Friday, April 23, 2010

B&H Airlines hit by financial trouble

B&H heading to Zagreb
The Ministry of Transport and Communications of Bosnia and Herzegovina confirmed that B&H Airlines has had problems paying off its loan for 2 ATR72 aircraft, which make the core of the airline’s fleet. The ATR72s arrived in 2005 thanks to a loan from the Hypo Alpe Adria Bank. The bank itself said that B&H has been tardy with its payments but said that the two airlines have excellent ties and that they are sure this problem will be solved soon. The CEO of B&H Airlines said that all payments had been made on time. The Ministry also confirmed that the Bosnian Government provides aid of up to 5 million Convertible Marks (approximately 2.5 million Euros) to B&H annually, as agreed with the airline’s other owner Turkish Airlines, the “Dnevni Avaz” newspaper reports. The airline reported it had lost 500.000 Euros due to a recent volcanic ash cloud from Iceland, which grounded airlines across Europe.

On the other hand, there is some good news. Despite initial problems, the Bosnian and Herzegovinian national carrier will commence flights from Sarajevo to Zagreb from May 21, 6 times per week (flight details can be found on the right hand side in the new route launches section). The airline will also operate charter flights from Tuzla to Hurghada in Egypt and Antalya in Turkey.

7 comments:

  1. Well, after all the launching-not launching tussle for this much needed route, they make a decision!

    Timings for ZAG aren't optimal (but then JAs scheduling is hardly efficient), but it is a start, and will prove that short-haul props are better designed for routes of this distance rather than far-flung destinations.

    Ticket price relatively similar for flights in late July - JA cheaper than OU by just 18 euros. What a shame they don't codeshare as they previously did...

    And it surely wouldn't hurt JA to at least update its website to the Summer schedule?

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  2. @frequent flyer / SAM

    check out www.lju-airport.si departures of tomorrow Saturday 24APR:

    they have 4 flights to Hurghada, 2 to Sharm el Sheikh, 1 to Cairo and Adria does needs to operate extra flights to CDG and SVO. this means total two to CDG and total two to SVO. Tonight JP has already 3 flights operated to ISTANBUL.

    Counting the 391 pax from Hurghada and assuming the two B734 SSH and 1 A320 flight to CAI are full, we have to assume that around 877 tourists are flying tomorrow from LJU to Egypt. The travel season def has started :-)

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  3. @frequentflyer

    Timings ARE optimal, there are lots of businessmen in Zagreb who would love to have a morning flight from ZAG to SJJ and do their bussines in only one day and come back home in the evening. Think again.

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  4. Croatia Airlines would not codeshare with B&H Airlines because BH Airlines have cheaper tickets. But anyway i hope Croatia Airlines will lose passengers to Sarajevo to B&H Airlines, GO BiH!

    And the timetable is just perfect!

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  5. @ Anonymous

    I think you have misinterpreted my comment. Don't just look at it only from a passenger perspective, think of how the airline is run, profitability and its scheduling (which, ironically is what the article is all about). Assuming the normal 8hr overnight rule most airlines employ, that means another short-haul return trip could be operated from SJJ (what this a/c type is designed for).

    The fact remains that JA is worst in ex-YU for scheduling flights or using their fleet for maximum profit. Some LCCs in Europe seem to be the champions at this utilisation approach, though many full-service airlines (including parent TK) have dramatically improved...

    It wouldn't surprise me that this scheduling insight is purely due to the same pre-privatisation staff doing the work at JA. As parent TK is much more efficient in this regard, they need to bring someone experienced in to change the airline's flight capabilities and logistics.

    The flight could leave SJJ 9pm or later and have the same effect as you suggested for same-day business...

    @ BOSNIAK

    Wrong. Plain wrong.

    If this was the case, the two airlines would not have been codesharing since 2004, including when JA operated flights SJJ-OMO-ZAG. There has never been a response as to why the codesharing ended so abruptly by JA either...

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  6. Freqflyer made a very good comment here. The departure time from sarajevo is ridiculous!
    That plane could have done another trip and leave to ZAG at 2200 which is when SJJ airport closes. That way possible transfer pax form BEG could make it to ZAG flight.
    Also, the 1800 departure is only 2hrs later than previous OU flight.
    I am a fan of BH airlines but if it was not tragic it would be funny.

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  7. There is no more corrupted institution in Bosnia and Herzegowina from Bh Airlines. Tottaly misslead by SDA staff that can not find job anywhere else...

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