Thursday, September 17, 2015

UPDATE
Air Serbia to receive share from $700m transaction

Air Serbia to receive funds from platform financing transaction

Air Serbia will receive a share of the USD 500 million raised on international markets on Tuesday by Etihad Airways, its airport services business, the Serbian carrier itself and four other Etihad partner airlines (Air Berlin, Air Seychelles, Alitalia, and Jet Airways). Etihad Airways, Etihad Airport Services, Air Berlin and Alitalia will each receive almost 20% of the funds. A further 16% will be given to Jet Airways, with the remainder to be divided between Air Serbia and Air Seychelles. The funds raised by the transaction will be used largely for capital expenditure and fleet investment, as well as for refinancing, depending on each individual airline’s needs. The transaction marks the first time that Etihad Airways and its partners have raised funds together. To date, Etihad has already raised in excess of $11 billion from more than eighty financial institutions, to help fund its expansion strategy.

The success of the fundraising initiative was a “major endorsement” of the businesses’ shared strategies, said James Hogan, President and CEO of Etihad. “A key element of our equity partner strategy is creating a total which is greater than the sum of its parts, a grouping which can work together to improve revenues, reduce costs and uncover exciting new business synergies”, Mr Hogan said. He added, “We have already been able to identify significant opportunities together, whether that be in shared IT platforms, joint fleet procurement or shared training costs. Commercial fundraising is no different. Our proposed transaction is simply the next logical step in our growing partnership and underpins its strategic importance”.

The $500 million was raised at a series of roadshow meetings, held in Abu Dhabi, Dubai and London, where the shared vision and strategies of the airlines were laid out to financial institutions. "These highlighted the growing network coordination and revenue development initiatives, coupled with joint procurement and business synergy projects, across the airlines", Etihad said. The Serbian carrier reported a net profit of 2.7 million euros and 262 million euros worth of revenue in 2014. Its revenue rose 29% during the first half of this year, totalling 95.5 million euros. Earlier this year, Air Serbia's CEO, Dane Kondić, said, "We will improve our profit and are on target to improve our passenger numbers”.



UPDATE

After unprecedented demand from financial institutions in a range of markets, the airlines reopened the transaction and have raised an additional $200 million today, bringing the total to $700 million. “The additional demand we have seen over the past 24 hours has been enough for us to re-open the transaction. These additional funds will allow this group of airlines to accelerate further the realisation of this vision and these strategies. Individually, each of these partners is building an increasingly strong business. But together, that strength is multiplied. This transaction recognises and endorses that strength", Mr Hogan said.

75 comments:

  1. An excellent example of the benefits of Jat's privatisation. Hope some of this will be invested in the fleet.

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    Replies
    1. To me it shows they gave the least amount to Air Serbia and Air Seychelles despite having the largest share in Air Serbia together with Alitalia. I would not call this great news for JU.

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    2. Maybe because Air Serbia is tiny and its problems can be fixed much easier than Air Berlin, Alitalia, etc.

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    3. Haters gonna hate. It's obvious the funds were divided based on the size of each airline. JU and Air Seychelles are the smallest from the group. And in the article it says with "the remainder to be divided between Air Serbia and Air Seychelles". So that means Air Seychelles could get 1% of the funds since it doesn't say the share will be divided equally.

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    4. So anyone who questions anything done by Etihad, Air Serbia or the government is instantly labelled as a hater? God, you are a perfect candidate for an SNS membership.

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    5. Did I understand well it is 2%? And did I understand well that it will be used for fleet, so those A320 that will we owned by Etihad will be paid from that money and will be still leased to Air Serbia in 2018? For which amount of money, conditions?

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    6. My guess is that when they spoke of the fleet they meant something more immediate like a lease of an additional Atr or Airbus.

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    7. This all sounds great, with all that millions flying around. But what will be the cost for AS? What is the collateral for those grants? Were the investors promised stake in AS? Were they promised some grants in other investments? Or is this going to be another 90`s privatisation - Etihad raises money based on "partner" equity, distributes money to their funds and "partner" goes bankrupt? To be blunt, "partner" means AS.

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    8. Typical DJB thinking. Airlines are massive cash flow businesses and your fear is not grounded. ASL is only a tiny percentage, partners are Alitalia, Air Berlin etc.

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    9. Hello Anonymous September 17, 2015 at 9:11 AM,

      I'm standing up for your statement. Some guys should go to a "čiko u bijelom mantilu".

