Air Serbia plans to continue developing its Embraer fleet through its partnership with Greece’s Marathon Airlines, noting that adding an aircraft such as the Airbus A220 would bring no benefits to the company’s existing business strategy for the time being. Responding to a question about the A220 from “Aerotime Hub”, Air Serbia’s CEO, Jiri Marek, said, “Other than being rebranded from its original name into Airbus, the A220 has nothing in common with Airbus. So, you cannot use the benefit of the cockpit commonality, which you have, in our case, with A319s, A320s and A330s where you can use the same pilot. There is no benefit to you if you introduce it because it will be treated as a new aircraft type. You will need new CAMO, engineers, new pilots, new crew and so on”.
Mr Marek noted that savings made through using new technology such as the A220 would be offset by high ownership costs. “There is no benefit for us from that technology at the moment, because if you compare A220s and Embraers, the majority of A220 operators, excluding the big ones like Delta and Korean, are single-fleet operators like airBaltic. Their business model is single-fleet with no complexity, using that model for short-range and long-range. For us it is different, because we are a hub-and-spoke airline, we operate both long-haul and short-haul and for us it is a feeding aircraft. From that perspective, the ownership cost is very important. This new technology, like the A220 and even the Embraer E2, will save you 18% to 20% in direct operating costs but that will not offset the high ownership cost. So, you will increase the cost of feeding your hub and it will become unprofitable”, Mr Marek said. He added, “Therefore, for us, it was a very natural choice to select the Embraer E1, which are mid-age and mature aircraft. The ownership cost is super low and the aircraft don’t face any significant issues like with new technology. At the same time, we didn’t want to deal with the complexity of adding a new aircraft type, which is why this pilot project with Marathon Airlines, which started as a wet-lease and will expand into a CPI model was a logical win-win solution”.
Air Serbia will add a third Embraer E195 aircraft to its fleet shortly and anticipates the arrival of a fourth unit in January of next year. The carrier plans to operate up to six aircraft from the Brazilian manufacturer during the 2024 summer season, all of which will be wet-leased from Greece’s Marathon Airlines. “We are working with Marathon Airlines to transform the Embraer wet-lease into a full damp-lease. That means our cabin crew and our uniforms, while cockpit crew will be from Marathon. We are also looking at some other synergies where the Embraer fleet can be deeply incorporated into Air Serbia but it will not be operated by Air Serbia”.
Is this the first case of damp lease in Europe? In US its a common sight but in Europe not really. Maybe Cityjet or Xfly is offering it to SAS?
ReplyDeleteSo damp lease means that the crew is from the airline but the flight is operated by another airline?
DeleteExactly.
DeleteYes, aircraft and pilots are from different company, but crew is from the airline selling the flights
DeleteAnon 09:02
DeleteDamp lease is used in UK.
Thanks. Interesting approach
DeleteWhere so? Emerald used it for AerLingus with ATR fleet, and maybe British Citiyet is operated by outside team - but I'm not sure
DeleteAerLingus has some ownership share in Emerald, so that one is a joint venture - no idea if you can classify it as a damp lease then
DeleteWhen is air 🇷🇸 coming to Australia.
DeleteJP also utilised damp lease with one of their A320s.
DeleteNever. European airlines, with a single exeption, have not been flying that far for a while.
DeleteCroatia Airlines used the CRJ-1000 from Air Nostrum in the summers before Covid with a Spanish cockpit crew and mixed Spanish/ Croatian cabin crew in OU uniforms. So it is not the first time in Europe for sure
Deletemakes sense
ReplyDeleteWhat does ownership cost mean?
ReplyDeleteLeasing rate, maintenance expenses, insurance, etc…
DeleteLease, upkeep etc.
DeleteFor example A220 lease is 2x more expensive per seat compared to E195s or A319s
Thanks!
DeleteDon't tell OU...
ReplyDeleteAlso don't tell the largest and most successful airlines of the planet that opt for modern aircraft that burn less fuel instead of flying 15-20 year old frames.
DeleteWhat do they know? 😄😄😄
Read the actual article, maybe past the headline. You will see why he says it would not work for Air Serbia at this moment. Keep laughing anyway.
DeleteYes, reading the article would actually help rather than feeling soar. He says they see no benefit from this aircraft for now. He says why, he says why it does not fit in their business model, he does not say it does not fit others or that others shouldn't acquire them, including your national airline.
DeleteSo you are disagreeing with yourself Anon 09:07?
Delete?
DeleteGiant 🤣🤣🤣
Delete"Giant" has huge 13 international routes from ZAG this winter.
