Monday, June 24, 2013

Etihad to invest $50 million in Jat in 2013

Etihad to invest in Jat’s fleet in 2013

Etihad Airways plans to invest fifty million dollars into the Serbian national carrier this year in an attempt to turn the company into a profitable business. As the “Večernje Novosti” daily writes, the biggest investment will be made in the renewal of Jat’s fleet. The airline’s line up of Boeing 737-300s, which are over 25 years old, will be retired from the start of the 2013/14 winter season which begins on October 27. Instead, Etihad plans for Jat to use ten Airbus A319s this winter. The Serbian national carrier will maintain its fleet of ATR turboprops for the time being, though these will likely be replaced with five Bombardier aircraft next year.

Etihad Airways has proposed for the government to take over all of Jat’s debt and provide redundancy packages for 250 to 300 employees which would leave the airline. Both the Serbian government and Etihad would share Jat’s profits and losses. Furthermore, the national carrier of the United Arab Emirates plans for Jat to operate with a small profit in 2014, while notable gains are projected for 2015. The national carrier of the United Arab Emirates has sent in its offer for a 49% stake in Jat last week and expects the Serbian government to respond within thirty days. Etihad is tipped to officially announce its plans for Jat next month. Speaking at a press conference last week, Serbia’s Minister for Finance and Trade, Mladjan Dinkić, said, “This will no longer be the same airline. It will be a new modern company, with a new fleet and a far superior product for passengers”.

The Serbian government will have the opportunity to decide on the fate of the retired Boeing jets. Previously, the government floated the idea to set up a low cost airline with Jat’s old aircraft. In addition, Etihad hopes it will resolve Jat’s 1998 order for eight Airbus aircraft by ordering new ones for the airline. Speaking to the “Večernje Novosti” newspaper, Etihad CEO James Hogan said the Emirati carrier will select Jat’s new management. “Serbia, as the majority share holder will name four members of the Supervisory Board while Etihad will name three”.

70 comments:

  1. I also think the following will happen:

    1. Jat name will not be changed.
    2. New uniforms will be introduced.
    3. New livery will be introduced.
    4. Revised schedule, the current dysfunctional one just doesn't work when it comes to building a hub.

    Makes me wonder if Jat and Niki will deepen their cooperation. I could see Niki funnelling their Balkan passengers via Belgrade. For those who don't know Niki is owned by Air Berlin which is de facto owned by Etihad.

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    1. What is so valuable in the Jat Airways name, not to be changed?! Etihad has strong commercial ties with much more famous and vital Jet Airways of India. So, please, no more old name for the Sebian flag carrier. So: AIR SERBIA!

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    2. I couldn't agree more! Although I understand the reasons behind keeping the name Jat, the fact is that it does stand for jugoslovenski aerotransport, although they changed it from JAT to Jat Airways. Serbia Airlines (or Air Serbia) is certainly more adequate name for - well - Serbian airlines.
      However, I do tend to think that "Aeroput, Serbian airlines", besides the fact that it would be a continuation of its original name, would definetly be more original, and (if you wish) more "neutral".

      A good rebranding swift could do wonders with Aeroput's logo and livery! http://www.timetableimages.com/ttimages/aeroputl.htm

      This way or another, those are the great news - a dream come true.

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    3. This is the end of Etihad...

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    4. I totally agree with you that the "JAT" should remain as the company´s name. If one company is named JAT since the beginning of serious commercial aviation in the 1950s, if it has normal ICAO and IATA abbreviations (trhe letters JAT, two letters JU), which can now only be replaced with some silly abbreviations such as XXS - than the copmany should remain JAT. Etihad will try to build a serious regional company, so it would be also smart to put something like "JAT - Southeast European". If they put "Serbia airlines" they will not be in a same way competitive in Bosnia, Croatia, Bulgaria and so on.

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  2. It would be nice if Etihad helped Jat to lease 2 younger 763s or A332s for US and Canada flights.

