Monday, November 6, 2017

Air Serbia continues internal consolidation


Air Serbia has continued its consolidation drive by further reducing its headcount and discontinuing its own ground handling services. A total of 340 employees from its handling division - Air Serbia Ground Services (ASGS) - have been transferred to Belgrade Nikola Tesla Airport's handling unit upon the request of the majority owner of both companies - the Serbian government. According to the International Air Transport Association (IATA), conservative estimates indicate airlines outsource more than 50% of the ground handling that takes place at their home airport. However, several of Belgrade Airport's unions have noted, "It is unclear why the best and most successful carrier in the region, Air Serbia, is practically shutting down its subsidiary, a registered handling agent, by transferring the majority of its employees to the airport, who will continue carrying out the same duties". As a result, Belgrade will now be home to two handling operators - Belgrade Airport handling, which provides services to the majority of airlines flying to the Serbian capital, and Sky Partner, which caters for Wizz Air and Transavia.

Air Serbia is next expected to outsource its catering service, with the carrier tipped to introduce pay-on-board meal options for short haul flights in the near future. The airline previously said, "We are working on outsourcing ground handling and catering in order to reduce costs and increase revenue. This is part of a business plan which will boost profitability. All of these measures are standard and part of a process where you try to reduce your losses on one hand, and increase profits on the other. Air Serbia is a stable company. We have improved in all metrics compared to last year, both in profitability and passengers carried". It added, "The consolidation measures will contribute to better organisation, in addition to the optimal use of human resources and savings. The aforementioned measures will in no way affect the timely conduct of business activities and will not impact on the quality of service offered to guests".

According to Serbian media, the Etihad Aviation Group has told its equity partner Air Serbia to make greater savings in its business and has provided a list of cost saving recommendations. Etihad Airways' CEO, Peter Baumgartner, acknowledged that it has been a “quite intense” time and that the group was “redefining its future”. The strategic review, he said, will be completed in a few weeks. “It’s not just what we are doing with our partner airline strategy. Airlines as a whole are at a point where we need to assess where we are going and the trends and their effects on our industry. Transformation forces do not stop at the borders of the Middle East. There are also opportunities and you can't afford to miss them. Customer expectations and behaviours have fundamentally changed”, Mr Baumgartner said. He added, "Low cost carriers have shown how it works when it comes to technology. The definition of a great airline has changed. It's now all about customisation and personalisation. The days are over when it was about the flattest bed". The CEO noted that the carrier's equity investments cannot be compared to Swissair's Hunter strategy, which brought about its demise. "Our intention was different. Swissair's strategy was to consolidate European airlines. Our aim was to expand our route network quickly and comprehensively through partnerships. Both Air Berlin and Alitalia knew that it would be difficult. We did not throw in the towel at the first sight of problems, however, everything has its limits".

As part of its internal consolidation measures, Air Serbia has closed its retail stores outside of Belgrade, suspended several routes, refitted its narrow-body Airbus fleet with slimline seats, reduced its on board catering offer and introduced ancillary revenue streams such as a Belgrade Airport check-in fee and Premium Lounge passes at a fee for economy class passengers or those flying on other airlines. It has also made a number of changes to its frequent flyer program. However, so far, it has been unsuccessful in leasing out an Airbus A319 aircraft over the winter season. The Serbian carrier recently said it was weighing up its options for the introduction of a second long haul service after New York, which the media has since indentified as being Toronto.

154 comments:

  1. How will this impact on the BEG concession process. I mean adding an extra 300+ employees in a day isn't exactly normal.

    ReplyDelete
    Replies
    1. That's probably why the concession was delayed... yet again.

      Delete
    2. I assume the five companies who are submitting their binding offers were informed of this in advance.

      Delete
    3. The final date for binding offers is scheduled for 24 november and on Friday the government said there would be no further extensions.

      Delete
    4. The government also said the economic situation would be better but here we are.

      Delete
    5. Umm it is normal that the date in concessions is extended. Take a look at other ones in the world.

      Delete
    6. I think this has already been discussed with the potential concessionaires. Besides, concessionaire will be able to cut workforce at BEG when it gets control of the airport.

      Delete
    7. So did the Chinede made the competitive offer that the goverment wanted from them?
      If so no further extension is needed.

