Air Serbia has posted a profit for a third consecutive year in 2016. The carrier recorded a net profit of 900.000 euros, which is down 76.9% on the previous year when it saw a profit of 3.9 million euros. However, during 2016, the airline saw significant network expansion and investment with the launch of its transatlantic flights to New York and the delivery of its first wide-body aircraft, the 254-seat Airbus A330-200. Total operating revenues reached 320 million euros, representing year-on-year growth of 5% over 2015, when it amounted to 305 million euros. As previously reported, these results were accompanied by an increase in passenger numbers, which rose 3% to 2.62 million and total cargo uplift, which grew to 4.913 tonnes, up 31%.
| Year | Net profit / loss (million €) |
|---|---|
| 2013 | ▼ 73 |
| 2014 | ▲ 2.7 |
| 2015 | ▲ 3.9 |
| 2016 | ▲ 0.9 |
Codeshare partnerships continued to make a strong contribution to the business in 2016, adding 26.7 million euros to Air Serbia’s top-line results, representing an increase of 24% over 2015. During the year, the company signed codeshare agreements with a further four carriers, including Air Seychelles and Montenegro Airlines, bringing its total number of codeshare partnerships to nineteen and expanding its connectivity to 127 cities. Furthermore, the Serbian airline strengthened its existing codeshare deals, in particular with Air Berlin and Etihad Airways.
Commenting on the financial results, Air Serbia's CEO, Dane Kondić, said, "We are pleased to have recorded a net profit of close to one million euros in 2016 despite the considerable investment in our operations. This year our focus is on strengthening our commercial results, improving the efficiency of our operations and maintaining our focus on cost control and balance sheet discipline". He added, "Earlier in 2017 we moved to Sabre for our reservations and check-in systems, which have enabled Air Serbia to introduce new personalised services and drive incremental revenue, and at the same time unlocked an incredible potential to digitalise our services. On the fleet side, we have recently refitted our narrow-body Airbus A319 and A320 fleet with 1.500 new Recaro seats, increasing capacity across our short-haul network and making Air Serbia more competitive as a result".
Mr Kondić noted that the airline will have to respond and make changes in its business in order to remain competitive. "The competitive landscape is changing rapidly, not only as a result of the greater number of airlines flying to our hub in Belgrade, but also from the growth of alternative secondary airports in the region. In order to ensure that we continue to deliver positive results into the future, we must maintain the ability to respond and to continue to make the necessary adjustments to our business. This includes leveraging our investment in technology to drive revenue and offer the customer more choice whilst ensuring we work more efficiently and effectively to reduce our cost base. We have a clear commercial mandate and are keenly focused on achieving our business targets as set out by both our shareholders, the Government of the Republic of Serbia and Etihad Airways”, the CEO said.
Air Serbia's Chairman of the Supervisory Board, Siniša Mali, added, “Posting an annual net profit for 2016 is a great achievement for Air Serbia considering the substantial investment made in its fleet and network. Launching a long-haul route on a wide-body aircraft, as Air Serbia did by connecting Belgrade to New York last year, is always a costly undertaking. The service has now been operational for one year and is already delivering strong benefits to Serbia in terms of increasing inbound tourism numbers from the US and strengthening our business ties. Travel demand for Air Serbia flights continues to grow and last year 2.62 million people flew to and from Belgrade, driving the development of the tourism industry and the wider Serbian economy”.
Congratulations
ReplyDeleteCongrats for what ?? For profit setting ?
DeleteI wrote the comment just to see your response.
Deletehaha I've noticed that whenever someone write congratulations for an Air Serbia post, be it new route, improved operational results and so on this guy writes "Congratulations for what?" and then adds a question :D
Delete@Anon at 9:03 AM
DeleteIf Air Serbia really made any profit, and not faked its books like it does since its inception, that would be worth congratulating to. However, it is the Serb Taxpayers who are made fools here.
Air Serbia/Jat losses at least @€600 million and growing with each passing year.
600 million EUR? How do you people even come up with these numbers?
DeleteProfit is melting down!
ReplyDeleteCompletely logical since they launched NYC. It's amazing they even had a profit.
DeleteImagine how bad their financial performance is when even with creative accounting their profit collapsed by 76%. No wonder the airline is in crisis mode.
DeleteI do wonder, if there was no JFK then they might have actually had a legit profit.
