Friday, December 28, 2012

UPDATED
What next for Jat?

More of the same or a time for new beginnings in 2013

As another year passes not much has changed at Jat Airways. The airline is still operating an aging fleet of fourteen aircraft and is still burdened by an outstanding order for eight Airbus jets made in 1998. Furthermore, it is still without a strategic partner and has to deal with growing debt. The Serbian government announced that a Memorandum of Understanding for the financial lease of four Airbus A319s, four ATR72-600s and the purchase of a further four Airbus A320s would be signed this month with an official order to be made in February, however such a deal has not materialised. The government also planned to create a debt free successor national carrier by April 2013, although this too has been put on hold. Today, the Serbian Minister for Transport, Milutin Mrkonjić, said Jat remains a priority for the government in 2013. However, the minister is singing a somewhat different tune to a month ago when he was selling the company to Air Asia, local businessmen and setting up a new airline. “Jat remains a key problem. A task group made up of professionals is working out a strategy for the future. Jat will have to push through another year with its current fleet”, Mr. Mrkonjić said

Yesterday, the Serbian government approved for Jat to take out a ten million euro loan from the banks for operational purposes. Only a month ago the very same government blocked Jat from taking out the loan under the pretext of the creation of a new national carrier. Despite its woes, Jat is set to record its busiest year since the breakup of Yugoslavia with over 1.3 million passengers to be handled by the end of the month. It is a long way from the 4.531.000 passengers welcomed onboard in 1987, although back then it catered for a market of twenty million people, handling 2.255.000 passengers on domestic flights alone.

Jat has already begun planning its 2013 summer season timetable with its existing fleet. As 2013 sets in, a change in management is also anticipated, although, strong political ties have seen the current management stay at the helm. The airline will have to work hard to attract passengers on flights to Istanbul next year with the arrival of Pegasus Airlines but will also breathe a sigh of relief as Air France and Niki pull out on their respective routes. Whether 2013 will be yet another status quo year for Jat remains to be seen.

30 comments:

  1. The Serbian government announced that a Memorandum of Understanding for the A319 and ATR (...) would be signed this month with an official order to be made in February, however such a deal has not materialised. The government also planned to create a debt free successor national carrier by April 2013, although this too has been put on hold.

    Nooooo? Really? What a surprise? Jatovanje again!!!!

    ReplyDelete
  2. I wish all the best for JAT in 2013 and I hope responsible persons will find funds, knowledge and enthusiasm to restructure the company.
    BTW, what a wreck of 737!

    ReplyDelete
  3. Let them do what they can do best: nothing. Silly.At the moment you can get B737-800 on lease for 200k € per month if you can't buy.......
    What for are they going to burn the 10 million. For the station managers in Chicago, New York, Sydney or Toronto???

    ReplyDelete
  4. It is omly a matter of time that JAT will encounter the same fate as Malev, Sabena, Swissair etc. By injecting the 10 million, it only prolongs the inevitable. No government wants to take the responsibility of having JAT go bankrupt, but lets face it, it will happen.

    ReplyDelete
  5. What happened to consultants? Who was chosen?

    ReplyDelete
    Replies
    1. You dont't understand the logic of doing business in Serbia. The consultant wasn't hired to help JAT but to make money for some relative who runs the consultancy.

      Delete
  6. It is only matter of time when Emirates, delta, ac, ua go but bust. I am sure their governments got nothing better to do.


    Cro propa

    ReplyDelete
  7. Part two


    Please dont post this kind of articles or otherwise close your blog if you got nothing more worthy to write about. This kind of article would just lure ego maniacs and trolls.

    ReplyDelete
    Replies
    1. +1
      "Jat is history same as Yugoslavia".
      said the troll.

      Delete
  8. This news is troubling for all of us. Jat being the 2012 most successful national carrier in ex-yu.

    O.T
    How about Croatia airlines have the reached 2mil pax this year or what?

