Tuesday, April 29, 2014

Air Serbia hopes to gain from Etihad alliance

Air Serbia to be part of new Etihad Aviation Group

Air Serbia expects to benefit from its part owner’s recent plan to create a new alliance called Etihad Aviation Group. The new alliance, which will feature carriers in which Etihad has ownership stakes, will further boost cooperation and streamline costs. The Etihad Aviation Group marks the transition of the airline from a single entity to a wider global aviation party. It defines the functions of personnel at Etihad Airways as well as its subsidiaries, joint venture companies and equity partners. Over the weekend, the national carrier of the United Arab Emirates named individuals who will hold key posts which will oversee the transition into Etihad Aviation Group. They include former senior managers at Air New Zealand and Air Canada.

The new Etihad Aviation Group structure, headed by James Hogan as Group President and CEO, distinguishes the functions relating purely to Etihad Airways and those required to interface with and support the growth and success of its subsidiaries, joint venture companies and equity partners. As a result, the Etihad Aviation Group also includes a division to coordinate and manage Etihad’s investment in its equity airline partners, and a new role of Chief Operating Officer Equity Partners will be created within the new structure to ensure ongoing cooperation between the airline and its equity partners. The position will be responsible for leading the identification and realisation of synergy benefits across the equity alliance, as well as having direct responsibility for Air Seychelles and Air Serbia in which Etihad Airways has a management responsibility.

Air Serbia, which has the largest amount of its shares owned by Etihad out of all the other investments the UAE airline has made, will play a key part in the new alliance, covering the region of South Eastern Europe. The new alliance is expected to see Air Serbia significantly reduce unit costs and achieve productivity gains and cost savings. It also streamlines entry into new markets and facilitates rapid growth through the use of established networks, facilities and customer bases. Furthermore, the carrier is expected to broaden its cooperation with both Air Berlin and Etihad Regional from Switzerland and help it achieve its target of reaching profitability by the end of the year, as set by Mr. Hogan in 2013. Equity and codeshare partners contributed revenues of $820 million to Etihad Airways during 2013.


CEO James Hogan says, “These are very exciting developments for our business and the strong team we have created in our new structure will greatly enhance and improve the way we work in harmony with our partner airlines and subsidiaries”. He adds, “It will ensure that we work more closely than ever before to maximise the tremendous opportunities and deliver a sustainably profitable future for Etihad Airways and wider Etihad Aviation Group members, while ensuring we meet ambitious targets relating to revenue, cost, and synergy benefits”.

59 comments:

  1. One more hop to progress of AIR SERBIA. Next step toward big future. Common AIR SERBIA, common ! Let do it. Big group for big future. You can do it.
    Rodney on step of your aircraft tonight. Midnight rider to SOUTHERN CROSS . By Europe to next winter.
    Rodney Marinkovic . Belgrade - Sydney.

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  2. Air Berlin Asks Shareholders For Cash: 315.5 million euro Loss in 2013.
    http://www.reuters.com/article/2014/04/27/us-air-berlin-results-idUSBREA3Q0NE20140427

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    1. Upssss... and where is now professional Etihad management? So, now what? They will cut frequencies, lines, fleet, jobs? And can we see same scenario with Air Serbia in year or two?

      Second thing, I don't thing Aer Lingus and Virgin will be member of alliance as Etihad had there just minor share. In Lingus Ryanair has 25% and Etihad just 2,9% and in Virgin Australia Singapore and Air New Zealand have much more shares than Etihad. I doubt they will allow that.

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    2. Etihad managment isn't running AB.

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    3. If you actually read the article ex-YU wrote it says they have management commitments only in AIr Serbia and Air Seychelles. Also, they have been negotiating an share increase in Virgin.

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    4. Etihad is managing Air Berlin almost 2 years now! That is wellknown fact.

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    5. I did not know Etihad was managing Air Berlin and can't find info about it. Can you please help me and post a link to a web page with more details? Thanks!

