Wednesday, November 9, 2016

Air Serbia - Montenegro Airlines to seal partnership


Air Serbia and Montenegro Airlines are to finalise a major codeshare agreement in the coming days, which is expected to have an impact on both comapnies. According to the Montenegrin carrier, the two sides have negotiated the four annexes which form part of the deal, which regulates various matters including timetables, handling procedures, reservation procedures and revenue from ticket sales. The initial agreement, which will see Montenegro Airlines place its code and flight number onto 32 of Air Serbia's destinations, was inked on August 18. "All of the agreements have been negotiated and will be signed in Belgrade in the coming days. Additional procedures are required in order for Montenegro Airlines to gain regulatory approval to sell tickets on the Podgorica - Belgrade - New York service. We have commenced this process and this is why we planned our winter schedule separately from Air Serbia", the head of Montenegro Airlines' Operations Centre, Darko Abramović, said.

Montenegro Airlines noted that once the codeshare deal is finalised, the carrier will modify its winter operations to include an additional three weekly flights between Podgorica and Belgrade, two of which will be timed so as to feed onto Air Serbia's service to New York. "Once all regulatory approvals are secured for ticket sales to New York, Montenegro Airlines will add three weekly flights - each Monday, Tuesday and Thursday - between Podgorica and Belgrade in order to offer better connectivity. The number of operations between Tivat and Belgrade will remain unchanged", Mr Abramović said. The 32 destinations which will be part of the codeshare include Abu Dhabi, Amsterdam, Athens, Banja Luka, Beirut, Berlin, Brussels, Bucharest, Copenhagen, Dusseldorf, Frankfurt, Istanbul, Larnaca, London, Milan, Moscow, New York, Ohrid, Paris, Podgorica, Prague, Sarajevo, Skopje, Sofia, St Petersburg, Stockholm, Stuttgart, Tel Aviv, Thessaloniki, Tivat, Zagreb and Zurich. In return, Air Serbia will place its flight numbers and designator code onto Montenegro Airlines' services from Podgorica and Tivat to Belgrade, as well as from the Montenegrin capital to Rome.

The Montenegrin national carrier believes the new partnership with its Serbian counterpart will bring it closer to Etihad Airways and improve its finances following a record loss in 2015. "This deal will better position Montenegro Airlines on a number of large markets which have already been conquered by Etihad and secure better use of the company's resources. Signing this agreement will open up 32 new destinations which will act as an important catalyst to the entire Montenegrin economy and especially the tourist sector, which was one the management's main goals", the company said. It added, "The realisation of this agreement will boost passenger numbers during the winter season, which will generate additional revenue during the slow months when we operate fewer flights compared to the summer season. Our calculations show that we will have growth of at least 1.3 million euros in revenues next summer".

69 comments:

  1. This buys Montenegro Airlines another year.

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  2. The number one transfer passengers on JU's flights to New York are from Montenegro. No brainier they are going after those but I think this deal will benefit Montenegro Airlines much more.

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    1. But won't it just take away passengers from JU's Monetenegro flights to Serbia.

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  3. This will just be beneficial for both airlines. I believe the biggest benefit will be the JFK and SVO due to Montenegrin diaspora and Russian tourists.
    Btw, why is Varna not included in the list? Also, JU doesn't seem to have a schedule yet for summer 2017. Any clue?

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    1. I think they are in the process of shifting their strategy and will probably be addressing destination network in a month or two.

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    2. There have been some rumours that they will end Varna. Not sure if it is true though. The bad timing of the flights make it really unappealing.

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    3. I know from a Bulgarian friend working in the field that they are terminating VAR. This is 99% sure.

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  4. Melania Knauss - First LadyNovember 9, 2016 at 9:06 AM

    I don't see how Air Serbia gains from this. 10,000 extra passengers per year? Is it worth it?

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    1. I think that number will be significantly higher.

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  5. There is probably something bigger behind this. We will find out with time.

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    1. What exactly? Takeover?

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    2. Seeing the shambles the EY group is in I don't think any takeover will be on the table. They have just pulled the plug on taking over Air Malta.

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    3. +1 to last anonymous

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    4. Hey Trump just won the elections so anything is possible :D

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    5. If JU is taking over YM then it will probably be done by next summer.

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  6. Collaboration between JU and YM is win-win for both.

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  7. Montenegro Airlines needs as much help as it can get!

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  8. I wonder if the handling agreement they signed refers to Montenegro Airlines' handling at Belgrade Airport...

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    1. Alitalia has been rather unhappy with the way its planes were handled by ASGS.

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    2. Don't know, that's all I heard. I think it has to do with the hectic situation over at ASGS.

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    3. Funny that Alitalia is unhappy with anyone's GS having in mind the abysmal operation they run at their home base.

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    4. Then imagine how bad it must be in BEG.

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  9. Etihad/Air Serbia will probably buy MGX. It's the same way they started with Jat. First they signed a Memorandum of Understanding on cooperation, then came the codeshare and then they announced a strategic partnership.

