Friday, May 8, 2015

Montenegro Airlines mulls EX-YU expansion

Montenegro Airlines plans Skopje and Zagreb service

Montenegro Airlines is considering expanding its operations in the region with the introduction of flights to Skopje and Zagreb. The carrier held talks with the Macedonian government yesterday regarding the potential launch of services between Podgorica and Skopje. Montenegro Airlines said it would launch the service if it receives subsidies. “Before we make a final decision on launching flights, we have to conduct a feasibility study to determine whether the service would be profitable and whether the two governments are prepared to subsidise part of the expenses”, the Montenegrin carrier said in a statement. It added, “The launch of this service would benefit both regional and business ties. In addition, Macedonian passengers would have the ability to connect onto other flights through Montenegrin airports”.

Montenegro Airlines suspended its daily service from Podgorica to Skopje Alexander the Great Airport in February 2011, without prior notice, when it was revealed the carrier had several thousand euros in unpaid debt towards Macedonia’s busiest airport. The airline denied such claims, maintaining the service was instead cancelled due to poor loads. Similarly, the carrier suspended flights to Pirstina on the same day after its aircraft was held up at the airport due to unpaid debts. Previously, Bosnia and Herzegovina’s B&H Airlines operated flights to Skopje via Podgorica but the service was cancelled shortly after due to poor loads. Within the former Yugoslavia, Montenegro Airlines currently operates flights only to Ljubljana and Belgrade. Just several years ago, the carrier also maintained services to Niš, in addition to Ljubljana, Priština and Skopje.

Meanwhile, Montenegro Airlines plans to launch services to Zagreb this coming winter season in cooperation with Croatia Airlines, which would codeshare on the flights. The new service will result in improved connectivity between the two neighbouring countries, as well as an expansion on the market, which both carriers are aiming for. Croatia Airlines will provide logistical support for the new route, while Montenegro Airlines has been offered incentives from Zagreb Airport, such as service discounts, in order to kick-start the new service. The Montenegrin carrier faces no competition on the route. Croatia Airlines, suspended its three weekly flights between the two capital cities back in 2013 due to low demand. Originally, the two airlines planned to introduce the service this summer but the launch date, which is yet to be specified, has now been pushed back until winter. On Monday, Montenegro Airlines confirmed it was leasing one of its Embraer jets and crew to Croatia Airlines on a short-term basis. “The aircraft is leased for several days. The agreement is beneficial for us as we provide our excess resources , available outside of the peak season, and achieve sufficient profit as a result”, the carrier said.

71 comments:

  1. It is beyond me how an airline with 9.5 EUR million loss in 2014 and 68 million EUR is able to even consider new flights.

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    1. Air Serbia had 78 million euro loss at the end of 2013 and look at them now.

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    2. No. Jat Airways had 78 million euro loss at the end of 2013. Not Air Serbia. Air Serbia is where it is today, because of cash injection and investments from a third party, as well as non-bureaucratic management. Not because its 2013 management decided to roll up their sleeves and do something. Air Montenegro, on the other hand, is not so lucky. It is a private fiefdom of Milo and his DPS leeches. So until that changes, it will be the next ex-YU domino to flip over, after B&H Airlines goes belly up, pretty soon.

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    3. Even birds know that the loss in 2013 was mostly amassed by Air Serbia not Jat. Jat's loss was constant at 10-15 million each year. Opening new routes which at first were making losses, hiring new staff and all the other transformations in the last quarter produced the massive loss and everyone knows that. So no, the loss is not Jat's is Air Serbia's.

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    4. Once again, you are completely wrong so, unless you are pursuing a specific agenda, I would have your figures checked before you discredit yourself further. Of the 78 million loss in 2013, 28 million alone came as a result of errors made in previous financial reports published by Jat Airways. The remaining 50 million is spread out over 12 months, of which only the last two were representative of Air Serbia operations. Not to mention that no dramatic "transformations" took place over the last two months, besides overhauling one sales office, hiring and training a fairly limited number of new staff, as well as three newly leased planes. So, yes, the loss for 2013 is by far Jat's, and NOT Air Serbia's.

