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| New business model responsible for passenger growth |
The CEO of Air Serbia, Dane Kondić, has said that connecting passengers through Belgrade has played a major role in the carrier’s growth over the past year, after the airline posted a 68% increase in passenger numbers in 2014. Due to the state of the Serbian economy, the airline has developed the business model in order to rely on a broader spread of customers. Speaking to the “EY Performance” journal, Mr. Kondić said, “Growth has come from simply connecting the network - having a network where people can transfer with ease. It’s come from the person in Athens who is travelling to Dusseldorf, or the Lebanese family travelling from Amsterdam to Beirut. Compared with many other European airports, Belgrade Airport is an amazingly easy and convenient place to transfer. From the furthermost gate at one end to the other is a ten-minute walk”.
The carrier hopes to use this model to attract travellers to potential long haul flights, with the airline looking to build critical mass at Belgrade Airport necessary for such services. “We’re not there yet, but we’re certainly making progress in being a good alternative to an airport such as, say, Vienna, which has always positioned itself as a transfer airport for people flying into Central and Eastern Europe”, the CEO says. He adds that further improvements are still required, particularly on the ground. “We’ve certainly made our customer service in the air better. Improvements on the ground will come as we start to address people’s pay, rewards, remuneration, conditions and accountabilities - all those things that were not previously seen as important”.
Commenting on the carrier’s improved passenger numbers and financial performance, Air Serbia’s CEO says that the partnership between his airline and Etihad Airways has delivered broader benefits to the country. “Directly and indirectly, over 20.000 people depend on this airline. That is a pretty significant number in a country that has, unfortunately, a very high unemployment rate. The government of Serbia really wanted and needed an experienced aviation operator to partner with them. That’s what Etihad Airways brought to the table. It brought industry expertise and know-how that the government didn’t have”, Mr. Kondić explains. He concludes, “For Serbia to have a business that is growing so successfully and that has employed more than 300 people, sends a positive signal to all Serbians. We are doing this for Serbia, and we will never forget that”.
This ppl are mad! Just have a look at Air Serbia facebook page and you will see planty of passengers claiming their bags in public cos noboday responding their emails..moostly transfer passangers. so if this is how they are hoping to get profit, then this year going to be worst then last year. I would all just suggest to watch all those comments before you place your comments here. Ajd u zdravlje!
ReplyDeleteOut of 2.3 million people, if you have i.e. extremly 100.000 that complain or have problem, what is real percentage? Less then 5%... and of course that there are much less people then that.
DeleteYes but it's not as black and white...
DeleteIn order to see the real picture you have to take the number of transfer passengers out of the 2.3 million and then see how many did not get their bags. The number would be crazy big.
Last summer there would be over a ton of luggage left in the luggage sorting facility at the end of a single day.
I just want to remind the blogger that this template often actually discards a comment when trying to post one - clicking "Publish" just refreshes the page while uploading nothing. I just wrote a huge post to explain others some their doubts are unreal but it came up with no publishing. I have no time nor will to write it again from the beginning! I believe the problem is response of Captcha plugin. I dont get a Captcha and other publishing options the time when text gets discarded.
DeleteI am surprised h8ters didn't comment LF on today's picture with only one passenger in sight! Photo was from a photo shoot, but some will say it's a proof of low LF!
DeleteChill buddy, sounds like you are the problem.
Delete@12:48
DeleteHahahaha, good point :D
+1
@12:48
Deleteyou are a provocateur, mon ami
@Anon at 1:49
DeleteSomeone lost their sense of humor today? Okay, since I am the problem, let's fix it: next time use full cabin for a photo shoot. Fill all seats with Victoria's Secret models, but make sure their wings are safely stowed before T/O!
'Improvements on the ground will come as we start to address people’s pay, rewards, remuneration, conditions and accountabilities - all those things that were not previously seen as important”.'
ReplyDeleteThese are nonsense and lies. Since the start JU wanted to introduce a new reward scheme and strategy in order to motivate its employees. They had lecture, trainings... all of that.
However, the middle management never cared about enforcing these and they would never reward those who would work up to 4 hours overtime or who would show extraordinary skills and competence.
