key regional destinations directly, as mentioned here yesterday. QR doesn't need JU expansion to US and China. Qatar even has service to both Miami and Toronto unlike Air Serbia LOL
ReplyDeleteyou are correct, but the possibility is that if Qatar buys into air Serbia and invests, it can use the Air Serbia network in east, south east Europe to get income without investing its own fleet into the region. they can use their fleet to expand other routes.
DeleteIt will be fun to watch the turf war over Belgrade passengers. Partner Qatar will want passengers from BEG via DOH to Thailand and many other destinations. Joint Venture partner Turkish might go after the same passengers via IST to Thailand and other destinations. Loyalties will be tested.
DeleteI'm not so sure they will be interested. Let's see.
ReplyDeleteBelgrade - Airport (5):
ReplyDeleteAsistent dispečera leta
Kontrolor kratkoročnih operacija
Kontrolor operacija
Specijalista za kontrolu letova u mreži
Specijalista za uniforme
Random question: Does anyone know how much JU pays for these positions? Thank you
My guess is not a lot but if you can apply for асистент диспечера лета. That job is fun and should be a good work and life experience. Spend there a year and it will really help you in any other job you move onto after JU. It's a really dynamic job especially once summer comes.
DeleteI believe at this point all those who worked for JAT/Jat are gone but listening to their stories from operations back then must have been fun.
If you are young then I highly recommend you do this high workload, low salary job.
Nemjee06:52
DeleteThank you for your reply. I thought that its low, but there is basically no information on how much JU pays. Website ogledalofirme is now closed and there is no access to salary data so i was pretty curious.
I am young, however, I have bills and rent to pay, anything under 1000e is not doing the job, but I will apply. :D
JU could benefit from joint aircraft order with QR. Not too many things QR can get from partnership.
ReplyDelete