Creative accounting is when you sell slots and various parts of your existing fleet equipment, to cover the dismal annual results. For that, we have a specialist airline, in one of the neighboring countries to the "west".
DeleteGood work JU, and good luck! Consolidation of the JFK flight overt his year, will result in return to profit growth.
Their profit shrank by 3M euro. So when you take the actual figures it is far less alarming compared to use of 76% in an attempt to indicate something huge.
DeleteAnd I suppose you have some proof that their accounting is creative (whatever that stupid expression means)?
'the airline saw significant network expansion.'
ReplyDeleteThey launched New York and Venice, what's so significant about it? It's just two destinations.
Nevertheless these results are good, they are consolidating their operations. Unfortunately until they grasp the importance of marketing and sales beyond Serbia the airline will keep struggling.
Also the fact many competent people were let go from the sales department is depressing.
This concerns 2016. They didn't launch Venice in 2016 they launched it in 2017. In 2016 they launched New York, Hamburg, St Petersburg and Kiev. Launching New York is significant.
DeleteOh I nearly forgot, they also launched Ohrid in 2016. So they started 5 new routes during that year.
DeleteKBP and LED were/are seasonal so the only routes they actually launched are HAM and JFK.
DeleteLOL so what if they are seasonal. They are completely new routes, as is Ohrid.
DeleteWell if they are going to mention significant expansion then they might also want to mention the significant reduction that occurred at the same time. ;)
DeleteWell actually they started reducing ops in 2017. ;)
DeleteThe first reductions occurred in W16. Winter 2017 was when they decimated their ops. ;)
DeleteNot really. ;)
Deletehttp://www.exyuaviation.com/2016/10/winter-201617-air-serbia.html
Even further proof of that is that Air Serbia's passenger numbers grew during the first quarter quite a bit.
DeleteI am referring to the cuts made afterwards in the system. ;)
DeleteIn February 2017... and the article refers to 2016.
DeleteNetwork reductions made in the system started to be applied from mid-November 2016.
DeleteWay to go Air Serbia!
ReplyDeleteNice results JU!
ReplyDeletePretty good considering they started NYC. Will be very interesting how they perform in 2017.
ReplyDeleteThe posted result is a complete nonsense. Creative Accounting in every sense! What about the state subsidies? Please tell us mich did you get? Dr Mali has zero clue of the airline business and unfortunately Mr Kondic is not far from that either.
ReplyDeleteIf you look at the national budget posted online those subsidies fall in a group of three, four companies for which €40 million was set aside. My guess is that JU gets somewhere between 10 and 20 million.
DeleteRead the financial statements, all you answers are there. It really amazes me how people who know absolutely nothing about accounting find themselves experts in discovering 'creative accounting'.
DeleteAccept it - just because an entity you hate so much posted annual profit does not mean their accounting was creative. It is only your hate that is creative and always finds a way to erupt.
It was creative.
DeleteWhat does it mean? What is 'creative accounting'? Can you explain it?
Deleteyou are trying to play this on semantics. it is a fact that JU would be heavily unprofitable if there wasn't any subsidies.
DeletePetar celik, what subsidies? Asl hasnt recived any for years now? Saying it everyday doesnt mean its true but i see many here does.
Deleteyears? years? are you fu*** kidding me? just in 2015. they received ~50mil€, not to mention BEG write-offs that were treated as investment by serbian government.
Delete2016 you can expect the same, if not more, due to JFK launch
Hahahaha you are so blind by the hate its crazy they have posted articles where mali states they havent recived subsidies for 2016 and yet to still keep on nagging on it.
DeleteSerbia, as a candidate member state, has to abide by the same state aid regulations as any EU state. As such, state aid to Air Serbia in a form of subsidy has to be approved by a state commission in line with EU regulations. If not, that subsidy will be examined and potentially repaid once Serbia joins the EU. Same rules applies for serbian companies as croatian.
DeleteYou guys can defend the airline all day long, but Petar is right... unfortunately these subsidies are well hidden from the public just like they do it at OU, MX or Etihad or any major airline. Its hard to accept it but trust me, for someone whp works here in flight ops department its not pretty guys. We are way over staffed for our fleet size and most importantly the amount of flying that we do. The previous management has overkilled the operation by hiring randomly. Same goes for FAs as well other ground staff. Maintenance how ever is hurting badly bacuase engineers are quiting and going to work outside of Serbia. They can't put up with stress and amount of unpaod (!) overtime they have to do.
