Air Serbia is satisfied with the results of its long haul service between Belgrade and New York, launched less than a year ago, but is exploring ways in which to further improve its transatlantic service. Speaking to EX-YU Aviation News, Air Serbia's CEO, Dane Kondić, said, “We have been pretty happy with the way it has been performing. The thing we haven't been happy about is the things that we can't control - prices in the market. We are not a price setter, we are a price taker". He added. “We have to follow the market and that is something we can't control. Our loads have been great, well in excess of anything we expected, but the market fares have been much lower than what we projected in our initial modelling. Therefore, in order to counter that, we have to do a better job of connecting more of our regional flights to our long haul service. We have some unique city pairs that other airlines don’t have, so that is an opportunity, especially in the off peak season. That however, is a challenge in itself, due to slot constraints at JFK that dictate the timings of these flights. So if you change something at this end, you lose other European to European connections”.
The President and CEO of the Etihad Aviation Group, James Hogan, said recently that Air Serbia's New York route is a "long-term investment" which will take several years to achieve its full potential. Mr Kondić echoed those words, adding, “It is a long-term game, especially for us since we are a non-aligned carrier flying across the Atlantic. We can't get as quick traction as other carriers who are part of SkyTeam, Oneworld or Star Alliance because they are part of a club that works together. Over 85% of transatlantic capacity is tied up in the 3 major airline alliances. Despite this, people need to remember that we have been flying to the US for less than twelve months and we are making great progress. Our cargo business for example, has been performing beyond expectations". He noted, "We have to make it work based largely on our own efforts. We are having discussions with a few airlines in the United States as well as other airlines in our region to see how we can better connect our flight with their networks. We will see what comes of that but I'm quite hopeful of a good outcome there”. Montenegro Airlines recently concluded a codeshare agreement with Air Serbia on flights to New York, which is pending final regulatory approval, while Turkey's Atlasglobal is set to follow suit.
Air Serbia will operate up to five weekly flights between Belgrade and New York this summer season, whereas three weekly services were maintained between the two cities for the better part of last winter, except over the Christmas/New Year peak, with four services per week. Commenting on the utilisation of the A330 jet during the winter months, Mr Kondić said, “What drives the economics of flying are the fares in the market. We are not going to fly an aircraft to lose more money than we would if it were parked on the ground. There is a reason why airlines ground aircraft, because the conditions in the market are such that while it is always possible to drive volumes and fly more people, in doing so, you need to be able to do so profitably. Going forward, as we continue to build momentum and connect more destinations and airlines to our JFK service, we will similarly see better returns”.

Comments
Like we all previously mentioned, NYC is one of the toughest and most expensive routes worldwide.
An Ex Yu solid expample of how destination product is being developed is Zagreb and it's Advent season... Several nice developments for the winter that is otherwise "dead" in Croatia: EK, Eurowings (DUS) + Monarch announced going year round to ZAG. Monarch is more special given that it is a tour operator whose program includes a "city break" concept and will mostly bring the Brits... On May 4th we'll know more...
http://www.breakingtravelnews.com/news/article/monarch-goes-year-round-on-zagreb-croatia-flights/
Kondic has been speaking of these code-shares for about two years now and nothing happened.
Regional night flights are operated on a seasonal basis while there are no early morning departures either.
So of course they are struggling with yields, your network is not adequate so all you are left with are bottom feeders looking for the cheapest deal out there.
I don't see why JU is insisting on ex-YU, they should better concentrate on much bigger markets. I mean they failed in SOF, that's much more worrying.
"we have to do a better job of connecting more of our regional flights to our long haul service. We have some unique city pairs that other airlines don’t have, so that is an opportunity, especially in the off peak season. That however, is a challenge in itself, due to slot constraints at JFK that dictate the timings of these flights. So if you change something at this end, you lose other European to European connections.”
In summary, so we are told, good loads, unprofitable yield therefore loss making.
Freight is performing really well. Perhaps convert the A330 into a cargo plane? Then again the leasing costs per month are apparently excessive.
Also, will this Atr come from TGD?
JFK has been a BIG mistake for JU
Does JU expect a single A332 to fill its entire regional network? Destinations such as CPH, ARN, DUS, TXL and AMS must be at least daily in winter and at least 10-11 weekly in summer.
Seems like Kondic and Etihad started building their house from the roof and now they are in panic mode because they realized how unstable the whole structure is.
https://www.youtube.com/watch?v=MBFVzCc281o
Видео обрада је као да је радио неко ко тек стиче знања из струке па вежба са основним функцијама програма за обраду, док је избор кадрова досадан.
Просто када се ради промоција она мора да има свој циљ и јасну поруку за публику којој се обраћа, а не да се ради нешто тек да се одради.
How do you figure that they are trashing capacity ?
Most people will still opt for a bus or a car.
The P2P potential is there, JU just doesn't know how to make the most of it. Just like they failed to secure their own share of the Israeli tourist market.
So u can ignore this all and add capacity but dont hve to wonder why prices are not increasing ;-)
Codeshare would be nice, but a good interline agreement gives you 90% of what a codeshare would provide anyway
http://www.skyscrapercity.com/showpost.php?p=139547924&postcount=10361
AA doesn't care about JU, they are not even close to being on their radar. There will be NO code-share agreement. The interline is the best JU can do for the time being.
Or Aviolet short-haul to the Maghreb - Tunisia, Morocco and Canary Islands!
Have a look at the last part of this article
http://www.exyuaviation.com/2017/04/air-serbia-mulls-future-of-aviolet.html
1. Flight was announced on Nov 9 2015
2. All regulatory approvals were grated on May 13, 2016
3, Flight launched on Jun 23, 2016.
So:-
1. it hasn't been anywhere near 2 years
2. no US carrier will enter into any serious codeshare discussions until ALL regulatory approvals have been granted
3. Cooperation always starts with an interline agreement in order to evaluate viability of a codeshare
4. They have only been flying for 10mths
So, there is still probably some way to go for a US carrier to evaluate the viability of codeshare potential with JU.
BUT, they are flying to JFK while others in the region can only dream of it - FACT
By the way, the best way to make pax feel welcome and nice during a long haul flight is also one of the cheapest - send cabin crew every 30 minutes or so through the cabin with a tray of soft drinks, water, OJ, etc. That's what people want the most anyway.
Lucky for you to have snagged a cheap fare !!
Why should there be any impact ?
In response to your question both the above airlines are bigger players. Air Serbia is not. It has a small fleet, parks planes, is trying to lease out its already leased planes and is loss making.
Prvo, od kako je u Zagreb došlo bitno više konkurencije i cijene su ozbiljno pale, ima već dvije godine da nismo koristili letove izvan Zagreba. Jednostavno se ne isplati. Moji djelatnici nikada nisu putovali izvan Zagreba samo zato da se uštedi 50-100 EUR. Ali ako je ušteda par stotina EUR... Bit će da radite u državnoj firmi ili uopće ne putujete okolo ako vam ova koncepcija nije jasna. Moji djelatnici ne putuju autom ni do Beograda, Zadra, Splita, Sarajeva, a nikada, baš nikada u posjednjih 20 godina, nisu potovali autom do Dubrovnika.
Drugo, moji zaposlenici su jako zadovoljni, hvala na pitanju. Nikada nisu ostali ni gladni, ni žedni, kraljevski se pogodste na putu, niti su smješteni u manje od hotel sa 4****, voze se u superluksuznom terencu sa najvišim mogućim luksuzom, plačeni su daleko više od prosjeka i to baš za svaku minutu koju rade... Zato, ljubazno molim da se ne iznose ovakvi nonsensi.