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    1. The A330-200 would be a disaster for Jat. The aircraft is heavy and without either a strong business demand or cargo Jat would bleed money. The only way this could work is if in the next couple of years Jat builds a strong regional network which would feed its north American routes.
      The A332 will have to have a lot of economy class seats in order to cater for the needs of the low-yielding Balkan travellers.

      There is no way in hell they would get a B767-300 due to fleet commonality.

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  3. If I remember correctly Etihad gave Air Seychelles 2 B767s

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    1. Actually what happened is that when Etihad purchased 40% of the company, Air Seychelles published a restructuring plan which saw the introduction of two Airbus A330-200.
      They launched flights to Beijing so that they could offer flights onward to Johannesburg and they funnel most of their passengers via Abu Dhabi.

      The two A330-200 are currently the only real aircraft in their fleet.
      So in conclusion, Etihad's entry meant the end of the B767-300.

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  4. Well, old 733s should be transfered to AGX, to operate as charter and LCC. As for LCC with 20+ old jets, it is possible. I mean, look at Jet2.com. Their jets are 21 yo, and 733s are 23,4 yo. So, it should be enough for start, and eventually to purchase newer jets.

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    1. Especially since they are paid for and well maintained.

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    2. Now I understand why jet2 does their maintenance at Jat Tehnika in Belgrade. Interesting.

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    3. I think it's because they got the cheapest deal, the same with Transaero.

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    4. Well, the cheapest deal, and Tehnika has a lot of experience with 733s.

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    5. Jat 733s are 27/28 years old (manuf.1985/86).
      In his last statement Minister Mrkonjic doesn't mention at all Etihad http://www.b92.net/biz/vesti/srbija.php?yyyy=2013&mm=06&dd=23&nav_id=725559.
      Jat received one AT5 OY-CJT (YU-ALT). Second AT5 soon to arrive, also some unconfirmed info about two 737s: 733 from Romania (Carpatair or Blue air ?) and 734 from Bulgaria (?)

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    6. It seems as if Etihad will first lease those 10 A319
      and see how they work before they will decide which fleet
      they will introduce in the end.

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  5. Is JAT going to lease the Adria Airways 2 Airbus A 319 aircraft under this Etihad proposal.If yes from when.

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  6. http://youtu.be/Mmkf-9QiDcQ

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    1. Ahhhhh :D thank you for that video. When Jat's YU-AON starts following the Etihad A346 it looks like mama bird taking her chick for the first flight. :D

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    2. Taking into account the age, it's actually quite the other way around.

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  7. http://www.kurir-info.rs/nas-i-svetski-jat-ostaje-drzavni-clanak-857341

    hahahahahaha :D

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    1. Mrkonjic has nothing to do with this deal. Its headed by Vucic and DInkic. That’s why Mrkonjic is talking out of his drunk ass.

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    2. That's Mrka. Who gives sh*t what he says? He's just angry because he was left out these negotiations. This is just empty talking, because he knows if he screws something up with this deal he's done for.

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    3. Мркоњић је бесан јер зна да после реконструкције Владе неће више бити министар.

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    4. Mrkonjić is getting kicked out of the goverment in a few weeks, so naturaly he's tryng to sabotage everything he can and is hoping that he just may steal a little more until he's out.

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  8. So if the take over happens Jat will have an almost mirror fleet to Croatia Airlines. I assume the 5 Bombardier aircraft mentioned will be the Q400.

    Again, good deal for Etihad but is it just as good for Serbia. Apart from Jat finally having a renewed fleet what else does Serbia get for the 180 million Euro bill plus redundancies?

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    1. Just that Jat won't be run by politicians and politics, which is the case with Croatia Airlines.

      Well, Serbia will get the following:

      1. A decent carrier which will not cost the taxpayers between 20 and 30 million Euros per year.

      2. An reliable airline that will link Belgrade to Europe and other parts of the world. This will facilitate future business development as Serbia will become approachable.

      3. A professional management that will run the show hence Belgrade will develop into a hub increasing the possibility of other carriers launching flights there and so increasing the revenue of the airport and all companies that work with them.

      The €180 million is nothing when compared to the advantages.

