Costly promotion?

5 million Euros for taxi shuttle
Jat’s latest initiative to win back passengers involves offering a free taxi service within Belgrade for all of those passengers that have a return ticket with Jat. While the airline’s management believes the move will lure passengers away from increasing competition, local media are speculating whether the move is financially viable.

The entire project will set Jat back some 5 million Euros in 2010. The airline recently called upon all taxi companies interested to take part through a public tender. Jat is requesting for 250 taxi vehicles to be available to the airline on a daily basis. The current projection is that 1.600 taxi commutes would be carried out to the airport as a result of this measure. This number could rise if the number of passengers increases, as projected by Jat’s management.

The Serbian national carrier did not wish to estimate the cost of the project. They say that the taxi service is being introduced as a new commodity for its passengers and that they expect “only positive effects from this measure which will mean more passengers and a greater profit for Jat”.

Under the tender rules, several taxi companies can bid jointly in order to win the job. However, the 250 vehicles that will be used on a daily basis must be equipped with a GPS system, receipt printer and the cars must be of a higher standard. Do you think Jat’s new service is a waste of money or a good way to appeal to passengers? Send a comment.

Comments

Anonymous said…
Total waste of Serbia's taxpayers' funds. If they wanted to do the right thing, they would work with the Airport to establish inexpensive minibus shuttles similar to what exists at Budapest airport. However, all of this will be irrelevant very soon. With the arrival to Belgrade of 99 euro round trip fares (Malev) and Air Niki, the writing is very much on the wall for JAT Airways. The only monopoly they will be left with is BEG-Tivat and BEG-TGD (200 euro round trip prices in collusion with Montenegro Airlines), but if Croatia Airlines decides to initate BEG-DBV flights next year, that will be the end of that final monopoly.
09:40
Anonymous said…
Making a deal with the airport authority is impossible as they are as incompetent as the Jat management!
10:35
Anonymous said…
Jat taxi-new company after the shutdown of jat airways these days:)-plenty of cars taking you to extended destinations from Belgrade such as Surdulica, Despotovac, Novipaza, Uzice, Subotica etc from 19.99 euros per person........and neighbouring countries where you can fly to your final destination.Bye Bye Jat Horse and Carriage for the people or a couple of mercedes 200 from the eighties-stara dobra vremena
11:39
Anonymous said…
"The entire project will set Jat back some 5 million Euros in 2010."

except that it won't set Jat back, it will set the taxpayers back that much.
13:41
doot said…
I will say, that it does sound like a positive thing for Belgrade, in that, it will force at least a certain amount of cabs to be of a higher standard - both in terms of the car itself and in terms of the billing standards (them having to be equipped with a receipt printer).

I'm not sure what other people's experiences are, but I find 90% of the cab drivers in Belgrade to be some variety of scum bag who will try to rip you off, if he thinks he as an opportunity.
13:56
JATBEGMEL said…
if the taxi service will bring profit i think itll bring little. what it would do is improve customer service. what JAT should of done is made the taxi deal valid only for business class passengers.

@ doot

i agree. taxi drivers here will try and rip you off without blinking an eye
14:19
Goran Rakić said…
1600 RSD (17 EUR) per return ticket is not much and it gives a much higher return value for the customers even if it is included in the ticket price.

It is a nice marketing trick that can help JAT to keep or increase its number of passengers.

But there is an open question if this operation is feasible and can JAT handle the car routing and parking and the Belgrade Nikola Tesla Airport efficiently.

It is a bad intention to picture this in media as 5 mil EUR loss for Serbian tax payers, it will be a 17 EUR charge for passengers with JAT return tickets.
14:58
ANONYMOUS said…
This is one of the most stupid ideas ever - clearly Jat's new CEO has struck some sort of corrupt deal with one of the tycoons that run the taxi companies, because this is just a JOKE!

As for Malev - they are an even bigger joke than Jat, and will be dead soon also.

Wizz Air Serbia is going to be a reality sooner than we all think at this ratre...
01:39
Andrej767 said…
I simply cant imagine Belgrade airport without national carrier JAT.It would be much nicer to paint one of the Boeing in old retro colours than this taxi jokes that only cost additional money for no real effect......
06:42
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