Air Serbia's Airbus renewal delayed until 2022


The renewal of Air Serbia's Airbus fleet has been pushed back until 2022, the Serbian Finance Minister, Siniša Mali, who served as the President of the airline's Supervisory Board between 2013 and 2018, said. Mr Mali noted the national carrier will replace its eight Airbus A319 and two A320 jets within a three year period in the lead-up to 2025. The airline was to start taking delivery of ten A320neo jets late last year, however, part-owner Etihad Airways cancelled its order for the aircraft this January, which were destined for Air Serbia. "Their acquisition has not been terminated but moved for the period between 2022 and 2025, as the aircraft we have been leasing so far have shown to be very efficient. Since Air Serbia is profitable, it was concluded that new aircraft would impact the airline's finances due to their cost", Mr Mali said.

Air Serbia's existing Airbus fleet, which also includes one wide-body A330-200 jet, has an average age of thirteen years. The airline leases all of its aircraft produced by the European manufacturer. "Since the A319 and A320 have done a stellar job, there is no need to acquire the A320neos at this point. They are better in terms of fuel efficiency, but considering Air Serbia's destination network, which is primarily made up of short haul routes, this efficiency would not give desired results", Mr Mali noted. Over the years, the Finance Minister has not had the best track record in communicating Air Serbia's fleet plans to the public. Mr Mali previously announced Air Serbia would replace its entire ATR fleet in order for its to serve all regional destinations twice per day, announced the acquisition of a second long haul aircraft back in 2016, and was the one to announce the order for the ten A320neos back in 2013. At the time he noted, "These modern, well equipped aircraft are vital to the development of a reliable, customer-oriented and profitable airline".

In January, Air Serbia said, "Discussions on the long-term development of our fleet continue to be a part of strategic talks with our partner Etihad Airways. The airline industry is experiencing significant competition, which is becoming stronger. With changes in demand and aggressive competition, as well as fluctuating fuel prices as the biggest fixed cost for any airline, all carriers are carefully examining the long-term development of their fleets. This is the primary reason Etihad decided to cancel the order for the ten Airbus A320neo aircraft". The Serbian carrier will wet-lease a Bombardier CRJ900 jet from Nordica between June and October to cater for its growing route network.




Comments

  1. Ahahaha thank you ex-Yu for including what Mali said in 2013 and what he says now. So in 2013 these planes were vital for a profitable Air Serbia and in 2019 their cancellation is vital for Air Serbia to remain profitable. Love it! Thank you again.

    ReplyDelete
    Replies
    1. Yes and all his fleet promises. The guy cannot be taken seriously.

      Delete
    2. Far from it that I want to defend him but what was profitable and logical in 2013 might not be in 2019. Long term plans in aviation industry are becoming more difficult to make. Just look at what happened to Etihad in the last 5 years.

      Delete
    3. It's normal to review your strategy after some time. The main aim is to bring in cash.

      Delete
    4. ExYU Aviation is pulling a 'LedByDonkeys' on Sinisa Mali. Nice one indeed!

      Anonymous @10:01
      A more accurate statement would be: "Look at what Etihad did to itself in the last 5 years."
      They did not study the history of Swissair's Hunter Strategy and history did what history does best, it repeated itself.

      Delete
  2. Well in all honestly, there is the least need to replace Airbuses. What they should be replacing are ATRs and B737s.

    ReplyDelete
    Replies
    1. Yes and ASAP!

      Delete
    2. +1000 A 09:04

      Them ATRs are superb planes. Small, but very strong and reliable.

      Delete
    3. 70 seats Embraer would be nice. Much more comfortable than ATR and interchangeable with JU airbus fleet depending on demand.

      Delete
    4. Shouldn't be a problem to replace at least the three oldest props with newer ATRs.

      Delete
    5. It is more expensive. As far as I'm aware JU owns 3 ATRs so they don't have to pay any leasing fees.

      Delete
    6. It doesn't change the fact that the planes will be 30 years old in 2020!! You have to draw the line at some point and replace them.