DeleteSituation is not pretty at all. Hopefully we find a place to lease out those three Airbuses otherwise its going to be a long winter. Cuts and pay reductions are already in plan for the fall, just no one is willing to talk about it.
I still believe the airline hasa good chance to correct its course but the surplus of staff its accumulated over the last three years is unbelivable. The government will have to step in and do something about it or we will shrink to a size od Adria...if we are lucky
Don't want to see that happen as i like working here and wish the airline the best just like i do to our neighbors in the region.
whoa! some real inside info!
DeleteČim sam ugledao jutrošnji naslov pomislio sam Bože da li su hejteri spremni sa svojim negativnim komentarima i da li su našli dovoljno izmišljenih razloga da popljuju svaki dabar rezultat u AS. Vidi se da se momci trude:) samo vi polako, dan je dug .. Kako stvari stoje tek iduće godine će vam biti potrebno još više negativne energije pošto 2017 već sada financijski izgleda jače i stabilnije od 2016..
DeleteČim sam ugledao jutrošnji naslov pomislio sam Bože da li su hejteri spremni sa svojim negativnim komentarima i da li su našli dovoljno izmišljenih razloga da popljuju svaki dabar rezultat u AS. Vidi se da se momci trude:) samo vi polako, dan je dug .. Kako stvari stoje tek iduće godine će vam biti potrebno još više negativne energije pošto 2017 već sada financijski izgleda jače i stabilnije od 2016..
Deletenije ovo stvar mržnje. radi se o istini. treba da vas je sramota da se pozivate na Boga a objavljujete lažne podatke. To da je ASL je poslovala pozitivno je naučna fantastika. A kakva će budućnost biti za ASL videće se vrlo brzo. Sve mislim da ćete se izvinuti za svoj komentar. Pa ipak neko će morati da odgovara za avanturu zvanu AirSerbia.
DeleteNeće niko morati da odgovara, to samo u vašim umovima otrovanim mržnjom postoji nada da će svako ko vama lično nije po volji otići u zatvor a sve što vama lično nije po volji biti uništeno i sravnjeno sa zemljom kako biste vi bili srećni.
Delete@ body builder
DeleteWe know JU would have been deep in red if there wasn't for state aid. What matters here are two things:
1. State aid is a completely legitimate thing. We can debate on its usefulness but there is nothing illegal in it.
2. State aid is clearly shown & visible in the financial statements, meaning there is no such thing as 'creative accounting' or whatever the hater brigade keeps on selling here.
Yes, there is state aid. Yes, it is properly reported. Yes, without it JU would be a loss maker. No, there is nothing illegal in state aid. Yes, haters are in pain today.
Hmm then why isn't JU publishing their operating loss/profit yet they are hiding it and showing the numbers which do not represent reality.
DeleteEVERYTHING is published in their financial statements. ALL NUMBERS are there. If you don't understand them, can't read them, or they simply don't fit into your political agenda, that is a different pair of shoes.
DeleteAnon 07.17
DeleteCalm down, the actual report was published yesterday afternoon so now we can see what a massive loss they actually had once you factor in the tax payers' money they received.
How many destinations did JU initially have when it was launched in 2013 and how many does it have now? Routes completely dropped were: KBP, WAW, VAR and soon AUH. New routes: LED, VCE, JFK and SPU. So, overall, not so bad.
ReplyDeleteNew routes since Air Serbia launched which are still operated today are: Banja Luka, Ohrid, Zagreb, Tirana, Ljubljana, Sofia, Bucharest, Hamburg, St Petersburg, New York, Beirut, Venice.
DeleteDefine new routes because some like TIA, OHD, BNX, LJU, LED and BEY were operated by JU in its last five years of life.
DeleteThey were not operated when Air Serbia launched so yeah it is a new route, just like New York is even if JAT operated it in 1991.
DeleteYeah but JFK was operated by JAT which is a completely different airline than Jat was.
Delete...also, some of them were suspended like a year before Air Serbia was setup.
DeleteIt's exactly the same logic. I can say Air Serbia is a completely different company then Air Serbia. The point is none of those routes were operated by Jat when Air Serbia launched, many of them for over 5 years.
Delete@9.20. So what?
DeleteOk, I guess beggars can't be choosers.