      Delete
    8. With 350 extra employees comes extra income. Is it enough to justify extra 350 employees remains to be seen. Whoever wins at the end will review staffing levels for sure

      Delete
  2. By the time Etihad is finished with Air Serbia only a shell of an airline will be left.

    ReplyDelete
    Replies
    1. Their onboard product is already inferior to the one of Jat.

      Delete
    2. I wouldn't go that far. As someone who regularly flew Jat Airways I still remember their horrible crew who acted as if they were just about to slap you across the face when you asked for anything. Also the cabin can not be compared to JatAirways who usually had dirty planes which were literally falling apart inside.

      Delete
    3. Air Serbia's B733s and Atrs are pretty old inside and on most flights they barely offer anything. At least with Jat you had a sandwich, something sweet, drinks and a wet wipe. What do you have on BEG-LJU or BEG-TGD? Nothing. Just a glass of water.

      Don't forget Jat also had a dedicated business class product.

      ASL might have had a good product but that's no longer the case.

      Delete
    4. On a 45 minute flight you are unlikely to get anything more than a glass of water on any other European airline anymore.

      Delete
    5. The issue is that people have very high expectations of Air Serbia based on their previous product. Compared to that this is an embarrassment, even though it's the same like in any other average European airline.

      Delete
    6. Anon 09.25

      You obviously don't travel much.

      Delete
    7. I flew the other day onboard APB, every single window is dirty and has multiple fingerprints accross the entire surface, obviously lack of care and attention because it doesn't cost much to get that sorted out.

      Delete
    8. You fly e.g. OS Dash or LH Embraer ca. 1 hour flying time and you get by default a selection of beer, 2 wines, tea, coffee, about 7-10 softdrinks (2 or 3 glasses if you ask) and either a muffin or manner schnitte. Compare that...

      Delete
    9. Samo kad procitam sendvic kosa mi se jezi!!! Leteo sam za turslu dva sata iz beca sa sunexpress vodu sam cak platio! Niki leteo dva sata imao sendvic i pice! Cemu ta tematika za sendvicem?

      Delete
    10. Lazes ko pas dobijes nejestivo nesto na LH do Frankfurta kao sendvic i sok ili vodu.

      Delete
    11. I am 7h21: to make it clearer (my source): my own flights last few months on LH VIE-MUC, MUC-DRS and OS VIE-LEJ, VIE-INN - no lies and exaggerations, facts only

      Delete
    12. My last short flights:

      LX MUC-ZRH: choice of beer, soft drinks, water, juice. Snack and chocolate

      LH MUC-NUE: nothing, no time

      OS ZAG-VIE: snack at the door (pretzels)

      LOT PRG-WAW: free water, everything else for purchase

      SAS GOT-CPH: free water, everything else for purchase

      LH PAD-MUC: choice of soft drink/water/juice or beer/wine and a sponge cake snack

      OK PRG-CDG: everything for purchase

      Delete
  3. These are all desperate measures which show how clueless the management is. They are copying exactly what AB has been doing for some years before they went bust.

    It's time for the government to sack Dane who has singlehandedly destroyed the airline.

    ReplyDelete
    Replies
    1. "They are copying exactly what AB has been doing for some years before they went bust. "

      Agree it is looking more and more like AB. Especially with this premium long haul product and then low cost short haul product.

      Delete
    2. That shows you that all consolidation measures are coming from the same kitchen - EY and not just something JU came up with all of a sudden.

      Delete
    3. Everything JU does is masterminded by Abu Dhabi. Unfortunately they have also led ALitalia and Air Berlin to bankruptcy.

      Delete
    4. They haven't "led" Alitalia and Air Berlin to bankruptcy, they just haven't been able to prevent it. Air Serbia is a much lighter bite in comparison.

      Delete
  4. Well I wouldn't say that this is unprecedented. Most airlines don't have their in-house handling agents. But I do agree with people that seem like desparate measures.

    ReplyDelete
  5. The management doesn't really care. Their only aim is to show good results on paper so like Kresimir Kucko they can get a new job at another airline when they finish with Air Serbia. The difference is that Kucko at least worked for Croatia Airlines before he became CEO.