      Delete
    7. "Since Air Serbia is profitable, it was concluded that new aircraft would impact the airline's finances due to their cost"

      So they will not replace them, neither the 737 nor the AT7. When they do, they will be at loss for the time the depreciation lasts. So al least very cheap aircraft will replace the dinausaurs.

      Delete
  3. They don't have money to buy any planes but sooner or later they will have to start leasing some to replace the ones they got, especially ATRs and B737s. They can't fly forever.

    ReplyDelete
    Replies
    1. How long can the B737-300s keep flying?

      Delete
    2. Depends when they have to get a D check. Probably not worth the money to get one for them. My guess is that's when they will be retired.

      Delete
    3. Turned out these B733 were just fantastic

      Delete
  4. Acquiring neos would have been too costly for them. Leasing aircraft might be the way to go.

    ReplyDelete
  5. Interestingly that time frame is exactly when Etihad's second 5 year equity contract expires.

    ReplyDelete
  6. Waiting on Etihad to do something for them has proven as a bad idea. Maybe they should do something themselves.

    ReplyDelete
  7. Daleko je '23-'25,ko zna sta ce se sve do tada izdesavati u avio industriji.Mene trenutno interesuje nezvanicna informacija da u flotu AS stizu jos dva aviona,ima li io bilo kakav info?

    ReplyDelete
    Replies
    1. "The Serbian carrier will wet-lease a Bombardier CRJ900 jet from Nordica between June and October to cater for its growing route network."

      Delete
    2. Pored tog jednog CRJ 900 Purger je u jednom clanku napisao da se u nezvanicnim krugovima prica da dolaze jos dva aviona.

      Delete
    3. Ne, rekao sam da dolazi jedan noviji 737, te još jedan avion, ali da ne znam jel to već najavljeni CRJ900 ili još i treći avion.

      Delete
    4. Hvala na pojasnjenju

      Delete
    5. Evo sta si rekao Purgeru

      Air Serbia je već nabavila CRJ-900 za nove linije, a u strukovnim krugovima se priča da dolaze još dva aviona. Jedan navodno za Aviolet, a drugi bi i te kako imao smisla za nišku ekspanziju. Kockice se slažu.

      Delete
    6. Da, al sam poslije u komentarima dopunio:

      CRJ9 je taman da pokrije broj frekvencija novouvedenih linija. Navodno dolazi jedan noviji 737 za Aviolet (najavili su više letova Avioleta ove sezone u usporedbi sa prošlom) i još jedan avion. Jel ovaj „još jedan“ CRJ9 koji je već objavljen ili još jedan avion koji bi oslobodio A319 za Niš ostaje za vidjeti. Naime, nije jasno hoće li ove godine letjeti tri 737-300 (kao i prošle godine) ili samo dva. Ako će letjeti samo dva onda je ovaj noviji 737 koji dolazi dovoljan za postojeće operacije. Ako će ih ukupno biti četiri onda će, kao i nekada, jedan povremeno letjeti za Air Serbiju na linijama.

      Tako da se ništa još ne zna...

      Sve skupa je vrlo konfuzno. Najavljuju se dva aviona, jedan je noviji 737, no nitko ne zna jel uz najavljeni CRJ-900 dolazi još jedan avion. Po nekima da, po nekima da nisu sigurni. E sad... uz toliko spinova koji se lansiraju, sam bog zna što je tu istina.

      Purger

      Delete
  8. Instead of replacing current decent A319/320 JU fleet, I think they should give priority to the ATR.

    ReplyDelete
  9. Absolutely agree! Why change the current Airbuses when you can still make a bit more money and delay this for a couple of years?
    The oldest jet is YU-API and is less than 20 years old used to fly for TACA Perú, which is not bad given than today's jets can fly up to more than 30 years.
    YU-ANI is currently the oldest jet in the entire fleet but she can still fly at least for 5-10 more years.

    To conclude. The youngest JU aircraft are YU-APF - A319 (previously flown by the bankrupt Indonesian LCC Mandala) - almost 11,5 years old as well as YU-ARA almost the same age.

    ReplyDelete
  10. They can probably get Sukhois for free.