DeleteNo, it's that your logic is completely foolish. They launched around 10 routes that were not operated when Jat ceased to exist. Wheather they were operated by Jat 5, 6, 7, 20, 50 years ago is completely irrelevant. Also, I would just like to remind you that Jat Airways pretty much suspended Brussels as well. It flew seasonal during the summer via Amsterdam!
DeleteSo these were not new routes but reintroduced routes, especially since the airline claims they are the successor of AeroPut, JAT and Jat.
DeleteShall I remind you that Jat operated three weekly flights to CPH, the same number as Air Serbia this winter. ;)
Ok reintroduced routes from the past decade. So what? You don't want to count them into their route count because it was operated by Jat 10 years ago? Jat was obviously unable to make them work. Don't see what your point is actually. And by the amount of ";)" we can see you already posted 10 comments today. Take a break.
DeleteSo you agree that these are not new routes but old ones brought back? ;)
DeleteSo you attacked me for no reason then.
No, they are new routes as they were not operated at the point the company started started operating.
DeleteSo when Croatia Airlines started Stockholm this year which it last flew to in 2000s, I didn't notice your comments that the route is not new and your ";)"
DeleteLOL! ";)"
DeleteLove these sarcastic trolls, with their little smiling winks.
They are not new for JU, they are reintroduced.
DeleteWhy do I care about OU?
What a dumb thread of comments, especially the guy with whether it is new or reintroduced. WHAT DIFFERENCE DOES IT MAKE?
DeleteYou see them not new, the management sees them new. Go and sue them, ask for a court order saying all those routes must be labeled as REINTRODUCED whenever they are mentioned. You have legal means as a citizen, do something! Anything is better than endless c/p of the sad envious, cynical and irrelevant comment.
DeleteAir Serbia's new motto: reinventing the wheel since 2013.
DeleteIt hurts that much that they are not in red? It's OK, every pain ends sooner or later. Just be patient and stay strong.
DeleteYeah they are profitable as your average government owned company.
DeleteThis probably was the most ridiculous and most useless comment thread I've seen recently
DeleteLast Anon, your comment isn't helping.
DeleteNice! So on average they had 79 Pax on each flight .
ReplyDeleteThese are terrible results! So they carried more passangers and got 3 million loss. Something is not going well!
ReplyDeleteWhere did you find the 3 million loss?
DeleteYou do realize they launched flights to New York and started leasing a widebody? Some aviation expert you are if you think that doesn't affect your finances.
DeleteNjujork je samo deo mnogo veceg problema a to je nesposobnost menadzmenta da se suoci sa realnoscu, tj da nisu sposobni da vode firme.
DeleteMogu da se kladim da ce Mali zameniti Daneta posle beogradskih izbora u januaru.
The issue is the haters were all saying how its going to be a massive loss. Now that it isn't a massive loss, or a loss at all, they have to find something to cling on and survive the day.
Deletehahah and what will you be doing? Cheerleading creative accounting?
DeleteJU is reporting smaller profits while almost all airlines in the world are recording historic highs.
So what is the issue last anon? Small profits or creative accounting? You haters seem to be unable to maintain a minimum consistency in your conspiracy theories.
Delete"JU is reporting smaller profits while almost all airlines in the world are recording historic highs."
DeleteHa ha ha!!! As much as your cross-border hating frenzy is satisfying your nationalist agenda, JU is the backbone of ex-YU regional aviation. And you weak, hypothetically open-ended provocations will not change that any time soon.
Small profits are a result of creative accounting otherwise there would be massive losses.
DeleteYeah? And small-minded statements are a result of nonintellectual desire to sound clever.
DeleteWhat's nonintellectual about the post at 09.58?
DeleteAnon 9:58,
DeleteCan you explain what is 'creative accounting' and how exactly it turned JU's massive losses into small profits?
9.58 and 10.58, or it could be the massive investments it takes to launch a long haul flight. Wasnt that you all said was the craziest thing asl could do and it would bankrupt the company, but now when we saw a profit in 2016 its instead "crestive accounting" haha its crazy nothing can change your mind youre in here to hate on asl constantly, if long haul was cheap ou would have done it years ago like they wish!
DeleteIf they had 3,9 milion profit last year, and this year they got only 900,000 with more passangers carried, this is clearly million loss!
DeleteNo. It is a decrease in profit.
