Etihad Partners reject Air Serbia loan reduction proposal

Air Serbia Airbus A330 and A319 aircraft at Belgrade Airport

Two international funding vehicles - Etihad Airways Partners I BV and Etihad Airways Partners II BV - have turned down Air Serbia’s proposal to reduce the value of two loans provided to the Serbian carrier, worth 52.9 million US dollars and 63 million dollars, by 82%. In a statement, the two funds said, “The Steering Committee considered the Air Serbia repayment proposal to be unacceptable given that such proposal will permanently reduce, by approximately 82%, the amount payable by Air Serbia under the Air Serbia Loan Agreement and, consequently, reduce the amount available to the issuer [Etihad Partners] to pay to the noteholders. Noteholders have instructed the issuer to advise Air Serbia in writing that it rejects in full the Air Serbia Repayment Proposal and further that the issuer expects Air Serbia to pay all amounts under the Air Serbia Loan Agreement when they fall due in accordance with the terms thereof”.

In September 2015, Air Serbia concluded a loan for 52.9 million US dollars from EAP I BV which matures next month with an annual interest rate of 6.96%. Furthermore, it finalised a loan for 63 million dollars with EAP II BV on May 20, 2016, which matures in June of next year. Air Serbia made its most recent interest payment on the loans in March. It requested for the value of the loans to be reduced by 82% “in order for the borrower to 1) continue to operate until the repayment date, and 2) generate and accumulate the necessary cash to make such payment once trading activities recommence”. Etihad Partners has also rejected a similar proposal made by Air Seychelles, which is also part-owned by Abu Dhabi-based Etihad Airways.

The Etihad Partners funding vehicles have also taken Etihad Airways to court over the repayment of Alitalia’s debt. The Emirati airline issued bonds in 2015 and 2016 through the Amsterdam-based special purpose vehicles, Etihad Partners, which then distributed the money to Etihad and other airlines it owned at the time. The state-owned Abu Dhabi carrier spent billions of dollars on airline acquisitions that failed to deliver expected returns. Some of the airlines that Etihad went into partnership with have since gone bankrupt and the bonds issued in 2015 and 2016 now trade at around 45 cents. Air Serbia has attempted to restructure its debt with Etihad Partners as a result of an income shortfall caused by the coronavirus pandemic.

Comments

  1. Anonymous09:01

    So I guess the state will have to cough up $52.9 next month...

    ReplyDelete
    Replies
    1. Anonymous09:04

      Let them, they are the ones who keep on messing with JU.

      #jfk #kvo #ini

      Delete
    2. Anonymous09:16

      Messing with JU in KVO? They are giving them 5 millions in 26 months for aprox. 4 weakly flights with ATR. That is called aid not messing up.m

      Delete
    3. Anonymous09:24

      as somebody from outside I would say : 5mio for 4 weekly (on ATR!) at KVO is a waste of state money

      Delete
    4. Anonymous09:38

      If you are outside why do you care?

      Delete
    5. Anonymous09:41

      @9.38 maybe you should get a bit outside too to have an unbiased view on it.

      Delete
    6. Anonymous10:50

      isn't better the state to organise free buses from KVO to BEG airport? I dont see the profit from KVO airport at all, and i dont know why KVO does even exsist!

      Delete
    7. Anonymous10:53

      ^ You will have to ask the administration from 2008-2012 why they built KVO.

      Delete
    8. Jatovac11:13

      ahhhhh. We are getting to the thing ,,a sta su oni bivsi radili''. Please stop with that, both past and present administrations are bad for us.

      Delete
    9. Anonymous11:15

      Maybe the best would be to shut all airports in Serbia and shut down the airline. I guess only then some would find satisfaction and think it's the best thing for the country financially.

      Delete
    10. Anonymous15:02

      Exactly, topics on JU are always so negative.

      Delete
    11. Anonymous20:59

      “If you are outside why do you care?” What a hypocrit!? Why are there the most negative comments from Serbia on every announcement about Montenegro Airlines?