    ReplyDelete
    Replies
    1. Lol! Jat have not been the most successful airline in the ex-yu this year. OU have been the busiest carrier. Jat have had a good year considering their fleet of aircraft are ageing and about had it. Jat was a good carrier in it's hey day, but thanks to the Serbian government they seem intent on destroying it! How can you people of Serbia vote for such a terrible government. The millions wasted each year keeping this old fleet in the air. Why does the government not have the will to invest in new aircraft? They seem to want to see jat consigned to history, and that would be a sad day to see Serbia without a national carrier that was once the leading airline in the balkans!

      Delete
    2. Only ignorant persona can say JAT is most successful airline in ex-YU, if success is measured by the amount of debt, or near bankruptcy and loss of markets, worst airline service and poor state of airline in general than yes JAT leads the pack, well BH Airline isn't far behind, but if we measure airline by number of passengers carried, profits or least debt considering its a recession, than Croatian Airlines did the best of all Airlines in ex-YU, not that this was hard considering the state of all other airlines in the region.

      It helps a great deal if you have internal airline market, example one Croatia has, problem is all other republics in ex-YU have no internal airline market and relly on international destinations to boost their passenger figures.

      Still, Croatian Airlines manged to do what all other airlines in the region failed to do and that is to reduce its massive debt, and start 2013 with a clean slate, something I'm sure ultimately will reflect on passenger numbers in 2013 and with to arrival of 4 more airbus aircraft Croatian Airlines has secure future as a leading airline in ex-YU.

      Happy New Year !

      Delete
  9. If Serbian government dosent want to invest in Jat, why would anyone else would. Jat has growing debt with fleet they bought 27 years ago. buying new aircraft will make the debt even higher.
    Jat will go bankrupt thats why Serbia wont invest in it. those news articles are just buying them time.

    ReplyDelete
  10. No-one will invest in jat because the Serbian government is not trusted by anyone!

    ReplyDelete
  11. JAT should do double daily to Milan, Paris and launch flights to Prague and Riga. Also, they can use the abandoned Kraljevo Airport and base 1 ATR at least to do IST and compete with TK and Pegasus from BEG. If they don't have money, they can consider buying Embraer jets.

    ReplyDelete
    Replies
    1. They are going double daily to CDG next year. But it goes bit by bit. They will start off with 10x pw in April, then 12 in May and then 14 from June.

      Delete
  12. Jat had a good year, but the next one is even gonna be better.

    ReplyDelete
  13. How many of Jat's aircraft are actually airworthy at present?

    ReplyDelete
  14. Jat had a good year? With millions of EUR of debts, modest passengers number, accent fleet, almost no conections with other airlines (alliances, code-share, colaboration)... that is a good year? Can you share some of those drugs you are on it? We will also like to be in your happy state of mind...

    ReplyDelete
    Replies
    1. Check your facts and count the airlines they codeshare with before you spew out your propaganda.

      Delete
  15. JAT had received 50 million last year, 10 million this year. What for? Zero investment in the fleet (except for bying used and worn out LH seats!). Web Check-In - not possible, Airport kiosk- not possible, paid seat reservation- not possible, ancillary revenue on board- not possible. Service on ground and board like late 80s....Town offices everywhere like in the good old times...JAT is just a zero change airline!

    ReplyDelete
  16. JAT recorded the worst financial result ever seen, net loss around 30 million euros.

    ReplyDelete
    Replies
    1. that is considered a success in Serbia.

      Delete
  17. Jat is still good airline. I fly them often and I love to hear anti jat propaganda from the german slaves. You are just there for them to do some dirty job until they tell they find a new yoyo. Just like in 2007. Why dont you bring up the loses caused by austrian or lufthansa? Because you are their slave and cant say a word about them.

    ReplyDelete
  18. I hope they can fly those 737 for at least a decade and do not order anything from europe. Just like crotram. Nobody wants to buy that junk.

    ReplyDelete
    Replies
    1. Airbus aircraft are not junk and I'm sure jat will be forced to buy 20 year old second hand when the boeing's finally give up! Cos they are not going to last forever! And the serbian government don't want to buy new one's!

      Delete