Croatian ACMI specialist Trade Air plans to further grow its fleet of six aircraft on the back of strong demand for wet-lease contracts. The airline's CEO, Marko Cvijin, told "TTI Magazine”, "Currently, our fleet boasts five Airbus A320s and one A319. This summer, Trade Air is operating one aircraft in Montenegro, another serves for Croatia Airlines, and one flies out of Bergamo in Italy on behalf of a Maltese carrier". He added, "In July 2023, Pratt and Whitney announced a major issue with its new geared turbofan (GTF) engine, as featured on A320neo and A321neo models. As this issue continues to affect the industry on a global scale, companies like Trade Air, operating Airbus models equipped with classic CFM International engines, are now experiencing increased demand. Thus, we anticipate further growth through 2025 and even 2026".
Commenting on the airline's future plans, Mr Cvijin said, “With all our aircraft capacity sold out since October 2023, I believe we are in a very strong position for the rest of the year. We do not typically exhaust our capacity so early, but because of the widespread lack of capacity, our clients started negotiating in advance. For instance, there is hardly any narrowbody capacity to rent on a semi lease for the summer, and the ones that are available are extremely costly. Looking at our long-term strategy, our five-year plan entails expanding our fleet with a couple more units. Nonetheless, the market’s instability, driven by current geopolitical issues, makes it difficult to plan beyond a year. Additionally, we are amid an economic slowdown, possibly on the verge of a recession, so my long-term forecasts might not be accurate. Still, I believe that for the time being, we should prioritise revenue growth and scale back investments until the geopolitical situation stabilises”.
Trade Air was impacted by the outbreak of the war in Israel, forcing it to terminate its ACMI contract with Israir, however, the airline hopes to renew its agreement with the airline once the situation in the region stabilises. The CEO noted, "Trade Air is quite fortunate to rely on a mobile operational model, unlike major carriers which fly from fixed hubs. In other words, we can move our base to capitalise on job opportunities anywhere. Amid the ongoing crisis in the Middle East, we have halted our operation in Israel, exploring new ventures in other places instead. I believe losing that contract was regrettable as we enjoyed working in Israel due to the significant demand for extra capacity there. However, once the situation stabilises, Trade Air will be looking forward to renewing that contract".
9a-btg is parked since March, so no idea how the whole fleet is sold out for the summer
ReplyDeleteWhat's going on with that airplane?
DeleteBig maintenance porpoises, normal thing every few years on every aircraft and airlines.
DeleteAircraft’s has to undergo into a huge internal maintenance to comply with higher safety standards.
I heard they found rust, anyone know more?
DeleteThey have a fleet of 6 aircraft, wow, didn't know that.
DeleteThey have a very bad company culture, to say mildly. They had a disaster with a much smaller fleet... Their company culture cannot sustain a larger fleet, it will end badly.
DeleteWhy is that? I am not familiar with them.
DeleteYes, bad culture. They can’t count to 10 nor even write. What a stupid cumment.
Delete@Anonymous13:52
DeleteI agree, no idea what he meant by bad company culture? Are managers abusing their staff ? Sexism and racism issues? No idea what he refers to as bad company culture. I mean Elon Musk for example is a terrible boss, horrible human being, a racist, and at Tesla in Hawthorne there's loads of racism and sexism, I consider this a bad company culture. So much so, scores of law suits against Tesla due to racism and sexism. Just google for more info.
Trade Air is a tiny airline with 6 aircraft, not sure they're big enough to even have a company culture tbh, but if they did, what is so bad about them? They treat their workers really bad, are they racist, sexist, Islamophobic ? What @Anonymous18:04?
I have flown a week ago with their A320 on behalf of Air Montenegro. That airplane is in bad condition. To be honest, I was scared throughout the flight. They should renew fleet with younger planes
DeleteCan you define bad condition?
DeleteSeems like they're optimistic. Good for them, they're operating at full capacity. Also, does anyone know what Maltese carrier they're flying for out of Bergamo? Is it Ryanair's Malta division?
ReplyDeleteno, it's Malta MedAir, a Maltese charter airline
DeleteSeems like they arw afraid to grow...
ReplyDeleteRightfully so. Aviation is starting to slowly cool down after covid as life is going back to normal. Wet leases thrived in that period but airlines are adapting bit by bit. Going forward there will be less need for these wet leses so Trade Air doesn't want to be stuck with too much capacity.
DeleteI think they need to be ready to step in when OU goes bankrupt though I don't know if they want to start a fight with mighty Ryanair who is the new sheriff in town, not just in Zagreb but in all of Croatia.
OU will never go bankrupt. There will always be a need for a High Quality carrier such as OU. I'd be more worried about JU growing too quickly although equally they will never go bankrupt neither. Neither government will ever allow that to happen!
DeleteActually your comparison makes no sense since JU is a profitable business which even managed to pay back €20 million in loans to the government.
