Wednesday, February 27, 2013

Seven offers for Jat’s fleet renewal

Jat’s first major fleet renewal in decades

Seven leasing companies have submitted their bids to Jat Airways for the carrier’s fleet renewal. The task group in charge of restructuring the national carrier will review the bids later this week and choose the most suitable (cheapest) option for the airline. Jat Airways will renew its fleet this summer with six aircraft - two ATR72-500s and four Airbus jets. The aircraft will begin arriving from April, with the two ATRs to touch down first while the Airbuses will begin arriving in May. The Serbian carrier will also utilise Aviogenex’s Boeing 737-200 and will operate it on certain routes until June.

Jat’s fleet problems began in January when half of its aircraft were grounded. While some jets will be retired, some were simply in need of spare parts. As a result, the Serbian carrier has been forced to rationalise its network. The situation has somewhat improved with the first grounded Boeing 737s returning to the sky this month. The Deputy Minister for Transport in charge of aviation, Milutin Popović, says the government will continue talks with Airbus in an attempt settle the controversial 1998 order for eight jets. “We will form a team of experts who will decide which kind of aircraft Jat needs for delivery in 2015. Talks with Airbus should continue as soon as possible but that doesn’t mean we won’t consider other manufacturers”, Mr. Popović says.

Meanwhile, from next week, Jat’s employees will be able to sign up for voluntary leave from the company. The Serbian government has allocated four million euros in financial incentives. Each employee that chooses to leave the company will receive 300 euros for every year he/she has worked in the company. It is part of the airline’s plan to cut down on its workforce by 600 employees.

26 comments:

  1. I'm sure the leasing companies are jumping at the chance to lease aircraft to jat! It all seems very last minuite as the summer schedules start in just over a month time. I can't see many employees taking their redundency for a small 300 euros for every year they worked for jat. Better to stay employed at jat and get paid a salary for staying at home!

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  2. I think a good thing to do is for JAT to pay its employees on time and pay them their flying hours!

    As for the leasing of ac, its sad how their is a surplus of employees in JAT but most likely those Airbus a/c will be wet leased as I doubt JAT, who ofcourse always thinks a step ahead, sent crew for the conversion training.

    A big congradulations to the government for making the airline the mess it is!

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  3. “We will form a team of experts who will decide which kind of aircraft Jat needs for delivery in 2015.

    team of experts who will that be but anyway good news for jat

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  4. Of course it will be wet lease. There is NO WAY they will train crew in 2 months (till May).

    So:
    1. Wet lease of Airbuses and extra cost of crew up to 20 million EUR (in same time Jat crew will sit at home doing nothing)

    2. Lease in last minute is very expensive. And that lease is short-lease (for just 2 years, because they plan to buy new Airbuses in 2015) so it is even more expensive. For sure that lease can not be profitable!

    3. They will pay Aviogenex to fly for them in meantime! As time-table is very optimistic with many extra frequencies they have to take some other airliners for step in till June. 737-200 can not be enough.

    4. Still part of fleet (737-300, ATR 72-200) is very old so they will loose money here.

    5. In fleet of just 13 planes you will have A319, A320, 737-300, ATR 72-500 and ATR 72-200. 3 different crews. More money to spend.

    So, Jat will spend some 30 million EUR EXTRA, on top of money they loose every day... Congratulation! Very clever...

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    1. Wait a second, if they're leasing these a/c for two years, then it will be a wet lease for the time it takes to train Jat's crews, right? My lay opinion is that this will not be overly expensive as there currently are Airbuses waiting around unused...
      BTW, if they don't plan to buy Airbuses then there is no need to lease them now! And even if new Airbuses start arriving in 2015 (which is optimistic given high demand for A320ceo family), leased a/c can be utilized for longer time. So it makes sense to lease Airbuses now for 5 years, train crews in the next few months and then slowly phase out the 733s...

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    2. You are absolutely right.

      1. Yes wet lease would be just for some 6 month, it is stupid to make it longer. Than they will not spent just 30 million EUR, but 50 or 60! But 6 months wet lease is very expensive. Think about how much does it cost to pay for crew for 6 mounts and than sent them home - it can be done, but that cost a lot of money.