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    2. For Jat and Serbia's sake, lets hope so.

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    3. Of course there was no mention about the price EY would pay for Jat...
      i think it will be 80-90 millions.

      .

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    4. If they are offering to invest 50 million in the first year I doubt they will be paying as much as 90 million in anything extra for Jat.

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    5. I don't really see how it could be a mirror of Croatia Airlines. Croatia has 6-7 jets and 7 turboprops if i remember. Not exactly the same with 10 jets and 5 turboprops (for the start).

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    6. If I remember correctly there was a mention in some interview that Etihad said that 8 turboprop aircraft would be the ideal number... but who knows. Time will tell.

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    7. Investing into the fleet is not the same as buying 49% of an airline.
      And buying means paying something!
      Do you really think the government will give Jat away for nothing?
      Btw:
      If Etihad is going to lease the new new aircraft from a company that is owned by the UAE,
      then their 50 millions are re-invested into their home country!

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    8. Yes,then the money is changing only the bank account but not its owner !
      ; )

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  9. Actually, sources quoted Etihad saying Jat's fleet should be centered on a ~150 seats aircraft which is the A320. Ex-Yu - Any source as to the type of aircraft being A319 and not A320? Thank you.

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    1. For now, all sources indicate it will be an A319 fleet, not A320.

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    2. A320 would make sense if the demand was there all year round but since Ex Yu markets are highly seasonal at this time, the A319 is the best option.

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  10. Ex-Yu, i think today's image really doesn't fit with the subject. More suitable would be a line-up of current Jat's fleets or of the "to be" one... Thanks for taking this into consideration. Honestly, your reader.

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  11. peter from sydneyJune 24, 2013 at 12:50 PM

    Why go with the boms, I thought the atrs are a much better aircraft?

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    1. The Atr is good for regional routes. The Dash is a more suitable aircraft for routes such as Athens, Prague, Munich, Milan, Geneva...
      That is longer routes where operation and Atr would be painfully long.

      Jat used to fly its Atr to Munich and the flight was 02:45. I am sure that the Dash could do it in around 02:00.

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  12. Apparently for the W13 Season, JAT has requested slots to launch a 2nd Daily flight to Amsterdam filed under flight numbers JU2262/2263.

    Operating aircraft stated to be A319


    A AMS JU2262 29OCT 29MAR 0204060 134 319 BEG BEG 0900
    A AMS JU2262 27OCT 28MAR 1030507 134 319 BEG BEG 1940
    D AMS JU2263 29OCT 29MAR 0204060 134 319 1000 BEG BEG
    D AMS JU2263 27OCT 28MAR 1030507 134 319 2100 BEG BEG

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    1. With the flight from Belgrade being 02:30 that means that this will be the schedule.

      BEG-AMS 06:30-09:00
      AMS-BEG 10:00-12:25

      BEG-AMS 17:10-19:40
      AMS-BEG 21:00-23:25

      It will be interesting to see if Jat will have a regional wave of departure leaving around midnight.

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    2. I am sure this means that Wizz Air will have some additional competition.

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    3. Wizz Air flies to Eindhoven which is in no way an alternative
      for Amsterdam bound pax.
      Jat and Wizz easily coexist apart from each others and i hope
      Wizz increase their frequency to Eindhovenas it did with Swedish destinations.

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  13. Does anyone have any info on load factor for Etihad's flights to Belgrade?

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    1. If the load factor is this high, this is going to be so painful for LH and TK that used to dominate the Asian market our of BEG.

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    2. 91% sounds unreal! wow!

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    3. I would love 91%...
      If it would be true.
      Do not believe everything !
      Sources?

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  14. Where did you get that info?

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  15. Why have Etihad no codeshare flights via BEG to PUY, DBV and SPU - I believe it would be profitible....the most other cities, who are offered by codeshare EY/JU, are also connected by EY or AB or EI ..... but nothing to Croatia

    ReplyDelete
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    1. Eventually, they will be codeshared as well. The main reason for not codesharing them now is because those flights are seasonal. Once Jat's fleet is renewed and more equipment is at hand, I am sure we will see year-around service to many Croatian cities including ZAG.