DeleteHere you go:
DeleteAir Serbia's financial report
https://pbs.twimg.com/media/DGyaVnKXsAA67NG.jpg
Yep, load factors kept going up nicely last year to 72.4% from 70.7% in 2015.
ReplyDeleteThe good thing is it has kept growing this year as well.
DeleteThis year they are not growing.
DeleteYes it is. They recorded an average cabin load factor of 70.5% in H1 2017, showing an increase of 3% against 2016, with particularly strong seat occupancy in the second quarter at 73.3%.
DeleteSo you are wrong.
Serbovanje!
ReplyDeleteNaah.. more like Etihadovanje.
DeleteOf course. Any news that can't feed your endless hate is srboetihadovanje.
DeleteJealous much?
DeleteUnsurprised the usual trolls have been out criticising already, but I'll say something similar again - what would you rather... an airline that costs the state millions of €s, or one that doesn't?!
ReplyDeleteOne that doesn't.
DeleteUsually when there is relatively good news, that is when their anger and frustration really starts. Remember about launching New York. First it was - it will never launch, the it was - they will never get a license, then it was - they will never get a plane, then it was - flights will be empty, then it was - flights will be cancelled in a year etc.
DeleteYou don't get the point here. There's a difference between propaganda and the news. One from same family posted 1mio net profit and hit the wall seven months later.
DeleteThe majority of the propaganda is spewed by you guys. I have been reading how they will hit the wall every year. If they hit the wall in seven months, it would be you that will be the happiest. So what's the issue?
DeleteThe issue is that this is not their real performance.
DeleteAnd you know their real performance if it isn't this one?
DeleteBut you can't share details or evidence with the rest of us, right? We'll just have to take your scout's honor for it?
DeleteIt's confidential.
DeleteOf course it is. We believe you 100%.
DeleteGreat, thanks for bring understanding
Deletewow the amount of people that got triggered by this news is amazing and funny :D I have never seen more people praying for a company to fail and go bankrupt then I have seen for Air Serbia.
ReplyDeleteReally? Think again!
Delete+100
DeleteAnon 9:48
:)
Haters gonna hate. You all donrealise that a legitimate western company audits Air Serbia, and for the sake of shareholders (ie Etihad) they would be breaking their contract by lying to say that there is profit?
ReplyDeleteWhat I don't understand, and obviously never will, is the amount of conspiracy that rules the Balkans. Why is it so hard to believe that yes there is profit?
Show your proof of 'creative accounting' and I will apologise, until then ne mlati praznu slamu!
You are absolutely right, audit companies always do their job the right way
DeleteThey don't always do the job the right way but in 99% of cases they do. Of course the Balkans Hater Union will always be happy to creatively use the remaining 1% and back up that conspiracy theories, doomsday wishes and political activism.
Delete(that = their)
Delete@Anon 09:56 - You do realise that there are serious legal implications by falsifying this information? Why would someone risk their life and career for the sake of Air Serbia posting a profit of €900,000?
DeleteWake up and smell the coffee. How often do you see big guys in the US end up in jail because of corruption.
DeleteAir Serbia has cut by 7% the number of scheduled flights during next November, December and January. New winter destination is VCE, more flights to ZRH during Christmas period. No more AUH, OTP 6 weekly. Destinations affected by restrictive measures are CDG, DUS, ARN, CPH, BNX, BEY, LCA, STR, FRA, BRU, TIV among others.
ReplyDeleteLCA? From what I saw it's three weekly like last year.
Delete& NemjeeAugust 9, 2017 at 10:05 AM
DeleteNo flights to LCA? From what I saw it's three weekly like last year.
There won't be any flights to Larnaca between mid November and mid December, plus no flights in whole February etc. Check airserbia.com/flight schedule
So Wizz Air is adding flights to lca while JU is cutting them
DeleteCool, thanks for the update.
DeleteIs the 900.000 operating profit or?
ReplyDeletenet profit.
DeleteThank you. What about the operating one?
Delete320 million euro.
DeleteThat's operating income, what about operating profit/loss?
DeleteHahah its so funny to see all of you go crszy in here, as i told a week ago it was a 1m profit and i also said we were going to start a new long haul in 2018 ;) toronto or chicago!
ReplyDeleteThis year their profit will be up at least 4m euro considering their cost reductions i belive even more than 4m! I can definatly see us launching another long haul in 2018, which one should it be guys? Toronto or Chicago?