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  2. I think most of the money will go to Alitalia and Air Berlin as they are the ones in the EU, making cash injections much more difficult. Even if JU gets a few million, it will be good so that they can pay the bills this winter season and maybe lease an aircraft or two. I am still hoping more A319s will join the fleet but who knows.

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  3. Let us calculate: 4*20%+1*16%=96%
    That leaves 4% to be divided between Air Serbia and Air Seychelles. If they do it 50-50, that is 2% for ASL. Approximatelly 10 million USD.

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    Replies
    1. Malo li je? I država da da toliko gubici iz ove godine mogu da se pokriju i čak da se prijavi lažan profit od par miliona. Idealno

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    2. Лагање је најуноснији бизнис на Балкану, посебно ако си властодржац.

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  4. So what can we expect them to use this cash for?

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    Replies
    1. A320 that will be in Etihad ownership. It is money for Etihad and by that they will show like they care but in reality it will be another tool for blackmail other companies. In case of Air Serbia that will look like:

      1. To public: Arabs gave us 10 million EUR, you have to see how good deal Mr. Vucic made for Serbia. They just come and give even when we didn't aks.

      2. Again in 2018: here are new planes that came from Arabs. Thank you our brothers for your nice gift.

      3. But in reality those planes will be Etihads, will be leased to Air Serbia for god knows which conditions and amount of money, and if Serbia will cancel contract it will cost them a huge amount of money.

      "Nema đabe ni u stare babe" or "there is no such thing as free meal".

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    2. Halo Anonymous September 17, 2015 at 9:25 AM

      Slažem se, Srbi i Arapi su najgore gazde. Al' kad uzmeš procenat...šta te briga za sve ostalo, sve će to narod pozlatiti...

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  5. Seems like EY's A320 has become a regular in Belgrade, let's hope it stays like that this winter too.

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  6. Sačuvaj me bože INN-NSSeptember 17, 2015 at 9:37 AM

    Something is very fishy with Air Serbia numbers

    Croatia Airlines
    12 planes
    220 million EUR revenue
    908 employees (including maintenance)
    1.825.000 passengers

    Air Serbia
    20 planes
    262 million EUR revenue
    1.527 employees (just basic maintenance)
    2.300.000 passengers


    Revenue per plane:
    Croatia 18 million EUR
    Air Serbia 13 million EUR

    Revenue per passenger:
    Croatia 121 EUR
    Air Serbia 114 EUR

    Revenue per employee:
    Croatia 242.291 EUR
    Air Serbia 171.578 EUR

    Passengers per plane
    Croatia 152.083
    Air Serbia 115.000

    Passengers per employee
    Croatia 2.010
    Air Serbia 1.506

    So how can that be that Air Serbia is 3 times more profitable than Croatia?

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    Replies
    1. Well, given that both use creative accounting to reach profitability, my guess is that for JU it's easier since the government can assist them in getting rid of some additional expenses like they removed some charges they were supposed to pay to BEG.

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    2. Sačuvaj me bože INN-NSSeptember 17, 2015 at 9:47 AM

      Even worst with number of available seats

      Croatia 1.076
      Air Serbia 2.306

      Number of passengers per available seat:
      Croatia 1.696
      Air Serbia 997

      Income per available seat:
      Croatia 204.461 EUR
      Air Serbia 113.617 EUR

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    3. More than $13 million were written off by BEG airport. OU is indeed more profitable.

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    4. Correct me if I am wrong but does that mean JU was 10 million in the red?

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    5. Sorry for the OT, but can someone explain what is this:

      https://www.otc-cta.gc.ca/eng/ruling/300-a-2015

      Thank you!

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    6. Request to codeshare on Air Canada flights.

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    7. Thank you, Anonymous 10:16 AM!

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  7. Evo primjera dumpinga Air Serbie. Karta ZAG-BEG-TXL-BEG-ZAG bitno jeftinija nego BEG-TXL-BEG!!!!

    Zagreb-Berlin-Zagreb, 8-11.10.

    Air Serbia via BEG 167 EUR
    * nevjerovano ali to je samo 32 EUR skuplje nego ZAG-BEG-ZAG
    * još nevjerovatno to je 66 EUR jeftinije nego BEG-TXL-BEG

    Uzgled to je 100-njak EUR jeftinije nego sa Germanwingsom (nonstop), Lufthansom, Austrianom i Croatiom.

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    Replies
    1. Sto je tacno tu cudno? To je sve sasvim normalna praksa.

