Friday, December 6, 2013

Government to help B&H Airlines

Government commits to help out its national carrier

Following statements made by the CEO of B&H Airlines, Amir Jažić, in relation to the “alarming” and “distressing” financial state the airline has found itself in, the federation government of Bosnia and Herzegovina has vowed to help its national carrier. “The situation at B&H Airlines is critical”, the Minister for Transport and Communication, Enver Bijedić, said yesterday. However, he added the government is prepared to work with the national carrier to solve its problems. The Ministry of Transport plans to boost the 3.5 million euros currently allocated to the airline from the federal budget. Furthermore, it has requested for the Federal Civil Aviation Directorate to write off debt accumulated over the past year by B&H Airlines.

One of the greatest obstacles facing B&H at the moment is the debt owed to the Hypo Group for the financial lease of two ATR72s. “The agreement with the bank is very bad. It lasts until 2015 after which the aircraft will again be owned by the Hypo Group and not our airline which has been leasing the aircraft for the past ten years”, Mr. Bijedić said in a statement. B&H currently owes 4.3 million euros to the Hypo Group. Last time the airline fell behind in meeting its obligations earlier this year its accounts were blocked and its aircraft grounded.

The government is now looking to renegotiate the deal with the Hypo Group so the aircraft would be owned by B&H Airlines after the leasing arrangement expires in 2015. The Bosnian government has been in search of a strategic partner for B&H for over a year. Despite several foreign companies showing interest, talks have so far been unsuccessful. “We cannot get rid of our only national carrier. We will do everything for the company to survive and function properly”, Mr. Bijedić concluded.

26 comments:

  1. Communism is not dead

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  2. OT:
    XA-VOT, seventh A319s for Air Serbia, are to deliver to MUC for painting

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  3. It is really a pity. I think Bosnia is a big potential market which is shown by the passenger growth. With a serious home carrier SJJ could easily go over 1 million PAX

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    1. BiH does not need a national carrier to boost the number of pax. They need more airlines operating to SJJ, competition between them, and consequently, affordable prices. Of flights. National carrier is an expensive toy and it's not a shame not to have it.

      That aside, looks like CEO's alarming statements the other day were not stupid after all - the guy made some noise (reality-based or completely fabricated, doesn't matter) and secured some easy funding from the government. The oldest trick in the Balkans.

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  4. They are not national carriers. They do carry BH name, but they just belong to Federation of B&H.

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  5. Thanks EX-YU. Just saw the message on your Facebook page. Can’t wait for tomorrow :D

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  6. o Macedonia (Skopje & Ohrid) : Pax: +19%

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    1. it isn't 1 000 000 yet?

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    2. I mean for SKP

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    3. Great result! Should we expect the millionth passenger these days?

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    4. Yes yes of course gona be more than 1.000.0000 (I think 1.050.000) :)

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  7. Admin, could you give us a sneak peak of tomorrow's post about Air Serbia's performance? Good/bad? :D

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    1. Well, results can not be as good as we want them to be. It takes time. Patience is required. Wait till they have all airbuses in service and all new routes well established .

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    2. ...and that is the reason not to have results?

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    3. Well, excuses. If you really want to make Air Serbia profitable in 2014 results in November should be wonderful

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    4. Air Serbia in November : 95000 passengers (growth 12%), operations growth 24%, load factor 55%, financial results-guess

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    5. Passenger numbers are not bad at all, shame that the loadfactor is that low. :/
      Then again, every big project needs time before it takes off.

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    6. how passenger number is not bad? If you have increase of 100% and growth of passengers 30% that is bad! The same thing here.

      Operations increase 24%
      Passengers’ growth 12%
      LF 55% what is more than disaster!

      65% LF would be bad
      60% very bad
      55% woooow... they have to do something urgently

      ...and that is with this action 1+1... so even less money in account...

      ...and they plan to be profitable in 2014? Merlin can not make this profitable.

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    7. Usprkos bajkovitosti cijelog projekta rezultati su izostali

      u studenom 95.000 putnika
      što je povečanje od 12%
      no broj operacija je povečan za 24%
      ...znači broj putnika ne prati povečanje linija i frekvencija

      = load factor mizernih 55%

      A k tome treba nadodati nekoliko stvari:

      - i ovaj 55% LF je umjetno stvoren jer je djelomično produkt one akcije 1+1, dakle zarada na izdanim kartama je niska

      - cijene karata su niske radi promocije, dakle profit je i po ovoj osnovi nizak

      - flota trenutno ima 17 aviona (6x A319, 6x 737-300 i 5x AT7). Sve to ne trebaju što je dodatan trošak. Konačno, i sami A319 su bili poprilično prizemljeni radi administrativnih problema, a što košta

      - povečani su troškovi marketinga poglavito novih linija (promocije, reklame...), ali i strategije poslovanja, pokretanja firme, novih oznaka na poslovnicama i cijelom rebrendingu, dakle i ovdje se odljeva novac

      - A319 lete strane posade (iz UAE, Slovenije...) jer kasni školovanje Jatovih posada u UAE, znači i po ovoj osnovi profit je smanjen

      - i samo preškolovavanje košta, dakle i ovdje je trošak povečan

      - troškovi se bitno povečavaju jer još nisu otpustili sve radnike pa je masa plača još uvijek velika

      - kašnjenja su znatna, što povečava troškove, posebno na dužim kašnjenjima na aerodromima koji imaju slotove (a zabilježena su kašnjenja preko sat vremena za LHR, FRA, CDG...)

      Ovo ne djeluje baš dobro... Naravno, svaka kompanije u početku ima loš LF, visoke troškove, i ne računa na profitabilnost u prvo vrijeme. Ne kažem da je ovo tragično ili katastrofalno, ali svakako ne uljeva nadu u to da će firma biti profitabilna u idućih par godina, a kamoli već u 2014, kako je management pompozno najavljivao.

      ...hoće li biti sredstava za naknađivanje financijskog minusa? Od Etihada zasigurno da, a od Srbije?

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    8. Ne znam ko je mogao da očekuje visok LD u prvom operativnom mesec, posebno s obzirom na novu hub strategiju kojoj će ti trebati vremena da se uhoda. Isto tako investicije =/= troškovi. Troškovi su rezultat operativnog poslovanja. Novembar i decembar su bukvalno uhodavanje i priprema, neka vrsta beta testa. JU će početi normalno da funkcioniše oko marta sledeće godine kada upotpune flotu i pozavšavaju sve administrativno/tehničke stvari. Menadžment je sigurno bio svestan svega ovoga, uostalom oni su odlučili da se relaunch uradi i sa prastarim B737. Od njih sigurno profit nisu očekivali.

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    9. Ma apsolutno. No, upravo zato se čudim najavama profitabilnosti u 2014.

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  8. strange europe airpost flight in serbia.. on flightradar

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    1. Women's world handball championships

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  9. I suggest discontinuation of the FED CAD and giving all that money to BH Airlines.

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  10. Yesterday again not a good day for Air Serbia passengers. Big arriving delays

    2:05 Zurich
    1:50 Stockholm
    1:20 Moscow
    1:10 Zurich
    1:20 Berlin

    ...and lot of those delaying 30-55 minutes.

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  11. That must've been for the blizzard "Ksaver" which 've brought chaos to Western Europe.

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