Monday, January 14, 2013

EXCLUSIVE
Jat Airways fleet renewal

Jat Airways to lease six new aircraft this summer

EX-YU Aviation News can exclusively reveal that the Serbian national carrier plans to lease six aircraft for the 2013 summer season. The task group in charge of restructuring Jat is discussing the proposal for the lease of new jets. Talks with Airbus, to settle the disputed 1998 order for eight A320s, is ongoing, although firm orders for new aircraft are unlikely to be made in time for summer. Jat is in urgent need of new jets as it will only be able to operate six Boeing 737-300s and two ATR72s this summer season, which is nowhere near enough to handle the amount of traffic planned.

A source close to the task group in charge of restructuring the Serbian carrier says Jat plans to lease two ATR72-500s and two Airbus A319s in March. In May the fleet will be bolstered by a further two Airbus A320s. As a result, the airline will operate a fleet of fourteen aircraft during the peak summer season - four ATR72s, six Boeing 737-300s, two A319s and two A320s. Such a fleet would allow Jat to operate its planned summer season timetable which will see frequency increases, including two daily flights to Paris. During the 2012 summer season the airline struggled with its fleet shortage and was forced to cancel hundreds of flights as its aircraft were tied up operating charter services and at the same time many had to go in for regular maintenance. Furthermore, the old fleet is becoming extremely costly to maintain.

Recently, the Serbian government named Milorad Popović as the new deputy in the Serbian Ministry of Transport, in charge of air transportation. Mr. Popović has worked for Jat Airways for the past 29 years and at one point served as the airline’s Commercial Director. He replaces Radoslav Tomašević who, prior to his employment in the government, worked at Jat Tehnika.

70 comments:

  1. I hope they get a new livery.

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  2. Yeah Yeah Right! Last year you exclusively told us jat airways were going to lease two Boeing 737-800's and nothing happened. This is just propaganda from an incompetant Serbian government.

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    Replies
    1. I would like to remind you that the news on the lease of the B737-700s was not an exclusive by EX-YU Aviation News. It was taken from another credible source which was cited in the article. Since it is obvious that politics plays a big part in what happens at Jat no one can guarantee that a plan will go ahead. The article deals with the proposed fleet renewal plan. No one can guarantee that it will happen but Jat will have major problems if it doesn’t do something about its fleet come summer time.

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    2. That was my exclusive and as you all know they happen, we reveal them, they are true and correct but then politics and general stupidity comes into play and sure things become non-events.

      Aviation reporting in Serbia is entertainingly challenging ;)

      Tango Six

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  3. It's not the blogger's fault that the deal with the 738s fell through. Good job Luka, I've been reading your savvy in the industry for a long time, ever since the times back at the airwise forum. pozdrav iz SAD

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

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    1. The comment has been removed. I did not leave it on purpose I simply did not see it as there were so many comments that had to be removed. I remind everyone that this is an aviation blog. There are other forums available to voice your political/cultural frustrations.

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  5. - at the end of 2009. it was 100% sure contract for leasing two 737-700. There was no any free 737-700 in end 2009 but they were still sure about contract. Deal was “canceled” in April 2010.

    - in winter 2010/11 they was 100% sure for leasing A320 for 2 million EUR. In spring deal was “canceled”.

    - for 3 times it was “almost finish” to settle Airbus contract, like to buy ATR 72-500 instead of A320, or to buy all A320 for that money, or to buy combination of ATR and A319. Nothing happened.

    And this time? Jatovanje again?

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    1. JAT--Just Another Tease

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    2. JAT = Joke About Time,

      but

      Just Another Tease in this instance suits it right.

      Delete
    3. JAT = Jad Apatija Tuga

      Delete
    4. JAT = jedan avion taman!

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    5. Ljubomorne duše mogu da ga .... :P

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    6. On Jat? Who can be jealous on Jat? Africans, exempt Kenyans, Ethiopians, Egyptians, Libyans, Tunisians, Marocains, Nigerians, Algerians... They all have much bigger fleets, more passangers, more lines, and much, much younger planes.

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  6. I love when it writes that a person worked for the airline for so and so years. Please, most of the people there got the job because of their connections- they all collectively know about aviation as any person in Serbia.

    On the other hand, let's see what happens with this deal. I am disappointed that there is no deal for a 100 seat aircraft. JU is primarily suffering because it has never found a decent alternative for their now retired DC-9s.

    There we go, that is the best proof that the airline is run by megalomaniacs and not by realists and professionals.