      Hajde ovako -- da li bi vi radije putovali od Zagreba do Berlina direktno, ili sa jednim presedanjem? Ako jedna kompanije nudi proizvod koji je pozeljniji, a druga onaj koji je manje pozeljan, onda je jasno koja kompanija mora da ponudi nizu cenu ako misli da ima sansu da nesto proda.

      Ista stvar za to sto su letovi iz Beograda skuplji. Naprosto, direktan let je pozeljna roba i za nju mora da se plati; tako je svugdje u svetu pa ce tako biti i u BEG. Beogradski kupci osetljivi na cene mogu da lete Wizz-om za neku nedodjiju u sumi pa odatle kocijama i vozom do Berlina.

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    2. Niko nije kriv sto CTN nema takve dobre Ideje sto rade sve Svetske kompanije.
      INN-NS

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    3. Hajmo još jednom:

      srpski putnik za dva lega plača više nego hrvatski za 4. Što znači da
      - let ZAG-BEG-ZAG dobijam besplatno
      - i još je let BEG-TXL-BEG jeftiniji za mene nego za srpskog putnika 66 EUR!!!!

      Konačno cijena od 167 EUR do Berlina via Beg (na sjeverozapad preko jugoistoka sa ogromnom devijacijom) nema šanse da je isplativa. Upitno bi bilo bi li povratna karta sa LCC bila ispaltiva za tu cijenu, a legacy carrier sa konektiranim letov i još najgorom mogućom devijacijom tu gubi puse novce.

      Daj bože da potraje. Meni super!

      P.S.
      Za taj dan nema direktnog leta iz ZAG za TXL nego se mora presjedati u CGN, VIE, FRA, MUC, AMS, CDG, ZRH ili BEG. Dakle argument o poželjnosti direktnog leta tu ne drži vodu.

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    4. Pa da nema toga oba leta bi bila jezivo prazna, vecernji let za Zagreb iz Beograda, vec tri puta kako sam isao nema vise od 20 putnika...

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    5. Purger

      Ja koliko znam to je uvijek tako jer je potraznja za direktnim letovima veca, samim tim I cjena. Kao na primjer YYZ-VIE-SJJ-VIE-YYZ kosta CAD 1352.09, a YYZ-VIE-YYZ je CAD 1502.41 za iste datume (1/10 do 31/10). Vise puta sam ovo provjeravao I uvijek je bilo tako. Jednom sam cak razmisljao da kupim kartu za SJJ a isao sam samo do VIE medjutim kad sam se malo raspitao receno mi je da ako se ne pojavim na VIE-SJJ leg cjela karta (tj povratak) mi je autmatski otkazana. NAvodno kompanije ovo rade bas iz tog razloga da bi sprjecile ovu vrstu manipulacije.

      Nekazem da nije dumping I jedne I druge (to neznam stvarno) ali me cinjecica da je ZAG-BEG-TXLjeftinija od BEG-TXLbas I ne cudi. Kao zakon ponude i potraznje vlada, mozda moj primjer (prekookeanski) nije najbolji ali...

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    6. I tako se Purger, čovjek sa 25 godina iskustva u avijaciji, po prvi puta susreo sa modelom u kojem se transferni let A-X-B nudi po daleko povoljnijoj cijeni nego direktan let A-B. Ostao je potpuno zatečen jer je očekivao da razlika u cijeni bude 10-20 EUR pa da putnici na osnovu toga odaberu varijantu sa presjedanjem i dodatnih par sati putovanja. Svijet je šokiran ovom posve novom strategijom koju je u avio biznis donijela Air Serbia! Čeka se odgovor civiliziranog i profitabilnog dijela čovječanstva.

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    7. Hehe.. nije to od juče, veće godinu i po dana to ne moze da shvati ;)

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    8. Nisam ja rekao da sam se prvi puta sa time susreo. Nedavno sam napisao primjer gdje sam letio ZAG-FRA-CDG za 56 EUR jeftinije sa LH nego direktno sa OU ZAG-CDG (i tada postavio pitanje zašto LH radi tako nešto svom partneru u alijansi)

      Ali nisam se još susreo sa slučajem da je let sa 4 lega skuplji od leta sa 2 lega, tj. da je ZAG-FRA-CDG skuplji od FRA-CDG. Znate da uvijek uspoređujem cijene i da mi nije problem otputovati autom do aerodroma udaljenih 500 km, ali tako nešto nisam nikada doživio. Jest, koji puta leg od ZAG do VIE, MUC, FRA, ZRH... košta neznatnih 30-40 EUR više, ali da je 66 EUR jeftinije!?!?!?!