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    5. Sure 'errors'. I will take your word for it ;)

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    6. And sure it 50 million divided to 12 months. God forbid most of it was made in last 5 months of 2013 when Air Serbia project was on (de iure from November, de facto from July). I will also take your word for it.

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    7. Jel imate dokaze bivsi zaposleni i oni koji nisu primljeni pa iznosite ne istine.
      INN-NS

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    8. Yes. "Errors". According to generally accepted accounting practice, errors need to be recorded. Jat was in such state of disarray, that it had accumulated errors. I can see that you have no clue about aviation operations, and even less so about accounting. But, please, don't take my word for it. There is an annual report to that effect, but I doubt that with your level of intelligence, you will know how it interpret one. Leave Air Serbia alone and go use that time productively to learn some basic book-keeping.

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    9. ^ As an Air Serbia fanboy perhaps you could provide us with the airline's 2014 annual report. Can't seem to find it anywhere...

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    10. Jat was SOOOOOOO much better, wasn't it ? Bring it back so that all those non productive workers, those wonderfully friendly stewardesses and all those party hacks can find employment once again ..... gosh i miss the good old days .....

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    11. i suppose those extra 1 million passengers that Air Serbia carried were an illusion as well ??

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    12. What I REALLY miss, is all those sponsorship agreements that loss making JAT used to have ....

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    13. What was deadline for financial report of Air Serbia and Belgrade Airport and why they were not published till deadline. It is low obligation, and by this practice they violate law!

      Why would they break a low? Only if data in that report is not good or previous announcements were not true.

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    14. BEG airport report is published on the website of the Belgrade Stock Exchange since last week.

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  2. I wonder if they could operate more than three weekly flights as they would have to rely on O&D and maybe a few transfer passengers here and there.

    On the other hand, Air Serbia will offer two daily alternatives from SKP to TGD via BEG. One is particularly convenient for business passengers (if there are any flying between these two cities).

    SKP-BEG 04.25-05.35 Atr-72
    BEG-TGD 07.10-08.00 A319

    TGD-BEG 21.45-22.45 Atr-72
    BEG-SKP 00.25-01.35 Atr-72

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    1. Embraers are not competitive on routes of less than 300 nautical miles, especially when operated by Montenegro Airlines. Even Montenegro Airlines realizes that so they are asking for subsidies.

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    2. Can't they just operate the Fokker? Would it be more cost effective?

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    3. The operating costs of the Fokkers compared to the Embraers probably isn't very different. Only aircraft that could operate these low yielding routes is the ATR 72. Not only because it is the most fuel efficient, but also it has a very low airport charges for its size. On such short routes, airport fees are the biggest operational expense.

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  3. Is there really that much demand between Podgorica and Skopje?

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    1. PRN used to be packed. Don't know why they are not considering resuming those flights.

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    2. Yes but back then the circumstances were much different (regarding the PRN flights).
      At that time YM was trying to build a mini hub in Podgorica and they were offering more than competitive fares from places such as BEG, PRN and SKP to western European destinations and Russia. You could book flights from Belgrade to Moscow via Podgorica for less than €200.

      This model failed and the hub model was dropped.

      When it comes to SKP, I think it has more to do with their low fleet utilisation than with anything else- the request for subsidies is a good indicator of that. Montenegro Airlines would be more than uncompetitive in Skopje, especially when trying to match other airlines. The only way they could do it is by dumping fares so as to attract the flexible, low yielding passengers. These might fill some seats but would only increase their losses.

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    3. True Nemjee. Should be noted they will be flying to ZAG with subsidies from the airport as well.

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    4. That's why I said that OU should stay away from YM. The best thing would be for them to lease the Embraers without establishing any form of commercial agreement.

      Montenegro is bound to fail, it's only a matter of time.

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    5. Montenegro Airlines is bound to fail only when Montenegro joins EU. They can keep subventions until then. When they join EU YM would have no buyers and Air Serbia would take over Belgrade-Montenegro traffic.