ReplyDeleteWhat we can see so far is that there is one individual,who through multiple postings of the same regurgitated message of "creative accounting in 1,000 ways" is trying to piss on JU's party.
ReplyDeleteDude, its quite easy to pick up your hysterical writing style. Can you elaborate what "creative accounting" you are talking about? So that we can know. Otherwise, troll away!
Well if he was a mere troll and if JU was so loved by the travelling public the it would not be so easy for W6 to grow as fast
DeleteCould be 'creative scheduling' now too...
DeleteI think profit will grow significantly in 2017.
ReplyDeleteWhen will we be able to read the entire financial report?
ReplyDeleteIt will be published by the business registry. Probably this month.
DeleteToday.
DeleteCan you give a link. Thanks :)
DeleteCongratulations to JU! Making profit without selling any of its property and at the same time introducing flight to JFK.
ReplyDeleteit is 11am and there are already 100+ comments :D
ReplyDeleteanyhow, this profit discussions is pointless due to subsidies line that is not contained in this publication. also, the register agency didn't yet published their official report with subsidies line revealed.
just some same old "creative accounting" accusations , followed by "it is not creative accounting and you sold slots" rebuttals by JU fanboys
Asl didnt recive any subsidies for 2016! It hasnt this year either. Stop saying it everyday it is not true! Mayby its not contained in the article since there wasnt some..
DeleteIt did and it's visible in the state budget
DeleteWhat route will be the next long haul for asl? I think it will be Toronto, and that it will start in 2018.
ReplyDeleteI would like to see another us route. So mayby Chicago seems like the most logic route. Or something crazy like Los angeles, would be cool :D i think the next one will come in 2019 mayby 2018
DeleteBangkok in W18.... it has been decided
DeleteI just flew back BEF-AMS-YYZ on Monday and I was amazed how many people continued to YYZ on AC. I'm guessing but at least 30-40 people if not more. Also, I saw couple of my Toronto friends that went via CDG, so that wasn't it that morning as far as YYZ is concerned.
DeleteIt seems that their interline with AC is working well. This summer, the prices were very competitive, plus the two beg policy helped (I think that forced OS to allow second checked luggage as well from BEG, SJJ etc)
Interesting. My auntie went YYZ-CPH-BEG a few weeks ago AC/JU. She said around 60 of them on the AC flight were going to BEG. The AC flight was late but the JU flight waited for them (unfortunately not their bags). They left the minute they all boarded but I was shocked how many of them were flying this way.
DeleteYup, I've heard the same story from many people. Everyone I know took this JU/AC combination via CPH,CPG,LHR,AMS etc.
DeleteI guess JU has a lot of data now to seize the market if they ever decide to go YYZ direct. Unless the terms of their interline are good and they decide to put the metal somewhere else, or nowhere at all.
The problem with YYZ is seasonality and always will be. On the other hand TATL is like that for everyone more or less.
Do you guys happen to know what time are this connecting flight to canada? I have a feeling that if asl starts, then they wont get their best timing because the airport is packed.
DeleteI'm not 100% sure what exactly your question is but usually TATL flights from YYZ depart between 4pm and 8pm,arrive to transfer point early morning to catch JU's return flight from the morning wawe.
DeleteI hope this answers your question.
Yes, that what i needed to know. Sorry for my english.
DeleteŠta se može lepo kupiti za tih 900 000?
ReplyDeleteIn reality, the profit is up for €8 million compared to 2015, bearing in mind that, officially, in 2016 JU was not subsidized (over € 10 million in 2015). With reduced activity (less flights), increased expenses (wide-body lease), and stagnating number of passengers, that's an amazing achievement. The only explanation could be: beside LF, prices increased significantly. Bit contradictory, but... Idi dane da nam svane.
ReplyDeleteThis year's results will be interesting. I guess profitability will grow with the consolidation measures.
ReplyDeleteSamo treba znati kolike su subvencije u 2016 bile?
ReplyDelete41 milion eura u 2016, kompletan izvestaj je objavljen na APR-u
DeleteCroats were so proud of most profitable company in Croatia = Konzum
ReplyDeleteKonzum (Agrokor) had best companies for audit (Bakker Tilly). And now over night they are not profitable but 5 billion EUR in debts because of creative accounting that was confirmed by Bakker Tilly.
