Monday, October 22, 2012

EX-YU airline a distant dream

No EX-YU airline unity on the horizon

Plans to unify the struggling national carriers of the former Yugoslavia and fend off competition faced in the region seem to have faded. The idea was first proposed by the Association of European Airlines (AEA) which outlined that in order for the national carriers of the former Yugoslavia to survive they would need to unite into a single airline. “The once single Yugoslav market is now fragmented and a regional solution is necessary. The region needs an airline that would cover local needs and connect with global hubs”, the AEA said at the time. Slovenia’s Adria Airways said it would work towards creating a united front if its privatisation process fails and the CEOs of EX-YU carriers met in Montenegro to strengthen cooperation announcing further meetings in the year, setting up task groups and agreeing on “helping each other”.

Since then there has been no progress in improving relations amongst the airlines. Croatia Airlines was the first to rule out any possibility of a merger with other EX-YU airlines. However, soon after, the Minister of Maritime Affairs, Transport and Infrastructure in the Croatian government, Siniša Hajdaš-Dončić, announced the possibility of merging Croatia Airlines, Adria Airways and Montenegro Airlines into a holding company, taking Adria by surprise at the time.

Since the proposed merger there have been important developments within the national carriers themselves. Adria began its privatisation process but is keeping all details on potential future owners top secret. Croatia Airlines is soon set to formulate its restructuring program and decide whether to take a different approach to its business. On the other hand, Jat and Montenegro Airlines upheld their status quo in 2012. Turkish Airlines gave B&H Airlines the flick and relinquished its shares in the national carrier. The CEO of Montenegro Airlines, Zoran Djurišić, believes that a single airline for the former Yugoslavia is possible but not before 2020, when presumably all of the countries will be part of the European Union.

39 comments:

  1. This is one of the best decisions they made in the past 30 years.

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  2. It sad how this is indicative of the overall situation in ex-YU countries. Replace 'airlines' with 'sport', 'music', 'tourism', 'commerce', 'industry', 'trade', 'construction'... Everything worked better in Yugoslavia, and now all we have is reality TV shows, billboards, credits, and our pitiful beliefs that 'we're still better than them'.

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    1. Of course - NOT!

      Maybe it was better for Serbs, Bosnians, Macedonians, Montenegrins, but not for Slovenians and Croats!!!

      You just have to compare BNP in Croatia and Serbia, or salary in those countries. Highways, tourism etc. not even to mention.

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    2. This comment has been removed by a blog administrator.

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    3. This comment has been removed by a blog administrator.

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    4. Or what would have Stalin done to Croatia if it wasn't for the communist Yugoslavian project that he spared it from revenge of the Red Army, so instead of sweeping over Croatia they went north to Hungary.

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    5. Poor Slovenes and Croats... I wonder how "rich" Croatia would be after the war if they had to pay war repairs to Serbia and to the Soviet Union... The formation of Yugoslavia actually saved and completely washed off Croatia's genocidal and criminal record.
      This is a historical fact and not a nationalistic provocation. I really wonder how high would be your dear "Croatian BDP, tourism and highways" without the help and loans of the entire western world, that now you have to pay back for, result of what you have one of the highest VAT in the world.
      Or what would have Stalin done to Croatia if it wasn't for the Yugoslavian project that he spared it from revenge of the Red Army, so instead of sweeping across Croatia they went north to Hungary.

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    6. All this is just pure speculation and opinion and really doesn't matter now. The fact is that the majority of people in Croatia, Slovenia, Bosnia Herzegovina, Kosovo and even Montenegro did not want to be part of Yugoslavia. Once democracy came to Eastern Europe this was demonstrated in the first free elections and referendums. Unfortunately war came to the Ex YU and scares obviously still remain but we can only speculate if history would have favored republics if they were not part of Yugo.

      Can an airline be created today and become a single dominate figure in the Ex YU? I think yes for sure but it will not work if it is either started by trying to force all the current airlines in the region into one or if a government of one of the respective countries tries to start such a company.

