Thursday, June 22, 2017

Belgrade concession bidders outline plans


Several of the four consortiums and one company that have qualified to bid in the second and final phase for the 25-year concession to operate Belgrade Nikola Tesla Airport have briefly outlined some of their plans. According to the Serbian government, the non-bindings offers received during the first phase of the bidding process have exceeded expectations and are eight times higher in value than anticipated. Serbia, which has an 83.1% stake in the airport, expects the upfront payment for the deal to be worth around 400 million euros. China's HNA Airport Group, which is bidding jointly with subsidiary Hainan Air Travel Service, as well as China National Aero Technology, is still believed to be the front runner.

Qualified bidders

As part of their plans, the Chinese intend to invest on several fronts, including infrastructure development, which would be dedicated to China National Aero Technology, while Hainan Air Travel Service would be tasked with pulling in a significant number of Chinese tourists to Serbia and devising a wider investment strategy for tourism development across the country. The HNA Group also plans to establish and run a pilot training centre. On the other hand, Incheon International Airport Corporation with its Turkish partner plans to expand the airport's capacity as quickly as possible. "We are formulating a strategy to develop Nikola Tesla Airport into the main international hub in the Balkans. We want to expand capacity as quickly as possible. The average annual passenger growth rate at Belgrade Airport is 7%. Based on that, we want to formulate a high-quality plan that will expand the airport in line with growth, while at the same time offering comfortable and seamless travel for all passengers", representatives from South Korea said. They would also evaluate the possibility for the introduction of nonstop flights between the two countries. The South Korean and Turkish duo also bid in Zagreb Airport's concession process several years ago.

Shares in India's GMR Infrastructure touched a 52-week high yesterday after it was announced that its bid for Belgrade Airport had advanced. The Indian infrastructure conglomerate, with interests in airport, energy, transportation and urban infrastructure, has teamed up with GEK Terma from Greece following their successful bid to develop, operate and manage the new international airport in Heraklion. After their meeting with officials from the Serbian government earlier this May, it emerged that GMR itself would be responsible for building new and updating existing infrastructure at the airport, while GEK Terma would formulate a profit-making strategy and be involved with the managerial side of the business. Meanwhile, the Franco-Swiss bid, comprised of Meridiam, Eiffage and Zurich Airport aims to "expand and improve the airport’s infrastructure to achieve its maximum growth potential by utilising the best management practices", EX-YU Aviation News was told in a statement. The consortium's mission will be to offer "best quality services to passengers, airlines and other stakeholders".

The five entities now have 75 days to formulate their binding bids. Besides a financial offer, they will have to submit a market tactic development strategy, a detailed airfield development plan, terminal development concept, a capital expenditure plan, as well as a business and operational plan, to name a few. The Public Body overseeing the concession process will then score each category out of ten and will have thirty days to announce the winner. It reserves the right to extend deadlines for the submission of binding bids at any time. The Serbian government has said it expects for the entire procedure to be completed, and for the deal to come to a financial close, by year's end.

Score sheet - phase two

132 comments:

  1. It all depends who gives the best proposal but I think the Koreans would do the best in terms of infrastructure.

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    1. The Koreans haven't proven as good investors in Serbia. In the factory they bought they force employees to wear diapers so they don't take toilet breaks!

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    2. different investors in different parts of the country. I don't think ICN will force BEG staff to wear diapers and have no basic rights.

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    3. LOL are you serious? Diapers?!? WTF?

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    4. Diapers thing is something that people who got fired from Yura spread in media, that was never proven by inspections and I don't recall that anyone sued the company for that or even reported it anywhere but in media.

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    5. Make workers to wear diapers so not to take a break? Seriously?
      I reckon soon China will buy up most of Serbia. Are they already buying up farms?

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    6. Not yet, but it is expected soon
      http://www.b92.net/biz/vesti/agro-biz.php?yyyy=2017&mm=05&dd=16&nav_id=1261013

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    7. Hahaha that was a great laugh! Even Those desperate to work and money wouldn't allow thenselves to be treated like that, and I'm sure that the cost of diapers far outweighs the cost of letting someone go to the bathroom... because diapers have to he changed, that takes time to clean up and replace - more cost effective method is to use the bathroom! Fake news at it's best I think.

