Friday, July 9, 2010

Jat hit by competition

Jat records 10% passenger decrease in June
The Jat Media Centre reports that the Serbian national carrier carried 97.737 passengers in June 2010. This is a 10% passenger decrease when compared to the same period last year and the first time that the airline has reported a passenger decrease this year, if the ash cloud month of April is excluded. However, Jat justifies the decrease stressing that the number of operated flights decreased by 13% in June 2010 compared to June 2009. While Jat continues to report growth on services to Montenegro, its Euro Mediterranean services and particularly charter flights have suffered. In June, the airline carried 15.563 passengers on flights to and from Montenegro (+21% compared to June 2009), 71.878 on Euro Mediterranean services (-7%) and 10.296 passengers on charter flights (-45%). Jat is facing tough competition on charter flights as Egyptian carriers and Aviogenex make their presence felt. Jat’s charter flight offering has tumbled by 54% when compared to the same period last year.

On the other hand, Jat reported a sound increase in its average load factor which in June stood at 63%, up by 6%. Services to Ohrid reported the greatest growth when compared to June 2009, climbing by 174%. It is followed by Podgorica and Amsterdam. The biggest passenger decreases were recorded on flights to Trieste and Copenhagen. On flights departing Belgrade, the airline recorded the greatest average load factor to Tunis, Monastir and Sarajevo. Services with the greatest load factors heading to Belgrade were recorded from Paris, Stockholm and Dubai. Charter flights, most of which had a 100% load factor, have been excluded from the statistics.

8 comments:

  1. At 63%, their load factor is still a joke. Maybe if they lowered their prices, and started selling a select number of discounted tickets through their web site a few weeks in advance of each flight, they could increase their load factor? Personally, I can't wait for the day when Wizz Air expands its list of destinations from Belgrade, and hopefully one day receives a permit to fly the BEG-TIV route. 200 euros round trip for a 30 minute flight is monopolist price gouging at its worst.

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  2. @ anonymous

    JAT has improved with their fares i have to admit, for example, a couple of weeks ago, going to VIE with Niki was only 200 dinars cheaper than going by JAT, with OS being, as usual, a bit more pricier. But i 110% agree, BEG-Montenegro fares are rediculously hight, even if they brought the price down 50% it is still pricey.

    Load factors could improve if they replace the DC9's which left the fleet a few years ago to fill the gap between the ATR7 and B733.

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  3. Strictly statistically speaking, if they didn`t record such a huge decrease in charters, they would have exactly the same pax number like in H1 last year. It is about 10k passengers.
    Again and again: it is all about management which will take into consideration JATBEGMEL`s words in previous post, among the other things, of course.
    But still, fingers crossed for them!

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  4. Still this is not that bad. JU is facing some tough competition there. However what all of you are failing to notice is JU's growing in the Ex-Yu region. If I recall one of Jat's worst performing routes used to be Sarajevo, but look at it now, one of the best ones (probably due to JA starting flights but still) in addition to that the Ohrid flights are recording a huge increase. On the other hand I more interested in seeing their economic performance in this month.
    All in all this is not THAT bad considering where Jat is now and I am so much happier that their flights are recording an increase there where it s supposed to-on regular services.
    The route to Copenhagen show how sad most of the Serbs are. Cimber's prices are the same as Jat's, maybe 50 euro difference but they probably perfere it as it's foreign.
    Let's wait and see the results once the 737-700 arrive.

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  5. this trend will continue with JAT.l they're sinking boat, that can't be repaired anymore. as for B737-700, i don't think it will be leased. actually, it's gonna be the same thing that was this spring: "tresla se gora, rodio se miš"

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  6. @Anonymous 4

    "The route to Copenhagen show how sad most of the Serbs are."

    Well, the correct question is how comes that the Serbs are prefering foreign airline over Serbian one? Could it be that JU is not offering as good service as foreign ones? it maybe doesn't feel as secure as foreign ones and so on and on...

    Imo this is problem of the region, companies are complaining because locals are not choosing their products instead of investing into quality, marketing, packaging, security...

    Few years ago there was lots of talk in Bosnia about how Slovenian and Serbian companies were using dumping prices on dairy products and beer market.

    At that time approximately 20% of milk was produced in the country and around 35% of the beer. Breweries were complaining, while milk companies worked. Now 7-8 years later, Bosnia produces all of its milk and even exports 20-30% of the production. Breweries? Well they are still complaining and are stuck on 40% of the market...

    Something for JAT to learn from...

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  7. Dont forget that if someone like Wizz shows interest in flying BEG-TIV there are two permissions that has to be obtained - one from Serbia and other from Montenegro! MGX is using monopole as well...
    Will see

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  8. yeah right. WZZ to operate BEG-TIV/TGD. not in, at least, 2 years.

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