So Dane, my friend, you can talk all you want and you can express your wishes but they will all remain wishful thinking as long as certain people are in some key positions within ASGS.
Those who are promoted are those who are close with the managers.
You should come and visit us at the airport some time... there is more to the airport that letačka.
+100000
Deletewow, he was not even talking about ground crew.You did not even get it what he was saying (must be due to luck of English) however your comments are super negative and not reflecting what he was saying about passengers rewords on the ground.I suggest you read it again and get someone to translate for you and then you should make a comment.
DeleteHR in today's corporations has some fine tools to deal with those managers, including 360 performance reviews. Doesn't take long to weed them out.
DeleteAnonymous March 10, 2015 at 4:10 PM, it's not "LUCK of English" but "LACK of..." - back to school please. And the man is right, by the way.
DeleteOnly 1% of lost baggage is to much, 5% is crazy.
ReplyDeleteOT:
ReplyDeleteKorean Air confirm charter flights to LJU with 772/A333
Japan Airlines confirm charter flight to LJU with 772
EL AL confirm seasonal flight to LJU with 772 (change Arkia flights)
"...The government of Serbia really wanted and needed an experienced aviation operator to partner with them. That’s what Etihad Airways brought to the table..."
ReplyDeleteSo, all those guys that worked in JAT for decades before the takeover, weren't experienced ones.
Bahahahahahahaha.... an experienced aviation operator? 85% of the people who were hired by Air Serbia are graduates of Singidingi and other unknown universities.
DeleteFurthermore, the government doesn't know how to spell 'competent' even less to act like it.
I've used BEG 3x in the last 8-9 months as a transit to SVO and SOF. Have to say it was perfect each time, and my bags got through fine. What will make JU better for the customer point of view is online check-in and then a 'bag drop' queue in the foreign airports. Also for a selfish reason, two flights a day to Budapest please! However, I like flying Air Serbia - it's a million miles better than JAT - and BEG is becoming very useful for regional transits.
ReplyDeleteAh I have to let you down as BUD is the worst performer for JU, average loadfactor was around 30%. This is primarily because the night departures were butchered. This especially hurt BUD which has zero O&D.
DeleteThe loads were great coming back to BEG in the morning and going back to BUD in the afternoon. However the other two flights were catastrophic.
Of course, this will change in April when Athens gets some night flights again.
I remember there was one Happy Friday when JU advertised BUD for €169! :D
DeleteWhy dont they return to the previously planned schedule with night regional hops? Wasnt Sarajevo planned to have night connection as well at the early stages of route planning? They could do it with Skopje, Sofia, Bucharest, Tirana, Podgorica, in the same way Athens and Thessaloniki are planned. The night departure wave should be be more strong in order for evening Budapest flight to be effective.
DeleteBUD loads are crap as well due to the high prices in tickets. Spending almost 30.000 RSD (240€) on a return BEG-BUD ticket is criminal. By train or bus it is around 35€. Im not suggesting JU compete with the same price, but I am sure loads would be better if it was offered at around say around 90€ return and a double daily was offered. Budapest is only 3-4 hours by car and JU should compete for business pax who could leave their car at home and just travel by plane in the morning to return in the evening.
DeleteIs it just me or do statements from Kondic seem much more thought out and sensible then the ones we hear from Kucko or Anzur? No hate towards Adria or Croatia Airlines, just observing.
ReplyDeleteSo what is the percentage of transfer passengers vs. O&D at BEG? Anyone have any idea?
ReplyDeleteRadovan Marinkovic?
I would put it at 30/70 for Air Serbia and 50/50 for the airport O&D vs. transit, just a rough guess.
DeleteWow, those are pretty high transfer percentages. I would say 35/65 for AS, and 40/60 for BEG.
DeleteDon't most people use the same airline when transferring? That makes sense in the case of AS since BEG is their hub and there are decent connections available. But what other airline(s) can offer decent transit times and destinations?
-- Charlie
Ideally it should be 10-20/80-90 for Air Serbia and ~30/70 for Belgrade. Yes, i agree with your estimation, 30-35 and 40-50 for AS and BEG respectively it should be around there, yet with time the portion of transit pax should be only increasing its share.
