Monday, December 3, 2012

Jat and Airbus to finalise deal

Jat - Airbus talks on December 10

Serbia’s national carrier Jat Airways is expected to finalise an agreement with the European plane manufacturer Airbus next Monday when the two sides meet in Belgrade. The agreement relates to the financial lease of four Airbus A319s and four ATR72-600s as well as the purchase of four Airbus A320s. However, changes to the proposed aircraft order could be made and will be discussed on December 10. The two sides will also negotiate cabin crew training and aircraft engine selection. Later in December Jat and Airbus are expected to sign a Memorandum of Understanding which will culminate with an official order in February 2013. The meeting will be attended by the newly formed task group which will oversee the restructuring of the national carrier and Airbus officials. A final agreement between Airbus and Jat will come almost fifteen years after the airline made an order for eight Airbus A319s which were never delivered.

On December 11, representatives of Lufthansa Consulting as well as Tasc Aviation from Dubai will arrive in Belgrade in hope of being chosen by the Serbian government to assist in Jat’s restructuring process. One of the consulting groups will advise Jat on its route network, fleet, workforce as well as code share and international agreements. Lufthansa Consulting, owned by German carrier Lufthansa, could be a questionable choice when advising on future destinations and code share agreements. On the other hand, Tasc Aviation is owned by Airbus.

The government is still undecided whether to pursue its original idea and create a successor national carrier or whether to simply restructure the existing company and write off its debt. However, sources close to the Serbian government say it more likely for Jat Airways to remain in its current form although it will go through a wide ranging restructuring process in order to return to profitability. The government has been backing away from its idea to launch a new national carrier after realising the difficulty such a move entails.

62 comments:

  1. Whatever they do I hope they don't pick lh consulting. Ou and Adria all over again if this happens.

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  3. This blog every day has less to deal with aviation news. It becomes a playground where readers express their frustration with the recent history of ex yu region as well as anti-national bias they hold within. I am surprised and astonished with the amount of regional intolerance that we all bring with us into the 21st century. I assume this is due to lack of formal education, general knowledge and manners as well as ability and skills to live in multicultural background society. Shame.

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    1. Once people stop their frustrations and anti-national bias, then we will see these ex-yu countries start to flourish and expand. Even the airlines.

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  4. I say add à forum

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  5. Tasc employees two Serbian konsultants.

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  7. Dont Know whether to be excited or gutted .... Hate airbus but love Jat and want a renewed fleet... I guess im leaning more towards to excited part.

    However the consulting part is a worry, LH would be a definite no for me even Tasc being owned by Airbus doesn't seem like the best option. If there really is the interest from Etihad in investment in the cargo sector in serbia would be good to see them involved in consulting or any airline for that matter from the UAE Qatar,Emirates etc. Involvement from them would ensure it grows the Jat business as well as helps their airline presence in the eastern block of europe however i think its jus wishful thinking.

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    1. Well I hate jat and love Airbus!

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    2. Good work! I love Jat and dont have an issue with other ex-yu airlines. Just proud of my flag carriers 80yr old history!!

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    3. Jeza Arogancija Tragedija

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    8. I hate jat and love Airbus as well !!!

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    9. http://www.youtube.com/watch?v=DZqLv6YEXVs

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  8. For heavens sake. What for does JAT need a consultancy? It's not an airline with 400 planes, 50000 employees, 4 hubs and 180 destinations. Even the cheapest consultancy, if runs 6-8 weeks will take 250.000-350.000 € and JAT takes two of them !
    What JAT needs is a professinal management and that can be achived by hiring Serbs that have lived abroad and worked for renewed internatioal airlines!Shouldn't be a problem.....

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    1. Replace "Serbs" with "experts" and that would be cool.

      However, consultancy approval is often required by some stakeholders, as leasing companies or creditors, in order to get access to funds and/or more favorable conditions. It's a kind of a vicious circle.

      I actually think it's good they have two firms working for them - especially with one of them being LH. I think we all know local and LH's vision of Jat do not exactly match.

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    2. Why should I replace the words Serbs by experts? Who are the LH managers abroad, AF strategic managers...no Japanese or Arabs, but Germans and Frenchmen . Their own people....so why shoulnd't there be anough Serbs around. Working now for EK or AC or wherevere, willing to come to BEG and turn the company around?

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    3. Because, honestly, there is no enough qualified Serbs with relevant work experience to do the job and willing to return to Serbia at the same time. And for an airline, you would need more than a few.

      I don't see why foreigners would do a poorer job.

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  9. Germanwings od 6.4.2013 uvodi liniju Dusseldorf-Split

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  10. Turkish Airlines' average loadfactor out of Belgrade has been 72%. O&D market share was 45%, while 55% connected onwards. Most popular routes were:
    1. Dubai
    2. Baku
    3. Kuwait
    4. Doha
    5. Beirut

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    1. This is super interesting: there seems to be O&D market between Belgrade and Baku which suggests that AZAL's rumoured Baku-Belgrade-New York route is not so crazy... On a related note, if only 45% of TK pax are O&D and that's the same market contested by Jat and Pegasus, how do all of them expect to make it work year round? Summer is OK, but there is not nearly enough pax during winter...

