Thursday, April 25, 2013

Etihad begins Jat screening

Etihad takeover offer expected in late May

Etihad Airways has begun its screening process of Jat Airways’ business operations ahead of a planned minority takeover of the Serbian carrier. A fourteen member delegation from Etihad arrived in Belgrade on Tuesday on a special Air Berlin flight which was mostly carrying asylum seekers whose applications have been rejected by the European Union. The fourteen member delegation begun its work at Jat yesterday and will continue working through today and tomorrow. The experts from the national carrier of the United Arab Emirates have been divided into three teams. One will analyse sales, the other Jat’s destination network, while the third, made up of nine members, will focus on Jat’s overall business.

A new set of experts from Etihad are to arrive in Belgrade next week and will work through until May 5 when the screening process is to be completed. By mid May Etihad is expected to compile a complete report on Jat and send in its offer for a strategic partnership to the Serbian government by the end of next month. According to inside sources, the official takeover could take place on June 15 when Etihad Airways launches daily flights from Abu Dhabi to Belgrade. Yesterday, Etihad bought a 24% stake in India’s Jet Airways. The Emirati carrier also has ownership assets in Aer Lingus, Air Seychelles, Air Berlin and Virgin Australia.

Meanwhile, a delegation from Air Berlin will continue talks with the Serbian carrier today. Talks will focus on codesharing arrangements between the two airlines with Jat to place its “JU” code on several Air Berlin flights within Europe as well as flights to the United States. In return, Air Berlin will place its own codes on Jat Airways’ flights to Berlin, Frankfurt and Stuttgart.

53 comments:

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

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    1. What was the comment about?

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  2. Pathetic to see that the first and so far only comment "has been removed by a blog administrator".
    This blog is an aviation forum, not for idiotic comments towards other nationalities. This blog was created because we have one thing that ties us together, being from the Ex-YU territory, from Slovenia to Kosovo. I've noticed that the bad comments are growing in amounts. Ex-YU administrator, maybe it would be a good idea if you disable the comment fields for a while? Keep up your good work.

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    1. People in Serbia have the freedom of expression! We are no longer in Communism!

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    2. Errr yeah I know that, they have it also in Mongolia. But I'm old enough to remember what these "freedoms of speech" led to in the -90s. I just think it's totally the wrong place to utter propaganda and hatred, there are other forums for that.
      Maybe it's just me being naive for wanting us all to be friends...

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    3. DKinVXO you are naive this is the balkans, i wonder what the comment was Haha

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    4. Hell yeah I must be, you're right Anonymous 9:56... :)
      I wonder that too... "but when Ittihad"-something for sure... ;)

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    5. What was the deleted comment about?

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  3. LOL! When jat's business has been scrutinised, they will walk away! Jat are not even capable of leasing a single aircraft!
    No-one is going to invest into a debt ridden company!

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    1. Excuse me, what's your credentials?

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    2. Well, let Etihad's people decide that.
      I can safely say that they are more qualified to analyze JAT than some armchair pilot who uses the horrible abbreviation "LOL".

      Do you honestly think that they fly three teams from Etihad to Beograd without any background info about JAT's current status?

      If there's anyone who can save JAT, it's definently Etihad.

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    3. -1. You probably had an unpleasant night(s).

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  4. screening of JAT is like song Scream&Shout :))))

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  5. can anyone explain the point of Kuwait-Sarajevo route?

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    1. it was noted in comments here and in some other sites that the flights are mainly used by US military personnel going to/from Kuwait. Now, why/how I have no idea. There is sizeable NATO base in Sarajevo close to the airport. There used to be one in Tuzla as well I don't know what's it status now. But as far as I know there is no US military there. Only other place would be their base in Kosovo but...I can't believe they'd be using SJJ when going home to US. Regardless, I didn't tell you much but they use B767 for those flights so there is a good demand obviously.

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  6. Im glad JAT has a realistic chance of being finally privatized. I just hope management is not signing a ridiculous deal in Etihad's favor just to get the company privatized.

    But now that JAT is going to codeshare flights to the USA, does that mean that direct flights from Belgrade to USA are no longer in plan? I sincerely hope not, but can anyone tell me what the airport's plans are regarding direct flights to the USA?

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    1. Getting excited about interconintal flights is a little premature. Hardly something attractive to any airline given poor local incomes and a very seasonal market. A few charters maybe but even that's a long shot. Nice connections in Berlin would be the aim

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    2. Why does anyone think there's even a chance at direct flights from an exyu country to the USA?