On same way we have our Air Serbia project to be proud.
DeleteSimilarity?
Air Serbia is not your project, but ours. Your project similar to Agrokor is OU, which is one foot in the grave, other than the lifeline of creative accounting and selling off of assets, that keeps it afloat.
DeleteIt's obviously the same guy, he wrote two comments in two minutes.
DeleteI did. I don't know why 2nd part of comment was not published with first one.
DeleteBut Air Serba is "our" project as I am Serb, and "Agrokor" is not "my" project.
Just want to show how company that "we are proved of" can have creative accounting. So I don't believe in Air Serbia numbers.
You did not show anything. We are still waiting for you to explain what 'creative accounting' actually is.
DeleteYou have it down there. They are only profitable because the government injected millions on Euros into them. They should put the actual operating loss they had, not this rosy illusion of profit.
DeleteOT (very important for me :D )
ReplyDeleteDoes anyone know if OU overbooks flights? I have 2 OU segments on a long-haul itinerary coming up next week, and would like to figure out if I have a chance to be bumped.
OU341 has only 1 seat left for sale, and that's in J. OU470 has 2 in Y and 5 in J.
Thanks!
Of course they do.
DeleteAre you a frequent traveller, and if so, what airline and status? This is vital to getting an OpUp.
JU had 5 interesting and intense years with many changes and more will probably be seen in the near future. The aviation market is extremely dynamic and airlines need to act fast to adapt to the needs. I think they are acting reasonably and trying to find more markets. They need to strengthen their LHR agreements, their current slots have excellent operating times. More activity with Air Canada via FRA, CDG, LHR, AMS. Also, ensure strong bilateral agreement with Hainan. Finally, Israel, Iran and Russia. I don't think India is the best market.
ReplyDeleteEK is filling BUD, WAW, PRG mainly with Indians... You'd be surprised.
DeleteWell done!
ReplyDelete40 mil EUR of subsidies in 2016.
ReplyDeletemeaning the real result is -39mil EUR
cheers!
also, in 2017 they received further 14mil EUR from Serbian Development Fund
https://pbs.twimg.com/media/DGyaVnKXsAA67NG.jpg
Deletehttps://pbs.twimg.com/media/DGydwZXXcAAxrgw.jpg
You are not supposed to post things like that.
DeleteState subsidy is a legal and legitimate type of income. It makes sense to support a state-owned company in an industry in which is so easy to go bust. I don't know who taught you guys that each and every dollar the state spends must generate profit, the only guy with such mindset I know of is Miroslav Prokopijevic. And if you follow his logic then there is no point in discussing anything with you.
Deletelol
Deletethey are burning your money from own stupidity and hubris and you are letting them screw you like that? even supporting them??!?
unbelievable
Well, if the Serbian government is still subsidizing JU then why did we sell the airline to the Arabs? They should have kept Jat in that case.
DeleteAlso, why should government owned airlines have a golden parachute but not private ones? If you don't pay your taxes (especially VAT) on time the government sends you a penalty the very next day (70 RSD).
Yet you have companies like ASL which can report millions in losses yet the government does nothing and just writes them another check.
Funnily enough, the money for ASL comes from the private sector out of which the government squeezes every penny so that their incompetent buddies can play with state owned companies.
People in Serbia are generally fed up with this system. We only mention ASL on here because it's an aviation blog but the feeling is no different when mentioning any other company around.
It's been five years already. If I ran a loss making business for that long it would have been shut down either by the bank or the government.
I think this Petar guy needs some chill pills and a good shrink
DeleteNobody questions legality of subsidies. It just points out that Air Serbia's model is not sustainable. At the time when airlines are making record olerating profits, Air Serbia records operating losses.
Delete@Petar Celik
DeleteThanks for the post on 'Ostali Prihodi'.
Would you happen to have figures for the prior years 2014 and 2013?
Roughly EUR 90 million in '15 and '16. (RSD 11bn @ avg EUR/RSD 122 )
Continued
DeleteJust found some source saying that 2014 subsidies were EUR 69 million.
If true, them 2014-2016 total is EUR 159 million.
Missing 2013 figures.
Ok, completed it. 2013 had only RSD 377k in subsidies.