    ReplyDelete
    Replies
    1. You nailed it. Pretty much the same thing in both companies.
      There's one additional difference as I see it though - Croatia Airlines with Kucko and his predecessors at the helm, has only got themselves to blame. Air Serbia on the other hand, besides its own government appointed management has had Etihad to deal with as well.

      Delete
  6. What more can they do to rationalize operations? They have discontinued some routes, downgraded services, let people go...

    ReplyDelete
    Replies
    1. Maintenance. I know JU's heavy maintenance is done by Jat Tehnika but line maintenance is done by Air Serbia. So they could discontinue that and go back to Jat Tehnika doing all their maintenance work.

      Delete
    2. Makes perfect sense

      Delete
  7. There are very few European airlines with their own ground handling. I only know of SAS, KLM and Turkish Airlines. Don't see what's the fuss is about.

    ReplyDelete
    Replies
    1. Who does Lufthansa's handling?

      Delete
    2. Fraport in Germany.

      Delete
  8. Passengers or customers as they are called these days get what they pay for. Everyone chooses the cheapest fare and so it is no surprise that Air Serbia is choosing to be like almost every other European carrier. No more hot meals, no more seperate business class....in fact no more class at all. You get what you pay for,folks.

    ReplyDelete
    Replies
    1. +1

      This is reality in air travel today. Time for people to get used to it.

      Delete
    2. Absolutely not true. ASL is the only carrier to MXP, CDG, LHR, TXL... and passengers rarely pay less than €250 for a return flight. Are you telling me they deserve a low cost product for that price?

      If that's the case then I expect ASL to charge me €100

      Delete
    3. Have a look at easyjet prices between Geneva and Belgrade, or LH between Munich and Belgrade .....

      Delete
    4. Exactly. Legacy need to offer something for price, when they start firing in main office than we can talk about economy measures not only this on passengers side.

      Delete
    5. I suspect that BEG-London will soon see another carrier or increase in capacity by Wizz. Prices on JU are extortion. Norwegian or Easy from LGW with onward connections to US would be a good fit. Ryan to Stansted would also work.

      Delete
    6. LH offers you a decent product and a good number of frequencies. You can't compare them with JU.

      Delete
    7. sa njim letim cesto preko Atlantika tu su OK onako ispod proseka, ali do Frankfurta ili do Minhena nemaju pojma. Sije ih Alitalija za klasu. Sa AI letim samo sa rucnim prtljagom.

      Delete
    8. Sad but absolutely true, the only problem, you cannot be national carrier and low cost at the same time

      Delete
  9. They are doing exactly the same to what Adria Airways has done. Adria used to charge for water too until late last year in economy :D As for business they have the same seats like economy but complimentary catering, the same will be the case with JU.

    ReplyDelete
    Replies
    1. And Adria did not reduce their ticket prices either. Same will happen with JU.

      Delete
  10. 2500 employees is huge for a company. So I assume by the end of the year they will get rid of 800 when they deduct catering as well. That is getting somewhere.

    ReplyDelete
    Replies
    1. But cuts need to be made at the head office. That is where most of the workforce has bloated with people who don;t do anything.

      Delete
    2. During Jat time there was 1,070 workers. How did they manage to get to 2,500. That's crazy.

      Delete
    3. The airline doubled in size. They had to hire at least 100 new crew members for the route network which increased a lot. That's how.

      Delete
    4. And also Jat didn't include catering, handling and maintenance in its employee stats because they were officially treated as separate companies since 2004.

      Delete
    5. @anon 9:31

      Good point.

      So how many employees are there in catering and maintenance?

      Or in other words, what is the number of employees in JU's core operations?

      Delete
    6. Around 1,800. It should be, in my opinion 1,000 tops.

      Delete
    7. Alen Šćuric PurgerNovember 6, 2017 at 12:21 PM

      1.635 in core business exactly by 2016 annual report (without 2 companies in ownership).

      Delete
    8. That would cut ~EUR 5M of the compensation bill. Still a lot more to go.

      Delete
  11. In the end, only “boutique” thing that will remain will be the price.

    ReplyDelete
    Replies
    1. I think it is safe to say they have abandoned the boutique mantra.

      Delete
    2. Yeah. But the prices are still boutique alike. And that won’t change unless they face some competition on the route.