    ReplyDelete
    Replies
    1. Especially after Adria deal failed :)

      Delete
    2. Don't give them ideas.

      Delete
    3. Yes, like the dilapidated Migs they gave us were 'free'.

      Delete
    4. Nothing ever came for free from anywhere, including Russia.

      Delete
    5. I don't think the management at JU is crazy to take Sukhois. Sukhoi has been trying to sell them these planes for a few year now but they have just ignored them.

      Delete
    6. Anonymous at 09:17
      +1000

      Delete
  11. A220 would be good for JU but probably too expensive

    ReplyDelete
    Replies
    1. Mislim da je za AS jos uvek prevelik A220 za regionalni saobracaj. Ima samo 15-ak sedista manje u odnosu na A319. Potreban im je avion sa oko 100 mesta.

      Delete
    2. Sorry I don't speak Serbian so I don't understand.

      Delete
    3. He said that the A220 is too large and has just around 15 seats less than the A319. They need a plane with around 100 seats.

      Delete
    4. Thank you. Yes, that's true.

      Delete
    5. What about the SSJ100 instead of the A220-100?

      Delete
  12. If they are not fuel efficient for the network, they shouldn‘t have been ordered in the first place?! This guy has no clue, just like a puppet on a string.....for someone who is not much smarter.

    ReplyDelete
  13. I actually think they need a regional jet plane. Something with the capacity to seat 100 passengers. Jat Airways and now Air Serbia never filled the void of getting rid of the DC9/B727s.

    ReplyDelete
    Replies
    1. DC-9 yes, correct it was 100-115 seats on it in JAT and later Jat fleet, but B727, what are you talking about, it was big and heavy plane, mid-range, 3 engines, 160-180 seats, how can you compare it with regional 100 seater?

      Delete
  14. A couple of years ago, there was a significant order of Embraer jets from many Eastern European + CIS countries:

    "The E-Jets are already well established in several countries in Russia's vicinity – Poland, Finland, Bulgaria and the Republic of Moldova – and in CIS countries where Embraer has E-Jets customers in Kazakhstan, Azerbaijan, Belarus and Ukraine."

    I don't know why JU is not looking at Embraer. They have extremely efficient jets and are regional horses similar to the ATR.
    B2, LO, FB, 9U all use them.

    The E170 and E195 are perfect for ASL.

    ReplyDelete
    Replies
    1. But introducing a completely new model would involve training pilots, buying new spare parts and paying extra to fly it for maintenance somewhere else.

      Delete
    2. JU has a mix of Airbus, Boeing and ATR. A 4th addition won't be bad.

      Delete
  15. Right. Well if they want to buy them brand new they should be placing an order now so they could get the first one in 2022.

    ReplyDelete
    Replies
    1. They obviously won't be brand new.

      Delete
  16. What this shows is that future fleet renewal will be paid by Air Serbia and not Etihad. The biggest investment Etihad would have made in Air Serbia is paying for those 10 neos. They got out of it, like many of their responsibilities.

    ReplyDelete
    Replies
    1. You really think Air Serbia would have gotten those neos for free? Since they would be purchased by Etihad they would be leased by Etihad to Air Serbia for who knows what kind of rates.

      Delete
  17. "Since Air Serbia is profitable, it was concluded that new aircraft would impact the airline's finances due to their cost", Mr Mali said"

    = Since Lufthansa is profitable they cannot buy new aircraft, since then they would not be anymore????

    On day that will have to happen and then Air Serbia will be negative for the duration of 20 years as long as they depreciate them.

    ReplyDelete
  18. Hmm looks like they will be going down the same path as Croatia Airlines has the past few years with wet leasing extra capacity over summer.

    ReplyDelete
    Replies
    1. yes and it seems OU and JU might get neos at the same time since OU has moved first A320neo delivery till 2022.

      Delete
    2. True. OU was the first airline to actually come up with this excellent idea. I think it then inspired the rest of the Yugo carriers including JU, JP and YM.

      Delete
    3. @9.35 they have been delayed by a year?