DeleteSo, total subsidies of ~ EUR 162 million since the start of Air Serbia.
my2cents
Continued
DeleteForgot, if we add $40 million debt to BEG in the period 2014-2015, which was written off, the total is then
~ EUR 194 million
Body builder,
DeleteI never said I support this or that government per se. I said I support state aid to certain industries under certain conditions and plans, regardless of which government is in charge.
So spare me of your daily political tirades.
Anon 1:50,
DeleteWho says it is not sustainable? The whole point of state aid is to help certain industry (or an entity) survive through several tough years and become sustainable. In some cases it takes decades - hopefully not in the JU case. The idea is to gradually reduce the state aid until the airline is finally self-sustainable. This will not happen overnight, not in this region at least. 7-8 years would be more realistic. I wish people on this blog had some basic capacity to discuss topics without being emotionally consumed by daily politics.
Anon 07.12
DeleteAnd what happens when you have a company like ASL which is not getting better after five years or being in the business and getting subsidies?
Why should they get special treatment while private companies are subject to the terror of the tax collectors?
Yes, it was the right thing to give ASL subsidies the first two, even three years hoping the situation would improve. In October it will be 4 years and the situation is far from improving, quite the opposite.
So they should either shut down the airline or bring a new CEO, someone who has a clue how to run an airline.
However, throwing billions of Dinars at this project while reducing the salaries of public service employees is far from being the right thing to do.
Do you realize that an Air Serbia fa earns more than an average doctor in the country? What's more important to you, to have a subsidized airline or to actually use those billions and invest them in the country's collapsing healthcare system?
Anon 7:34 +1
DeleteIdi dane da nam svane
Same as we cant dispute the 200m+ dollars OU recived in state aid just before croatia joined EU!
DeleteJust google croatia receives state aid
Stvarno dobar rezultat posto su u plusu, samo da vrate pravu biznis klasu i bice jos dobrih godina.
ReplyDeleteNe samo da neće vratiti pravu biznis klasu, nego će verovatno eliminisati i ovu okljaštrenu.
Deletehttp://www.istinomer.rs/clanak/2062/Er-Srbija-u-2016dobila-40-miliona-evra-subvencija
ReplyDelete~ EUR 162 million
ReplyDeleteTotal subsidies since the start of Air Serbia.
Continued
DeleteForgot, if we add $40 million debt to BEG in the period 2014-2015, which was written off, the total is then.
~ EUR 194 million
Was there a jet fuel discount for Air Serbia by NIS ?
Anon 3:26
DeleteThe convenience on fuel generates approximately EUR 10 million per year
Thanks.
DeleteSo ~ EUR 225 million so far.
Does anyone dispute the figure?
http://www.danas.rs/ekonomija.4.html?news_id=353372&title=Subvencije+Er+Srbiji+40+puta+ve%c4%87e+od+%26quot%3bprofita%26quot%3b
ReplyDeleteWOW
Delete'Sa poreskim oslobođenjima i poreskim gubicima, Er Srbija je platila porez na dobit po efektivnoj poreskoj stopi od 0,47 odsto. Inače stopa poreza na dobit u Srbiji je 15 odsto.'
Why is anyone surprised? This has Dinkic written all over it. SNS is clueless when it comes to economy so it's not like they know what's going on.
DeleteSo ~ EUR 225 million so far.
ReplyDeleteDoes anyone dispute the figure?
It's important to be transparent. People should have a clear idea of how much Air Serbia project costs.
P.S
Not quite sure how subsidies ended up in other operating income, but I leave that to reputable audit firm.
I dispute the figure, but I don't want to waste time on arguing with someone whose sole objective is to inflate the number any way he can.
DeleteEnjoy your tirades.
You won't dispute them because you can't.
DeleteSame as we cant dispute the 200m+ dollars OU recived in state aid just before croatia joined EU!
DeleteJust google croatia receives state aid
Not sure why you call it tirades. I feel that my tone is polite.
ReplyDeleteLet me break it down and then I would appreciate if you could dispute it. My interest is to get to the exact fogure and I would appreciate your input. I may be double counting some stuff.
EUR 162 million (from Air Serbia financial reports 2013-2016)
EUR 32 million ( debt written off)
EUR 30 million (fuel discount)
And OU received over 200m dollar before croatia Joined EU, whats The difference?
ReplyDeleteSo air Serbia and ou have recived over 200million + whats The point here?
ReplyDeletehttp://aviationweek.com/commercial-aviation/croatia-airlines-receives-state-aid-ahead-eu-entry