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    1. +1

      Solution for Jat

      - instead of 4 leased A319/320 lease 5 100-seat planes
      - old 737-300 use just for summer time-table (mostly for charters) – that will prolong their retirements
      - the closest possible deal with Montenegro Airlines (why not to lease their F100 and Embrears as they have much to big fleet what is their biggest problem), on that way to have 4 flights per day to TGD and 3 to TIV (at summer even more)
      - concentration of potentials to SKP and OHR as BEG is in best possible deviation for connections from those cities (at least 2 flights per day to SKP and one per day to OHR)
      - feeder routes (+P2P passengers as connections are still big) to SJJ, DBV, SPU, ZAD, RJK and PUY especially to Russia and CIS (Moscow, St.Petersbourg, Kiev etc) as Serbia has most chance on that market especially in comparation with ZAG, LJU, SJJ, SKP...
      - one ATR to INI for bypass routes like INI-BNX-VIE-BNX-INI
      - cut working force for at least 50% (especially in administration)
      - cut costs like close of most offices out of Serbia and Montenegro and make contracts with representative offices, more money into internet sale, franchises, nonflying incomes (shuttle to airport, marketing, sales, services...)

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    2. And with what they're supposed to fly those CIS and other transfer routes? With the 100 seater as well? Jat can easily fill the A320 to Moscow, London, Paris, even Amsterdam. So the 100 seaters are needed but at least 2 A320 as well.

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    3. Jat can fly just SVO with A319, maybe CDG. But minimum is to make 2 frequencies to all destinations like LHR, AMS etc (business passengers, waves, connections...). Jat is not LCC that can fly 3-4 flights per week on one route. That is why they have to fly 100 seats with more frequencies.

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  7. Guys, can anyone clarify why they have so few aircrafts for the summer? Aren't they supposed to have 4 ATRs and 10 733s? I haven't followed closely, but from what I understand, 2 of the 733s are grounded and used for spare parts. Why other 2 733s and 2 ATRs will not be available for the summer?
    If it is a question of maintenance, can they do the checks before the summer timetable?

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    1. I guess it is becoming hard to keep these old birds up in the air and that maintenance cost are to be blamed for this.

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    2. Yes, it would be nice to get a clarification on those. Some say that YU-AON is about to be scrapped.

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    3. I doubt it, as YU-AON is the youngest of all Jat's B733... Maybe YU-ANJ, who went to hangar months ago and never returned back, apart from YU-ANH which is cannibalized for a few years now...

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  8. Great to hear. Now let's see it actually happen! It was bound to happen that the ageing 733s couldn't remain in service, sadly it seems for the airline that day is now upon them.

    Are there no non-NG 737s from other airlines/lessors which could have also filled this summer gap?

    They could always increase an extra AT7 by using the 'unused' one at JA :p


    @Anonymous 9:40am

    Except operating ~100 seat jets would require extra training for pilots, and at this short stage it's not possible unless another airline comes in for wet-leasing (eg 8P if they are not leasing for OU or JA already).

    If you are referring to the airline actually *acquiring* such planes, that's a different argument. I believe Sukhoi did make an approach to JU, whether they lacked the finance etc to take up the offer (or were like most other world airlines unsure of its safety) is not publicly known...

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    1. Yes, I was referring to the acquisition of the aircraft. Jat will not be competitive until it came effectively tap into the smaller markets where even an A319 might be too big while the Atr to small/slow.

      Some of these markets are Athens, Istanbul, Milan, Berlin, Brussels...

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    2. I don't think the SSJ is an option to consider considering they are extremely slow in building their ac, and i doubt they have much technical support once delivered. Spare parts would be an issue.

      In regards to DC9 replacement, i agree, they should take on an ac suitable for its replacement (ERJ190) to boost frequencies and connectivity.

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    3. Why not outsource the parts production to Serbia as part of the purchase deal? Just an idea.

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  9. Leasing one aircraft ain't cheap, where is JAT going to get 6 million euro to lease 6 aircraft?

    JAT Airlines as it is, can't afford to buy 1 new aircraft let alone leasing 6 new aircraft for 6 months.

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  10. I don't believe this will happen, and time will show this. The A320 is too big of an ac to lease in for JAT. Also, where is JAT going to get crew for the ac unless they wet lease the ac or send crew for training, which all costs money especially if its for a short term.

    JAT is running a lot of debt is because the serbian government is making it a loss making airline to justify selling it off, just like every other business in Serbia!

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    Replies
    1. Nah. Serbs are just incompetent.

      Is it not easier to sell a profitable company than an unprofitable one?

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    2. Selling an unprofitable company is easier to justify, just like NIS was. Nothing will materialise as usual and watch as JAT makes a mess of the summer schedule. Serbs are not as incompetent as much as the government is corrupt. Many skilled workers leave Serbia as getting a job is fixed to having connections.

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    3. But in case of aviation it is the opposite.
      Nobody will ever buy an airline that is as unprofitable!

