Wednesday, March 15, 2017

Hogan: Etihad - Air Serbia partnership long-term


The President and CEO of the Etihad Aviation Group, James Hogan, has said the Emirati carrier is "here to stay" when it comes to its investment in Air Serbia. The two inked a five-year cooperation agreement in 2013, with the option of extending the partnership for a further five years. Speaking at a press conference in Belgrade on Monday, Mr Hogan played down speculation that Etihad would review investments in all of its European equity partners, among which are Air Berlin, Alitalia, Air Serbia and Etihad Regional. "When I look at the roadmap going forward with Air Serbia, I think it is a good work in progress. Our partnership is long-term. The 'five plus five' is about a cooperation agreement but the investment is a long-term investment. So we are here to stay".

The head of the aviation group, who will be stepping down from his post in the second half of the year, said the company's commitment to Serbia has been further emphasised with the opening of the Etihad Airways Partners Shared Services unit in Belgrade earlier this week. He noted that Etihad's 49% acquisition of Air Serbia has proved an "outstanding model" on how to restructure a government-owned airline. "It's an outstanding transformation. We know the state of the old Jat, which was on the point of collapse. Within three and a half years the airline has underwent a complete transformation". Within the coming months, Etihad is expected to ease concerns over plans for its European investments and will put a greater emphasis on promoting its equity alliance, with Serbia playing a role as well.

Mr Hogan noted that Etihad will do more to promote Serbia and bring tourists to the country. "The more that we can do to bring tourism and the destination program alive, alongside what's happening with Air Serbia, is good for jobs and the improvement of revenues. I think Serbia has a unique opportunity moving forward. It's about people knowing about the destination, about a digital society and age. It's important to segment the market, understand what drives the market and how Serbia fits in. When I look at our project and the micro projects in Serbia, I know the country can deliver. I certainly think there is much more in our sector of airlines and tourism where we can do a lot more together".

103 comments:

  1. If the deal is five year then it will be up for renogitation next year. Let's see if some of the terms change.

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  2. So much for deinvestment and conspiracies.

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    Replies
    1. Yeah, everything is fair and square in (Air) Serbia!

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    2. haters gonna cry :)

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    3. And everything is round and clowned in your cynical and fictional mindset.

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    4. Poor Hogan. I'm guessing he is looking for jobs at the moment and will say anything to secure a role giving his less than ordinary strategic approach at EY which has left the carrier in financial ruin.
      Any update on JUs financials last 12 months?

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    5. Hogan a fine sales man - nil business acumen skills - none!

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    6. JU finished the financial year with a profit. Results to be published in April.

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    7. Profit? This should be of amusement

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    8. Amuse yourself as much as you wish but the profit will be there.

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    9. Shuuuu let Hogan do his job

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  3. Lets just hope we will hear the same words fm his successor

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  4. Yesterday's news made many a face turn green. Today's news will just finish them off.

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    Replies
    1. + 1. The admin really showed no mercy this week. Double strike of hate antidote is something only the strongest among them can survive without consequences.

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    2. He he. +1000.

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    3. I cant say anything that comes out of Hogans mouth has much credibility. I'm not convinced that EY will invest much into JUs future once he departs BEG this afternoon.

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  5. Good news. I hope they play a more proactive role and speed up expansion.

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  6. What a great week/year for Serbian aviation.

    We are also welcoming Atlasjet from IST today, it lands at 17.25! Even though I am sad JU is leaving the Turkish market I am happy a more competent player will take over... thus increasing the numbers by quite a bit.

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    1. It's a win-win situation. JU gets more capacity to redeploy elsewhere, while keeping a footing on the line through codeshare, while BEG gets a bigger capacity plane on the route, from AtlasJet, and a new airline flying to it. Great news all round!

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    2. Of course, I didn't say it was a bad thing JU was leaving IST, I said that it makes me sad but I know this is a better solution. :)

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    3. Where will thix extra JU capacity be deployed? Not a single new destination except Venice has been announced for ST and same is starting in 2 weeks...only heard about cuts in frequencies.

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    4. Everything is great for JU especially when it abandons large markets like IST!

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    5. I guess it is the same for all the other airlines who have in recent times also abandoned IST

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  7. Apparently Etihad will be sending an A380 to Belgrade as part of a promotion next month. BEG is one of the cities it will be visiting.

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    1. Wow. Nice! If I'm not mistaken, BEG will be the fist airport ever in ex-YU region to host an A380. Go BEG! Go Serbia!

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    2. Awesome news.