      Delete
    3. We will see if they change. They were recently selling tickets without checked-in luggage to western Europe for under 100 euros. It was for a limited time but still maybe we will see some changes in pricing. Hopefully at least as the product definitely does not warrant such high prices.

      Delete
    4. True. Brussels was selling for 105 euros. But this was a limited promotion.

      Delete
    5. €105 was a promotional one-way ticket.

      Delete
    6. When Air Serbia soon replaces current free catering with paid food/beverage Buy On Board product (except JFK), they MUST introduce under 100eur basic economy promo fares (no food, no checked bag) for limited number of seats, dates and destinations. If they don't understand WHY they should move on to farming or some other business.

      Delete
    7. Why should they do that - just because you say so ?

      if you don't understand that, then you should move to commenting on farming or some other business

      Delete
    8. I think we have a disgruntled ASL employee here with us. :D

      He is saying that because then flying with ASL won't be worth more than €100. There is no worth in paying more unless you have to because they are the only carrier.

      Delete
  12. Remember people that in 2018 the airport will be under concession and there will be no longer fee write-offs by the airport. So that is another thing they have to get ready for.

    ReplyDelete
  13. Hogan's strategy for JU was wrong for the market from the very beginning.

    ReplyDelete
    Replies
    1. I agree. The changes are necessary since the strategy proved to be completely off.

      Delete
    2. People were saying that here again and again from the begiming.
      And they were called haters again and again.

      Delete
  14. It is obvious Etihad is forcing them to pull these unpopular steps. Hopefully it pays off soon, that is a huge cut.

    ReplyDelete
    Replies
    1. The point here is not the cut in headcount - they are simply outsourcing a function that can be done cheaper by a 3rd party who will provide the same level of service they currently deliver

      Delete
  15. couple of lines that really take your attention.
    one internal stuff, other one aviation general

    1. "ASGS have been transferred to ANT's handling unit upon the request of the majority owner of both companies - the Serbian government."

    what this basically means:
    - EY dropped a number of request in order to stay in JU after 2018
    - serbian side weighted its options and decided to please the arabs
    - JU needs to make money of this transfer, so probably ANT will now have couple of mils less profit
    - interestingly enough serbian side did this in the middle of the concession process, meaning that they really do want to keep JU alive and that the company is very much dependent on EY
    - because serbians tend to fulfill request from the list, EY is very likely to remain in JU, so the takeover by HNA was really never an option


    ============================================


    2:"Low cost carriers have shown how it works when it comes to technology. The definition of a great airline has changed. It's now all about customisation and personalisation. The days are over when it was about the flattest bed"

    oh, i love this. imho, part of aviation is still living in the 70's thinking that aviation is some glamorous activity which only rich folks should be able to afford. this was realized a nonsense a long time ago in europe and in america, now the last stronghold of this old world is dying out, thanks to oil price collapse and middle east creating less demand for these unnecessary services.
    aviation is a transport business: get people safely on time with a desired amount of comfort. barely different from any other means of transport. yes it is more beautiful than bus business, but the same logic should apply.
    even emirates is having a hard time. recently i spoke to 8y employee of EK. they are worried how to fill remaining 40 a380 that are yet to be delivered, with dropping business class sales, ongoing internal cuts and cosilidation, almost hiring freeze, not opening new destinations, growing competition and not so anymore demand growth.
    tough times ahead for MEB3
    hope kučko will reinvent the business and save the day for them (joking, ofc)

    ReplyDelete
    Replies
    1. Neki zaboravljaju da Beograd ima vise hotela sa 5 zvezdica od Zagreba i da je zemlji potreban prevoznik sa biznis klasom. Tu se slazete sa menadzmentom da sadasnja biznis klasa ne lici ninasta.

      Niko od tih prepametnih nema ni prebijene pare da ulozi u u LCC kompaniju ni preko deonica. Tu se sva prica zavrsava.

      Delete
    2. Niti Beograd ima više hotela od Zagreba, niti ima i izblizu toliko turista ko Zagreb, niti ima više kreveta u hotelima sa 5***** (a problem ti imat hotel sa 5***** ako on ima 80-tak kreveta - konačno i sa tim malenim hotelima ima samo jedan više sa 5*****, ali sa ukupno daleko manje kreveta).