      Delete
  11. What kind of clowns are running this airline? Who books a charter if you don't have enough planes for your regular scheduled service. That's fleet management 101!

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  12. This has to happen soon. Either Jat will add at least 4 A319's to the fleet this year or the company will have a disastrous summer if the fleet is in as bad shape as they say.
    If aircraft are not added than we could see the real beginning of the end for the airline as Serbs are having more and more options to fly from Belgrade and their patients with Jat might start to wear out.

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  13. Makes it sense to book flights for summer if half of the flights will get cancelled because of the fleet shortage?
    I have the impression Jat only announce their
    summer timetable to mislead Wizzair or Easyjet.
    Then it will be too late to fill the gaps.

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  14. No point to misslead easyJet if it doesn't fly to BEG. Wizz only has 2 ac based in BEG and have their own expansion plans ex BEG.

    The problem with JAT lies more than just their fleet, and years of mismanagement isn't going to be solved over the summer season. There is no short term plan for the airline, let alone a long term one and that's the major set back. Where will the airline be in 1 year? what market are they going to be targetting 2 years from now? The constant announcement of failed fleet renewal 'plans' isn't exactly screaming 'we know what we're doing'!

    Other than fleet JAT should look into:

    * Cabin Crew grooming - How do they want their crew representing JAT?
    * Catering - It has over the years dramastically fallen in standard, and imo should reflect Serbia as a Serbian airline. Promote domestic products such as meats, Kajmak, Cheeses, Fruits, Ajvar etc maybe in a TK stlye of a small disposable tray consisting of a sandwhich made of domestic products, a nice Serbian dessert, have Aqua Viva or Voda Voda supply the airline with water cupplets.
    * Cabin interior - let's start with actually cleaning the aircraft!
    * Marketing - who to target? The diaspora? City break tourism? Tourists? Business travellers? What does JAT offer that makes it worth pax money?
    * FF program - Maybe co-operate with another airline program or offer your own. Vise od letenja?
    * Timetable - is JAT convenient for my travel?
    * BEG - What support do I have their? Transfer, Missed connection at another airport, Cancelled flight, unaccompanied minors, wheelchair pax...

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    Replies
    1. Since when is ajvar a serbian national meal?!? As far as I know it is a mecedonian delicates!

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    2. I thought Ajvar was a Croatian delicacy!

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    3. Actually its a Greek specialty or Mediterranean specialty dates back to to roman times.

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    4. I never called ajvar a meal and i never directly said ajvar was serbian. I said domestic, its not as if its something made from the tribes of some african village to say its foreign! But ofcourse, no comment is complete without the diaspora racism clowns. If you don't have constructive comments to make, as mentioned by the admin, there are plenty of political blogs you can show your 'pride' too.

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  15. I do not have any hope for Jat.
    They will not go bust as fast as MALEV did,
    more like B&H Airways with an ever shrinking fleet and destinations.

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  16. How can an airline sell a summer schedule 2013 with not enough planes? I would say only in the Balkans, but JP and OU are far too professional, so only in Serbia.

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  17. It's not a wise decision to lease so many aircraft at the same time. They can follow the example of Bulgaria Air for instance, who used to fly with ancient B737's like JAT and gradually started ordering Airbuses 1 per year, then the old BAE with the brand new E-190's. The B737 can still fly, until the arrival of the new aircraft - then it can be gradually phased out. This is what other airlines did too, such as Tarom & LOT.
    I personally do not think there is another airline in Europe with such an ageing fleet. Not to mention Aviogenex with their B737-200. It may an attraction but....we are in 2013 not 1970! :(

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    1. The not so funny fact is that Jat is not really an airline...

      Even in case that this "company" has to stop ALL of its flights the government will
      further pay wages for the employees (and especially the managers) for years!

      Are you all so blind not to see this...
      Jat will end as a ghost company.
      A company that only exists as registered
      so that they can receive money but without any operations.
      Like those fake companies the mafia owns in some banana republics.
      Serbia is THE banana republic!

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    2. Like Trebnje airport and Air Srpska?

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    3. Yes,those are classsic fake companies!

      Delete
  18. I strongly doubt JAT can afford brand new 65 million dollar aircraft, with massive debt JAT is faced with they'd be lucky to get Su-204 on a lease, lets be frank, JAT is all but bankrupt, its only a matter of time before they go bust.

    So news of 3 A320 and 3 ATR72-500 lease sounds too optimistic to me. unless suddenly JAT found 6 million euro for lease of 6 new aircraft.

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    1. 4 A319/320 and 2 ATR. Even more money.

      A319 monthly lease in this moment is between 95.000 and 250.000 USD, A320 between 50.000 and 300.000 USD, and ATR 72-500 between 100.000 and 190.000 USD.

