Monday, February 14, 2011

New fleet essential by 2012

Jat needs new aircraft to compete with others
The new head of Jat Airways’ Flight Operations Department, Vladimir Banjac, has told Jat’s Media Centre that it is essential the airline receives new aircraft by January 1, 2012 if it wishes to keep flying. “Without the purchase of new aircraft this year, or at the latest by the end of 2011, Jat Airways won’t have a chance to compete with other airlines from abroad and the region”. Banjac says. He believes that with new aircraft the airline could create a more ambitious timetable. Jat is hoping to finalise a 13 year feud with Airbus and receive 4 Airbus A319s, although the arrival of the aircraft wouldn’t begin until 2012. Banjac states that if Jat were to receive Airbus aircraft, the airline’s pilots would be trained for the new type within 2 months.

Last week one of Jat’s ATR72s, which has been grounded for more than 2 years, returned to the airline’s mainstream fleet. The Serbian Government has guaranteed a 140 million Euro loan to Jat for the purchase of new aircraft in 2011.

Jat’s acting CEO, Vladimir Ognjenović, told the Serbian public broadcaster, RTS, that the company is recovering. In January it sold 11.500 promotional discounted tickets and saw income increase by 27%.

21 comments:

  1. Every time I read of JAT's so called "fleet expansoion" or additions to its fleet the date keeps getting updated, 2009>2010>2011 now 2012.

    No point even discussing it.

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  2. Maybe they could also realize that these promotion tickets are what other airlines offer on regular basis as their cheapest tickets. It is nothing new.
    It's no secret that Jat needs new planes, I am glad that there is finally the Open Skies which is pushing Jat managment to think.

    By the way, this Atr that has been put into service, where is it going to fly? An Atr can have up to four rotations per day in Jat's schedule...

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  3. As for these promotional tickets, they were meant for travelling from February first so how could they see any profit in January from them?

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  4. @Anonymous #2
    They sold them out in January!

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  5. Aha I see... so it's really going to be interesting to see the sales in the coming months.
    However 11.000 tickets for two months is not that much, or is it?

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  6. @ Anonymous 2: They will be using the extra ATR on Ohrid, Skopje and Dubrovnik. Ohrid sales are going extremely well. They have actually brought forward the start of the flights a month early.

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  7. “Without the purchase of new aircraft this year, or at the latest by the end of 2011, Jat Airways won’t have a chance to compete with other airlines from aboard and the region”.

    Admini, perhaps that opposition airline might in fact be ABROAD?

    I still believe the airline must seriously look towards 2nd-hand latest generation aircraft, it has revolutionised Aerolineas Argentinas' operations who updated from nearly 40-year 732s! They are about to get 10 ex-Virgin Blue 73Gs which was a logical step to upgrade from.

    So, which airline or leasing company is going to have a wave of 73Gs or 319s about to come free in the 8/10yr bracket that are not only within JUs budget, but will allow the airline to expand as Mr Banjac has claimed?

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  8. So what is this Atr going to be doing before those flights start?
    Is it just going to sit at the airport for a month?
    So Skopje will go double daily in summer, what about Ohrid?
    I suppose you meant Pula and not Dubrovnik. That is still not enough unless Pula and Ohrid go daily which I doubt.
    Maybe increasing flights to Thessaloniki? Sarajevo? Montenegro?

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  9. I can just say regarding to Mr Banjac statement: Dobro jutro Kolumbo!

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  10. That's just a soap opera ( sapunica ) after a balkan sauce!
    Where is the arrangament with Airbus? Where are the
    Airbus 319? What's the delivery schedule of these aircrafts?

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  11. That's just a soap opera ( sapunica ) after a balkan sauce!
    Where is the arrangament with Airbus? Where are the
    Airbus 319? What's the delivery schedule of these aircrafts?

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  12. Ih... pa nemojte biti na kraj srca... :)

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  13. BRAVO, BRAVO I BRAVO svaka cast Jat Airways-u a velika zahvalnost Ministru Infrastrukture Milutinu Mrkonjicu koji je izdejstvovao 140miliona evra za kupovinu cetiri nova A319. BRAVO SRBIJO

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  14. "Without the purchase of new aircraft this year, or at the latest by the end of 2011..."

