The Serbian President, Aleksandar Vučić, has said he is hopeful that Air Serbia will post a profit for the previous year but conceded he has no precise data. "I hope they have turned a profit even though it is very difficult. People should be aware of this. If you exclude the transatlantic operation, I am certain Air Serbia is profitable. Even with the long haul service I hope they are in the black, which is terrifyingly difficult", he said. Responding to questions at a press conference, the President added, "I won't remind you how Montenegro Airlines, Croatia Airlines and others are performing. It is very difficult. I don't currently have precise information but since you [media] are insisting on this topic, I will personally prepare for a future press conference".
Air Serbia is yet to publish its financial results for 2017. The airline posted a profit for three consecutive years in 2014, 2015 and 2016. In 2014, the carrier's net profit stood at 2.7 million euros, which was followed by a 3.7 million euro profit in 2015. In 2016, upon launching its first long haul service, the airline's figures declined 77% with Air Serbia managing a 990.000 euro profit. However, such results are unlikely to have been achieved without the financial support provided by the government. Commenting on Air Serbia's flagship route to New York and the sustainability of the service back in April, the Serbian President noted, "Can you make money on flights to New York? Of course you can't. We will be able to do that in about a year or two when three to five years have passed since the route's launch. However, these flights are important for the country's and airline's branding and image".
Croatia Airlines and Montenegro Airlines are the only two carriers in the former Yugoslavia to have so far published their financial results for 2017. The Croatian carrier registered a record net profit of 3.6 million euros on the back of selling its five weekly slot pairs at London's Heathrow Airport, while Montenegro Airlines posted a net loss of 4.6 million euros, its smallest in five years. Adria Airways is yet to publish its figures for the previous year.
Air Serbia has undergone wide-ranging restructuring in an attempt to boost its key performance indicators, as it struggles to keep a lid on costs, growing competition, an over-inflated workforce and the winding down of state subsidies. The airline has taken steps towards restructuring its business by reducing its workforce in late 2017, transforming into a hybrid carrier, consolidating its destination network, putting on sale non-airworthy general aviation aircraft and retiring some of its ageing Boeing jets. The company's interim CEO, Duncan Naysmith, told employees in an internal memo in February that focus will be put on "net profit, the new fare structure, in-flight sales, additional services that bring in ancillary revenues, as well as other initiatives to boost efficiency".
Comments
And the cheerleaders were again proven wrong.
Let's all hope that now that even their dear leader admitted the truth of JFK being launched for prestige perpuses they will be able to admit it too.
Let's launch a few more prestige routes, to increase the future profits!!!
Yes, I believe the whole operation is failing to turn a profit.
The JFK adventure just made matters worse and exposed the ugly truth about the ASL business model.
Now this is much less than 40 million EUR they received in 2016 but they still received some money.
@ anonymous 9,14am
Air Serbia's intial full service approach was clearly Etihad's poor understanding of the European and Serbian market, and that still continues on with this restructuring into an over prices hybrid airline, unfortunately.
i can imagine the chaos in JU financials at the moment, trying all kinds of somersaults to paint a good picture.
my guess he will will mostly rely on good money they've got from vinci, tourism development, wider reach of aviation industry (supported by that oxford economic nonsense they always mention), and of course that JAT was dreadful.
wonder if he will announce coming of neos?
Bravo Vucicu, tako se govori, to je najvažnije!
You are absolutely right! Poorly managed company from the begining.
JFK is only the top of the iceberg
AirSerbia Boeing 737-300
56/144= 38,9%
Real load was 56/66 as that was the configuration that was used during the sales period.
2013 prihodi od donacija EUR 3
2014 prihodi od donacija RSD RSD 8.4bn EURRSD 121.5 EUR 69
2015 prihodi od donacija RSD 5.96bn EURRSD 120.67 EUR 49
2016 prihodi od donacija RSD 4.95bn EURRSD 123 EUR 40
Otpis duga aerodroma 2014 RSD 1.5bn EUR 12.3m
Otpis duga 2015 aerodroma RSD 2.3bn EUR 19m
total 192.3 2013-2016
At 5% cost of capital this is ~eur 220m in 2017 euros.
Plus airport fees were so low, that the true subsidy is much more than the airport bill.
Није, то је непланирана замена ваздухоплова јер се вероватно неки од Атр-ова покварио. То је редовна пракса у таквим ситуацијама.