      Uz to uporno izbjegavate činjenicu da je 167 EUR za let ZAG-BEG-TXL-BEG-ZAG puno premalo, jer se radi o legacy carrieru, i devijaciji za svjeverozapad preko jugoistoka (dakle najgoroj devijaciji koja znači bitno višu cijenu). Dakle cijena od 233 EUR koja je za BEG-TXL-BEG jest realna, cijena od 167 EUR za isti let je nerealno i znači gubitak, a još već gubitak je dodavanje 2 lega ZAG-BEG-ZAG na ovaj gubitak. Što će reči Air Serbija na ovoj karti gubi bar 100 EUR.

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    9. * da je let sa 2 lega skuplji od leta sa 4 lega

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    10. Na kraju ispada bolje da odeš busom u Zagreb, vidiš grad, odeš na aerodrom i otputujes u Berlin i na kraju si opet na nuli...

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    11. Где је логика да ја пуним српских буџет, а онда још плаћам карту за Берлин више него неко из Загреба. У авиону који се храни мојим новцем из буџета.

      Испада да од Ер Србије корист има Хрват, Албанац, Македонац, Бугарин

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    12. Kao da niko nikada nije čuo za revenue management. Pa BEG-JFK preko FRA/MUC je praktično dvostruko jeftinije nego FRA-JFK. Isto tako, BEG-PEK preko SVO je značajno jeftinije nego SVO-PEK.

      Potpuno iste rute mogu dramatično različito koštati samo zbog različite polazne tačke. Uporedite koliko košta BEG-JFK-BEG, a koliko JFK-BEG-JFK sa bilo kojom kompanijom koja nudi tu rutu, pa videćete da je druga opcija opasno skuplja... A potpuno isti letovi.

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    13. "Ali nisam se još susreo sa slučajem da je let sa 4 lega skuplji od leta sa 2 lega, tj. da je ZAG-FRA-CDG skuplji od FRA-CDG."

      Meni je ova izjava šokantna za nekog ko se smatra ekspertom za avijaciju.

      Primera radi, dok sam studirao u Briselu, LH karta BRU-MUC-BEG je u 100% slučajeva bila jeftinija meni nego mom drugu koji je leteo samo BRU-MUC.

      Ovaj model je toliko rasprostranjen da mi je nejasno da se ijedan evropski tranzitni putnik nije susreo sa istim.

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    14. Selling ZAG-BEG-TXL-BEG-ZAG for 167€ is definitely price dumping considering JU pays 78€ for airport taxes only. 89€ is way too little to cover the cost of four legs.

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    15. Purgeru, ovo s čime si se ti susreo su osnove komercijalne avijacije, tj pricinga. Ista destinacija ima različite cijene sa više polaznih destinacija (pogotovo international), a direktan let se obično uvijek opravdano pricira skuplje nego sa presjedanjem, a LH sa nižom cijenom u odnosu na OU direktan let nikome ne podmeće nogu - najnormalnija stvar.....

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    16. @5:03 Iz zivotnog iskustva znam da vi koji se pozivate da "punite budžet" obično to ne činite.
      Ako ti ovde logika nije jasna i pored detaljnog objasnjenja vise kolega onda mislim da si na pogresnom mestu.
      SAČUVAJ ME BOŽE PURGERA.

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  8. In my opinion the 10 million dollars will be used for leasing the A330. If they start flying from March the 10mil should cover the cost of leasing the A330 till the end of the year.

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    Replies
    1. 10 miliona ce se iskoristiti za tekuce poslovanje

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    2. Auč... za tekuće poslovanje??? Kredit??? I tu se postavljaju dva pitanja:

      - zar je toliko dogorilo da se kredit diže za tekuće troškove, jer kada ga dižeš za investicije (dodatni kapaciteti, štedljiviji avioni, marketing...) onda je to OK, ali za tekuće poslovanje znači da si u banani? Kredti za plaču je početak kraja. Ako sada ne stvaraš dovoljno da isplačuješ svoje troškove, kako možeš očekivati u budućnosti da češ zarađivati više da isplatiš plaće i ostalo + kamate za kredit koji dižeš za tekuće poslovanje

      - zar Etihad nema više novaca pa da sam investira i daje kredite, nego mora posuđivati na trećim tržištima?

      - što je sa planom da kompanije koje je Etihad kupio donose profit? Što se izjalovilo da se mora posebnuti za tako drastičnim mjerama i utuči čak 700 milijuna da bi te kompanije preživjele (tekuće poslovanje)?