      Delete
    3. Gde je spominjao broj turista? Ne znam zbog čega odmah peniš.

      Delete
    4. This comment has been removed by the author.

      Delete
    5. po meni je očigledno da strategija sa ciljanjem na poslovne putnike nije donela mnogo, pre svega jer su 95% u short hauls i niko ne želi da plaća premium cenu za kratke letove. popunjenost biznisa je na ovim prostorima oduvek niska.

      Delete
    6. Ono sto ti i AS ne shvatate ne moze ta cena da bude toliko veca od ekonomske.
      To je problem ljudi sa 4 zvezdice.
      Ljudi koji dolaze u hotele sa pet zvezdica ne predstavlja to problem
      no sediste kao u ekonomskoj klasi. Ljudi zele uslugu a nje vise nema.
      Ovim sedistima su ubili obe klase putnika u biznisu. EY ima biznis
      klasu tako da ovo verovatno dolazi
      od evropskih "mislilaca".

      Delete
    7. nije mi jasno o kojoj biznis populaciji pričamo kada je popunjenost biz klase bila najverovatnije oko 20%

      ima nekoliko razloga zašto J-class JU proizvod nije bio uspešan:
      - ili ti ljudi ne putuju sa JU
      - ili ti ljudi u velikom broju dolaze drugim prevoznim sredstvima osim aviona
      - ili ti ljudi ne plaćaju biz kartu
      - ili ti ljudi ne postoje u tolikom broju

      Delete
  16. What a surprise...

    ReplyDelete
  17. I assume that Air Serbia's books are improving with all of this cost cutting. Their costs must have gone significantly down, especially since they have kept the same ticket prices.

    ReplyDelete
    Replies
    1. Na osnovu cega to zakljucujes? Placa se odrzavanje aviona aerodromu. Ovo je siri nacin rada SNS. Moj direktor je otpustio sve zaposlene u obezbedjenju i restoranu i sada imamo privatno obezbedjenje od 3 puta vise zaposlenih i privatni restoran sa 2-3 puta vise zaposlenih. Bitno je da nemamo zaposljavanje he he.

      Delete
  18. Alen Šćuric PurgerNovember 6, 2017 at 10:06 AM

    ir Serbia Ground Service by 2016 Air Serbia annual report had 582 employees. So, 340 will go to Belgrade airport. What will happen to 242 that is not part of that deal?

    ReplyDelete
    Replies
    1. Tih 242 vise nisu na spisku zaposlenih.

      Delete
    2. They were probably on a temporary contract (this is used widely in Serbia where your contract is renewed every year or 6 months). They probably have not renewed their contracts.

      Delete
  19. And how long will these measures be in force?

    ReplyDelete
    Replies
    1. I doubt they will ever go back to the previous model.

      Delete
    2. When their finances improve they will resume their expansion strategy.

      Delete
    3. In this environment I doubt JUs finances will improve. It all seems like a financial disaster. I’m guessing EY will divest very soon

      Delete
    4. Why would they? They are investing zero money into Air Serbia are getting a return on their investment 4 years ago.

      Delete
    5. Apparently they have reduced losses by 5 million EUR.

      Delete
    6. @10:33
      again, what is your source?
      as a joke some days ago I wrote "yeah, they losses are not 40mil€, but 35mil€ now.
      if you are using this as a source, then stop.

      Delete
  20. I just don't understand how they plan to sustain another long haul route?!

    ReplyDelete
    Replies
    1. Me neither. I think a lot of their problems were cause by New York flights.

      Delete
    2. Where did the company announce they were launching another long haul route ? All i saw were some media reports/speculation. Nothing from the company and nothing in the booking reservation systems. So i'll believe it when i see the company make an announcement.

      Delete
    3. The company said it was considering a second long haul route. It was announced by their PR. I saw it on TV with my own eyes.

      Delete
    4. Every "considers" new routes all the time. Heck, OU even announced that they were opening up bases all over ex-yu - and nothing.

      Saying tht you are considering a second long haul flight and saying that you are actually launching flights to XXX, are 2 totally different things

      Delete
  21. The most hilarious thing is that they continue to publish profit each year. Who are they kidding?