DeletePassenger ambassadors that speak Macedonian, Slovenian, Albanian etc at the Transfer desk can help with the passenger experience. Renovating old A concourse will also improve airport transfer experience.
ReplyDeleteThere was an interesting comment yesterday on why non-USA destinations like YYZ, PVG and PEK should be first long haul routes for Air Serbia. No need to wait for the USA bilateral.
And if you missed it, future BEG terminal picture proposal:
http://s9.postimg.org/gdnbfnm1b/BEG.jpg
Lol man, that is just some guys photoshop, not the actual design
DeleteExcellent idea with the passenger ambassadors. I wonder if AS uses people fluent in the local language for ex-YU and ALB flights?
Delete-- Charlie
Design looks good.If that's not the actual airport design then what is the real one? Is there a picture on the internet of the real one?
Deleteit looks good, but till now there has been no official designs shown to public, although we could expect one to show up in the next few months.
DeleteOvaj snimak moguceg izgleda buducih terminala sa gejtovima, izgleda mi vrlo skromno. Ex terminal 1 izgleda za trecinu veci od danasnjeg terminal 2. I to je manje vise sve. Ako se ne gradi veci kompeks od ovoga, onda je namera vlade da gradi rekao bih samostalno. Da ne deli dobit sa potencijalnim investitorom(?), Ako je tako, sto je po meni negativno, u tom slucaju i ovakav projekat kakav je dostupan na snimku ''s9potimg'' koji sam poatrao, gradnja ce trajati dugo, dugo. Ipak polazem nadu u partnerstvo. Vlada je ozbiljna. Jun, blizu. Mnogo ocekujem u prosirenju NIKOLE TESLE.
DeleteRod Son & Co.
Radovan sorry mate buy you will have to lower you expectations. There will be no new terminal buidling nor expansion trust me on this one. They will( inside info) add a gate or two which I don't call expansion PLUS renovation of T1 ( minor things painting and floor replacement, new windows). THIS IS IF DEAL WITH VINCI FADES, as for vinci I have no info on their plans.
DeleteHope you are wrong for Air Serbia sake. This scenario will limit ASL growth and diminish BEG chances to become a regional hub. Airport right now needs leader with a vision, not with an axe to cut expansion costs.
DeleteIt took a lot of vision (and $20B) to turn desert into a place 75 million shoppers visit every year, but that's the story of Dubai Mall. I am not advocating BEG airport should have biggest terminal in the world (including an ice hockey rink and aquarium!) but BEG needs new terminal to support Air Serbia growth.
Oh, and GoS is responsible to provide dedicated terminal to ASL according to published agreement. Step on it!
Najbolja reklama ubedljivo za Srbiju.
ReplyDeleteNadam se da ce sledece godine mnogo stranih putnika odluciti da putuje sa ASL za Ameriku.
INN-NS
Sa famoznim a330, haha
Deletelove from kroacija
Sto hocete da zavadjate ljude ovde.
DeleteINN-NS
Već vidim masovno Njemce kako putuju na liniji JFK-BEG-FRA...
DeleteMozda nece toliko Nemaca ali hoce drugi .
DeleteINN-NS
O amerikancima da i ne govorimo. Oni će navaliti ko blesavi...
DeleteDa kad budu putovali za ZAG-DBV letece mozda preko BEG.
DeleteINN-NS
Sto hocete da zavadjate ljude ovde.
ReplyDeleteINN-NS
Will the real INN-NS please report to the transfer desk. Your flight is departing.
DeleteTaking into account the relative absence of competition and the complete absence of connections between the two regions, i was of the opinion MIA should be one of the first destinations for ASL to launch in the US, possibly as AUH-BEG-MIA with Etihad metal (EY not flying there), now Austrian just announced its launch recently, possibly as a pre-emptive strike. It will be therefore the only airport in Central and Eastern Europe, besides Moscow, with a connection to Miami. With EY's takeover of AZ chances are slim for that route, yet i don't see why Air Serbia shouldn't codeshare as well as to other Central and South American destinations AZ is flying to.