I want to see once when "the books open" who was "good" in this deal and for how much :)
ReplyDeleteBecause it looks like a fairytale. No one was mentioning for real Embraer jets and then BOOM 5 pieces
They announced early this year that they would get Embraers but they said in 2024. They also said at the time if a good opportunity opens they would get the planes earlier, and it seems they did. It is not easy to find an airline that can provide planes and crew, especially now and especially several aircraft.
DeleteThey were mentioning it last year. Marathon seems like a good and reliable partner - and they are planning to get A320s which means that AirSerbia will also wet lease them in summer
DeleteSame with Kroejša Erlajns
Delete@anon 09:07
DeleteIf you have not read about JU intentions to lease E1 it does not mean it did not happen.
There is really no need to be so malicious.
''Malicious''.... Some fellas are a bit too sensitive around here
DeleteBetter to be sensitive than malicious.
DeleteIt makes sense what he is saying. Ju would struggle to fill A220 on feeder routes such as Sarajevo, Banjaluka, Skopje ... it makes no sense to go for this model. I think he low-key burned OU
ReplyDelete+1
DeleteIt's not like they will replace the ATRs with the Embraers
DeleteThe A220s will come quite handy if they decide to launch charters to warmer destinations in ME and Africa given its large range. But, their network within Europe is easily doable with the E190. It is, after all, a very good and reliable plane. Ask Belavia, LOT, Bulgaria Air, Austrian about their Embraers. No issues and perfect performance. Just sad to see that the E2 did not do that well.
ReplyDeleteCharter flights with A220 simply do not make sense as cost per seat would be much bigger compared to A320 from Romania
DeleteBulgaria Air maybe will continue to fly with E190 for ACMI and charters, A220 is only for Sofia and scheduled flights.
DeleteAlso KLM, BA, Air France, TUI, Lufthansa and Helvetic use the E jets.
DeleteBelavia's Embraers have proved to be the backbone of the airline during the current events. They purchased several from the lessors as well. But they do a great job for Russian destinations.
DeleteThe Marathon story seems like the best wet lease they have. Flew with E195 last week on JU. Really nice and friendly crew, great cabin just 2X2 seating and seats are really comfortable and padded, big windows, and Ejet was very quiet. I just bought a flight to Naples for next month (on the Black Friay sale) and it is also an E195. I'm looking forward to it.
ReplyDeleteMy gut feeling says that they'll acquire Marathon in no time
ReplyDeleteCould be, we will see
DeleteI don't think Air Serbia is interested in acquisitions.
DeleteMarathon has an E.U, AOC.
DeleteIf JU buys over a 49% stake in it it will lose it.
That won't be happening.
I think that's the reason Camex Adria isn't flying yet - the company had more than 49% of shareholders from outside of EU
DeleteI don't think Air Serbia is interested or even in a position to aquire Marathon airlines. But you are right a non-eu company cannot have more than 49% ownership of an EU airline by buying into it. But they possibly could restructure the company and relaunch it as a joint venture like the airline Germany and Turkey have.
DeleteIf they were going to do something
But again - this ownership constraint is not about EU companies but rather 'European Common Aviation Area' (ECAA) companies;
Deletenow it becomes interesting, as if I remember correctly, this 49% constraint was related to the exact phase of implementation of this ECAA framework where Serbia's currently in - but this could actually change very easily, as in aviation matters legislation and practices are pretty much there.
So I wouldn't write-out this as a potential development...
MD no, you need to have 51% ownership by European Union shareholders (not just ECAA) in order to fly freely within the EU.
Delete@Anon 09:45: They'll have to work out an arrangement similar to what Solinair has.
DeleteThe next E195 is sitting on the apron in Athens in full JU colors.
ReplyDeleteWhen will it be delivered?
DeleteIt was already supposed to but it will definitely come by the end of the year.
DeleteIs it OY-GDA?
DeleteYes, the reg will seemingly stay the same.
DeleteOY-GDB will be the one delivered in January
Thanks.
DeleteI wonder why no photo of that plane in JU livery has been taken yet...
I don't think it is in JU livery yet.
Delete^ The above I mean for OY-GDB. OY-GDA is in full JU livery.
DeleteCroatia having A220 isn't the problem, Croatia having A220, A320, A319, Dash-8 IS the problem
ReplyDeleteWell Bulgaria Airlines took on the A220 while keeping their airbus fleet and its working out for them. They are actually planning expansion for next year. So from the case of Bulgaria it can be done to add the A220 successfully.
DeleteWait to see how well it's working out for them when they post their financial results.
DeleteBulgaria Airlines is one of the most corrupt airlines in Europe and complete money laundering scheme
DeleteI suggest you watching this before giving Bulgaria Airlines as a good example https://www.youtube.com/watch?v=6cnJ17K6omw
DeleteYes I know Bulgaria airlines has a bad reputation and customer satisfaction especially for foreigners and they have the same political issues like OU and JU had in the Jat days. But fact remains. Its growing and with time the other things will get better.