      A private company with the right business model, capital, excellent advertising and brand could do this and I think people in the region would be more concerned about service and prices than where the plane is registered and based.
      In saying that, I’m not optimistic that it will happen.

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    7. Poor Slovenes and Croats... I wonder how "rich" Croatia would have become after the Second World War if they had to pay war repairs to Serbia and to the Soviet Union... The formation of Yugoslavia actually saved and completely washed off Croatia's genocidal and criminal record. Or what would have Stalin done to Croatia if it wasn't for the Yugoslavian project that he spared it from revenge of the Red Army, so instead of sweeping over Croatia they went north to Hungary.
      This is a historical fact and not a nationalistic provocation. I really wonder how high would be your dear "Croatian BDP, tourism and highways" without the help and loans from the entire western world, that now you have to pay back for, result of what you have one of the highest VAT in the world (and back to aviation - a collapsing airline under the strict wing of mother LH, payback time).

      Ex-Yu, i fail to see why did you delete the comments above, since there was not any provocative intention in them and i mentioned it clearly. However if you consider those worldwide accepted historical facts off-topic, they you should delete as well the comments that opened the conversation, with false statements and misleading statements though.

      @Q400
      There are very few cases in history where separatism and extreme nationalist led to prosperity.

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    8. "Poor Slovenes and Croats... I wonder how "rich" Croatia would have become after the Second World War if they had to pay war repairs to Serbia and to the Soviet Union... The formation of Yugoslavia actually saved and completely washed off Croatia's genocidal and criminal record. Or what would have Stalin done to Croatia if it wasn't for the Yugoslavian project that he spared it from revenge of the Red Army, so instead of sweeping over Croatia they went north to Hungary.
      This is a historical fact and not a nationalistic provocation. I really wonder how high would be your dear "Croatian BDP, tourism and highways" without the help and loans from the entire western world, that now you have to pay back for, result of what you have one of the highest VAT in the world (and back to aviation - a collapsing airline under the strict wing of mother LH, payback time)."

      Although i'm from Croatia i must admit that most of the statements in this article are true, we would have all benefited of staying together in one country, and we're not gonna be in the EU nothing more than what we used to be in YU, actually possibly even less.

      @Q400
      There are very few cases in history where separatism and extreme nationalist led to prosperity.

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    9. Actually there are a lot! Not that I agree but it is unfortunately the reality of the world we live in. The 'good or gooder' nations are just able to sell there evils much better than others.

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    10. Croatia should pay for war reparation in WW2 the same way as Serbia should pay for war reparation on wars (plural) from 1991-1995 (to Bosnia and Herzegovina, Croatia, Kosovo).

      And are sure that Croatia will be so bad injured because of war reparation in WW2. Maybe so bad injured like Germany, Austria or Japan?

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    11. Nothing proves my point better than the 'discussion' that followed my comment.

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    12. @ previous Anonymous

      Agreed. But Kosovo is part of Serbia (according to the UN and majority of the world). And Croatia needs to facilitate the return of the 250,000 Serbs illegally forced out after the war.

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  3. "a single airline for the former Yugoslavia is possible but not before 2020, when presumably all of the countries will be part of the European Union."
    LOL !!!! really optimistic !!!!!

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  4. OT: http://logistika.finance.si/adria_racuna_na_zasluzek_z_land_roverjem_1_672963 :)

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  5. http://aviokarta.net/vesti/1469-dinkic-vlada-pravi-novi-jat-i-kargo-centar-sa-etihadom/

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  6. "a single airline for the former Yugoslavia is possible but not before 2020, when presumably all of the countries will be part of the European Union."


    In other words, when companies other than those based in the balkans can run the show.

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  7. http://www.b92.net/eng/news/business-article.php?yyyy=2012&mm=10&dd=22&nav_id=82776

    What do u think about it? I think it is just a PR

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    1. The UAE government is going to heavily invest in Serbia, that is in agriculture. They stated that they need a cargo centre so our government is just throwing the Jat deal with the rest.