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    3. Od samog pocetka Er Srbije, zeleo sam uz bezbroj privrzenih razvoju nacionalne avi kompanije Srbije, da ce sleteti Etihadov A380 na centralni Srpski aerodrom Nikolu Teslu. U par navrata sam i pisao o tome. Kondic i ekipa Er Srbije ponosno nosi zastavu Srbije. Ne na repu aviona, vec na transformaciji kompanije i civilne avijacije. Pun radosti za razvoj vazduhoplovstva i pozdrav "Nama Dobro i Mikome Zlo"
      Rodney Marinkovic.
      Pred let za Sydney.
      R.

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    4. Can BEG handle that bird?

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    5. Yes. Since 2005.

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    6. Is this true?

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    7. Is this true info ?

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    8. No, it's not.

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    9. Erm... it is actually.

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  8. When JU have stopped flying to Kiev?

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    1. Last September.

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    2. It was a seasonal summer route.

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    3. wow - I just wanted to book a flight and was surprised that it wasn't appearing.
      What else they have stopped? I was mislead-ed by wikipedia.

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    4. I just saw that somebody have removed it from the wiki.
      So, what is the best option now to get to Kiev?

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    5. The new summer schedule will be out within the next 2 weeks. Kiev was a seasonal summer route last year, like St Petersburg and Malta. It might very well be reactivated this year, but we will only know by month's end, when the new summer schedule gets announced.

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    6. From Belgrade? Try Turkish Airlines.

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    7. I think LOT is currently the cheapest to KBP at the moment.

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    8. Pegasus is the cheapest option followed by Aegean.

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    9. Thanks, guys!

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  9. Does anyone know who replaces Hogan as Etihad group CEO?

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    1. and when does he leave?

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    2. Replacement is not known yet. He leaves sometima in Q3 or Q4 of this year.

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    3. Ljubisa Preletacevic Beli

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  10. 1. Arabs are well-known to lie in their statements. Let's not forget how Emirates said they will not start flights to exYU in next few years. And just one month latter they announce Zagreb route.

    2. Hogan is history. He is sucked because of unreal plans that made Etihad on edge of bankruptcy.

    3. Hogan is not the one who will negotiate conditions for another 5 year deal, but that will be his successor, new Etihad CEO. Who knows what would be his plans with Etihad and Air Serbia.

    4. For sure Etihad will stay somehow in Air Serbia, but with conditions much harder for Serbia than today. Much more money will be asked from Serbia.

    And not to forget several facts:

    1. A320neo are expensive and are huge blackmail from Etihad to Serbia.

    2. New concessionaire of Belgrade Airport will not tolerate huge and unreal discounts Air Serbia has on BEG.

    3. Air Serbia will have big cuts this summer what shows project was not successful at all. So project will be adjusted. Savings are top priority, business class will be transfer form Etihad model to Lufthansa model (6 seats), there will be delay of A320neo delivery, 737-300 are history, huge cuts in time-table...

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    1. Thank you for the information, it was interesting to read. What interests me the most is who sucked Hogan?

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    2. Interesting analysis. I also thing that we need to see who will be the new CEO of Etihad in order to know what to expect. Interesting year is ahead of us. Time will tell as the Russian are saying - Pazivjom uvidim

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    3. I find it funny how the OP made seven distinct points in his "analysis" and all seven are based on speculation, rumours, wishful thinking and schadenfreude. Literally not a single fact in all of the above.

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    4. Analysis? You call this chauvinist load of bull an analysis? It starts with a collective labeling of an entire ethnic group as liars, continued with completely unsupported claim of some harsh conditions that await Serbia, and finally ends in a total doom&gloom scenario presented as 'facts' even though there is zero evidence or facts to support any of that.

      Please do not consider such writing an 'analysis'.

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    5. All of his points are valid.
      Hogan is getting fired for implementing a financially disastrous strategy.
      ASL is part of this strategy too.
      The Emir will look for a successor that has EY's PROFITABILITY as his number one goal.
      Not developing and investing long term in foreign airlines.

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    6. ^ Actually, the only reason Etihad invested in JU was because of the Emir. Etihad never had plans to even look into Jat but was ordered to do so by the Emir which Hogan even said in 2013. He said that it was the Emir of Abu Dhabi who brought his attention to JU and told him to make an investment happen.

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    7. All the more reason that EY will not be withdrawing from JU, since it was a decision by the Emir for them to invest

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    8. So true, but Emir now has different goal, and that is pure survival of Etihad.

      What do you think why Abu Dhabi investment company did not appeal for BEG airport? That was a surprise, wasn't it? For those who don't know the facts.

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    9. JU is not a threat or a liability for Etihad. AZ and AB are. JU is not. Etihad has zero reasons to get rid of JU as long as it is not a liability. Accept it. Get over it. Neither JU or Etihad will die simply because you pray 15 times a day that it happens. Emir is not in panic mode just because you imagine so badly that he is. Face it. It will ease the pain.