      Why would Star Alliance fly direct more expensively when they can just keep feeding traffic to their hubs?

      Why would anyone go up against that when they can't?

      Does anyone really thing that seasonal travellers are going to pay a preminum on their family vacation when they can save money and transfer through Amsterdam or Frankfurt?

      The concept makes no sense whatsoever.

      ex-yu airlines should be thinking small, rather than thinking big. I'd rather see a better local network and better utilization of regional airports. Let's have flights from BEG-INI. IST-INI-BNX-ZRH. SOF-INI-BEG.

      Forget about USA direct flights. It benefits almost no one. It's just empty pride BS.

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    3. What about hitting you in the butt so you fly all the way to America? Cause that doesn't seem to me as a matter of pride or BS but as a necessity. Could be considered as a charter flight by the way, so it fits your argumentation.

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    4. I need to shut up, why exactly?

      Because I say true things you don't like to hear for some reason?

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  7. Vjerojatno će se napraviti model poput Air Seychellesa:

    1. Srpska vlada otpiše dugove, otpusti višak radnika (to košta, a treba ugušiti i bunt), ukine linije po naputku Etihada. I to vrlo efikasno, žestoko i brzo (u Sejšelima to se napravilo u samo mjesec dana). Već je donesena odluka o otpisu 170 milijuna EUR (za to je i CTN-ov otpis mala beba), te odluka o otpuštanju stotina radnika. I ovi prizemljeni avioni 50% flote koji nisu letjeli cijelu zimu i zbog kojih se otkazivalo brdo linija i frekvencija su dio tog scenarija. DAKLE SRPSKA VLADA ODRAĐUJE PRLJAV I NEUGODAN POSAO ZA ETIHAD, a Etihad dolazi na sređeno, čisto i bez prljanja ruku.

    2. Etihad se pojavljuje kao spasilac i na ruševinama kompanije, zapravo na onome što su sami postavili kao uvjet, kreće graditi brzim koracima novu i uspješnu kompaniju. Odjednom dolaze novi avioni (u Sejšelima u samo dva mjeseca), povećava se broj linija, jaka frekvencija prema Abu Dhabiu (zasigurno i dva dnevna leta), a u ovom slučaju i prema TXL i DUS.

    3. Povećanje je nekih 50% u usporedbi sa samo dva-tri mjeseca prije preuzimanja, i nitko ne primjećuje da je to zapravo 25% manje nego godinu-dvije prije. Linije su isplative, zatvara se sve što ne donosi profit pa bio to i TGD ili TIV (ne kažem da će se to desit, ali njih interesira samo profit ili velik broj konektiranih putnika dalje od Bliskog Istoka, ako nečeg od toga nema, doviđenja, tu interesi Srbije, nacionalna povezanost, emocije, povijest... nemaju niti najmanjeg utjecaja)

    4. Jat postaje feeder, linije se šire, ali ne brzo kao što se nadalo. Ipak, u konačnici sve je daleko logičnije, isplativije, efikasnije, novije, pametnije, i PROFITABILNO. Istovremeno tehnika, cargo i školovanje za Etihad, donose tonu novaca i benifita. No ne Srbiji, ne Jatu, nego Etihadu.

    5. Svi se pitaju zašto Srpska pamet to nije uspjela sama.

    Zaključak: kako god se ovo gore može isčitati negativno, nije tako. Zapravo to je jedini pravi put (nažalost to nam moraju pokazivati stranci koji do jučer nisu znali ni pisati), i u roku od 5 godina Jat će biti vrlo uspješna, a vjerovatno i najveća kompanija u regiji.

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    1. I adore point no. 5.

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    2. Slazes se sa vecinom tvoje price, ali ne mislim da ce Jat postati feeder zato sto ne postoji toliko putnika koji bi mogli da putuje preko Abu Dabija. Srbija je ipak u Evropi I vecina putnika putuje po Evropi. Neprofitabilne linije su se svakako morale ukinuti (ako bude bilo interesovanje za 5 letova dnevno za Crnu Goru, verujem da ce Etihad naci avion koji ce to odraditi). Takodje imati jedan let nedeljno nema smisla ako cena nije jako nista zato sto ce putnici za tu cenu presedati u vreme koji im potpuno odgovara.
      Ukratko, slazem se sa svim zakljuccima (narocito 5), ali mislim da ce Jat zbog svog polozaja (ma koliko ovo zvucalo izlizano) ostati sa velikim delom svoje sadasnje mreze (koja je znacajno redukovana u odnosu na vreme zajednicke drzave).