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    6. Anonymous @ 11.08am - you are WRONG ! EY does NOT manage AB - they are merely shareholders. The only 2 airlines in which they have any formal role in managing the airlines in which they have shareholdings in, is Air Scheychelles and Air Serbia ... You are mistaken in your 'facts' ....

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    7. "The European Union is looking into whether Etihad exercises more control than allowed under the region's rules for airlines with a European operating licence."
      Reuters, 28th April 2014, by Praveen Menon

      And you really think that they spent more than 700.000.000,00 USD in shares, ff program and loan not to have control ower company?

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    8. And you really think they invested 700M USD only to be mopped out by the European Commission?

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    9. I still don't see any link or quote on Etihad managing Air Berlin? It looks like that wasn't true in the first place.

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    10. European Commission did not say Etihad had a management contract with Air Berlin. They said there is informal (effective) control that bypasses the majority holder's control over the company's board. Management contract is not an issue even in Air Serbia as it does not violate ECAA. The issue is who really controls the board. Cry babies from LH say it is Etihad but that is the same level of 'control' LH has in, for example, OU. Karma is a bitch sometimes.

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  3. Good business move .
    This means life is going to get very difficult for Croatia Airlines. Thanks to Mr Kucko (Ceo) and his business plan .He just killed our national airline. Mr.Kucko I know you read ex yu so please explain without blaming others except yourself for the business failure of CTN due to your business plan which is actually the failure plan .I wrote this in English for all readers to understand not only locals.

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    Replies
    1. Nothing will happen to idiot Kucko, unfortunatelly! Things are moving in Croatia but very, very slow... Our stupid government thinks that investors will fight over Croatia Airlines, our minister and PM should go and beg them to save OU and promise them everything they want!

      That's why I wish good luck to Air Serbia, hope they'll do everything to become the best carrier in this region, in Croatia we'll regret one day for not saving OU!

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    2. Why can't the Unions do
      Something about Mr.Kucko? If all people will go on strike to enforce him from his job! He eventually has to go, otherwise you will
      all be fired due to bankruptcy. And je flees to Holland/amstelveen where he owns a house. He has no mercy for you guys and is only thinking about himself! Get rid off him quickly before it is too late.

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  4. @Anonymous at 10:31 AM
    Only Purger says I "thing". You should know this, Anonymous!

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    Replies
    1. Purger busted for trolling again.

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    2. I was no road when that comm was posted as I have business trip to Vinkovci till 4th May. It is not my comm. I presume I am not only one to use “thing”. Even more, I think I learn about that mistake when I made it first time and one should be stupid to repeat it again.

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  5. Nadam se da ce doci u Julu/Avgustu A330-200 sto su pricali Gospodin Hogan i Vucic.

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    Replies
    1. U julu skoro da je sigurno da nece, ali krajem godine, ili pocetkom iduce postoji dobra sanas.


      poz!

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  6. PM Vučić: JU up 80% April 2014 vs. April 2013, USA longhaul in 2015. (!!!)
    http://www.b92.net/biz/vesti/srbija.php?yyyy=2014&mm=04&dd=29&nav_id=842045

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    Replies
    1. Hahahahaha, megalomanija!

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  7. A bit of OT regarding Air Serbia:

    This May 1st JU switches to piece concept for checked baggage, from its previous 30kg policy. This is something every European airline does, but still, it is a setback regarding pax comfort.

    Still, and this really amazes me, there is absolutely no recognition for frequent flyers in terms of additional pieces of baggage. They actually said that "silvers get +10kg, golds +15kg and gold elites +20kg, however this does not apply on routes where piece concept applies". Which is every single route JU flies!

    They copied EY's rules but piece concept routes on their network are scarce and allow for 2PC in Y, rather than just one. On the other hand, AB will allow additional piece for EY Guest silver members...

    I guess they will have to revisit this and fast.