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    2. Is that the same minister that promote deal with AirAsia just few days ago? LOL!

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  8. This plan is good, to try it over 100 years. Now, with the recent past, it will never work and you will get 'iternal' wars daily.

    Even when the war is gone for 20 years, the memory's are not. We all can live our lifes and dont think to much of the past, but when you try mixing the elements of the past you will get troubles.

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    1. Could not have said it any better. Always kept thinking the way you are thinking but couldn't find the right words.

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  9. Why unite when Adria is losing ground. OU will follow when my muslim brothers put more pressure on LH.

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  10. Jat's official financial statement for 2012 (classified), only January and September approximate numbers will be disclosed:
    January: ~-20% revenue
    August : ~-50% revenue

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    1. Mistyped, around -20% respectively for both January and August. All that despite an increase in pax figures.

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    2. @Aэrologic
      Are these figures for the month of January and the month of August only or are they for the January to August period? Revenue is an important indicator, however EBIT is king. Do you have any EBIT figures?

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  11. funny how croatia and slovenia left yugoslavia and are joining a similar entity. what fucking hypocrits. and why would jat want to join such a "unified airline"? all that will happen is croatia airlines and adria are going to stab jat in the back and declare independence from that regional airline

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  12. Aerologic, good or bad result?

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    1. Well, it is roughly 20% down from the same period(s) in 2011, despite an increase in pax numbers, good or bad you can easily judge.

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  13. It takes some time till all the people of Former Yugoslavia will realize that there are no winners
    in the break up of the former state.
    Slovenia and Croatia are nowadays no more as economically strong as they were 1991.

    In fact both countries only switched Yugoslavia for membership in the European Union.
    This EU is nothing more than a second Yugoslavia,
    where not Belgrade but Brussels rules.
    While Slovenia and Croatia were once regional leaders in the former state,they will be now
    nothing more than neglected backyards of Germany France and Italy.
    While people in Serbia were at least jealous about their better off neighbours,most EU-partners do not even know what Slovenia and Croatia stand for.
    Most people there dont know even the difference between Slovenia and Slovakia.

    Most important is that Slovene and Croat products were advanced and sought after in the former state but in EU are either unknown or are left behind their competitors.
    Once member in EU we will see the Croatian industry and food industries going downhill very fast...
    Only the coastal tourism will be surviving
    making Croatia to a second Greece with the same problems.






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    1. Actually even worse than Greece, cause Greece was far more developed than Croatia when it entered the EU.

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    2. You sir are absolutely right in everything you have just said

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  14. Hi guys! Anyone booked free alitalia flights? Any info?

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  15. Ill jus laugh at the prosperous croatia and slovenia without yugo ... Cro wud have been wiped off the map once again by stalin as did the ottomons, history show true croats equal about 6% of croatians the rest are serbian catholic converts but that's another topic your 70billion debts now compared to yugo surely make you better artificially made countries....

    As for Jat they won't turn a profit till they sack a min of 300 employees they don't even need a half decent ceo they need to make a decision or look at the business aspects if they sack 300+ would the reduction of those operating costs turn a big enough profit for the gov to benefit from if not then close the fucker down and let wizz take over cuz at the moment u have 1000 ppl employed at jat while the gov struggles to find finances to fund 1mil plus ppl in pensions

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    1. True Croats equal about 6% of cratians the rest are serbian catholic converts. Hahahaha... that is the most stupid thing I ever read. Even more stupid than Pavelic idea that Slovenians are "Alpe Croats".

      You are not on drugs, you are sick!

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    2. As long as large numbers of balkanites feel entitled to define for other people what they are, the area will remain a crap-hole

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    3. Scientists have proven all Slavs are decedents of early people who lived in Russia. So we are all in some form the same.

      However, Croats are not Serbs though they are very similar. But this is FACT: the Croatian language is a derivative of Serbian. So technically Croats speak a Serbian dialect, but they are NOT Serbs.

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