Monday, January 27, 2014

Air Serbia disappointed with DoT decision

Air Serbia responds to US snub

Air Serbia has expressed its disappointment with a decision by the United States Department of Transportation (DoT) to deny its planned codeshare with Etihad Airways on flights to the country, a precedent which could have future implications for the Serbian carrier. “We believe the decision to deny the planned cosdeshare is contrary to global trends on air transport liberalisation and that the current trade levels and good diplomatic relations between the two countries have not been taken into account”, Air Serbia said in a statement. The DoT’s decision came after several parties, including Delta Air Lines, argued against the codeshare.

Air Serbia says it is considering filing a formal response to the DoT’s decision. The airline is also expected to soon find out whether its planned codeshare to the States with Air Berlin will be approved. Delta has again requested for the DoT to dismiss the application, arguing that while Air Serbia is still majority state owned, Etihad has too much power in its day to day business. Delta used the same line of argument in Air Serbia’s previous codeshare application and could use it again if Air Serbia is to launch flights to the United States, as planned, sometime in the future.

In its own analysis, the Centre for Aviation (CAPA) said, “This relatively minor application, having created such a massive reaction, has produced an outcome that harkens back to the baddest old days of regulation. In those less enlightened times, government took the position that it knew best what was good for consumers. Logic would dictate that more route options and price points are better for consumers than fewer”. It adds, “DoT’s decision also reflects the tremendous efforts US carriers are putting into blocking expansion of Middle Eastern hubs. During the winter 2013/2014 season, Air Serbia plans to introduce 12 new routes from Belgrade. The expansion no doubt will allow some channelling of passengers from Eastern Europe to Abu Dhabi, giving those passengers alternative routings to Asia and the Middle East instead of travelling through Western Europe. The new direct links from Belgrade to Africa and the Middle East also give Eastern European passengers new options for travel rather than relying on Western European carriers to reach those markets. The Belgrade expansion ultimately results in another layer of competition for Western European airlines and their US partners”.


  1. The original document:

  2. So basically Delta can use this argument if/when JU wants to start flying to USA and I don't see how ownership stuff won't be applicable then. I just don't get Delta though. Aren't they in partenrship with AF/KLM which has a partnership with EY?

    1. Yes but look what's happening with LH and TK. Both of them are part of *Alliance and now they're quiting the code share agreement like worst enemies. Moreover they have a joint venture airline.

      So it doesn't mean anything as long as using the synergies doesn't lead to equal distribution of the income to both or there is a wish from one of the parties to emphasize it's stronger position compared to the other one (ex. TK vs. LH on the german market).

    2. So true!

      Do not forget that Delta destroy Qualiflyer group and Swissair when they decide to change partner and enter SkyTeam. And what about fresh example of Qantas terminate code-share with their oneworld partner British and start huge collaboration with nonmember Emirates.

    3. Which shows that it was plain stupid for Air Serbia to request this codeshare agreement with Etihad (which makes no economic sense). Now Delta and any other airline can also use the ownership argument.
      Nice stupid move Air Serbia/Etihad

    4. Delta used the same argument on JU's request to codeshare with AB. And they will use the same argument when JU applies for its own transatlantic flights. Part of a bigger game, nothing to do with JU. And Delta will eventually give in - you have a nice explanation at the end of the article linked above.

      It was a chess move by Etihad, but you can of course call them and advise them to immediately offer Hogan's job to you, a proven expert.

    5. Here we go again... This was posted as a comment few days ago and explains how Delta can be defeated with right partners once nonstop flights are launched: Air Serbia has eyes on the big prize – nonstop transatlantic flights, probably in 2016. Since Etihad already codeshares on its flight to Toronto with number 1 airline in Canada (Air Canada) and Etihad also codeshares with number 1 airline in the US (American Airlines) on USA flights (and soon with number 1 JFK feeder Jet Blue), it is likely that those North American airlines will also codeshare and support future transatlantic Air Serbia flights from Belgrade. Etihad and Air Serbia are alliance neutral and are willing to partner with both One World and Star Alliance for North American flights.

      That means it will be in Air Canada interest to codeshare with Air Serbia on future YYZ-BEG flight (just like they codeshare on other thin East Europe routes, such as LOT on YYZ-WAW), and it will be in American Airlines (and Jet Blue) interest to codeshare with Air Serbia on JFK-BEG and ORD –BEG flights in the future. With American and Canadian interests well protected and AA/AC on Air Serbia side, Delta will likely fail to stop Air Serbia in the quest to have transatlantic flights.

  3. Well that is reality. Unfortunately you can not have benefits from Etihad protection and in same time without any problems from others.

    That attack was not on Air Serbia but on Etihad.

    And that is not end. Thing about what will Lufthansa/Austrian/Swiss do, what will be Turkish respond, what will do Air France/KLM, Wizz... And most of their moves you will not see. They will do it secretly, conspiratorially, involving some other organization, mediator, forcing government bodies to act «independently» + using dumping, doubling routes, more Germanwings in Belgrade...

    I am just waiting what will Lufthansa do as Etihad is striking directly in middle of Lufthansa interest: Air Berlin/Niki in Germany and Austria, Darwin in Switzerland, Air Serbia, huge expansion with flights from Abu Dhabi to Germany (they have 5 destinations in Germany), Switzerland, Austria, Italy, Belgium...

    And as Air Serbia is the weakest link for sure it will be most powerful attack there.