      Delete
    4. Yep
      https://www.exyuaviation.com/2019/03/croatia-airlines-makes-85-million-in.html

      Delete
    5. Missed that. Thank you

      Delete
  19. all of his comments about fuels efficiency are either contradictory or don't make sense.
    mr mali cannot utter a word of truth, which is pointed out also in the article

    the truth is that JU cannot finance the cost of these planes and has to settle with leasing 10-y old aircraft. same goes for OU (which, unfortunately, already made some serious down-payments for their planes) and all other ex-yu carriers

    ReplyDelete
    Replies
    1. In the case of the A320neo, it seems neither Air Serbia nor Etihad could afford them.

      Delete
    2. I am not sure OU can afford them as well

      Delete
  20. No money, no honey!

    ReplyDelete
    Replies
    1. There IS money. Read the article!!

      "Since Air Serbia is profitable, it was concluded that new aircraft would impact the airline's finances due to their cost""

      They just wanna spend the money wisely this time to avoid the previous boutique airline mistake. Abu Dhabi will be monitoring every single para and dinar spent.

      Delete
    2. LOL Anon 09:55!
      JU is only profitable after getting subventions from state and airport.
      Shame as OU.
      Being actually profitable means that you can pay all of your expenses during a year only with the money you make from selling tickets and cargo space. And have some money left. That what being profitable actually means.

      Delete
    3. And isn't it the case? They are actually even hiring people and currently there are 7 jobs available:

      https://www.airserbia.com/en/zaposlenje

      An airline not making money will not look to hire "just like that".

      2017 was an excellent year for the airline:

      https://www.exyuaviation.com/2018/07/air-serbia-posts-record-2017-profit.html

      I am 100% sure 2018 was even better and not to mention 2019 with the new 9 routes.
      Since JU made the reforms, it is now a profitable air service.

      Delete
    4. Anonymous 11 April 2019 at 10:16
      My God, some people are willing to see everything with pink (or maybe) glasses!
      Hiring people does not mean you are profitable And just seven of them.
      Even if you are a private company, let alone a state owned one.
      Launching new routes does not mean you are profitable, especially if you are a state owned company.
      Calling 2017 as record profitable after getting some 45 million Euros in subsidies is funny!

      Delete
    5. @Happy taxpayer
      +1000

      Delete
    6. JU is not receiving any state aid. The recent, radical reforms made show that the air company is doing pretty well. The cost cutting measures, the drop of routes not making money, the bigger partnerships, the code shares and most importantly is the success of long-haul, which also helped a lot:

      https://www.exyuaviation.com/2018/06/air-serbia-eyes-profitability-on-long.html

      Not wearing any pink glasses but facts and numbers speak for themselves.
      You have them all in the links.

      Delete
    7. "Abu Dhabi will be monitoring every single para and dinar spent"


      hahahahahaa

      is it the same abu dhabi who lost billions for 3y in a roll and was responsible for disappearance of airberlin and put alitalia on deathbed?

      Delete
    8. Pete, JU is no AB nor AZ. If you remember well, JU was the only company in the entire EY Group that was performing much better compared to its counterparts. Yes, there were hard times and JU was affected but not as much as the rest.
      Why didn't JU disappear? Maybe because it was the best in the group?

      Delete
    9. Anonymous 11 April 2019 at 10:33
      LOL dude, you crack me up! Not even Siniša bares talk so much BS!

      Delete
    10. Typical anti-JU attitude. But hey, you are more than free to express yourself.
      In 2019 it will be 9 routes, in 2023 it will be more planes followed by another agressive expansion. By that time, BEG will have a new terminal.

      Delete
    11. BEG should have terminal extended by 2023. Boeings will leave the fleet by then, probably older ATRs as well. A319s or CRJs can be leased if needed. Widebody remains unclear: they need more A330s if they want to expand but there is complete silence on additional A330s.

      Delete
    12. They will get 1 more A330. Airbuses will still stay and will continue leasing every summer until 2023.

      Delete
    13. Med i mlijeko na meniju.

      Delete
  21. This Airbis saga just keeps dragging on.

    ReplyDelete
    Replies
    1. There is no saga. A320neo order has been cancelled and Air Serbia has been given its deposit back. End of saga. What Mali is talking about is some potential fleet renewal in 4 years.