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    6. I think the size and seasonality of the Montenegrin market will eventually kill them. Montenegro is not the richest country around and I really wonder how much longer they will manage to cover YM's losses.

      The fact that they are blaming the leases of the E-jets and that they are looking to lease them out can only indicate that the situation is chronically going from bad to worse.

      If YM goes belly up, I hope another airline steps in as a monopoly is the last thing we need. Maybe they could allow for Wizz Air to enter the market. I am sure they could have a daily flight to Podgorica even during the winter season.

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    7. Немања, Немања... "I hope another airline steps in as a monopoly is the last thing we need". Would you use those same words to describe Tuzla or Niš?

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    8. Hmm I would if it was realistic but unfortunately i don't think it is. Do you think otherwise? ;)

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    9. I don't like double standards. If monopoly is not good, it's not good anywhere.

      BTW, once Serbia and Montenegro are both in EU, Wizz or even Lufthansa can fly Belgrade - Podgorica ;)

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    10. I never said otherwise and i agree with you as far as monopolies go. I just don't think any airline will challenge W6's monopoly in both Nis and Tuzla.

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  4. Good news for SKP. More airlines and more passengers

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  5. Nice crew member :D

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    Replies
    1. Ako vam se svidja da pitam Milu za ime :P
      INN-NS

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    2. Pa da, ti si moćan čovjek sa vezama!

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    3. Pitaj je kada stiže A330 u ASL.

      Zašto nju da pitaš? Zato što joj se, koliko god nemala pojma o tome, opet može verovati više nego tebi.

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  6. YM vode pogresni ljudi koji nemaju viziju po regionu salju E190 koji nisu bas isplativi na tako tako kratkim sektorima
    Treba da se rese jednog E195 i da umesto toga uzmu 2 AT75.
    INN-NS

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  7. Great news for Skopje :)

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  8. This could work during the summer with Skopje - Tivat routing. Don't see a need for winter service.

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  9. For those who were interested in more JU statistics : January-April 2015, seat capacity utilisation for Beyrut was 71%, Heathrow 67% ( though 3% fewer passengers compared to 2014 ), Tel Aviv 52%. To Pogrorica striking 49% cause jets had being used largely.

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    1. This comment has been removed by the author.

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    2. LHR najmanje je 80 % tako da ne sirite neistinu .
      BEY je oko 80 % =D
      INN-NS

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    3. 80% је можда током априла али ове зиме било је летова када је Лондон ишао и са по 45 путника.

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    4. Those stats actually seem correct. Provide us with more stats anon 4:24, both good and bad.

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    5. not bad figures for low season, not bad at all. LHR diminished most likely due to fall in transfer pax, its now cheaper to travel to Americas via AMS and CDG and maybe even ZRH.

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    6. LHR became less competitive after they increased the charges. That might also be a factor.

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    7. Doesnt W6 represent any threat to their loads? Speaking of O&D of course, LTN has little or no transfer power, but still...

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    8. Didn't Air Serbia actually want to increase London? Beirut's numbers are excellent and that is so much for those who were doubting about that route.

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    9. Thank you for those sats,I was the one who asked it yesterday. Numbers for BEY sound really solid

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    10. ^^^ yes, JU asked for more slots for LHR and were rejected,

      Btw, JU800 last night had just above 30 pax in Y and 2 in J. JU801 is seeing better loads at the moment, being above 70 pax in Y.

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    11. Nemjee
      Jeste od Aprila je LF .
      Ali zato za CDG bi mogli svaki dan slati A321 i ponekad EHAM
      LHR jeste malo oslabio ali kad sav saobracaj usa skoro ide preko CDG i AMS.
      INN-NS

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    12. @JATBEGMEL

      Are they considering to apply for slots at another airport in London?

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    13. Most of the smaller airports and even some larger ones do not have slots. One weird exception is Beirut which has a slot system in place.