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  8. And when they're done they'll walk away.

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

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  10. btw BEG CEO said that BEG is expected to make 30 million euros in profit this year. Now I will let purger say " the Serbs get nothing from this and yada yada"

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    1. You can be Serb, Croat or from the Seychelles but the truth is that Purger HAS changed, evolved and that his comments nowadays are mostly objective and constructive. He is saying the truth, especially the "how come we needed them who where recently illiterate to help us do that". Cograts Purger from Serbia.

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    2. Trust me I did not change. I still thing that Jat management is on very low level, but luckily for you Gouvernment made perfect deal for Serbia in colaboration with Etihad. Jat is just a little part of that deal. It does not have nothing with disaster management of Jat, because 99% of job will be done by Etihad management.

      So, God touched you on your head, and do not destroy this last chance.

      I was not "evolved", I had same coments. But as I was Ustaša several weeks ago in this blog, now I ma Četnik in croatian blog. Well, it is not up to me, but that people can not read chritisizm, and think that chritisizam is always atack, and not will to help. And in my case it is just that, nothing else. No nationalizam, no profit...

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    3. No Purger, we never disagreed on catastrophic management of Jat, we disagreed when you propelled Zagreb up to a financial powerhouse and hub of this part of Europe (and presented Belgrade as some sort of provincial outpost) when Qatar announced flights there. Admit that you exaggerated and pushed it up a bit. That was the main point that has built you the bad reputation, nothing about Jat.

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    4. @Anonymous 2:32
      Im intrested to know what your opinion is on Beg and if you would exaggerate too?

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    5. @2:32
      "We" who is we? are you one person or a group? you trying to speak for everyone here?. I think Purger has been right on the money for lots of things WE are just to small minded.

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    6. Thanks, last anonymous.

      To ano. 2:32. If you read closely what I wrote I never said that Zagreb is better than Belgrade, but refuse to agree that Belgrade is much better than Zagreb. Basically those cities are almost the same. Zagreb is smaller but much better GDP per capita, so in total they have almost the same GDP (less than 5% different). Than we had disagreement about tourist in Belgrade and Zagreb, and by statistics they are almost the same, and difference is in some 4-5% last 2 years in favor of Zagreb. As this is in 5% range it can be change with one big concert or World championship next year, or even this year. The same shit. We all are provincial villages compare to Prague, Budapest, Stuttgart, Venice, even to Graz, Trieste, Geneva, Bratislava, not to mention London, Paris, Amsterdam, Berlin, Frankfurt... Let me just remind you that Amsterdam is even smaller than Zagreb, and can we compare just one Amsterdam city district to all Zagreb or Belgrade? Of course we can not.

      3rd problem was potentials! Yes, entrance in EU, Croatian tourism, NATO, much better development... for Zagreb is much bigger potential than Belgrade has in this moment. But after all the only important thing is if you will use that potential or it will stay just potential with no use at all. Unfortunately Zagreb will be the only European capital which will not benefit from entrance in EU. One can see that now!

      The same thing is now with Belgrade. Etihad deal is huge potential for Jat and BEG. The best you can get today. Will you use that for your benefit? It is up to you. It is not the first chance Serbia and Belgrade had. Till now you blow all of those. I hope this time you will not do it again.

      Well, whenever I come to Belgrade and Serbia I really enjoy it. This year I will have tour with my team in Serbia, for sure not for first time. My driver is Serbian, I have lot of friends who are Serbs, so please thing again when you call me next time nationalist. But you have to learn that criticism is not always attack! And most of people from this part of Europe (especially from Croatia) does not care about nationalism, Serbian-Croatian conflict 20 years ago, 2nd world war and Ustaše and Četniks..., and are not jealous about Serbian success and wish all the best to us all in this little part of our little planet.

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

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    8. It's like arguing over which is the tallest midget or which portion of sh*t has more corn in it

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    9. Talking about Zagreb, yes, for sure.

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    10. Geezus... :|

      Your online tourettes syndrome notwithstanding, Belgrade and Zagreb are BOTH provincial backwaters, about 50 years behind the civilized world.

      I have no dog in this fight. I couldn't care less which is better or worse. As an outside observer, I see that they both have a HELL of a long way to go

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    11. Zagreb is in the category of: Sarajevo, Graz, Chisinau, Lviv, Sofia, Toulouse.