      Delete
    2. Air Serbia is not listed any more in Airbus order list. Not for 2020, not for 2022, 2023 or 2025 delivery. So, Mali is talking bull shit. There is no order for A320neo in Airbus.

      Delete
  22. CRJ 900 would be a good fit for them and should be a priority over neos which are too large.

    ReplyDelete
    Replies
    1. something has to be done about the regional fleet!

      Delete
  23. About a fuel efficiency.

    New A320 CEO (classic engine option) price is 90 million
    New A320 NEO (new engine option ) price is 110 million

    Fuel consumption with NEW is cca 16% less compared with CEO.

    If average flight time is 1,5 hours, I do not understand fuel efficinecy in that case.

    I read somewhere that fuel efficiency is only above 3,5 hours of flight, of course it is also on shorter flight but is not 16%, it is less, but 20 million more.

    At the end I don't understand why operators not to buy CEO and for 4 new aircraft the 5th is almost free.

    ReplyDelete
    Replies
    1. Fuel efficiency is complicated math.
      Distribution of fuel consumption is different in various stages of flight (takeoff, cruising, landing), when cruising it depends of altitude and other factors.
      Regarding design changes for fuel efficiency they are also various. First engines, then aerodynamic enhancements. Each of enhancements has again different contribution to fuel economics.
      Because of this, different percentages will be valid for different flight durations, etc.

      Quick links, probably there are some better but this was found in 2 min:

      https://aviation.stackexchange.com/questions/47262/how-much-fuel-is-used-for-the-different-phases-of-the-flight-of-a-typical-airlin
      https://en.wikipedia.org/wiki/Fuel_economy_in_aircraft
      https://www.quora.com/How-much-fuel-is-burned-during-take-off-until-an-aircraft-reaches-normal-cruising-speed-Is-this-the-most-fuel-consuming-part-of-the-flight

      Delete
    2. Sa njima menjaju 757 i 737 300-400-500 MD 8-90 avione ne CEO. Ustede su i vise od 20% plus jos odrzavanje starih aviona. Tako se ispati velikim kompanijama.

      Delete
    3. Difference between new A320 NEO and CEO is only engines. Aerodinamic changes on new Airbus save about 4% of fuel, but that changes are same on both engines option.

      Again, I am talking about average flight time 1,5 hours, not 5. So, no big fuel save on short flights, compare with price.

      Delete
  24. They announced they would retire B737s in 2020, so they will have to find a replacement for them too.

    ReplyDelete
    Replies
    1. Leasing used MAXs might be cheap! :)

      Delete
    2. They should get rid of the 737s and standardise the fleet with A320- family jets.

      Delete
  25. Do A320-family pilots need additional training for the A320neo?

    ReplyDelete
  26. Just to remind people what was planned with the A320neos some years ago from various interviews:

    "As one aircraft enters the fleet another will exit it. However, these aeroplanes give us the possibility to access new markets, for example Iran or Central Asia or North Africa. These are destinations that are within a two and a half-hour radius. The Far East is also a potential market for us if you consider relations between Serbia and the People's Republic of China", Mr Kondić said. He added, "We believe that Serbia has enormous potential. When we grow we aim to do it responsibly".

    "The new fleet of A320neo aircraft are a key part of our strategy with which we intend to redefine our position on the market, with the most modern and comfortable single-aisle aircraft. As we expand our destination network throughout Europe, we will set new standards with the A320neo both in comfort and quality of service". He added, "It is the best option from the A320 family of aircraft and features new engines as well as sharklet technology, allowing added efficiency”.

    The new jets, which the airline believes will give it "more flexibility", are all expected to arrive by 2020. "Within a period of five to ten years I can see us with a fleet of perhaps 25 or 26 aircraft. It's a process we will be continually evaluating", Mr Kondić said.

    ReplyDelete
  27. What will happen to the 733s? Will they replace the ATR -200? How do they plan to maintain long haul flights with just one airplane waiting for Sinisa Little to give us answers.

    ReplyDelete
    Replies
    1. They have been maintaining long haul flights with 1 A330 without any problems whatsoever for 3 years now.