    ReplyDelete
    Replies
    1. Because they get a government injection each year which goes towards their finances. So just like Croatia Airlines sells its slots and represents a profit, Adria sells its brand name to represent its profit, Air Serbia gets government injection and presents profit. It's not illegal in either case.

      Delete
    2. Will we ever see a commercially viable national airline in former Yugoslavia?

      Delete
    3. We have seen it. It was JAT Jugoslovenski Aerotransport 1980-1990, no matter how much Nemjee's claiming opposite, and ex-yu erasing my posts on it

      Delete
    4. To be fair that entire comment thread was deleted the other day probably because it was off topic and started by some dude making an anti-Muslim slur about Mostar so I doubt it was aimed at you since Nemjees posts are also gone. Give the whole story.

      Delete
    5. Realistically, the ex-Yu region should have one flag carrier like SAS in Scandinavia. The market is essentially the same size, population-wise, the people essentially speak the same language and the fact that Scandinavia is economically a $1,2 trillion market, while the entire ex-yu's gdp output is circa $170 million, further backs up that argument.
      Hopefully this can become a reality some day when the political landscape changes for the better.

      Delete
    6. I sincerely hope those days will come soon ... under Lufthansa

      Delete
    7. Michael,
      you are a hopeless romantic.

      Delete
    8. Hahaha, great idea but Mr Čelik really made my day

      Delete
    9. Lol!! You'll see Peter, you'll see..Balkan Air will fly some day! :))
      Actually I'm a cynic, but I was feeling unusually optimistic yesterday. Today I am once again aware that expecting rational behavior in the balkans is the equivalent of believing in unicorns.

      Delete
    10. well, if only 90's were a better decade for all of us, then maybe :)

      cheers!

      Delete
    11. The 90s happened regrettably. The most important thing is not to allow that kind of situation to happen ever again.
      Scandinavian countries had waged numerous wars against one another and look at them now.
      Besides, each time I visit Croatia, or Serbia, I do see improvement at every level.

      Cheers, mate!

      Delete
  22. Interesting times coming for Air Serbia. I think they will weather this crisis but we will see.

    ReplyDelete
  23. So what next for Air Serbia?

    ReplyDelete
  24. It is obvious Etihad is forcing them to pull these unpopular steps. Hopefully it pays off soon.

    ReplyDelete
  25. Is it just me or based on what Etihad's CEO said are they also contemplating going down the LCC road?

    ReplyDelete
    Replies
    1. I wouldn't be surprised. They have started trialing hand baggage only fares on some flights already, not to mention everything they have cut from their premium products.

      Delete
    2. I often read here complaints about cutting down premium service. If that premium service was earning money nobody will cut it.

      I flew at least 20 times with AS before they removed those famous business class seats and almost always they were empty. If more people start asking to fly in real business class they can add them again.

      Lufthansa have hand baggage only fare for a while now and British Airways even offers fare without meal included and nobody calling them Low cost companies.

      Delete
    3. Ti onda ne citas ovaj blog.

      Delete
    4. Lufthansa and particularly British are certainly far down the path to LCC hell. They're not "low cost" in terms of their internal pay structure and the airports they fly to, but the transformation of their pax experience to cattle class is pretty much complete.

      Delete
    5. So basically people here are complaining because AS is not able to make profit with business model with which much larger companies like Lufthansa and British also not able to make profit on much larger and richer markets.

      European air travel market is changed compared to 15-20 years ago and LC carriers are now dominant on the market even in developed and rich countries. Only very rich people cares about quality of service and they are wiling to pay 1000 EUR or more for return ticket on 2h flight in business class. Most people from middle class, and they are dominant users of LCC, only cares about price and will choose cheapest fare for short flight.

      Delete
    6. When LH and BA go that route comments praise their shrewd business practices, but when Air Serbia implements similar cost cutting measures, local "experts" lay waste on Air Serbia. Goes to show dual standards, as some comments are simply anti Air Serbia no matter what Air Serbia does.

      Delete
    7. Absolutely no one praised BA on here.

      Delete
    8. BA doesn't have people supporting them here unlike LH. Doesn't change a thing when it comes to what Anon at 6:22 said.

      Delete
  26. AS Trump would say - FAKE NEWS !!! What a beat up ! Amazing how half truths get told and then spun to suit a particular purpose.

    So, in the interest of balance - which the author neglected to provide - let's deal with the facts in their entirety.