      2. For sure they will not sight leasing contract for more than 2 years (wet or dry or combination) because they plan to buy new Airbuses. If so, why on Earth will you sign contract for more than 2 years and than you will have 16 Airbuses in same time if you really buy those new 8 (when you sign contract none of leasers will take planes back). As they plan to buy them (for sure that will not happen at least in that short deadline) you have 2 options
      - eider they will lease planes for 2 years because they will optimistically hope that they will buy planes in 2 years and than leasing is very expensive
      - eider they don't plan to buy those Airbuses in 2 years, they sign leasing for longer period; and than they make idiots of nation and will pay extra penalties to Airbus

      Where did you get information that there are Airbuses waiting around unused especially for summer season? Sure, there are some. If you have enough money you can always rent a plane. In several hours if you want (Titan for example). But this costs much more than when you plan your leasing several months or years in advance. None of leasing company has planes waiting if someone will come to take them in last second. Planes are too expensive for that kind of luxury. Who is so stupid to spend several billion EUR to have planes on ground? Also airport fees for planes to sleep costs money. Even those planes from Kingfisher, Malev etc. does not wait long.

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    3. Better question where did you find a 50 or 60 million EUR figure from???? Dont know what the world airlines are complaining about these downturns when we have such inteligent know it alls on this forum

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  5. So, Airbuses in May! Goood, so in June we can have Aviogenex LCC with 737-300 and 737-200. Hahahahahahahaha!!!!

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  6. 300euros is a pretty measly incentive.

    That said, why any incentive. Just lay them off. say, "sorry, there's no more work for you. We have to fire you to save the company. I'm sure you understand. Thanks!"

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    1. It’s impossible. With the current laws you can barely lay off people in state owned companies because if you do they sew you, you have to pay them compensation are return them to work. This massively happened after the fall of Milosevic between 2000-2005 so they changed the law making it impossible for you to loose your job in a state owned companies.

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    2. well, then they need to close the company and start a new one with a reasonable amount of employees, outcry bedamned.

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  7. In any case, congrats JAT!
    Best regards from Croatia.

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  8. It looks like Jat not know what it does, only the solution for Jat would have been to lease older aircraft that could adapt to their needs. With a poor economy that has Jat could it have been better to look for 737-400 might well used with still able to fly a few years, Sabena Technichs had two Airbus A319 aircraft that was held in custody at Copenhagen airport from Ukraine International after the airline failed to pay airport taxes for 6 months. Both aircraft were held at a price of 33 million euros. There Jat had a problem unless its fleet. Both planes were taken back by Ukraine International Airlines but this took time.

    If the employees of the Jatadministration was interested in aviation and followed on what was happening in Europe could them have seen Sterling and Cimber merged together in 2010, After that, it was acquired by the Ukrainian businessman Ihor Kolomoyskyi who also owns Ukraine International Airlines and run airline bankruptcy soon. Cimber Sterling had a fleet of 19 aircraft 3 ATR-500 which was quite new, 2 of which were sold for 7 million euros each. Almost brand new plane had not been an opportunity for Jat? Sterling had more Boeing 737-400, which was sold to the Italian airline.

    The first Jat should do are kick the administration out of the managment and get the right people to run an airline, I know that the ministry of transport has also to blame for this as it is administrated and managed on a wrong way. Wish Jat best luck from Copenhagen

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    1. I agree 100%, Sterlings Boeing 737-400s had their service at Jat Technika and they was in werry good technical stand, Jat kneew about them and they cud get them chpeap insteed of other companyes buying them. This had solved their problem to 2015 maybe their finances had been better and could buy new jets.

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    2. Are you sure Jat can buy some Boeing because of contract with Airbus? Usually Airbus put obligation first to close contract for their planes and till than you don't have right to buy planes from other manufacturer.

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    3. Oh ok i dident know that...but these was old planes. Adria sold one of their Airbus to an asian airline? I think that it hasent been any problem for Jat to buy these planes.

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  9. What a mess.
    The second daily flight to Paris probably with an antique 737-200 ?
    Jat is the worst run airline of our times.

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    1. If you read this blog regularly, you could have found out that Jat's B733 are much older than that B732.

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    2. sve su to stara grobljaFebruary 27, 2013 at 9:18 PM

      It is not that much. Jat Boeings are from 1985/86, and Aviogenex 737-200 is from 1987! So 1-2 years is definitly not "much"

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  10. Does anybody know what routes the 737-200 will be used on? I would love to fly on it.

    I'm sure they will get bookings simply because of the aircraft type. Just give a heads-up to everyone at Airliners.net ; They have to be the only scheduled carrier in Europe flying the 737-200.

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    1. You should be praud of that, hahahaha....

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    2. Another question is, where can the 737-200 fly? It might have some restriction due to noise.

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  11. OT: Air Sweden's CPH-SKP launch has been cancelled.


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    1. Too bad, so sad. Nevermind.
      SAS Scandinavian CPH-PRN for me again then.

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  12. sve su to stara grobljaFebruary 27, 2013 at 9:16 PM

    It is not that much. Jat Boeings are from 1985/86, and Aviogenex 737-200 is from 1987! So 1-2 years is definitly not "much"

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