      Delete
  28. Why is the finance minister commenting about Air Serbia's plans?

    ReplyDelete
    Replies
    1. Because he is aviation enthusiast, like most of people here :))

      Delete
    2. He is a member of the group that holds a majority stake in the airline. He was also directly involved with the airline for 5 years.

      Delete
    3. That just demonstrates what kind of aviation expert was sitting on the Board of directors of the airline. He is now the minister of Serbia finances...GOD help with such expert!

      Delete
  29. Good news. They don't need these aircraft at the moment.

    ReplyDelete
  30. Instead of Mali continuing to mouth off regarding JU matters - even though he no longer has any official position - when is the invisible CEO going to make some comments and do some interviews ? He is the one who should be stepping up to the plate - especially on matters such as fleet... Having been in the job for over 12 mths, you would think he is on top of things by now ??

    ReplyDelete
    Replies
    1. That guy has nothing smart to say his pre-ancestor and himself ruined the good reputation of the airline after the initial start-up. Customer reviews / comments about the service offered are mostly negative; used to see mostly high marks 10/10 and now it is 1/10 most of the time. Why should he care he pockets 25k / month and lives a good life so whu bother to give interviews. Everything is great!

      Delete
    2. You sure are right about living the good life ... the guy is never here and always travelling back to the UK on weekends ... so yeah, why bother about giving interviews or in sharing the strategy and vision for the airline, when Mali and others are only too happy to do so.

      Delete
    3. ...ruined the good reputation of the airline

      I have been flying on that Joke About Time airline extensively since the late sixties. Last 5-10 years before the rebranding were lowest of the low in terms of customer experiece, reputation and quality of service. Kondic went above and beyond to change that image and service levels, and initially succeeded admirably in that quest. As Air Sebia does not cater to posh clientele flying out of JU Monaco hub (imagine for a second Monaco having it's own airport) and has to compete with ULCC service lowlifes at BEG, it was sensible to roll back service levels more in line with competition. Anon @12:49 is either new to the business or completely hopeless.

      Delete
  31. The admiring thing I find about the current Serbian Air fleet is the preserving of the national identity and heritage.
    Names of aircraft include: Nikola Tesla, Goran Bregović, Novak Djoković, Dejan Stanković and so on.
    The A330 "Serbia Creates" is also another exquisite addition.
    Today most airlines in Europe have the boring, cheap eurowhite liveries e.g. EI, IB, AF and so on.

    ReplyDelete
  32. Air Serbia is not listed any more in Airbus order list. Not for 2020, not for 2022, 2023 or 2025 delivery. So, Mali is talking bull shit. There is no order for A320neo in Airbus.

    ReplyDelete
    Replies
    1. There is an order from Etihad for A321Neo :)
      Or, maybe it's not going to be Airbus :)

      Delete
  33. Regardless of ones political option and Mali's reliability (which is zero), it is a fact that Air Serbia is the only ex-yu airline that is somehow expanding, not shrinking, being stable for a few years in a row. Their fleet is nice and clean, they have few older props, which are being well maintained, they have trained and professional crew and they are proudly wearing country's flag around Europe and US. Maybe still not as JAT did, but they are not without a chance to become finally a decent successor.

    ReplyDelete
    Replies
    1. It's nice to get money from mom and pops for years.

      Delete
  34. I think A220s would be more suitable for Air Serbia's destinations than the A320s. Maybe 8 or 9 A220s and 1 or 2 A320s would be an ideal order for them.

    ReplyDelete
  35. Air Serbia should contact Adrias lessors. They should lease Adrias Airbus and Crjets900s IF Adria goes out of Business.

    ReplyDelete
  36. We'll, it seems like the collective opinion of everyone on this board nicely covers all possible options from buy large jets, to keep ATRs as long as you can, to CRJs, to A220s.
    Rest assured that one of you will end up being correct...
    Everyone is an expert...

    ReplyDelete
  37. Mali is an ape and never do I feel he has any type of intellect however in this case what he has read from a airserbia statement makes sense

    ReplyDelete

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