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  11. Reality sucks but it is nice to live in a bubble of fantasy albeit momentarily until reading anon11.15. Thanks for the trueful insight we all know that hogan the hero and EY are full of ....

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    1. Whatever rocks your boat. lol

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  12. AFKL Group opened Transavia Munich Base a year ago, which was part of the plans of the FORMER CEO of the AFKL Group to have Transavia Europe LCC, operating from several EU bases, like other big EU LCC do. HUGE amounts of money were spent on marketing, operations costs, trainings... Only ONE YEAR LATER NEW AFKL CEO arrived, and completely changed the strategy of the entire group, focusing Transavia to its main Base in Amsterdam and tighter cooperation with KL, which resulted in decision to CLOSE PERMANENTLY the Munich Base. And that is how the market economy functions. And I am so sorry for JU fan boys who don't understand how the world and the business today function, and who are actual o y the only ones who live in fantasies and refuse to see that Hogan is PAST TENSE, and his business model for Etihad and its satelites pure failure. Cheers!

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    1. Yeah, if it happened in Transavia than the same will happen everywhere else.

      You know nothing about the market economy.

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    2. You seem to forget that Air Serbia is the least of Etihad's worries.
      Etihad has other things to worry about like Alitalia, Air Berlin or even Iran Air which will no doubt create a few problems in that neighborhood. I am not saying they will become a second EK but the Persian Gulf Trio will lose quite a bit of connecting passengers from IKA, especially as IR keeps on receiving those A321s and A330s.

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    3. And I am so sorry for JU hate brigadiers like you, but writing something in capital letters will not make it sound more of a truth. lol. Going into trances every day to spew venom, even when news is so clearly positive, indicates pathological insecurities, coupled with nationalist agenda.

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    4. Sure Nemjee, but in same time JU is so little and insignificant for Etihad that they will not take care of them, but will put them in same basket as Air Berlin, Darwin and Alitalia.

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    5. JU is very significant for EY. It's a working investment that is profitable and is the company where they have achieved highest investment share (49%). It is also small enough to be easily manageable and turned around (which has already taken place). The idea that troubles at Air Berlin will bring down the whole EY group, is overtly pessimistic and unfounded. The plan has been put into motion to reduce the size of AirBerlin, which will make it more functional. Even Etihad Regional is opening new routes this summer, with a service to Brest already confirmed.

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    6. If info about big cuts and priority in huge savings in Air Serbia are true than it will have same destiny as Air Berlin and Alitalia. Downsizing, which was just begging of end, and was not successful not in one case in air history.

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    7. FYI, Transavia in MUC happened because of Brussels terror attacks. I found it out first hand from one one of their managers(I flew with them for ILA Berlin). The ac were available, nobody knew how long will it take for Brussels to return to normal state so - Munich it was. But you just go ahead with your un-qualified rant....

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    8. @The Bosnian, Brussels is in Belgium, Transavia is Dutch company. Preparations for MUC operations started before Brussels attack happened. Managers of big airlines are very well known to discuss industry secrets and development plans with people they travel with and meet once in life time. Your post is actually so ridiculous that I shouldn't have commented it at all

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  13. We all should agree that nothing's surprising in Hogan's speech. Of course he wouldn't say anything negative when in BEG, especially in front of media. But some should have noticed the nuance, so many sentences emphasizing his personal opinion (sentences with "I think") regarding Etihad's investment in Serbia. Politicians and business people won't miss this crucial detail.

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  14. Kad dodje samo nagovestaj nagovestaja da bi se EY mogao povuci iz AB ili AZ dezurni negativci odmah "saznaju" da se to odnosi i na JU i krecu da se nasladjuju sa svojim katastrofalnim prorocanstvima prevashodno baziranim na licnim frustracijama podgrejanim na povredjenim nacionalnim osecanjima.

    Kada dodje vest da EY ne samo da ostaje u JU vec i otvara Etihad Airways Partners Shared Services onda se opet iz istih razloga izmisljaju razlozi da se zaobidje istina (odkako je EY usao u JU, Air Serbia ima najvecu flotu u ex YU kao i najveci broj putnika na prostoru bivse drzave sa dobrom buducnoscu, znacajno unapredjenju uslugu i jedina je iz bivse Jugoslavije sa letom za JFK) i bezuspesno se traze XY primeri kako tamo nekad negde neko je nesto drugo uradio.

    Da ne pricam o izjavama kako su Arapi kao nacija nepouzdani i sta sve ne.

    Tragikomedija.

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    1. They mostly come from Croatia and Bulgaria.