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  8. that is a joke! Mr Vucic is flying high!! )))

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  9. According to unnamed source, unofficially, Emirates will have 5 weekly flights too BEG (from Dubai), Belgrade is one of 5 new destinations this year in Europe... According to same source, Emirates will replace Fly Dubai that has an average LF under 50%! Is it true, what does Emirates expect to gain, there is already Air Serbia and Etihad there...

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    Replies
    1. Countering EY with a stronger product.

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    2. FlyDubais loadfactor is not les than 50%.
      I doubt this !

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    3. Kojim Avijonom ako znate Hvala unapred.

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    4. Hey Austrian guy, I don't know, I read it on other forum, it was unnoficial from a Serbian guy, he also wrote (it was announced today) that Brussels is their next new route starting from September. He also mentioned Fly Dubai's low LF!

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    5. If that happens, Emirates will send its A330 or B777...
      They only have wide-body aircraft. Hard to believe, but that would be nice!

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    6. Austrian guy, Emirates will be flying to Brussels with Boeing 777!

      http://www.emirates.com/dk/english/about/news/news_detail.aspx?article=1644964

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    7. Nadam se da ce i za Beograd slati B777-300 ER.
      Ja sam ih pitao pre 1 vremena ali jos nisam dobio odgovor,cim dobijem javljam.

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    8. Na ovom blogu su vec bili pitali i rekli su da nemaju bilo kakve planove da lete za Beograd. Stvarno je smesno da ocekujes B777-300ER na liniji koja ima 80 putnika po letu

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  10. Sorry to rain on everyone's parade but EK will not be starting BEG anytime soon. For this year, maybe BUD and OTP, BRU yes - rest of the routes are in US and South America.

    Regarding FZ load factor, it is higher than that on average - it is a highly seasonal route with strong peaks and very poor off-peaks. EY did cause a dent to them and FZ plans for a daily DXB-BEG service have been dropped for the time being.

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    1. I do not see how Emirates could come close to filling half of an A330-200 in Belgrade. I just don't see them launching flights, unless it's some form of ego move... unfortunately Belgrade is not prestigious enough as a destination for them to do that.
      flydubai's B737-800 is perfect for this highly competitive market.

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    2. http://www.emirates.com/dk/english/about/news/news_detail.aspx?article=1589014&offset=2

      Oslo, as well, starting from September 2nd. I would love to see it in Belgrade but I get your point, you and Nemjee are both right! Greetings from Croatia!

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    3. As far as foreign carriers in Belgrade go and realistically speaking, the next cool events to take place in Belgrade should be:

      1. Etihad upgauging Belgrade to an A320.

      2. Qatar turning Belgrade into a direct flight.

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    4. Actually, EK's Italian routes were sustainable despite low LFs because of huge demand for cargo - I'm not saying there is one in BEG, but pax LFs do not necessarily have to be that important. Especially if some of UAE investments do come through.

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    5. You are right,but there are no investments from UAE beside of that into JU unfortunately...

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    6. Of course, that's especially the case with Rome. I remember reading in an article that at times their A380 would depart from Rome with a 50% loadfactor. Then again, Italy has a strong economy and Rome is a big city with a lot of premium demand. I guess that sales in business and first class were not that bad otherwise they would have downgraded the route to a B777-300 and launched Emirates Cargo flights.

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    7. Another thing I forgot to add. The problem with launching routes with the A330-200 is that it is supposed to be retired from the fleet. It doesn't make sense for EK to launch a route (eg Belgrade) to a market that will not be able to sustain a B777-300 in the next decade (and I am being optimistic). Some months ago, Emirates launched Dubai-Algiers flights with the A330-200. However, I am sure that soon enough this route will be upgauged to a larger aircraft as the city and the country can sustain this sort of capacity increase. Let's not forget that Belgrade is a relatively small capital of a relatively poor country. We have only so much O&D that can fill these seats.