    Air Serbia inherited the ground handling function from Jat Airways - which itself was carved out from the airline many years prior to that (previously called SU-PORT). SU-PORT only provided what is called "above the wing" handling - checkin, gate oversight - it never handled ramp or below the wing handling - that has always been provided by ANT.

    As part of its business review, the airline decided to look at all non-core activities to see whether or not efficiencies could be achieved by restructuring or outsourcing the business.

    The airline conducted an RFI process which included ANT, as well as Swissport and Goldair (who are both foreign owned ground handling companies).

    ANT provided the most competitive quote of the 3 companies, in addition to providing an undertaking to employ 340 people, in order to provide the level of service that JU would require.

    So ANT didn't just end up with 340 people "simply transferred", they also ended up with EUR6M of additional revenue to provide the handling for JU.

    That hasn't been stated anywhere, nor has the fact that ANT already provided to JU all ramp and below the wing handling services. All that ASGS provide is above the wing services - so it is an extremely cost inefficient operation - JU have a much better and more cost effective solution with this decision.

    This is a completely different picture to the one painted above

    ReplyDelete
    Replies
    1. Please, the airline has been falling apart on all fronts. Compare it to 4 years ago. The only thing it has been good at is spinning each failure as an amazing success. Something I notice you are doing right here.

      Cutting Abu Dhabi - amazing success, cutting Istanbul - amazing success, serving half a cup of water on flights (the only provided service) - amazing success, cutting frequent flyer benefits - amazing success, keeping the same ticket price while cutting everything- amazing success in in the interest of passengers.

      At the same time I remember promises of international tender for regional fleet, "boutique airline" concept, best European airline, amazing employment opportunities.

      Air Serbia today provides the same service as Jat Airways, the same airline the new "experts" from Etihad hated with a vengeance. The only thing their 'know-how' has provided is putting a glossy cover over a turd which is being payed for in full Etihad PR. And don't get me started on corruption which is just as rampant in Air Serbia as it was in Jat. Besides we all know why Hogan was deposed.

      Stop spinning the truth.

      Delete
    2. Friend - you must have eaten that turd that you refer to, as it has severely impacted your judgment if you honestly believe that Air Serbia is no better than Jat Airways.

      That said, as a forum of free expression, you are entitled to your view - as am i to mine

      Delete
    3. Anon at 11.36am - if what the guy says is true - and he is obviously an insider - not sure how you see it as "spin".

      Which part of what he has written do you see as spin ?

      Delete
    4. Most of Air Serbia employees hate the management which has for 4 yrs labelled everyone as an idiot and done its own thing. This is their result now. But I'm not surprised. They come from Etihad school, the 13 yr old airline which post $2 billion loss this year. They have done their job now - sold and destroyed everything. Thanks god they filled their own pockets and pockets of their companies like Sabre. I hope Air Serbia management gets new CEO jobs at other airlines and leave us alone.

      Delete
    5. Anon at 11.51am - you are obviously suffering from amnesia... it was already destroyed BEFORE EY came .... all EY's coming did, was extend the life support. BUT, they didn't destroy what wasn't already destroyed.

      Their coming did have 1 huge tangible benefit - which was to breathe life into ANT and increase the value of the airport significantly - which the govt will now reap through this concession process.

      So at the end of the day, they will have got their money back through the airport privatisation process. Jat Airways going into bankruptcy back in 2013, would have left the govt with a huge debt anyway - this way, they have got the value of the inevitable write-off through the concession process.

      Funny how things seem to have a way of working themselves out - eventually

      Delete
    6. Anonymous November 6, 2017 at 11:49 AM

      Spinning that shutting down your ground handling was another amazing success in the interest of passengers. Like everything else that has been cut in the last 6 months.

      Delete
    7. I also forgot Sabre was another amazing success. Let's just forget most people get messages they can't buy tickets on the website, that when they come to check in they are told they haven't purchased their ticket even though they did because the system didn't register them and no matter that Air Serbia is actually founder of Amadeus in Serbia. That was another top notch success in the interest of passengers.

      Delete
    8. Anon 12:28 -- Never personally experienced any issues with booking online after Sabre. Everyone's blasting JU but to be honest I like the changes they've introduced. Personally find the new seats have more space compared to their old ones, use their app to listen to new music when I fly, and their mobile boarding passes work now too.

