Thursday, March 28, 2013

Jat Airways to become part of Etihad’s family

Etihad poised to become Jat’s strategic partner

Jat Airways and Etihad Airways have agreed to a sign memorandum of understanding in Belgrade in April, the first step in forming a strategic partnership agreement between the two airlines. The deal will see the Serbian carrier launch flights to Abu Dhabi and open the way for Etihad to be granted a 49% stake in the airline. Following talks in Abu Dhabi yesterday, the two sides agreed for the strategic partnership to be initiated from mid April. “We want Jat to become a profitable company and the pride of Serbia. I am certain that Etihad is the ideal partner for our national carrier”, the country’s Minister for Finance and Economy, Mladjan Dinkić, said following the talks. He added that Etihad’s management will begin a thorough analysis of Jat’s business model next week.

The strategic partnership would see Etihad modernise Jat’s fleet in return for a 49% stake in the carrier. Furthermore, Etihad has expressed its willingness to help Jat with the financial lease of four Airbus jets which are to enter the airline’s fleet this June. Initial plans would see Jat launch daily flights to Abu Dhabi once the Airbus aircraft arrive. In addition, the airline would cooperate with Air Berlin on services to Chicago and a further three destinations in the United States. Etihad owns a 29% stake in Air Berlin. The German airline and Jat already have a Special Prorate Agreement.

Jat Airways operated flights to Abu Dhabi just a few years ago where, in cooperation with Etihad, passengers continued onwards to Australia. Ironically, the very same Jat CEO who made the decision to suspend services to the United Arab Emirates without any financial basis for the decision, Vladimir Ognjenović, was present at yesterday’s talks. Mr. Ognjenović is expected to be sacked this evening when the Serbian government names his successor. Etihad Airways is the Gulf’s third largest carrier behind Emirates and Qatar Airways. Besides Air Berlin, it has ownership stakes in Air Seychelles (which under its guidance has returned to profitability), as well as Virgin Australia and Aer Lingus.

B&H DENIES CLOSURE CLAIMS

B&H Airlines has reacted to a recent article by the local daily “Avaz” which suggested the Bosnian government will close down the airline. B&H says there are no such plans and that the government is fully backing the carrier. Stay tuned, more to come in the next few days.

31 comments:

  1. So, JU and JP could combine fleets and organize a joint-venture under the One World umbrella!

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    1. Looks like a strategical aproach of two capital related companies.Etihad owns 29% of Air Berlin which is a member of Oneworld. This alliance does have only 4 members in Europe - non in our surronding. Meantime Star Alliance is omni present here (JP, OU, OS)and most of them are only feeder for LH. It should be an interesting situation and better future for JP & b JU

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  2. Well done JU and EY (that right) hoping that etihad helps to improve there catering and fleets and also the travel routes

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  3. OT: Wizz Air is launching Tuzla - Malmo from May 31st.

    It will be flown twice a week, Monday and Friday, same as Skopje - Gothenburg.

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    1. OMG, this is amazing news! If they could just start BNX and OMO as well from anywhere that would be absolutely great!

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    2. This is GREAAAAT! Thank you very much for the news, cant wait!!! :)

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    3. hmmm...
      launching Tuzla means cannibalizing from Beg and opening of a SJJ base would no more make sense!
      Good news for Tuzla but bad news for SJJ and probably also Banja Luca airport.

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    4. Let's not forget Osijek which might be the biggest loser in this whole story. They desperately need more flights.

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    5. Osijek was never in the game ;)

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    6. This is not a blog discussion?!?

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  4. AB launched ORD only a few days ago, so take it as a hint of EY pulling the strings...

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  5. no, jat didnt just stop its service to uae. it was covered by money. im sure!!!

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  6. Yey...I am so happy about this. I hope that eventually they force Adria and JAT to merge into one airline creating some serious competition against LH/OS and Star Alliance.

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  7. you have very good disscusion on airliners.net about the topic without nationalistic *rap :)

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    1. Yeah, and some people seem not happy at all that Jat is gonna get out of the crap and get allied with one of the most successful companies in the world, just read the comments, unbelievable. Wonder what those people want, what's their problem.

      http://www.airliners.net/aviation-forums/general_aviation/read.main/5724019/

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    2. They rant about one crew smoking in-flight in J, as the main reason JU should not go with EY. Then they bullshit about why AUH-BEG-JFK should not materialize and that everyone from the region should transit CDG, AMS, FRA instead of BEG, despite the perfect great circle deviation and obvious demand. Wow.

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    3. There are so many idiots on A.net that it is hard to believe, actually even more than here. I'm banned at the moment for questioning TK's success last month so can't join the conversation.

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  8. Great news, but I have to warn you that this seems to at a very preliminary stage. We all know that politicians are quick to jump the gun when it comes to foreign investments. If you read the announcement carefully the agreement is that Etihad is only start to look closely at JAT’s books. What are they going to find there is a question but considering the fact that the government seems to be willing take on the debt JAT accumulated over time, everything is possible? Vucic and Dinkic do seem to have some kind of even personal relationship with the ruler there and we all know that besides dollars and sense they are very often driven by some other matters as well (ego for example). Again, I hope it turns out well for JAT, its employees and Serbian people in general but based on previous experience I’d hold off the celebrations for some time.

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  9. If JAT employees could frame all MoU's (Memorandum of Understanding) on walls they didn't have enough space! MoU still means nothing than good will and possibility to extend cooperation and negotiations. Every few months someone "will buy JAT" and every summer someone will start North American flights. Don't jump into conclusions!

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  10. WHERE ARE THE HATERS NOW I ASK????? Dont worry boys we will ask etihad to loan OU some money on a generous interest rate


    Well done Jat and Srbija

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    1. Obviously this is not worth commenting-nothing definitive.. Just a rumour and a Memorandum of Understanding. When I see JU bound to AUH with a brand new A320 and when sheiks come to BEG for a general stockholders meeting you will gain the respect. For now - just an episode of wishfull thinking!

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    2. Continue the sequence ;

      Aeroflot
      Air Baltic
      Lufthansa
      Air India
      Group of serbian crim..., ups, businessmen
      Air Asia

      .... ? Etihad ?...

      If this makes me HATER, I prodly admit I am

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    3. hahahah Knew it would take you guys a bit longer then other to comment here but you made it..... I look forward to August this year....

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    4. LOL! Where are Jatovanje' aircraft then!

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    5. They are supposed to start arriving from next month or so. I don't understand the point of your comment since it just portrays that you are not up to date.

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    6. No, you are not right about list. 100% buyers of Jat were (in last 5 years):

      Aeroflot
      Icelandair
      AirBaltic
      Air Berlin
      Turkish
      Etihad
      Group of serbian businessmen
      Air Asia
      again Etihad

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  11. Well, if the Jat becomes debt free i see the advantage of a possible deal.
    With debt it would be impossible of course...

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    1. ^Agree with you .
      The government caused the mess not Etihad.
      The taxpayer has to pay for it but at least he knows who is guilty for the mess-the politicians!

      Also if you read the article...
      Etihad turned Air Seychelles into profitability!
      I wish they could push Jat in the same direction.

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  12. "...Etihad’s management will begin a thorough analysis of Jat’s business model next week."

    Hahahahaha! Jat's business model! Hahahahaha!

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  13. By looking at comments on Skytrax, is Jat consistently sending the worst aircraft and offering the worst service to Moscow?

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