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    8. It is fake news. Serbian media passed off this video as showing that workers in the factory were forced to "kneel" to Korean management. I mean if you look at the video you see it's some sort of a joke since the workers are laughing.

      https://youtu.be/hGRjarq3eys

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    9. Factory workers in Serbia and before in Yugoslavia were used to doing absolutely nothing. Especially during the 90s when there was no production, they would laze around, go home early or not even show up to work and smoke all day. Now they actually have to WORK. And if they don't follow the rules they get fired. Nothing illegal about that.

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    10. This is just stupid rant of plain idiot from PPP or similar site. My cousin left managing position in Italian company behaving similar to JURA. No money can paid you for that doing to the your own people.

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    11. https://youtu.be/hGRjarq3eys

      Video is greeting message sent back to the management in Korea. The whole kneeling thing is blown out of proportions. In Korea kneeling is sign of respect and is basically used instead of saying hello on daily basis...

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  2. Chinese will win this. The others are there just to make the list look pretty.

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    1. Like I said before, we have no idea who will win this. First we thought the Arabs would win this, then we thought Vinci would win this, now it's the Chinese. It could be anyone.

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    2. Vucic promised them the airport in return for Beijing-Belgrade flight.

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    3. I'm sure Vucic told you what he promised the Chinese ;)

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    4. He actually did.

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    5. HNA has shares in a few airlines, including TAP. Maybe we see some of them back in BEG if they get the airport.

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    6. Vucic also promised us a corruption-free country and an average salary over 440€, so ...

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    7. Average salary in April was 413 EUR.

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  3. If HNA wins we will probably get a fourth handler at BEG. They own Swissport.

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    1. They also said they plan to establish a maintenance center which would probably mean buying Jat Tehnika. I would not be surprised if they take over Etihad's stake in Air Serbia.

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    2. It would be dangerous if they got the airport plus had a stake in JU.

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    3. Why? Serbian government owned Jat and the airport and it was never "dangerous". In fact in 2012/13 there were more airlines flying to BEG than today.

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    4. That was because Jat was near bankrupt and the market was underserved because a nonfunctional national airline. As soon as Air Serbia upped its game, offered competitive fares, good connections and service, there was no rooms for others.

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    5. Why the fourth handler. Nikola Tesla is also the handler so if HNA wins, they also get the handling division. No need for swissport

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  4. I'm surprised the Russian bid was disqualified. Anyone know why?

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    1. They do not operate an airport with over five million passengers for 2 years over past 10 years. Also two financial conditions were not satisfied.

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    2. I'm glad the Russians didn't get it. That would have been a nightmare.

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    3. Why would it be a nightmare? What's with all the russophobes on here? We saw it yesterday too.

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    4. It does not need to drown in eastern european corruption and mismanagement. We already have that.

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    5. Just people from Leeds?

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  5. The Chinese consortium sounds pretty good. They are the only ones that are saying they would redirect tourists towards BEG. Very beneficial.

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    Replies
    1. But how would they do it? They can't build up infrastructure in the entire country so it could suit Chinese tourists.

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    2. If anyone can do it then its them.
      HNA Tourism owns Caissa Touristic, China’s top outbound tour operator which runs more than 200 retail offers over 8,000 travel packages.

      HNA Airport Group currently has management and cooperation projects at 13 Chinese airports. They are Haikou Meilan International Airport, Sanya Phoenix International Airport, Qionghai Boao Airport, Yichang Sanxia Airport, Weifang Nanyuan Airport, Manzhouli Xijiao Airport, Anqing Tianzhushan Airport, Tangshan Sannvhe Airport, Songyuan Chaganhu Airport.

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    3. Never heard of any of these airports.

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    4. They are secondary Chinese cities whose airports have more traffic then any ex-Yu citiy which are European capitals. HAINAN's strategy is developing secondary Chinese airports.

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    5. They can rebuild Pannonian Sea if they want. Belgrade-sur-Mer (in French) will be new Monaco.

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    6. Chinese don't like the sea ;)

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  6. I still think Vinci might be a surprise. They have been planning for this concession for 2 years when they first said they wanted to operate BEG.

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  7. Zurich Airport also bid with Strabag for Zagreb. They were the only ones to submit a binding offer together with ZAIC but their offer was disqualified for some reason.