На крају крајева, Ер Србија није изгубила паре на том лету иако је попуњеност била свега 38%.
Okej stari.
Nego, koliko vam još para treba, pa da skupimo?
Even more potential for "profits" for ASL!!!
The sandwich eaters found the solution again.
If the NBS did not intervene a few times it would be 117.6 by now.
You don't like criticism? Move to Iran or Russia.
Vjerojatno ste plaćeni po stranačkom postu, pa onda ima smisla.
By using your logic all airlines could during "sales period" sale the smallest a/c, fly with something else and LF would be all the time greater then 100%. How the others haven't found out that logic?
What if todays number were 67/66, how would you explain LF of 101%?
By addding another seat in the cabin ?
What if 68/66? Two additional seats ? ????
it would be bad luck to have a fully booked (Atr)flight but then need to make last minute changes and fly a loss because of the larger aircraft
You seem to be lacking the understanding of how the airline business functions, and in particular Revenue Management. One parameter in RM is the capacity on which the forcasts and therefore sales are done. If the larger plane was planned in the system long ago, the availability of the lower fare classes would have been there resulting in more sales. OPS can always change a type, which is pretty normal in cases of technicals. The flown LF is of course calculated on the AC flown, but since it was changed on short notice, the sales load was pretty good- calculated load factor of course bad. The same vice verca where a bigger plane is used and changed to a smaller.
@Alen: Everyday occurrence around the world! In both directions!
A LF of 38% is not realistic because during the sales period there were no 144 seats on offer but 66 as the Atr was scheduled to operate the flight.
Also, as the Atr was filling up fares kept on climbing. Had they planned to operate the flight with the 733 there would be more passengers as there would have been far more lower fares on the market. It's quite simple. You can use JU's SKP flight as an example where we have a mix of A319 and Atr.
This is a last minute swap which are quite common. I remember once I was supposed to fly on a LH A319 but due to a technical issue the plane was changed to an A300-600. There was no way for it to be full because its configuration was never available in the reservation systems. Realistically speaking, Lufthansa looked at the success of the flight based on the configuration that was planned.
As for your question why other airlines have not thought of it, well, the answer is quite simple. Primary concern of all airlines is to secure good yields. There is no point in having a high LF if you are losing money.
Forecast, revenue, margin and all other busienss parameters used in sales process are very well know to me, as I am daily using the numbers.
Na trenutak sam pomislio da možda i nisi fanboy, ali ovime si odagnao svaku sumnju u suprotno.
There are number of indicators that companies are using to keep track of their business.
LF is one of them. You wrote about it.
You didn't wrote about revenue, yield, costs etc., and my intention was to point out that LF has never been calculated around the globe in the way you wrote.
Full stop.
Proud that Heathrow is still flown.
Proud that punctuality is at its best and the regional hub being transformed from dream to reality.
Keep up JU! God bless your nearly 100 year history that no other airline in the region managed. Hip hip hurray!
http://www.exyuaviation.com/2018/05/trip-report-air-canada-san-francisco.html
zivela air Srbija
Grohotom se smijem. evo jedan sendvid od mene
All Kucko ever said about Air Serbia is that he doesn't believe they are threat to OU and on that he was actually right!
+1000
Treba znati čitati.
I onda je svizac zamotao čokoladu u omot.
Je se odjavljujem, a ti si ponavljaj mantru: sve je super, sve je okej...
A319
129/144 = 89,6%
Osim sto su radnici dobili bolje uslove za rad i druge stvari su znatno profitirale posto ti isti radnici trose plate tako da je to odlicno.
Osim toga jos da dodam da ima znatno vise Turista koji dolaze sa Ju i ostalim Aviokompanijama za BEG.
Tako da je to ogroman uspeh za sve j ne treba odma kritikovati bez razloga.
INN-NS
Osim sto su radnici dobili bolje uslove za rad i druge stvari su znatno profitirale posto ti isti radnici trose plate tako da je to odlicno.
Osim toga jos da dodam da ima znatno vise Turista koji dolaze sa Ju i ostalim Aviokompanijama za BEG.
Tako da je to ogroman uspeh za sve j ne treba odma kritikovati bez razloga.
INN-NS
That said, thanks a lot mate.
I AlItalia ima sve navedene karakteristike pa je u bankrotu.
+1000
https://youtu.be/kSNvqOoE_9c?t=13s