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    2. @ano5:36

      thanks for your quick response. Yes, thats maybe EY`s reason, why not codesharing BEG/Croatian flights....

      Your words in gods ears "I am sure we will see year-around service to many Croatian cities including ZAG" I hope it :)

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  16. Looks like Ural Airlines is not going to fly from Belgrade...

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    1. Again a missed opportunity for Belgrade airport...

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    2. The guy with the weird photo - can you explain to us why and how Ural Airlines is not launching flights to Belgrade? Is it possible that Etihad wants Jat to launch scheduled Sochi flights so the government is pushing away the competition?

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    3. last comment.. how old are we on here, 5? grow up. best wishes to Belgrade, Serbia, and all of ex- Yugo

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    4. @ AnonymousJune 24, 2013 at 11:35 PM

      Ural Airlines withdrew their application. The word is that they might apply again for winter season. They also unilaterally terminated the contract with Serbian tour operator R-Tours before applying for licence. To clarify, they were not denied the licence, they withdrew.

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  17. Somebody had asked regarding load factor on EY flights from BEG to Abu Dhabi. I must tell you that I was on the first flight that departed from Belgrade on 15.06. (even received Inaugural Flight certificate from the crew :-))and unfortunately there were max. 60 passengers on that flight. It was even worse on the flight back to Belgrade, there were max. 40 people on the A319. I will be flying to Abu Dhabi again this weekend and will inform you whether the figures have improved in the meantime . Pozdrav

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  18. I wouldnt be surprised if EYs loadfactor will stay bad for a long time.
    It will take some time till people abroad will take notice of that new service.

    Also the connections between the UAE and Serbia could improve significantly:
    - There is still no embassy of Abu Dhabi in Belgrade.
    - Visa regime between both countries should get abolished.
    - There should be more employment opportunities for Serbian citizen to work and live in the UAE.

    A lot of work still has to be done.


    ReplyDelete
    Replies
    1. Why posting the comments without any sense? Abu Dhabi is not a country to have an embassy. Visas are standard international policy of UAE. There are planty of Serbian people already working in Dubai and Abu Dhabi.

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  19. YU-ALT is ready :D

    https://fbcdn-sphotos-d-a.akamaihd.net/hphotos-ak-ash3/1011910_624293237595562_317811551_n.jpg

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  20. really fantastic news. I actually can't believe it went through.

    Q400s for Jat would be terrific.

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  21. Can we expect a new livery as well? You all have to admit that current one is terrible...

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  22. Definately time for new livery for Jat...hopefully till the end of the year under Etihad! ;)

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  23. I would like it more if it were B737NG instead of A319. But hey, at least the fleet is getting renewed

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  24. All people who want to call Jat "Air Serbia", you have completely lost your minds. Air Serbia is cheap, cheesy and boring. Please Etihad, have some sense and call it Aeroput. WHat's so bad about it sounding like Aeroflot anyway? I've had a good experience with them every time I've flown SU. Also love Aeroput's original logo :)

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    1. There is something which is called tradition, and tradition does not mean to take some historical that was used for a couple of months 70 or 80 years ago before the expansion era of civil aviation ("Aeroput"). The one who takes the name "Aeroput" is building a museum; to have a tradition means to keep ways, identity, names and so on that are acutal and in for long time, as seen from the present. And, for sure, that is the JAT as an abreviation. If one company is named JAT since the beginning of serious commercial civil aviation in the 1950s, if it has normal ICAO and IATA abbreviations (three letters: JAT, two letters: JU), which can now only be replaced with some silly abbreviations such as XXS - than the copmany should remain JAT. Etihad will try to build a serious regional company, so it would be also smart to put something like "JAT - Southeast European". If they put "Serbia airlines" they will not be in a same way competitive in Bosnia, Croatia, Bulgaria and so on.

      Delete
  25. New Jat should be renamed to Jatihad ;)

    ReplyDelete

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