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    1. Did they ever publish their offer publicly? Would be interesting to see what they suggested for ZAG. Probably something similar for BEG.

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  8. It will be interesting to see who actually submits binding offers.

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    1. Two submitted for ZAG. I think it will be the same for BEG. Maybe three here.

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  9. Videcete koliko ce kostati ZAG koncesionarsko zajebavanje sa nocnim sletanjima. Zarade malo naprave stostruku stetu. Niko od ovih to ne bi radio.

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  10. Pretty good and high quality bidders. May the best one win.

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  11. Trla baba lan...

    (Chinese get it...)

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  12. So if Chinese win we might see more flights to China?

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    Replies
    1. Yes, probably to Shanghai. Their aim would be to increase passenger numbers by increasing the number of Chinese visitors.

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  13. Does the Indian bid have anything to do with those proposed flights from Delhi/Mumbai to Belgrade?

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    Replies
    1. No, they are two separate things.

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    2. Don't get your hopes up. Those India flights are wet dreams.

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  14. I wish they did something similar here in Sarajevo and gave the airport up for concession. At least we would see some quick development and I'm sure passengers numbers would increase dramatically.

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  15. Big mistake giving this airport up for concession.

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  16. Is the Turkish company in the Korea consortium a cover for TAV?

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    1. No it's a completely different company. Has nothing to do with TAV. Like it says in the article they bid with Incheon for Zagreb. TAV also bid for ZAG.

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  17. Ko bude najvise ulozio novca za prosirenje, modernizaciju i uvecao broj putnika i kargo operacija. Taj koncesionar ce se useliti na Nikolu Teslu za upravljanje iducih cetvrt veka.
    Kako ce se zvati? Znacemo kad' plati, investira.
    Za Beogradsku luku nema vise spekulacije. Ali ima za razvoj proklamovanih Aerodroma Srbije.
    Na prvom mestu zaklopljene Kraevacke Morave.
    Uzickih Ponikvi takodje. Dosta je potrebno uloziti napora i za razvoj nisko budjetnog saobracaja u centralnoj i juznoj Srbiji. Jugo istocna Evropa moze imati uspesan razvoj i uvecanje putnika samo nisko budjetnim saobracajem. Ekonomska mogucnost naroda u toj oblasti je vrlo niska. Ali za Low cost operacije
    dovoljno. Nis je primer... Rodney Marinkovic
    Sydney AUSTRALIA

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  18. As I can understand the new owner must build a new terminal?

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    Replies
    1. Like Terminal T2b? Does that count as a new terminal?

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  19. Chinese company would be best.

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  20. If the Serbian government makes a wrong decision about this it could ruin the future of the national airline.

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    Replies
    1. The government won't allow anyone ruin Air Serbia's future.

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    2. What would be the rationale of a concessionaire having poor relations with their biggest customer?

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  21. I would be happy if the end of result was similar to Zagreb's concession - a new terminal building and professional management.

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    1. Not so sure. Terminal is smaller than planned (not saying it's bad it looks nice) and they seemed to have cut costs. What I do applaud them on is attracting new airlines but that may also have to do with bumper tourists numbers in the country + recent EU entry which makes your case for attracting new airline much easier.

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  22. i still don't see BEG needing a new runway, terminal and pax growth 6% each year, but i might be shortsighted.
    proposed pace of BEG development would then be something yet unheard of in europe (please correct me if i am wrong)

    anyhow, if the concessionaire invests it is good for serbia and it might create some decent jobs - so yaaaay! (or "bravo serbia!", how the good news are usually treated on this blog)

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    1. I also don't think a new runway is necessary. Not even sure a new terminal is needed in the short term but they should extend the C concourse like they planned immediately.

      https://mir-s3-cdn-cf.behance.net/project_modules/max_1200/e59fc338169313.5757cec92c37e.jpg

      Then later on in the concession if needed they can build a new terminal.

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    2. BEG does not need too many upgrades

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    3. BEG might need a 3rd terminal not before 2025. Second runway will be a waste of money. The airport can handle up to 40 mln. PAX without a need of a second runway.

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    4. What they will need to do is some repairs and upgrades to the runway.