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    14. Париз може да напуни А321 током сезоне али не и ван ње, то јест докле год се не уведу поноћни поласци за Скопље, Солун, Атину... током целе године.
      Ове зиме када је поноћни вал био патетичан, Париз се враћао буквално празан, са можда 50ак путника. То је и један од разлога зашто је А320 замењен са А319. Било је дана током зиме када је А320 имао по једну дневну ротацију. То се све може проверити на FlightRadar-у.

      Оно што је мени најшокантније је то што Ер Србија не нуди нормална преседања из Истанбула за Париз. То је још један од разлога зашто им је потребан ноћни лет за Турску.

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  10. OT: 1st Air Serbia aircraft with WiFi has been flying around for a couple of days but WiFi is still not officially announced. Apparently A320 YU-APH is now in the hangar at BEG getting WiFi equipment installed and when that one is ready, Air Serbia will officially roll out WiFi product starting with 2 those planes. Admittedly I have been burned before, but this one sounds plausible. If true, timing is great for a rollout and product could be marketed to boost peak season sales. Together with new ATR and upcoming lounge at BEG things are looking up for ASL.

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    Replies
    1. YU-ALV will arrive on Monday

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    2. Will it? Will it really buddy?

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    3. Will wi fi be free of charge?

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    4. ^ Of course not! I bet like 2 pax per flight will pay for it. ASL has became famous for acting like a drama queen, Stanija style really.

      Jokes aside, was this investment really necessary? I feel that low paying transfer pax and Serbian pax will definetly not pay for wi fi.

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    5. Yeah, Air Serbia is such a crap airline .... crap food, crap aircraft, crap flight attendants, crap inflight entertainment with this free streaming and access to internet and mobile - crap everything ! Jat was SO much better, wasn't it ?

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    6. No one praised Jat and no one said it was better than Air Serbia.
      Norwegian has free wifi so who knows... it should be free on flights to Abu Dhabi.

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    7. panasonic is the vendor, so they set the pricing, not air serbia

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    8. I would be happy to know from someone who has insight into the matter how will the investment in the aircraft reflect on the lease prices.

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    9. I don't know how it works in Europe, but in America usually there are two options for airlines. Either the airlines buy the system themselves and then they can set the price, or more commonly the company that provides the systems installs it on airplanes, and gives part of the profit to the airlines.

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    10. wifi isnt working just as yet and crew have been instructed to not touch the panel controlling the wifi. I will post pics of YU-APJ in the next couple of days, caught it last night in BEG.

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    11. Mislim da ce u pocetku biti dzabe ali mogu proveriti ako vas zanima u narednim danima.
      Aэrologic
      Cena kod ovih 8 sto su na leasingu cena ostaje ista zato sto ASL to sama hoce a na ova 2 od EY se menja
      INN-NS

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    12. INN - Air Serbia should have argued in obtaining a discount since it'll be returning the planes with added value to when it obtained them.

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    13. Leasing kucu je briga sto su onii dodali wi fi sami hoce posto da su hteli da imaju imali bi vec pre ASL.
      A i cena mu posle dodje ista zato sto ce ih sigurno leteti dobrih 8-10 godina.
      INN-NS

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    14. A jel zna neko da li i koliko cesto se menjaju IFE sistemi na sedistima?
      Recimo ako JU uzme Etihadove A332 koji imaju 5-6 godina stare IFE sisteme hoce li biti oni yamenjeni, kao i cela sedista? Bilo bi dobro da izadju oni novi sistemi kao u etihadovim najnovijim dreamlinerima i A388

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    15. Nikad nisam cuo da neka Aviokompanija menja IFE sisteme ja mislim da za to postoji download.
      ASL ce stavljati svoja sedista u A332 kad dodje za nekoliko meseci .
      INN-NS

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    16. INN - You should consider a career at Air Serbia call center. You could be their PR manager, you would ecplise Maja wthin a day or two.

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  11. This is the best parody about ASL. Of course this is just a joke and I do not need people hating
    https://www.youtube.com/watch?v=TzfDHZD1OU4

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