      Delete
    9. Anon @11:36m you obviously don't know a thing about airline business, and you obviously don't know anything about running a business.

      ASL is far ahead of jat in terms of almost every quantifiable measure, from CLF to on time performance to number of passengers etc. Why make yourself an easy target for insults by ignoring all of them?

      Delete
    10. I think we can not judge on that now. If Jat Airways were injected 200 mil. euros as ASL, then such comparison could make sense.

      Delete
    11. Upumpati 200 M jevra pajtasima Dinkica? Zanimljivo.

      Delete
    12. upumpavano je mnogo vise u stari jat i nista ondasnji menadzment nije znao da uradi osim da spiska pare.

      Delete
    13. A jos mnogo vise u Srbijagas, EPS itd itd ....

      Delete
    14. Anon at 11.51am - ofcourse they hate JU mgt - no more pay for doing nothing, as they had been used to doing during Jat times.....

      A bloated company full of ne radnici - you must be one of these

      Delete
    15. They hate the management because of their arrogance. Because they came to the company labeling everyone as idiots as if they were the only aviation experts in the world. They did not listen to a single warning from their employees who have been in the business far longer then them. This is the result of their expertees - a 40 million euro loss. But thankfully a certain someone put even more money in their pockets for the epic failure which has been Sabre. And that is just the tip of the iceberg of their corrupt nature. They are lucky that they are in Serbia where there is no free journalism and that they are protected by the givernment... for now.

      Delete
    16. You must be talking about the very same employees who were responsible for bringing Jat Airways to its knees - who if they were as good as you claim they are, would never have led to anybody having to invest in JU and save it from going bankrupt.

      Bravo !

      Delete
    17. Does it mean the new management was as incompetent given the current situation?

      Delete
  27. I don't get what the big deal here is .... we are simply talking about the provision of ground handling services.

    Outside of BEG, JU already uses the services of a ground handling company - a practice ALL airlines employ - most even in their home hub/base.

    So if an external company can provide the same service cheaper than you can do so yourself, doesn't that make sense ?

    ReplyDelete
  28. I know I might be getting a bit repetitive but does anyone have any update on the A320neos and whether they will come next year?

    ReplyDelete
  29. How strange that Kondic is not mentioned in the official statement. Even more unusually, he is not commenting the huge 20 percent cut in his workforce. In every decent and reliable company CEO would come up with a public statement in such an important moment.

    ReplyDelete
    Replies
    1. That's because there has been no official statement, the 'statement' quoted here is a remark Sinisa made some months ago: www.exyuaviation.com/2017/07/air-serbia-steps-up-internal.html

      Delete
    2. They did give an official statement that they are not transforming into a low cost airline but Kondic was not quoted in that release either.

      Delete
  30. They won't get far with this strategy: https://thepointsguy.com/2017/11/things-learned-from-vanished-flight/

    ReplyDelete
    Replies
    1. That's exactly what I'm talking about. The all amazing and extremely expensive new SABRE system. Wonder who put cash in their pockets to move from Amadeus to Sabre? It could not be the amazing professionals with all that Etihad KNOW-HOW could it?

      Delete
    2. I frequently travel between LJU and BEG. While in Ljubljana I can use Ljubljana Airport check-in without a problem I have never ever managed to do it on my flight back by using Air Serbia check-in. Despite the fact that for my ticket class there should be additional fee for check-in at the airport there were no other option since on their web page I always received the same message during online check-in process: "Itinerary is not eligible for check-in".

      Delete
  31. off topic:

    John Leahy (guy who made Airbus what it is) gives a lecture about aviation development

    Suggestion to watch it. Notice the emphasis on the middle class

    https://www.youtube.com/watch?v=CRhU4HEEsMw

    ReplyDelete
    Replies
    1. some other notable people giving their speeches
      https://www.youtube.com/user/WingsClubFoundation/videos?sort=dd&shelf_id=0&view=0

      Delete

EX-YU Aviation News does not tolerate insults, excessive swearing, racist, homophobic or any other chauvinist remarks or provocative posts with the intention of creating further arguments. A full list of comment guidelines can be found here. Thank you for your cooperation.