  4. Mod, how can I register my nick?

    1. lol. u need to create an google acount

    2. I don't want people to know who I am...

    3. Again it is not my comment.

      My name is Alen Šćuric, I am manager in my private company which is well known Croatian brand, president of one huge European association, member of O.C. of Croatian football federation, consulter of HSPP (Croatian Airline Pilot Union) and journalist in Aeronautika. That is something lot of people on this blog knows as I already put here several times.

      And what is your name "2nd Purger"? Noooo, you are to big chicken and moral zero to put here your real data. Well, that is up to personality, eider you are have strong personality and you are not afraid of giving your identification, eider you are "general on web" but some didder in real life.

      I do have Google account. But still don't know how to make here my nick as Purger.

    4. To koliki je Purger profesionalac i koliko su njegove analitike tačne se može videti na sledećem linku.

    5. A sto je krivo rekao?

    6. @Purger go to and log in with your google account
      and then try to edit yor profile
      in the user information bellow the mail adress should be the nick name

    7. @ Alen Šćuric

      Don't be an arse, Purger is not trade registerd mark, everyone born in Zagreb, living in Zagreb is a Purger, all 800 000, so anyone from Zagreb can use Purger as a nick.

      Alen Šćuric, its time you change your nick in to full name, this way no one can mistaken you for other Purger, end of story.

      This is my suggestion or otherwise everyone will think it is you when other Purger posts, and a newsflash, its internet, anyone can create another Purger account.

      So do us a favor and create your new account with your real name in it, for all our sakes.

    8. a stvarno, sta je covek rekao sto nije istina u momentu intervijua??
      100% covek bio u pravu.

  5. is BH airlines gonna attack too?

  6. yes, they will attack three pigeons sitting on a branch in Mojmilo forrest (third tree on the left)

  7. C'mon... 6 hours to AUH, 3 hours layover and 15 hours to JFK. 24 hours to JFK from BEG?

  8. Belgrade Nikola Tesla Airport top 10 international routs (by seats): 20-Jan-2014 to 26-Jan-2014


    Belgrade Nikola Tesla Airport international capacity (% of seats): 20-Jan-2014 to 26-Jan-2014

    Air Serbia-50.5%
    Montengro Airlines-4.5%

    1. I already post that two days ago... and you have discussion about that there if you want to see reaction...

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

    3. @Purger

      Sorry,I haven't seen that.I'm not here on daily basis...

    4. Nothing to apologize for, I just mentioned that not to repeat comments, so that we can proceed with discussion.

  9. Kako god se prepreka podizala ispred AirSERBIA, jedno je sigurno. Srpska avio kompanija ce ostvariti svoje ambicije i nastojanja kako sa avio kompanijama koje su u zajednickoj saradnji kod-sera, kao i drugim sporazumima. Izvesno je da ce uspostaviti neposredno odnose sa US avio kompanijama koji bar dosada nisu mnogo razvijeni. Naravno posle davanja zelenog svetla od strane FAA, Srpskom vazduhoplovnoj agenciji DCA.
    Na ovom blogu ima dosta ljudi koji su upuceni u ovu maeriju, ali mnogo vise onih koji prizeljkuju nestanak AirSERBIA. Kako pojedinaca iz par zemalja, tako i pojedinaca iz same Srbije. Jednim i drugima je za jednicka zamerka naziv AIR SERBIA. Za razliku od njih
    DELTA AIRLINES ne zamera nazivu niti logo-u, vec nedozvoljava da izgubi ni jednog jedinog putnika a kamoli
    dolazak Er Srbije u USA, pa makar imala samo cetiri, pet interkontinentalnih aviona. Podrazumevase u buduce. Sigurno je da ce nekoliko aerodroma USA i Kanade biti destinacije redovnih letova AIR SERBIA. Naravno aerodrom Beograd ce zazeleti dobrodoslicu nekoj od avio kompanija iz ove dve zemlje ukoliko je njihov komercijalni interes Srbija.
    Rodney Marinkovic, AME. Kraljevo / Sydney-Griffith. NSW.

  10. Some interesting developments.

    Aegean will be operating charter flights from both Heraklion and Rhodes to Belgrade this summer. They are waiting for the ministry of transport to give their green light which should come in a few days, hopefully.

    Also, Serbia is thinking of banning all summer charter flights to Belgrade from Turkey because their government kicked Air Serbia out of Istanbul by refusing to issue it the slots it asked for. Authorities said that they are angry that Turkish Airlines gets free access to Serbia while the same is not done for Air Serbia.
    I think is very good news. Air Serbia needs to show some teeth to Turkish Airlines. So far three airlines have applied for charter flight permissions. For the first time in several years Turkish Airlines has applied to operate charter flights out of Belgrade.

  11. Delta stands to lose all the passengers being fed by AirSerbia to AF/KLM. Not sure how many there are, but if it's worth Delta's time to log fierce complaint with DoT, then I guess it's worth for Etihad to do the following ( repeat):

    1) AirBerlin and AirSerbia should coordinate schedules so that passengers from/to BEG can have a decent connectivity at DUS to AB flights to/from US
    2) AB should boost the frequencies and destinations to US and
    3) AS should discontinue codeshare agreements with AF and KL and route passengers via DUS.

    Delta loses. Etihad wins.

    1. United, US Airways, KLM, AF, BA, all very very strong on intercontinental routes to north America, not sure Delta cares for Air Serbia much, they just don't want Ethiad and Emirates getting more access to US.

      Air Canada alredy limits number of flights from ME to Canada, it seems US is doing the very same thing buy blocking Air Serbia rights.

      my three cents.


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