ReplyDeleteI don't have confirm data, but I imagine that both potenital transfer and especially O&D traffic is much stronger on JFK, ORD or YYZ? Maybe MIA would indeed be way too thin for JU to consider?
DeleteFor JU alone - absolutely, but with feed from Turkey, Russia, Lebanon, Greece, Hungary, neibhour countries, it's a totally different picture. Mind you, based on calculations done in 2013, without the network feed, New York and Osaka would be the two only viable long-haul destinations for TK!
DeleteNazalost destinacije za USA su samo ORD-YYZ-JFK planirane za sad.
DeleteMIA-SFO-LAX bi bile uvek pune ali nazalost od toga nema nista.
A u S. America bi bilo odlicno da lete za GRU ili GIG , ali mene vise cudi sto nemaju jos codeshare za te destinacije sa AZ.
INN-NS
MIA, SFO I LAX bi uvek bile pune....odlicno bi bilo da lete za GRU i GIG !!!??? Dete drago jel se ti drogiraš? Za te gradove se ne leti iz Atine, Beča, Štokholma, Kopenhagena, Brisela a svi imaju preko 20 mil putnika osim Atine. Ne lupetaj više.
DeleteAerologic please dont be a s$*t disturber on this blog again. Serbia doesnt have bilateral to fly to the USA and MIA is way down the list of O&D destinations. TK and OS starting MIA, TP increases frequency, DU low cost at FLL= not a good time for JU to even consider MIA.
DeleteAnonymous at 2:54 PM
DeleteJeste culi mozda za transfer passengers ne lete samo turci sa TK.
I sto vam se stalno mota droga po glavi.
INN-NS
I don't speak to Anonymous who don't post a singe argument as to why that - or any other route - even Anchorage, shouldn't be talked of hypotheticaly. If you have a personal complex with me, just pass by my post ;)
DeleteBack to the topic, what makes Air Serbia really interesting in aviation world is that it is a prime test of how far the Gulf model can be applied in the short-haul European market. In either case, when talking of 'critical mass' it does not apply to passengers only. In my opinion, ASL long-haul routes can't be viable regardless of destination, without a cargo network supporting it (MIA is by the way busiest international cargo airport in the US). That is why i think PEK or PVG have a real chance to be launched before any US destintion and - just a feeling - i'm sure it would stimulate the American authorities to issue their own permits.
Карго, па зато ти навијаш за Мајами! Шта би ти слао од робе за Мајами из Београда, или од Београда тамо?
DeleteMIA se isplati pogotovo zato sto A330 ima veliki kapacitet za Kargo.
DeleteAnonymous at 5:27 PM
Moze iz PEK preko BEG npr.
INN-NS
Trying to compare JU to other major airlines such as OS, TK etc in regards to transfer pax is silly. JU might have changed alot, have improved alot, but there is still alot to be done. Efforts in changes are still ongoing, so is brand recognition, the true Air Serbia experience hasnt settled just as yet. BEG will keep JU back from properly expanding. There are many issues at BEG that hinder a positive pax experience. Duty free is not exactly cheap, the products from Serbia on sale are shamefully expensive, WIFI is basically non existent, the cafe is small, smoking room is non existent.
DeleteJU might be getting a good and growing transit feed, but more needs to be done and mistakes have cost them healthier loads (eg the reduction of the midnight wave). JU still needs to heavily rely on O&D pax. Talk on TATL routes would still need to rely on alot of O&D, so talk of MIA, LAX, SFO is unrealistic. Those flights are long and need not only a healthy load but also good cargo and healthy yields.
Cargo capacity in BEG is a known fact to be crap, the waiting areas in BEG are small for such an aircraft and having 1 A330 parked at a gate will take up the space for 2 narrowbodies.
But lets be realistic, some short haul routes are not stellar but here we have people in Narnia talking of long haul routes of 10+ hours.
JATBEGMEL
DeleteNista nije ne moguce pa ni letovi na destinacije 10+ mnogo gore Aviokompanije od ASL lete za te destinacije.
Mozda EY bude leteo sa stop overom na jednu od tih destinacija.
A i niko ne zna kakvu ce flotu imati 2020 ASL.