      Belgrade is in the category of: Kiev, Warsaw, Bucharest, Beirut, Budapest (if not including the touristy side).

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    12. pretty arbitrary categories there.

      Belgrade could take either - either being the smallest and least significant (of the other insignificant cities) on list 2, or the largest of the also insignificant cities of list 1

      either way, you're arguing which is the tallest midget.

      What a waste of time.

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    13. Sure yes in your dreams!

      The best Purger sentence is:
      "We all are provincial villages compare to Prague, Budapest, Stuttgart, Venice, even to Graz, Trieste, Geneva, Bratislava, not to mention London, Paris, Amsterdam, Berlin, Frankfurt..."

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    14. He's right.

      Furthermore, it's self-evident.

      What's the problem?

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    15. oh... maybe you're not the same "anonymous" :)

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    16. Seems like you haven't travelled to any to know how "insignificant" the cities of the list 2 are. Belgrade is not only comparable but better than some of them in several aspects.

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    17. Who cares.

      "We all are provincial villages compare to Prague, Budapest, Stuttgart, Venice, even to Graz, Trieste, Geneva, Bratislava, not to mention London, Paris, Amsterdam, Berlin, Frankfurt..."

      please see doctor for your repetition compulsions.

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    18. Sure, Belgrade is so important. Let me remind you that Belgrade should be compare to Singapore. Belgrade is better than Budapest, Venice, Warsaw, Kiev? Hahahahahaha… It is not stupid, that is parody! For sure you was not ever in those cities, not to mention that you had any business in those. And it is just your wet dream, nothing else.

      Just few days ago United Nations start to analyze opportunity to move from New York to Belgrade!

      You do know that on other bogs and forums people do make fun of you.

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  11. I would love to be part of the team that screens Jat!
    I guess those people are really experts in how to analyze and to organize an airline.
    Without doubt they already know the bad state Jat is in!
    And they for sure will find additional problems that were hidden from public.
    For sure is: If Etihad invests money in Jat they will in the very beginning bleed some of a money.
    But if there is an airline that can turn a lossmaking airline in a profitable one then it is Etihad!
    Something Air France for example would never be able to do.

    Although Jat has its many flaws they are not overwhelming as
    Jat is still a relatively small airline -
    they are never as big as Air Berlin,Alitalia or Iberia!

    What Etihad never should forget is that Jat is an 100% European airline geographically but 0% legally as Serbia is not part of the EU!
    So the Arabs have more freedom to do with Jat then they will ever have with any other European airline...
    Serbia as some weird kind of offshore haven in the centre of Europe!

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  12. As much as i m happy for JU and BEG about this EY deal, I don t like this hidden state aid by Serbian government. The aviation market needs a clean up ant not subsidizes by governments who even can not afford to pay such injections. The market will not recover as long overcapacity exists and those overcapacities are only possible due to illegal government supports. The US has learned it s lesson and out of 6 bigger airlines, 3 disappeared, which brought them back to profitability. Look at Europe how many Carriers are making losses. Working in this industry and selling prizes which make complete non sense just due to artificial overcapacity is just annoying.

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  13. Can anyone tell me what 'share' (as %) EY is buying? Is it 20%, 50% the lot? This will show how important or strategic this purchase is for EY.

    The notion of feeder airline has appeared a lot: is JU cheaper to operate than AB flights to Germany or Austria? If this is about reducing costs, while gaining more market share it is in fact a wise move for EY to have made.

    On a related matter, i've been surprised how none of JUs flights to Croatian coast or Slovenia made the codeshare list - is there another announcement in the pipeline (either of codeshares or of EY launching flights)?

    Finally:
    Admini, došta! Bite the bullet and make commenting on this forum THROUGH REGISTRATION - the juvenile nationalistic comments have been beyond a joke of late, and it reflects quite badly on your excellent work running this forum.

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    1. I think the problem here with the comment list is that the more people who comment / visit the blog the more money Ex Yu Aviation gets from Google. I think Ex Yu is looking at a short term gain and might be worried about turning people off the blog who, even though they make stupid comments, still visit at least once every day plus impact on Ex Yu revenue. This might be a short-sighted approach to the longevity of this blog.

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  14. Ex Yu Aviation don t let u irritate by all the negative bloggers and comments. Yr work and idea is a great contributation to many of us in daily live. Me personally, I visit this blog every single day and sometimes i can t wait to be it 0900h am again, to see the new post of the day.

    Keep going and thank you for all your efforts to make this blog possible!

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