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    2. Well, fares between the two can be quite high. Hopefully increased competition will bring the fares down which should stimulate demand.

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    3. TK fares are usually pretty high, so I suppose they get less of a share of O&D pax. Will be interesting to see how is this going to work with Pegasus and Qatar, and even more if Azal or Emirates enter the market.

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    4. And by the way, THIS is why I still visit exyu despite tons of haters and incompetent individuals who believe their uneducated guesses should be out there for everyone to read.

      Thank you, OP.

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    5. How to explain by what such a demand to GYD is fueled? Feed from Bosnia and Sandzak? Just kidding. Also i've noticed many flights to Sochi on Jat lately, i wonder why they don't make it a scheduled flight, at least twice a week.

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    6. Forget AZAL.
      Havent you heard of Qatar flying from European bases nonstop to the US
      next sumer?
      First Athens then maybe also Belgrade.

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    7. I remember that until recently there was Gasprom flying between Sochi and Belgrade. They even operated flights out of Moscow for a short while.

      I think Belgrade airport will become an interesting place in the future with Serbia turning more and more to the East.

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    8. Oh man, Qatar flying ATH-JFK on 787 is still too good to be true for me. If they could add BEG it would blow my mind! even if it was on board a332/a333

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  11. TASC is better then Lufthansa Consulting because it is supporting stronger ties between
    the United Arab Emirates and Balkans.
    JAT has to look after EMIRATES,ETIHAD,
    AIR ARABIA and FLYDUBAI.

    Lufthansa will ruin Jat,
    because Jat is competing them on many routes.

    The Arabs are partners...
    Germany will blackmail Jat.

    Jat has to stay independent from European"partners"!

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  12. Serbia should not lease the ATRs
    but change the order to eight Airbus A319 !

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  13. A319 is too big for some of theirs routes. I guess Jat has plan to turn Belgrade into real Balkan hub. In order to do it Jat have to conect Belgrade with cities such as Banjaluka, Sofia, Zagreb, Tirana, Split, Budapest etc. At the moment capacity of ATRs is just fine for those routes.

    I also agree TASC is better choice!

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    1. Yes, right. They can compete easily with Austrian Airlines you see.

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    2. Why BEG-BUD? Who will fly that?

      Banja Luka, Tirana? Congratulation. Please join "experts" in Jat to destroy company completely. You are on their level...

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    3. Business people going to/from Belgrade, Sofia, Skopje, Srajevo, Podgorica, Tirana! Budapest is economical center of the region and many companies are doing their business from there. After Malev bankruptcy I`m sure this route would be succesful. Malev used to fly to all those cities. Now you have to fly from all those cities via Vienna in order to reach Budapest. I`m sure Jat could offer better pricing and shoter flight time than Austrian.
      I`m not an exert but obviosly neather you...

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    4. A319 too big for Jat?
      Then ATRs are also too big...
      Maybe Cessna is als too big.
      Why not shut down Jat completely ?!
      Obviously Jat is too big for tiny Serbia.

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    5. Business people on route Tirana-Belgrade? 3 of them per week?

      Budapest-Belgrade is too close for air line. Most potential passangers will use car.

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    6. There actually are not only business people but travelers as well as tourists and diaspora passengers that fly complicated routes such as Belgrade - Rome - Tirana .. many Albanians living in Beograd, as well that Jat would get many transfer passengers out of Tirana!

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    7. Many Albanians in Belgrade ?
      You mean Ashkali people ...

      But we Ashkali do not feel as Albanians
      and are not interested in Albania !

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    8. no I am talking about actual Albanians, est. 20,000-30,000 that reside in Belgrade alone...

      and isnt it interesting even with FlyDubai's flights TK has the most connections to Dubai?

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  14. http://www.youtube.com/watch?v=38U0FyWvH-k

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  15. Either buy Airbus or Embraer.
    But not too small ATRs.
    How can you replace 737-300 with Atr?
    These Atrs are a joke...
    look at B&H how they fail with them.

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  16. LUFTHANSA CONSULTING
    Advice for JAT:

    BEG - FRA = 10x daily
    +BEG -MUC = 5x daily.

    No other destinations...

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  17. Tasc is not Arab ppl it is Airbus just here to protect Airbus order and will give plan to sell planes not needed this is a joke

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  18. Airbus order? Get real. Then can rather protect Slobodans Milosevic remains. European propaganda in its best haha.

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  19. Etihad seems to have put code share on BEG-ATH route, EY 7157/8

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    1. Well they have had this partnership for quite some time. The addition of the code-share is a welcome development.

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  20. Codeshare with Jat?

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  21. Jat Airways, name is good, 4A319 $a320 2xa321, atr72 have already.. md-11 for intercontinental... ;) xxx

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