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    3. Ne postavlja se nikakvo pitanje vec dajes mogucu soluciju pa na sonovu toga izvodis nekakav zakljucak.Bolje da nista nisi ni pisao jer pises na osnovu pretpostavke pa dajes novu uzimajuci prethodnu kao aksiom.

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    4. The lease of A330 is around 5 mln euro.

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  9. What is going on at BEG, airplanes flying rounds?

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    1. Apparently there was something going on with lx1417

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    2. Grozni Nemci ubijaju ptice nad Beogradom.

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    3. RWY12 used this afternoon for ops. I saw a huge flock of birds around RWY30 (at least 30 of them).

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    4. 160 passengers were onboard Lufthansa's aircraft.

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    5. It was LX A320 bound for ZRH, not the Lufthansa Munich flight as some "reliable" media outlets reported.

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  10. Blog je blog. Kojiko ljudi, toliko kalkulacija. Nadmudrivanja kao i obicno. Iskreno o Hrvatskoj flag carrier neznam gotovo nista, pa nema smisla nista komentarisati. Sto se Er Srbije tice, verujem u menadzment, komercijalnu sluzbu... Medju tim raduje pismo od strane uprave civilnog vazduhoplovsva Chikaga - Ilinois - a za odobravanje Er Srbiji, Open Sky. Posle mnogo godina I leta, ErvSrbiji, sad nista ne smeta. Mozda poneki bloger ili nepristojna osoba... Svak radi po svojoj savesti... Mozda Er Srbija ce preko zimske sezone iznajmiti neki avion za ekstra ''bucks''. Ipak oni znaju sa cime raspolazu... Verujem da ce se razvoj putnicke avijacije u Srbiji od 2016 godine naglo prosirivati, modernizovati i uvecavati. Kako Er Srbije, tako za sada i tri Srpska aerodrome. BEG, INI, KVO. Ljudi k'o ljudi. Veruju ili neveruju. Letovi, kao i sam zivot ide napred. Naravno ne samo u Srbiji. ✈Rodney & United in Aviation✈. Kraljevo✈😊❇🌏 Sydney.

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  11. Just waiting for the BIG NEWS that there was going to be an announcement in regards to trans-atlantic flights. Wasn't there one particular blogger, no mention of names, that was saying there would be an announcement TODAY, in regards to Air Serbia receiving an A330 and permission to fly to across the Atlantic.He is very quiet today.

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    1. Danas je zasedao upravni odbor ja nisam rekao da ce danas biti receno samo je receno da je 17 vazan datum ;)
      INN-NS

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    2. he's surely on ETOPS training today... ;)

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    3. Da rade se ETOPS letove ;)
      INN-NS

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    4. INN-NSSeptember 16, 2015 at 8:26 PM
      Pa G Vucic je u Americi pa cete sutra cuti vesti ;)
      INN-NS

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    5. Da a gde tu pise kakve su to vesti nigde a bog zna kad ce se cuti to sto ocekujete.
      INN-NS

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    6. Pazi, na srpskom jeziku reč "sutra" precizno odredjuje vreme. Sutra se upravo zavrsilo.

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    7. U srpskom jeziku postoji i izraz "malo sutra".

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  12. Just waiting for the BIG NEWS that there was going to be an announcement in regards to trans-atlantic flights. Wasn't there one particular blogger, no mention of names, that was saying there would be an announcement TODAY, in regards to Air Serbia receiving an A330 and permission to fly to across the Atlantic.He is very quiet today.

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  13. This could be a great opportunity for JU to introduce another fleet.

    I think Air Serbia has a need for a 70-100 seat regional jet. There are not many places left where JU can send A319s with good frequency considering the limitations they face in O/D demand and seasonality.

    A regional jet could be used to downguage poorly performing routes such as WAW so those freed planes can then be used elsewhere.

    Also a RJ can be used to increase frequency on well performing routes.

    But most importantly RJs can be used to open new routes which is necessary if JU truly has longhaul aspirations.

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  14. OT: Večeras je HR zbog izbegličke krize do daljnjeg zatvorila granicu sa SRB. Zanima me kako ce se to odraziti na letove za ZAG.

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    Replies
    1. Najvažniji (i jedini zaista veliki) prelaz Batrovci - Bajakovo normalno radi sve vreme, prema tome nema efekta na letove.

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    2. Pa da.. glupavi novinari ne znaju razliku izmedju "svi" i "osim"...

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  15. Tomorrow they will update it to 1 bln LOL

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