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. The airport will now be responsible for the airline's ground handling over a period of five years. 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.
Comments
It's time for the government to sack Dane who has singlehandedly destroyed the airline.
Agree it is looking more and more like AB. Especially with this premium long haul product and then low cost short haul product.
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.
This is reality in air travel today. Time for people to get used to it.
If that's the case then I expect ASL to charge me €100
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?
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)
Niko od tih prepametnih nema ni prebijene pare da ulozi u u LCC kompaniju ni preko deonica. Tu se sva prica zavrsava.
If so no further extension is needed.
And they were called haters again and again.
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
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.
That said, as a forum of free expression, you are entitled to your view - as am i to mine
Which part of what he has written do you see as spin ?
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 ?
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
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.
You obviously don't travel much.
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?
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.
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.
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".
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
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
https://www.youtube.com/user/WingsClubFoundation/videos?sort=dd&shelf_id=0&view=0
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.
A bloated company full of ne radnici - you must be one of these
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.
Hopefully this can become a reality some day when the political landscape changes for the better.
if you don't understand that, then you should move to commenting on farming or some other business
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
Bravo !
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
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.
you are a hopeless romantic.
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.
cheers!
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!