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  10. Air serbia treba sa zameni atr 72 sa embraer 175! Atr 72 posebno u ovo doba godine prestavlja problem sa sletanje po magli! Bucni su i jako neudobni. Jesu sigurni i ekonomicni ali ja licno nevolim da putujem sa njima i izbegavam.Dogovor da padne oko letova za liniju beograd- pristina i letovi za new york su sigurni. Poz

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    1. I see Montenegro Airlines as a regional subsidiary of Air Serbia, or even a new Etihad Regional company, that feel fly for Air Serbia on Balkan routes and feed flights from Belgrade. I agree that they will exchange ATRs for Embaers in the near future.

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  11. This deal is much more important for YM and essentially for its survival. After this they will probably follow up with a codeshare with Air Berlin too.

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    1. First both have to survive the year.

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  12. If they are considering any regional acquisition better that they bought Adria.

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  13. All the bad news we have heard from MGX lately tells me they have decided to devalue the airline (not that it was worth much anyway) and when they put it for sale the future owner... khm Etihad/Air Serbia ... will get paid to take it over.

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    1. Devalue what? they are already 65 mil in debt, bleeding cash every year, not paying salaries, airports, aircrafts... of course they should pay them and be happy that they have taken such loss making machine off of their shoulders.
      That being said they need to be part of an alliance to survive winters generally, and summer is a good time of the year for every seasonal airline, which can only benefit from wide range of codeshare agreements.

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  14. I see this as yet another missed opportunity for Croatia Airlines. A year ago there was talk of OU increasing partnership with YM. Montenegro Airlines was really opened to the idea, and were the ones who pursued it. In the end, Air Serbia gains the upper hand again. While you may laugh, I would not underestimate the importance of this deal.

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    1. Didn't Kucko at one point said they wanted to buy Montenegro Airlines?

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    2. Yes... and now they are selling slots at LHR.

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    3. Purger (Alen Šćuric)November 9, 2016 at 11:32 AM

      If I want to push deal with Etihad/Air Serbia I would start negotiation with main rival (Croatia).

      Same way if Croatia wants to take the best from Lufthansa they should negotiate with Turkish, Air France, British, Qatar, Hainain... even if nothing comes out of it Lufthansa would be much softer and cooperative.

      I think Montenegro did same pattern.

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  15. 60 million EUR debt in 2015 and 10 million euro loss. Great partner to pick Air Serbia.

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    1. Kupuje se trziste a ne partner u dugovima. Poput nekadasnjeg JAT-a, Montenegro su vodili "strucni" ljudi bliski vladajucoj partiji.

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    2. Purger (Alen Šćuric)November 9, 2016 at 11:34 AM

      If Etihad (Air Serbia) would buy Montenegro be sure that it would be same deal when Etihad bought Air Serbia. Without debts, which will be deleted by Government of Montenegro (and responsibility of tax payers).

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  16. Well it's probably this or for them to close down. At least this way they will preserve some jobs.

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  17. Purger (Alen Šćuric)November 9, 2016 at 12:05 PM

    OT:
    CROATIJI NEDOSTAJU MEHANIČARI

    Navodno je iz Croatie otišao velik broj mehaničara u posljednjih dvije godine. Prema nekim izvorima samo u posljednjih sedam dana je otišlo više od 10 mehaničara.

    Kompanije zbog toga angažira vrlo skupe mehaničare na slobodnom tržištu, pa tako među mehaničarima ima Škota, Iraca, Bugara, čak i Croatijinih biših mehaničara koji sada rade po bitno skupljem ugovoru. Cijena sata takvog mehaničara se penje i do 25 EUR koliko se navodno nekima od njih plača. No, nakon posljednjeg egzodusa viđen je autobus Laste i navodno su naši mehaničari pojačani sa onima iz Jat Tehnike iz Srbije koji su zamjenili one koji su otišli.

    I sada se postavlja pitanje:
    1. Kako će Croatia biti konkurentna sa 25 EUR/sat za određeni broj mehaničara? Investicija u 3. hangar je bila pompozno najavljena kao odličan poslovni potez, a sada nema mehaničara koji bi u tom dodatnom hangaru radili. Za očekivati je da će sa višim troškovima Croatia biti nekonkurentna, tj. da će se smanjiti količina aviona u servisu, a hoće li Croatia onda moći plačati kredit za investiciju u 3. hangar?

    2. No, još gora je činjenica da su potpisani ugovori, a troškovi su u međuvremenu ozbiljno porasli. Jesu li kalkulacije za te prije potpisane ugovore rađene na temelju nižih troškova rada, te donose li one sada gubitak?

    3. Zašto su genijalci u Croatiji "motivirali" ljude na odlazak niskim plačama (a navodno su plače mekosa oko 6.000 kn), da bi potom te iste ljude plačali po 25 EUR/h (32.000 kn za puno radno vrijeme)? Zašto im odmah nisu ponudili više plaće pa bi ih zadržali u firmi sa bitno manje novaca u konačnici (i sa tim većim plačama)?