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  23. Sounds like Chinese have the best offer, from what I have read here. If they really start re-directing tourists to Belgrade, that would be huge. I also imagine they would use Belgrade as a transfer hub for tourists visiting Croatia coast and other Balkan states. That would be huge TBH.

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    1. Agree. Passenger numbers would grow quickly with such a strategy.

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    2. The final step to cement BEG as the ex-YU regional hub.

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    3. What if two runways are not enough for growth in passengers and tourists over 25 year period?

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    4. Ha, so wrooooong! Chinese will be redirected to the new hub in Maribor! Tough luck for the test of Exyu and whole Europe! :D

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  24. I would prefer to see Europeans. May be Vinci. We're an European country after all. Let us try to get European standard of living not an Asian one...

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    Replies
    1. laugh as much as you want. I still don't see anybody going to live to Asia... When I start seeing people dreaming to live in Chine then I'll start laughing together with you :)

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    2. Except for Hainan all of them have European companies as part of their consortiums :D

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    3. I also prefer Western European discipline and management. That's why I would like the Swiss-French to win.

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    4. You do realize lots of Europeans are moving to UAE, HK, Singapore, Bejining, Shanghai ... ?

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    5. Maybe not China but I can imagine a lot of people would live in Seoul for example.

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  25. At least foreign airlines should be treated properly when the concession is done.

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    Replies
    1. They are being treated properly now.

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    2. I am surprised Wizz and Ryan didn't team up and bid. They could have built cheap barn/terminal, charge themselves 3eur per passenger fee and quickly grow to 10-12 million passengers per year.

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  26. I would choose a company that would increase the number of airlines and frequencies at Belgrade Airport. For all airlines to be treated fairly and pay fees based on the amount of traffic they generate. Also encourage new LCCs. They should use their connections to stimulate new destinations like the French did in Zagreb.

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  27. What was the point of refurbishing T1? To save the concessionaire money?

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    Replies
    1. There is no way of pleasing you people. If they had not refurbished it you would be saying how it is a catastrophe that they haven't.

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  28. I would make getting rid of taxi mafia one of the main conditions for the future concessionaire.

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    1. +1 I landed from the U.S. once and they sniffed me out even with my perfect Serbian, the guy was trying to pay me and not even charge me money for the taxi to marry his daughter who is much younger than me hahaha.

      Also once I was on a legitimate taxi, one of the taxi mafia tried banging our car and ripped off the poor cab drivers side mirror, until my taxi driver pulled over and beat the living shit out of him.

      This must be dealt with, seems unprofessional once you arrive too...

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    2. True story?

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  29. 400 million EUR up front seems a bit far fetched since it does not include the annual concession fee.

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    Replies
    1. Why? It's a profitable business with growing passenger numbers. Their profit in the first 4 months was $6.7 million which was +21% on last year.

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    2. Plus required to invest heavily in the airport during the 25 year period too. I was always doubtful that they would get the 400 but if they do I would have to say the Chinese have won this and they will also get something else..... land.

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  30. OT
    Flydubai od zimske sezone leti svakodnevno za BEG
    http://www.aviatica.rs/flydubai-uvodi-svakodnevne-letove-izmedu-dubaija-beograda/

    ReplyDelete
    Replies
    1. Iskreno nije ni cudo.

      JU izlazi iz trzista ka UAE, Qatar vise ne moze da prevozi putnike do DXBa i AUHa, a broj puntika na letovima za DXB je drasticno porastao prethodnih godinu dana. Iskreno, pitao sam se samo da li ce ici na 7 ili 10 letova nedeljno posto uskladjuju sve destinacije sa EK i postaju zvanicni feeder Emirates-a (novi komercijalni aranzman objavljen u Parizu pre 2 dana).

      Ja sam tri puta leteo na ovoj relaciji ove godine, dva puta je avion bio dupke pun (i biznis), treci let krajem Februara je imao 85% LF otprilike.

      Sad da vidimo kako ce EY da nadomesti manajk kapaciteta... A320 ostaje ili idemo na A321/A330...

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    2. Hopefully Etihad will boost frequencies this winter season.

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    3. Frequencies... unlikely, capacity is more probable...

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    4. So Tim Clark actually knows where Belgrade is :D

      And he is working in Emirates...