DeleteIn the end if it can be corrupt and be successful then so can OU.
Bulgaria Air are actually changing and slowly improving. Money laundery or not, nobody still proved it. How come they operated their Embraers for more than 10 years with no issue and was an ACMI operator for TAP? They even appeared on the official Airbus website:
Deletehttps://www.airbus.com/en/newsroom/press-releases/2023-06-bulgaria-air-takes-delivery-of-its-first-a220
They have a decent frequent flyer program, they have decent codeshares and interline agreements. They fly to major European capitals. They are not the best and not the worst. And yeah, regarding this Aussie dramaqueen youtuber, he is obviously looking for views and overdramatised in the video during Covid times.
They're phasing all of the other models out. And I would agree, having A220s isn't the problem at all. Having no interest in actually doing business and making money, is the problem and I honestly don't understand them. Even if they are as corrupt as everyone suspects them to be, even if they serve to launder money, it makes no rational sense not to want to make money too. OU's passivity is what's so puzzling amd they can't even begin to compare themselves with Bulgaria Air.
Delete@Michael
DeleteYou shouldn't be so surprised and puzzled. Banks were given after recapitalization during the war to foreign owners, for no money. Foreign merchant chains have absolute domination on domestic market compared to national. Industry is deliberately ruined in order to import everything, for Kradeze lobbies benefits. Now healthy cattle is being slaughtered in order to be dependent on imported not meat but shit, full of antibiotics. The biggest bus company ,Autotrans, perfectly run and profitable, is now Arriva. But we have Flix bus as well. Don't know which one is worse. Ex Jugolinija, Croatia line, no more. Shipyards, gone. Profitable and self sustaining Zagreb airport, given to concession. Croatia Airlines is obviously going Dolomiti. So, nothing to be surprised about. Danke Kradeze&Esdepe!! Danke Deutschland!!!!
What he really means is Air Serbia are jealous of OU having newer and better Aircraft.
ReplyDeleteIt would probably be wise to actually read the article. He explains why the aircraft does not suit Air Serbia and its business model as a hub and spoke airline. He also says that they would not be able to have a single type fleet because they had long haul flights. Croatia Airlines is not a hub and spoke airline with its existing network and plans to have a single type fleet so his comments have absolutely nothing to do with Croatia Airlines. Again, read!
DeleteHe has no intention to read and especially not to understand the article. Please do not feed the troll.
DeleteJealous of who? OU?!?!? Bwahaha!
DeleteNice one for Monday morning.
If JU could be like OU it would be very good! Too bad that they are not like them, JU has many many routes now, not good at all. FRA, MUC and ZRH and everything is fine!
DeleteOU is micro company, in a range of Bulgaria Air or Air Albania. But amazing in size comparing the country size. Hungary much bigger and decades in development ahead of Croatia, doesnt have national carrier. Wizz is only registered in HU, while it is American money and American ownership!!
Delete13:08 Wizzair is "only registered" in Hungary but its CEO was that of Malév and was such when it was founded. Just because it is bought by foreigners does not make it no longer Hungarian. Was Air Serbia Emirati when it was founded in 2013? Bulgaria Air is no "micro company", it has the fleet size close to that one of Tarom 14 vs 18. Plus, both countries face a very tough competition with LCCs and normal to have a smaller fleet.
DeleteWhen you have a lot of competition, it is actually not normal to have a small fleet. Quite the opposite.
DeleteTo be precise, FB has 18 aircraft, just like RO. Including the Bul Air brand. It should also be noted that Bulgaria is highly specialized in ACMI operations. So FB has found a good niche for its old 737 fleet, the A320.
DeleteMD82s as well
DeleteThey're retired. Also are of European Air Charter not Bulgaria Air.
DeleteYeah makes sense for the moment, think they are doing the right thing here. The numbers may add up in a few years though, I wouldn’t rule out seeing JU operating A220s by 2030.
ReplyDeleteI really like the Ejets in the Air Serbia livery. I think it is the best looking plane in their fleet to feature the livery.
ReplyDeleteCouldn't agree more
DeleteThis statement what is it based on? what is the differentiator in the livery between this plane and any other one that has the traditional livery? please explain your thoughts.
DeleteIt is based on my personal opinion. The size of the aircraft and proportions of the livery fit it best. I also like the tailfin design.
DeleteSmart decision
ReplyDeleteThey can't afford A220s anyway.
ReplyDeleteOf course they can afford it, just like OU and Bulgaria Air can. You take out loans to fund half a billion euros plane order. And then reality hits in a year or two.