INN-NS
@ INN
Delete1. You should write in english as courtesy to other users who dont speak languages of the Ex-Yugoslavia. After all, the blog is in English and you are more than welcome to post in other Serbian aviation themed sites if you wish to write in 'Serbian'!
2) what is your view of a bad airline? opening of all new routes comes at a cost even for short haul and regional. It takes time for a new route to become profitable, especially from a company still looking to be profitable themselves.
EY won't stop at BEG on their flights to America because they have preclearance in AUH.
DeleteMoram da rastuzim vas sto mrzite ASL posto ce uskoro biti dostupan WI-FI u Avionima ASL rekao je Gospodin Kondic.
ReplyDeleteMoce da se salju SMS i MMS poruke i da se gledaju Filmovi .
A na Aerodromu ce imati novi business lounge .
INN-NS
I kao sto sam rekao ovo ce biti odlicna godina za SRB aviaciju.
DeleteINN-NS
Jel si to zaključio zbog uvodjenja interneta?
DeleteASL je profitabilna-BEG je profitabilan-INI dobija letove.
DeleteBEG ce konacno dobiti dugorocni plan za prosirenje.
INN-NS
T6 je objavio da će internet i mobilni servisi biti Џ što mislim da nije istina. Zapravo nadam se da nije istina, jer ako je skroz Џ onda će svi da navale da zovu sve redom glasno po pola sata kako bi ceo avion video njihov novi iPhone. Postoji razlog zašto je Lufhanza zabranila mobilne razgovore, pa niko ne želi da sluša tinejdžerske tračeve iz susednog sedišta tokom celog leta! SMS je okej, ali mobilni pozivi, skajp, vajber itd nisu OK!
DeleteInternet je mozda dzabe a Telefonske pozivi se naplacujui u EK:
DeleteA pogotovo ovi iz Inostranstva kad pocnu da se deru na Telefon to je mozda malo glupo.
INN-NS
Naročito su glasni ovi gastosi iz Austrije!
DeleteA couple of clarifications (obviously needed here):
Delete1. Wifi on a plane is a separate technology and has nothing to do with mobile telephony (most 'normal' 3G/4G ground stations do not have the range to reach the cruising altitudes of an airplane, and even if they did, they cannot handle handoffs at airplane speed);
2. Most common Internet-on-a-plane technologies are satellite based, but there are others (see: http://www.techradar.com/us/news/world-of-tech/future-tech/how-does-airplane-wi-fi-work-and-will-it-ever-get-any-better--1171510);
3. Lufthansa currently actively promotes its SkyNet service (I used it personally FRA-JFK; works very well);
4. Airplane phone services usually block telephony applications (Skype etc.)
5. For a competitive global airline, this service is a must (for example, I will not fly on a flight longer then two hours that does not have it).
1) Regarding the WIFI, it would be interesting to see how that will work being free. In EK there is a certain amount for free before a USD$1 charge kicks in. The WIFI is extreeemly sloooow as everyone uses it. If JU decides it is a pay service, i hope they dont charge alot, with the possibility to purchase vouchers onboard.
Delete2) When using your mobile phone in air you are subject to roaming charges depending on your mobile phone operator. This isnt cheap and both ends are charged. This talk that having mobile phone services onboard will disturb other pax is far from true and I have never seen it happen regardless of the millions of kilometers i have flown with this service available. BTW the mobile phone service (on air) was available on EY ac flying to BEG.
Going back to the WIFI, I think that when WIFI entertainment is onboard, a free app must be downloaded prior to boarding the flight if i am not mistaken?
WiFi entertainment does not necessarily mean that an app must be installed. My only experience is with Alaskan, and I never had to install any app. It was all in my browser.
Delete@ Aleksandar
Deletethanks for the reply. If I remember well I think I read that Virgin Australia has the same wifi entertainment but an app must be installed before hand? How did you find the experience in using wifi entertainment?
I didn't use it very much, because it was a very short flight and I was travelling with some close friends. I mostly wanted to see what it was like.
DeleteThe network appears like normal on the user's device. The user simply connects to the network and when they open their browser, they are sent to the home page where they can choose to watch films, TV series, listen to music, flight information, look at a menu, or pay for internet service.