    I though this year is 2011. The end of 2011 is still part of 'this year.' What is the role of "or" in his sentence? Could it be that he meant to say by the end of 2012?

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  15. 4 aircraft is a start. But it is not enough to handle the current loads JAT has or the destinations JAT currently has. JAT will need to get 10 airbus planes and replace the ATRs with the new Sukhoi aircraft in order to be fully competitive. But alas, this might take some years to come. I hope Airbus manages to let JAT squeeze out the 8-plane deal. I thought Sarkozy was supposed to visit BEG and negotiate on this issue?

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  16. And what a fabulous start by second renewed ATR (ALN as I recall) after 2 yrs! The very same day they have made this mish mash with the minister on Friday the aircraft afternoon departed to TGD and returned due to landing gear problems! And what's up with the rest of two the ATR's? Why aren't they flying? Gentleman, recover the current fleet and make it fully operational, than think about fleet renewal!

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  17. Jeebusman,

    Replacing the Atrs with Sukhoi would be a suicide. Jat needs Atrs for their regional routes mostly in the ex-Yu region plus Vienna and Trieste. The Sukhois would not be that economical.
    Routes where Sukhois would be amazing are routes to Scandinavia as well as some routes in Germany where they could be flying more often with less capacity.

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  18. @frequent flyer

    You make a very good point in regards to the second hand market, I guess JAT managment have no idea or they are seriously strapped for cash because there is quite a sizeable second hand A320/737NG family market out there!

    Would JAT even consider buying the new Sukhoi for their thinner routes?

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  19. @Koryo

    I think they should consider the Sukhoi. If you compare it to the E190 they are the same, just that Sukhoi has certain advantages.
    Waiting time for the E-jet is about three years where as for Sukhoi should be just below one year- if that much.
    Jat should place an order for the aircraft mostly for the thin routes like let's say Oslo,Brussels or routes where they are faced with competition and would need frequencies such as Istanbul, Zurich, Cologne...
    Unfortunately for Jat when the plane becomes a hit it is going to be too late to get it then.
    Serbia should use the good relationship with Russia in order to lobby for a good price.

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  20. Jat Airways should be striving for a fleet that: 1) allows for higher flight frequency and 2) can be operated rationally on thin routes.

    The DC-9 was an excellent aircraft, filling the void that the Boeing 737-300/700 or Airbus 319 cannot cover without sacrificing a low cabin load factor. It is a shame that the Boeing 717 did not become popular with customers. Apparently the B717 is 10 percent more fuel efficient than its competitors (B737-500/600 and A318). Can anyone confirm this with a credible source? The issue of commonality should not be significant for Jat since it has a surplus pilots and its maintenance is subcontracted to Jat Tehnika.

    Ultimately Jat needs several 80-100 seat aircraft in addition to an eventual replacement for the Boeing 737-300. I believe that acquiring Embraer jets are a greater priority than replacing the 737s. A mix between EMB 175 and 190 aircraft would benefit Jat on several routes that may not be profitable to operate with a Boeing 737, but strategically important nonetheless. Moreover, customers are sure to appreciate flying an Embraer over a turboprop to destinations beyond a 1-hour flight duration.

    I am not sure of the difference in fuel consumption between the Boeing 737-300 and 737-700; my feeling is that not much has changed between the Classic and NG. Perhaps the major difference is related with the opportunity cost of keeping an aircraft grounded longer, due to more time needed for maintenance, in addition to the cost of maintaining aged jets.

    Ultimately the airline needs to find the magic formula (or optimal point) where the jets are up in the sky more than on the ground, and the cabins are reasonably full. I really do not see how this is so complicated!

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  21. @last Anonymous

    I have found out from a few colleagues that the UAC (OAK) is valuing the Superjet is valued at roughly $34~ Million USD per aircraft fully furbished and delivered, on the other hand an ERJ-190 would cost one $40 Million flat without the interior job.

    This aircraft would be ideal for European operations especially for JAT and the smaller European carriers.

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