      Read the 2nd paragraph from behind :)

      http://atwonline.com/paris-air-show-2017/emirates-edges-closer-flydubai-cooperation

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    5. Formula for Etihad:

      JU A319 + EY A320 = EY A330

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    6. I don't know what they were waiting for so long. All of their flights have been always full! I wonder if next winter we might see an 8th flight introduced. Can anyone guess what schedule we might see in that case? Maybe a night departure out of BEG?

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  31. Only 5 bids out of 25 interest? Zagreb had 10. That shows conditions are to high. Rather disappointing. When I saw 25 companies show interest I told at least 15 will make official bid.

    Now we can see why tender was postponed for 3 times.

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    Replies
    1. Zagreb had the worst possible tender procedures and a lot of background scheming involved. That's why TAV and a few other even threatened to sue.

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    2. I would take ONE good offer, over 10 solid offers :)

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  32. It's not that BEG is in desperate need for a second runway but I'm SO tired of people saying BEG doesn't need it before like 2050 because it can handle like 40 million passengers with a single runway. What the hell is your argument? Gatwick? Gatwick which would have had more runways if there was more space? There are not that much airports out there which handle more than 10-15 million passengers per year and have a single runway, yet there are dozens of airports which had a second runway even before getting close to 10 million passengers, even in this region and Eastern Europe generally, let alone the Western part. BTS, OTP, BUD, SKG, PRG, WAW, KBP.... Why would BEG not need a second runway? If the concessionaire is willing to build it, let it be.

    ReplyDelete
    Replies
    1. The only right argument would be if the airport currently is or in the not so distant future expects to loose money because it doesn't have two runways.

      I don't pretend to know the details but as far as I know BEG is not considered as "slot congested"

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    2. Where would you put the second runway? on one side is the highway and houses are all over the place some leaning against the fence of the existing runway (from 30)

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    3. there is enough space. new runway is actually foreseen with urbanistic plan. it will have the same orientation as the current runway. it would start south west from museum and would stretch to surčin.
      some houses that were built there are in violation and cannot be legalized. new terminal should be between runway and museum.

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    4. BEG has other priorities to be done first before a second runway is built.

      - Increasing gate capacity.
      - New cargo center.
      - Improved parking facilities.
      - Improving road access.
      - Increasing retail options.

      I see a bigger need to build a new terminal for than a new runway. BEG simply doesn't currently have the traffic to justify a second runway, not even if we doubled todays amount. Building and maintaining runways are expensive, and there are other priorities that need to be done first.

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    5. This is very simple, BEG doesn't NOT need a 2nd runway in the foreseeable future. ANON 1:45PM are you justifying a 50 MEUR investment by "willing to build it.."? What BEG/SMATSA needs to sort out is their movements per hour capacity and specially in LVP.

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    6. Sve veliki strucnjaci.

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  33. All of those are illegal and cant be legalized, owners have already been informed that they are in the zone of airport expansion.

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  34. For all those who are skeptical of the Chinese, feel free to read this article:

    https://rs.sputniknews.com/analize/201706221111649251-srbija-kina-investicije-1/

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    1. Sputniknews? Seriously?

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    2. Would you prefer Huffington Post?

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    3. @AnonymousJune 22, 2017 at 6:17 PM

      yes, or The Guardian

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    4. Says a lot about you if you prefer Huffington Post.

      Also, please, feel free to point out which information is wrong in the link that was initially provided?

      The Guardian has unfortunately become a left-leaning trash of a newspaper.

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  35. Great to see a B777 and B787 in Belgrade today side by side.

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    1. I know of the UAE 77W, but whose 787?

      Also, I believe the first ever 767-400 in BEG will arrive tomorrow from BAH.

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    2. We want photos !!!

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    3. Video:

      https://youtu.be/jyvQzSbchCg

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    4. which companies? what was the reason for these flights?

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    5. Both are from the Government of Abu Dhabi. The Sheikh has arrived for Vucic's inauguration. There will be a lot of interesting planes in BEG today since there are 40 foreign delegations coming.

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    6. For the inauguration? He is a King or what? lol

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    7. Same way you have inaugurations in the US, France and many countries across the world.

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  36. Is Museum of Aviation in scope for concession? It needs refresh and new hangar/hall for civil aviation concesssionaire could build. Expanded and modernized it could be a tourist attraction on its own.

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