Very simple, and in my opinion this should be the standard for all carriers in the future.
Air Serbia in flight connectivity offering will be based on the similar system as Etihad's Wi-Fly. Mobile service will be pay per use, media content will be free. It was not clarified if internet connectivity will be free or not.
DeleteThere are several systems for streaming media content, some with and some without dedicated app. Key component is DRM handling to satisfy MPAA (Hollywood).
Air Serbia has started selling business class return tickets from BEG to ZAG with an extraordinary price in the range from 250 EUR to even 350 EUR for some dates!
ReplyDeleteHow can they sell Business class tickets when there are no business class seats in the atr?? I would be MAD if I payed 150 euro more to sit with all the other pax and only get a different meal. Its like paying extra 150 for a bit better sandwich.
DeleteIf you're not bothered to pay on Lufthansa, why you would be on JU?
DeleteBooking is available. I think they will send an A319 to ZAG if they sell a couple of business class tickets. They will start sending B733s to ZAG anyway, right? I think this has probeably hapened before. On some ATR routes you suddenly got an A319 one day only.
Delete5:48, its not actually hating on ASL, but the guy is making a legit point. YOU PAY FOR BUSINESS AND GET ECONOMY
DeleteYeah it's really annoying to pay for business and have to sit in economy seats. They should add an "economy plus" where you get the normal seats, but also certain business class perks such as food, more baggage, lounge access, priority check in, etc.
DeleteAre you all idiots or what, MOST of European airlines sell business class in economy seats, yet i didn't hear you open a whole discussion about it! Starting from Croatia to name a few, all the way to Lufthansa...but unlike with those companies, they'll get real business class treatment on their leg out of Belgrade.
Delete^ your the funny one actually since LH and Swiss have economy seats in business BUT 1) They separate business pax with the economy ones 2) 3 seats per 2 pax 3) Business class flight attendant 4) First to board and leave the aircraft
Deleteto add, whenever I say something negative about ASL I feel like a lot of people respond rudely as if I insulted their mother. Even if you are right no need to get all defensive LOL. You should all chill.
Delete@AnonymousMarch 10, 2015 at 6:45 PM
DeleteSo why you think Air Serbia will not do it the same on the Atr?
At least they have the real business class on their mainline fleet!
new.airserbia.com
Deletedeparture 27.03.2015
JU 230 BEG - ZAG
business class (value tariff) -> 19708 RSD (162 EUR)
return 02.04.2015
JU 231 ZAG - BEG
business class (value tariff) -> 20148 RSD (166 EUR)
total: 39856 RSD (328 EUR)
->same price for outbound flights JU230 and JU234
->same price for inbound flights JU231 and JU235
Za te pare ja cu musteriju nositi na ledjima od BEG do ZAG i pjevati mu pjesme Arsena Dedica i Mikija Jevremovica.
Delete^ za te pare realno mozes 20 puta autom do Zagreba i nazad.
DeleteIf Air Serbia really wants to develop transit traffic, they need to press the government and the airport to figure something out concerning the development of the airport.
ReplyDeleteAir Serbia, Etihad, and partner airlines need a dedicated terminal with central security, food options, viewing terrace, and good lounges.
I think the easiest and best way is to expand T2 with 8 airbridges and 6 ATR gates. The expanded T2 would be dedicated to JU, EY, and all partner airlines. The remaining carriers can use T1.
wait so you want to kick legacy carriers like LH, LX to old terminal 1 check in?
ReplyDeleteThat would not work. However of you look at the picture in the comment from 12:44 PM, Terminal 1 could be demolished and New Terminal 1 made in the same place. In that case New Terminal 1 would be for Air Serbia and Etihad, while LH, LX and everyone else would continue to use Terminal 2. Both terminals would have connected airsides to use the same shopping and hospitality options. New Terminal 1 would not have current limitations where business lounge doesn't have apron facing windows.
DeleteNew T1 could have visitor or even biz club viewing deck (like at AMS or Delta JFK Sky club) and expanded shopping/dining options like much smaller version of YYZ T1 "Hammerhead". Further to the right, new building with mixed hotel/airport offices.