DeleteI'm honestly a little sick of hearing Marek's constant drivel about how all new gen planes, wether it's A220, NEO or E2, are essentially horrible, unreliable and expensive. All I can take from that is that JU is the only one smart enough for seeing it and going for cheap current gen jets. There's nothing wrong with that fleet strategy it obviously works for them, but spare us these lectures and don't make yourself out to be some sort of mastermind for it as hundreds of these new gen planes are operating, even with engine issues they work well for so many airlines
ReplyDeleteIf you bothered to read the article it says
Delete"Responding to a question about the A220 from..."
What should he have said? "I won't respond so not to offend Anonymous' feelings?
I've very much bothered to read the article and the very same statements in about 10 other ones in the last year or so. I don't care what he should've said I simply said there's no need for these lectures about why new gen jets are actually not that good or whatever, when they're working out well for many airlines
DeleteIf you actually read the article (which we established you obviously haven't) he says it doesen't suit Air Serbia, he doesn't mention other airlines, except giving an example why it might suit other airlines. His business are not your feelings. If you are so bothered there are something like thousands of articles here. Read something else.
DeleteMy guy go back to twitter with your 'if you don't like it don't read it' arguments
DeleteBut you didn't read it. That's the issue.
DeleteMarek didn't say new gen planes are bad, but that they need time to mature and overcome some child disease which would have negative impact on the operations and finances. He also said that they are too expensive now and they don't fit in the existing cost structure.
DeleteI agree he's a bit annoying repeating all the time the same thing, but he didn't say negative about new gen planes!
Somebody from Air Serbia is getting a good compensation for using another company to fly for Air Serbia. They are getting the best routes in the Air Serbia network and bigger compensation. Air Serbia cabin crew and pilots are flying to less competitive routes like Tivat,...
ReplyDeleteThere is a spectrum of delusion and you are on it
DeleteLet's face it. Everyone is pissed that OU is taking the A220! If JU had bought the A220 people here would have a different opinion.
ReplyDeleteWhat are you on about? Have you read the article? It has nothing to do with OU. And even if JU did take A220, you would certainly have people criticizing it, since you can see people criticize it for everything - even for their boarding music. But JU and OU are two worlds apart in every respect.
DeleteExactly. One operates with 15-year-old A319s and E195s, and the other with brand new A220s. E195 is a bad choice, on the contrary, it saved the weak destinations, but I think the most reasonable decision was to choose a new aircraft like E190E2, A220 and why not SU-95.
DeleteIt has both pluses and minuses. But keep in mind that JU is developing rapidly and so is the Serbian market. So an older fleet is fine for JU, as of now. Still sad that JU canceled the A320NEO order! I would really like to see a Serbian A220.
DeleteYes, one will operate new A220s (delayed until June 2024 and soon you will read another article that it is delayed until the end of the year) to 13 international destinations out of Zagreb where it currently has one of the lowest average cabin load factors in Europe, but will magically change that by increasing capacity. The other operate mid-age ATR72s, A319s, A320s and A330 to 80+ destinations across the world. You are certainly right about that.
DeleteThe E2 is a commercially unsuccessful aircraft. The A220 is having engine issues and many are grounded across the world. Regarding costs, the CEO of Air Serbia explained it well why it wouldn't work for them, but then again you would actually have to bother to read the article.
Sorry but to take one seriously after suggesting that Su-95 is better than E195 is beyond ridiculous
DeleteRussian planes will be banned in EU space for the next 5-10 years minimum, and with questionable production conditions even more, no need to even open up the discussion about Sukhois or Irkuts
Delete"One operates with 15-year-old A319s and E195s, and the other with brand new A220s"
DeleteWait, have I missed something? When did OU get those brand new planes? The next news you will hear about them is new delay, and that's it for 2024.
"Everyone is pissed that OU is taking the A220"
DeleteI am not.
I am pissed OU is taking A220. But not because of jealousy. Because A220 will be the final nail in the coffin. Unfortunatelly some brainwashed persons here don't understand it
Delete+1
DeleteBtter dont have the problem making PW engines on the A220 and E-2
ReplyDeleteGood decision. Slightly off-topic, does anyone have an idea about the pricing model of Croatia Airlines? Their recent prices are like 3 or 4 times the prices of any other airline, seems like someone is joking. Say Brussels- Skopje return would be 220 on any legacy carrier whereas OU would be 500 to 700 even. A ticket to Boston is cheaper
ReplyDeleteSo on my next flight LYS-BEG, "Embraer 195 Operated by MARATHON AIRLINES FOR AIRSERBIA", will the E195 be in AirSerbia livery? and also who will be the crew?
ReplyDelete