      Let us presume that they will not take the oldest and worst examples. That should be around 600.000 USD per month, or around 7.000.000 USD for year. Where will Jat take that amount of money?

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    2. Buddy I want the same stuff that you're smoking! ATR more expensive than a 319? Puuuhleeeze...

      Cheers from LJU

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    3. Yes! Because you can not lease 15 years old ATR 72-500 (one more time: -500) as the oldest one is from 1997, but you can leased A320 25 year old (1987).

      As they don't want ATR 72-200 but -500 those are official prices by which you can lease it in this second. For instance you can lease ATR 72-200 for 50.000-80.000 EUR (the cheapest in market and most expensive in market)

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  19. I live in USA and always fly JaT from western europe. I dont see whats the reason for too much noise here. Lets hope 733s stay one more decade. I would not buy anything from europeans. If you want newer plane, fly foreign airlines and shut up.

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    1. Great that you fly JAT once a year and think its a great airline, but the ac look run down, they're very expensive to maintain and frequently need trips to the hangar. Instruments in the flight deck are constantly having issues. Its time that the ac go.

      @ purger

      US$23,5M has been paid to Airbus as an installment for the 8 A319's ordered by the Milosevic regime, maybe this would finance the ac for 3 years going with your calculations.

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    2. Was it 213.5 million US$ or Euro?

      In any case 23.5 million Euro wouldn't cover the cost of one A319, let alone 8, to illustrate Croatian 7 A320/319 in 2000 came at 500€ million.

      Croatian Airlines was still paying off these aircraft 12 years later, reason why Croatian Airlines had bad debt, and current order for 4 A319 won't be cheap either, price tag 320€ million.



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    3. 23,5 million USD is not even close to cover one A319!!!!

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    4. List price for A319 is 80,7 million USD, and for A320 is 88,3 million USD. So, 23,5 million EUR is for 1/3 of A320.

      Croatia Airlines pay 3 million EUR just for penalty for delay of delivery of 5 A319.

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    5. that is: 3 million per year!

      P.S.
      1/3 becuse of quantity discounts.

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  20. Hardly. Airbus will never sign such a deal. Why should they? What they have from it?

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    1. they wish if they could get that deal. That deal was in favour of airbus. If serbia could have paid big cash back then why not now? This blog has turned into sarajevo x and forum hr where dispora comes to nurse their frastruastions. Feel sorry for the owner.....

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    2. Why? They have 23,5 millions on their account which are blocked and that is the best money as you can work with it with no interest to be paid (to be fair that is nothing for Airbus, not even peanuts), and Jat can not buy nothing else exempt Airbus in future. So, Jat must buy Airbus by conditions in that disastrous contract.

      Of course the want this deal, but they want to sell 8 planes, not to lease them or give them with less profit that in fixed contract.

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    3. Perhaps JAT should be looking at Sokhoi aircraft, http://en.wikipedia.org/wiki/Sukhoi_Superjet_100 -- Malev was looking at getting 14 of these before they went broke. they are only 35 million US$ and JAT can make some arrangements with the Russians, some loan w.e and this should give them a decent aircraft as a replacement for B737-3 and B737-4. I'm sure they can get 8 Sukhoi 100 SSJ 95LR for 350 million US$.

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  21. Is it really true that Jat is only company in EX-YU area without online check-in?

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  22. First Jat was flying with planes totally empty,
    now their new strategy is to sell tickets for flights on planes that they do not even have...
    and never will.
    : S

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  23. Totally off topic:

    Purger,
    What was the cause of AF1461 huge delay this morning?
    It could not have been the weather; all other flights were on time.

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  24. Tram?

    Su-100SJ is a good aircraft, loads of airlines are ordering that jet, Across the globe not just in Russia, you have Swiss, Italian, Canadian, US operators as well as Russian...

    JAT can't afford new aircraft, at least not from Airbus or Boeing, they're way to expensive, Brazilians and Canadians are unlikely to give Serbia or JAT easy credits line for purchase of their aircraft, at least not when much of the world is facing deep economic crisis.

    JAT's only option is to lease older aircraft and hope to buy some new aicraft when airline recovers in few years time or to try to make a deal with the Russians and get Su-100SJ for 40$ million per aircraft.

    SSJ 100-95LR has range of 4500km with 98 passengers on board. which is more than sufficient for regional and European operations, and as JAt can purchase western engines as SSJ 100-95LR offers these as well.

    "better spearow in a hand than a pigeon on a branch"

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  25. Unfortunately, The reason why these issues exist and are serious barriers for business profitability, lack of control over the remote fleet operations. This is when the GPS fleet management solutions come in handy. The value of GPS technology is its ability to accurately determine the vehicle location at any time. truck fleet maintenance

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