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    2. again somebody to be blamed lol

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  15. OT: Russian tourists coming back to Croatia, with 20-35% more bookings than last year!

    http://www.poslovni.hr/hrvatska/vracaju-se-rusi-buking-za-hrvatsku-povecan-20-do-35-posto-325486

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  16. Molim Vas da prestanete sa najavama da EY salje A380 u Beograd jer te najave su neistinite, zaposlen sam na BEG i dobro sam upucen u stvari vezano BEG a i pogledajte kroz par cinjenica koliko je to nemoguce i neistinito:

    - Raspon krila A380 su 80m. Pozicije na BEG na kojima putnicki (naglasavam putnicki) sirokotrupni avioni mogu da se parkiraju i da koriste jedan ili dva aviomosta su C1A (cekaonice C1 i C2), C3A (C3 i C4), C5A (C5 i C6). Te pozicije mogu da koriste svi avioni kojima je raspon krila maksimalno 65m. To znaci, da A380 ili B747-8 ne mogu da koriste te pozicije i bilo koji aviomost na BEG aerodromu.


    Jedini aerodrom iz bivse Jugoslavije koji moze da prihvati putnicki B747-800 i da na njega nakaci aviomost je ZAG. Koliko god da bih voleo da je BEG to prosto fizicki a i tehnicki nije moguce a iskreno bilo bi neozbiljno da avion parkirate na poziciji na kojoj nema aviomosta i da putnike saljete autobusima do putnickog terminala 2, na ulaze D2/D3/D4.

    Hvala.

    *Fanatik

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    1. Nisi uopste dobro upucen. Avion uopste nece prevoziti putnike niti ce biti parkiran na gejtu. Avion dolazi nov iz Hamburga iz promotivnih svrha i za onilazak medija.

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    2. A odakle vama ta informacija da ce doci A380? Da li ste sigurni? Da li ej direktorat dozvolio da sleti na BEG? Da li su uradjene studije izvodljivosti za tako nesto?

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    3. Pusti poznanike da se frljaju sa tim da ce A380 da sleti na BEG... Oni da zele da promovisu nesto oni bi poslali veci avion, B789 primera radi... Poznanici moji, poznanici...

      Postanu clanovi Etihad Guest programa, lete do Podgorice i nazad, stave milje na racun i odmah prognoziraju ovde sletanje a380... Strasno

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    4. Ne vidim razloga zašto EY ne bi, u svrhu promocije, sletio s A380 u BEG, ne zvuči mi nelogično! Navodno u 3. ili 4. mjesecu!

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    5. Prvo njihovi letovi su krcati, ako bi promivisali nesto zar ne bi prvo poslali jedan nov B789 da privuku nove putnike?

      Slazem se da je A380 odlican vid promocije ali ne vidim zasto bi to radili kad i ovako imaju fantastican LF, preko 90%...

      Promo let A380, bez upgrade-a aviona sa vise sedista, je nepotreban. Ako ce stvarno JU800 da se ukine (da bi taj avion bolje iskorostili) i da EY dolazi sa widebody avionom e to je vec druga prica...

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    6. Pripreme su vec u toku sto se tice dolaska A380. Avion nece voziti putnike. Docice radi promocije prazan i otici prazan.

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    7. DOH do pre godinu dana nije ni imao gejtove, svi avioni su punjeni autobusima. Prema tome, to da li može A380 da stane na gejt u krajnjoj liniji nije ni važno.

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  17. OT: Ryanair enters Ukrainian market

    4 routes from Kiev(main airtport) and 7 new routes from Lviv

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  18. Did anyone get photos of the launch of AtlasGlobal in Belgrade today?

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  19. Eurowings objavljuje novu liniju Dusseldorf - Zagreb od 31.10.2017.

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    1. Super stvar!

      Vidim da je i Split dobiva dvije nove linije preko zime i to za Munich I Düsseldorf.
      A Köln raste na 3x tj.

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    2. Excellent news! Go CRO!

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    3. Isn't Germany a bit too overserved from Cro?

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    4. Obviously not, judging by these new routes!

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    5. What's sad and pathetic is that OU should have operated this route ages ago in stead of random Helsinki and Bucharest.

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    6. Ima li kakve šanse da dođu u Dubrovnik na zimu?

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  20. Kome verovati,da li Etihadov A380,dolazi na BEG ili ne...

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    1. To si mogao gore da napišeš gde se već spominjalo. Ne davi.

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    2. JFK linija uspešna - smanjena na 3 leta sedmično veći deo godine
      Drugi A330 dolazi do zime - NIŠTA
      A380 dolazi u BEG u aprilu - ????
      Dve nove linije za Kinu - ????
      Nova linija za Teheran - ????
      Nova linija za Astanu - ????
      Emirates dolazi u Beograd u 2017 - ????

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    3. I ti daviš.

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  21. OT: EuroWing uvedzue linija MUC-SKP od 31.10.2017 svaki utorak i petak polazak iz MUC 11:50 a iz SKP 14:30

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