      The only airline that could eventually send its widebodies to Belgrade is Etihad and only when the hub system starts to work flawlessly. If the Arab company from the UAE does take over Belgrade airport, as was reported in the media the other day, and if they do build a new terminal, and God knows what else, then we could see some more airlines from the Etihad alliance launch flights to Belgrade. This hub system is what will allow Belgrade airport to handle more than 4.5 million passengers at some point.

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    8. well, only logic in sending wide body to BEG lies in a lot of cargo, which 738s and 320s can't carry. if there's enough cargo demand, then there might be sence in EK replacing FZ. but still, it's very dubious

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    9. Of course, I absolutely agree with you on that. However, I think Belgrade is solid Etihad territory and Emirates know that. Plus, any additional cargo that would fly to the UAE would be funnelled via AUH. As far as the rest of Asia goes, there is Turkish Airlines Cargo.

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  11. Does anyone know why all Air Serbia flights this afternoon running between 2 to 5 hours late. The delays are getting worse every day! Can anyone provide insider-information?????

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    Replies
    1. Because A6 crew do not give a flying fuck about on time performance and they do as they please. The problem is that these idiots always operate on routes with a lot of transfer passengers which creates a chain of disastrous delays.

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    2. IAE engines

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    3. Total crash of check-in system introduced by Etihad!

      http://www.aviokarta.net/vesti/2428-problemi-sa-sistemom-za-prijavu-putnika-air-serbije/

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    4. The two A6 birds are not only facing problems with their engines, it's with everything, especially A6-SAA. It's really unfortunate. Thank God the B737-300 are still around and that Etihad has paid for their refurbishment.

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    5. It's not the Sabre check-in system, it's the SITA communication lines that the check-in system relies on ....

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    6. Excuses, excuses.... those A6 planes and crew are Air Serbia’s! By great and the best of the best contract in the world. If it is shit plane, with Etihad shit crew that is part of the deal! Shit deal! And we all pay for those shit planes, those shit crew fly instead of our Serbian pilots... And we pay for that!

      So, deal is not so good, and more and more unprofessionalism is showing.

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    7. Since when are the A6 aircraft operated by Air Serbia crew? Did they change something from yesterday? Do you know if they operate them according to JU regulations as well? :O

      lol... some people.

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    8. Zasto JU 325 Düsseldorf-Beograd ide via Köln?

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    9. Zato sto Dizeldorf radi do 22h, a posto je haos bio sa cekiranjem i sve kasnilo moralo je preko Kelna

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    10. In the same post this troll says "those A6 planes and crew are Air Serbia's" and "..crew fly instead of our Serbian pilots". So which is it - crew is Etihad's or Serbian? We all know who's flying them, even you know, but you are troll.

      Then troll says he is paying for planes. Don't see how you are paying for those planes? Can you show us the invoice? You are not even site visitor from Serbia... just another troll.

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    11. Guys, A6 registrations flies only Etihad crew, wet lease, simple as that.

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    12. Who gives a s..t who is flying that plane.
      Fact is that it is big crap and creates an insane mess.
      But its so many different planes that are delayed...there is more about the whole thing than a damn plane.

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    13. Poster at 9:53 PM, that's who. Fact is that Air Serbia is going through period of somewhat expected teething pains they are working hard to contain. Fact is Air Serbia is showing stellar growth in terms of fleet size, passengers flown and revenue. Those are facts, not troll FUD.

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    14. As it was mentioned on here, these two A6 birds that are usually delayed fly to both Thessaloniki and Athens. These two destinations combined usually have around 120 connecting passengers (at least). So when they are delayed, what are the rest of the flights, which depart after 17.00, supposed to do? Just ignore 100+ passengers? Sure some routes like those to Montenegro can leave without them because you can simply rebook the delayed passengers on YM but what about the rest?

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  12. http://www.kurir-info.rs/vucic-er-srbija-prvi-put-u-istoriji-zaraduje-do-kraja-2015-letovi-za-sad-clanak-1345187
    Daj Boze da se ostvari to.

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