    4. Zašto Croatia ne sudjeluje u obrazovanju Srednje zrakoplovne škole, Visokoškolskog studija u Velikoj Gorici, Strojarskog i ostalih fakulteta u Zagrebu i ostalim gradovima regije, pa si kroz stipendije osigura nekoliko desetaka mladih mehaničara svake godine koji bi bili obvezni raditi u Croatiji dok traje ugovor o stipendijama. Da su sa time krenuli prije par godina, danas bi oni prvi već bili respektabilni i iskusni mehaničari, a ovi mladi bi radili manje zahtjevna poslove i pomagali iskusnijima dok ne nauče zanat.

    Ispada da ni tehnika više neće donositi profit (po čemu bi Croatia bila definitivno jedina u široj regiji), te da će Croatia kapnuti na mekosima, a ne pilotima ili dugovima. Ili se ovdje radi o flagrantnom spuštanju vrijednosti tehnike da bi se ovaj super-isplativ segment poslovnja za kikiriki prodao Lufthansa Tehnici? Koja, kao što znamo, ima tehničke baze diljem svijeta, posebno u jeftinijim zemljama, što Hrvatska svakako jest.

    Počinjem se pitati jel stvarno ovi likovi u Croatiji imaju poslovne sposobnosti prosječnog pučkoškolca, ili namjerno uništavaju kompaniju.

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    1. Nakon svega do sada vidjenog odgovor moze bit samo jedan a taj je da se CTN unistava namjerno kako bi je uskoro netko kupio za kikiriki a cijela ekipa politicke oligarhije iz jedne jedinstvene stranke HDZSDP, bez obzira koja frakcija trenutno bila na vlasti, se "omastila" od provizije za unistavanje imovine koju je narod teskom mukom i odricanjem stvarao, kroz financiranje kompanije iz budzeta

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  18. I assume if Air Serbia does buy them most departments would be handled by Air Serbia and based in Belgrade. They would probably coordinate their schedule with Air Serbia on flights between Podgorica/Tivat and Belgrade, would keep most of their destinations and be more competitive in the charter market during the summer.

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  19. So EY in Europe:
    - Air Serbia
    - Air Berlin
    - Alitalia
    - Darwin
    - Montenegro Airlines (probably)
    I just don't get it.

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  20. Looks like Etihad will just push Montenegro passengers through BEG and FCO to join up with their networks

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    1. In my opinion the best option would be for YM to develop its network during the summer and shuttle its passengers through BEG and FCO during the winter and possibly lend an aircraft each to Alitalia and Air Serbia, which would be returned to YM during the summer.

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  21. For me personally creating closer cooperation with loss-making airline, with 4 planes is totally insane!

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  22. OT: Air Canada Rouge je objavila popis novih linija za 2017god. niti VIE niti VEG na popisu. Budimpeštu povećavaju sa 3 na 5 pw

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    1. Yes, because AC does not want Rouge services to VIE or BEG... but rather mainline due to competition... don't shoot the messenger, this is what I was told. BEG and ZAG in ex-YU are high on their list of priorities, one way or the other.

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    2. Yes, they do not fly to prime destinations like BEG or ZAG with enormous competition, only to secondary airports like LGW or TXL with no serious competition.

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    3. Anon 5:56...

      Just love how people on here cannot comment without being sarcastic or rude... I guess some things will never change...

      This person shared what he/she heard. What's your problem with that?

      Secondly, there is competition to the destinations you mentioned, particularly LGW. Air Canada strategies vary from market to market and they could well have a ploy to tackle or fight off EY/JU market entry or market domination should it happen. Their Rouge product would actually help JU cement its market positioning - it is horrific!

      Let's try to be civilized on here, costs nothing really.

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    4. Дечко ТзарNovember 10, 2016 at 5:02 PM

      AC didn't deploy mainline to WAW. Rouge uses Y/Y+ 767 to go against LOT 3-class 787 on the YYZ-WAW route. Rouge product is inferior but better suited for that market.

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  23. Waiting to see the prices on TGD-BEG flights once this codeshare is signed. I assume they will go up.

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    1. LCC badly needed between the two cities. I know it won't happen anytime soon.

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    2. Since august they are already up

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    3. But the codeshare is still not in place. Wait until it is officially signed to see how the fares move.

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  24. Did Daliborka Pejović comment anything about this?

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    1. She did in the past. She said how it is great for the..

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  25. Ovo je svakako dobra vet za YM posto ce biti bolje povezan sa evropom i svetom sto je bolje za gradjanw CG.
    I za ASL su ovo odlicne vesti zato sto ce dibiti veci broj Transfernih Putnika.
    INN-NS

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  26. VAR will most likely not be operated by JU next summer because AB have now code-shared with FB in all VAR-SOF domestic flights.
    Same move like ditching SKP-FCO and giving priority to SKP-BEG instead.

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    1. AB already have the code-share with FB over VAR-SOF. I don't think this is the point. They have terrible LF on the route.

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    2. it was not great load last summer to VAR..but still most of passengers were transfer one.

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