DeleteOU on the other hand needs constant cash injections and with their mess this summer they will need even more. Just look at their operational mess and all the wet leases they have flying for them.
It is a good news for OU that EPP will stay in power in the EU, so OU is probably safe, otherwise paying back €20 million of loan to the government (really paying without any financial malfeasance) would definitely be a problem.
DeleteUnd das Geld haben sie vorher von Regierung bekommen. Es gibt ein sehr schönes Artikel über Air Serbia und jetzige Regierung . Ohne Vucic wäre Air Serbia schon längst pleite …
DeleteWith all
Deletedue respect OU is everything BUT a high quality carrier…
@10:09 Have an internet like.
DeleteNothing can save OU if their financial performance doesn't improve. Don't forget that they are being attacked from all sides and especially by Ryanair. Losses will become so large that the government won't be in a position to pay. OU usually makes money during this period of the year. Unfortunately for them right now their operations are collapsing, they are cancelling flights and getting last minute leases from other carriers.
DeleteWell it is very expensive to grow and one wrong move could end you, especially as a small private operator.
DeleteTrue
DeleteBravo Hrvatska!
ReplyDeleteActually, the state has done everything to make Trade Air's life complicated.
DeleteI'm rooting for TradeAir. They are doing their thing, and from what we can see, rather well. Their empoloyees have regular salaries, taxes are being paid and we see no reliance on ilegal government handouts. I like that they are doing the best they can in the circumstances. They survived in this harsh business climate since 1994. In my eyes, that is a major accomplishment.
ReplyDeleteTheir climate was anything but harsh. They operated in a market with growing inbound demand and since covid they were literally printing money.
DeleteCan we agree to disagree? TradeAir positioned themselves properly to be in a position to print money postcovid. Not to mention long gone JP, we see what OU mess is in, with full state support. OU turned 30 years of oportunities to start printing money into 30 years of wasted opportunities.
DeleteOU is a government business so they have to hire political allies, Trade Air doesn't have to. Just like Trade Air, Dubrovnik Airline could made it big if they didn't make a few mistakes. Market was favorable in Croatia the last 20 years and Trade just knew how to make the most of it. OU could never because of politics.
DeleteThey really need to work on fleet renewal. They have the oldest fleet in ex-yu.
ReplyDeleteDubrovnik Airlines failed when they started modernizing their fleet. Let's pray that Trade Air has more wisdom.
DeleteDubrovnik Airline failed because they were sabotaged by the government that didn't like their expansion plans (which was planned with fleet renewal) as it would hurt Croatia Airlines.
DeleteNot really, they were not ready for the higher leases on A320s. That's what killed them once the season was over.
DeleteWhen does the aircraft become old? Who decides about that?
DeleteWell done Trade Air!
ReplyDeleteCovid and its aftermath has been fantastic for ACMi airlines. It really took off for them.
ReplyDelete+1
DeleteThat's why so many popped up in the last few years.
DeleteToo bad they didn't go for that deal to launch scheduled flights from Tuzla.
ReplyDeleteThey didn't plan to launch scheduled flights from Tuzla. They offered the airport an ACMI and for the airport to run their own operations.
DeleteShame they never considered scheduled operations from LJU.
DeleteWhy would they take the risk. They get great money this way.
DeleteAirport running airline operations in TZL? Giving airport airplane on ACMI basis? Never heard of that before....
DeleteDo they still have the ACMI deal in Kosovo?
ReplyDeleteNo, that deal ended.
DeleteHow? 9A-BTJ is still in PRN.
DeleteTrue but deal ends in August.
DeleteFirst they should stop with pay to fly (they offer this to FO and even CPT positions !!!) and put normal salaries. Then we will see hove their business is working.
ReplyDeleteWhat does pay to fly mean?
DeleteYou pay them in order to be hired.
DeleteOf course, bogus crew contracts, heaven for owners… Just go ahead, take 10 more Airbus, after you die, you will all take to heaven… 🤮
ReplyDeleteAre you ok?
DeleteI am absolutely, yes. How many crew members they have on local Croatian contracts which includes social security, health insurance and tax paid? After you answer me that question I will ask you: are YOU ok!?
DeleteWhile ETF practically announced B777 Tradeair is afraid to grow...
ReplyDeleteI guess it is all about managing financial risk.
Delete9A-BTG is parked since March
ReplyDelete9A-BTH stationed in SPU (on behalf of OU)
9A-BTI stationed in TIV (on behalf of MNE)
9A-BTK stationed in LJU (charter flights)
9A-BTL stationed in BGY (on behalf of Malta MedAir)
You forgot 9A-BTJ (aircraft number 6)
Delete9A-BTJ is flying from/to PRN
DeleteCroats do not trust them. Pitty.
DeleteAnons 03:06 and 07:01, you are right 9A-BTJ stationed in PRN (on behalf of Mywings)
DeleteGreat!
ReplyDelete