      Delete
    12. Anonymous07:16

      How do you know they are from Serbia? That's like saying why are there the most negative comments from Croatia on every announcement about Air Serbia?

      Delete
  2. Anonymous09:03

    Hogan might be out of the picture but his delusions of grandeur and sheer incompetence are still felt today. Anyone know who provided EYP with the funds? As in a list of creditors?

    ReplyDelete
    Replies
    1. Anonymous09:10

      The fill list is not known. One of them is BlueBay Asset Management though.

      Delete
    2. Anonymous09:12

      *full

      Delete
  3. Anonymous09:03

    Serbia should launch a criminal investigation against Etihad, Hogan and Dane.

    ReplyDelete
    Replies
    1. Jatovac09:12

      I fully agree with you, but i do not think they will do because Dane is their man, unofficialy but that is true. I am told this by the people working in JU, but of course not the tellers.

      Delete
    2. Anonymous09:22

      Why not to start criminal investigation with the one who insisted on launching a transatlantic route despite the professional management's refusal, that caused the carrier lose more than hundred million dollars so far, just to be the only carrier flying there in ex-yu region and carry the "prestigious" title :D

      Delete
    3. Anonymous09:24

      ^ How do you know how much the route lost? Their financial results do not indicate that it lost them 100 million dollars.

      Delete
    4. Anonymous09:47

      Anon 09:22
      100 million is not for sure, but probably is 50 million acording to the JU fanboys.

      Delete
    5. Whoever agreed on an annual interest rate of 6.96% should go to jail.
      This is crazy!

      Delete
    6. Anonymous10:38

      True dat!

      Delete
    7. Anonymous10:48

      Srbija je pre 5 godina bila u daleko nepovoljnijoj situaciji nego danas kada je na korak od naj višeg kreditnog rejtinga. Kada bi se sada zadužili to bi bilo po stopi od 1,5-2%. Naj pametnije bi bilo reprogramirat dug po nižoj kamatnoj stopi a iz vlasti su rekli da će svakako pomoći kompaniji i učiniti je još jačom.

      Delete
    8. Anonymous10:51

      ASL is Vicki's baby.
      So there will be zero investigation about the deals it made with EY, the land or the interest rates.
      Remember that this is Balkana.

      Just my2cents

      Delete
    9. Anonymous10:57

      *Vucko, damn you auto correct.

      Delete
    10. Jatovac11:11

      anon 10.51, totally agree. That is what I said, there should and must be an investigation, BUT (in Balkans there is always a ,,but'') those managers were the governments people so there won`t be any investigation, sad but true. If we lived in a normal country Dane Kondic and friends would be in jail now.

      Delete
    11. Anonymous11:11

      To i jeste tvoj problem,sve gledaš kroz politiku.

      Delete
    12. Anonymous13:18

      anon 10.48
      Serbia is not "a step away from the highest credit rating" - actually far from that.
      Some people post ridicilous things like that and when others correct them, then we hate Serbia and JU and Serbs and what not.
      How about you post accurate facts, so we don't have to "hate you"?

      Delete
    13. Anonymous13:20

      Jatovac at 11.11 - your name is a dead give away. You are an old Jatovac, still full of hate and rage after all these years. You obviously got the chop when it mattered and you still have Dane Kondic in your sights for probably making the best decision that he did, which was to get rid of you and others like you. If we lived in a normal country, people like you and your friends would be in jail for everything that you did to kill the company. If it wasn't for people like you, the company would've prospered and there would never have been the need for Etihad or Dane or anybody else ... so think about that. Think about what you people did to the company to bring it to the point of no return and all the responsibility that you bear for everything that came after you were thrown out of the company. If you had any shred of credibility, you would stay in your hole and never rear your head to make any comment about anyone or anything related to Air Serbia, given how you and your lot absolutely fxxxxd up a great airline.

      Delete
    14. Anonymous13:23

      ^ it was mostly people that worked at the airline that managed to keep it afloat despite the reckless actions of politically appointed CEOs and management teams. It is these former employees you should thank for there still being an airline past the year 2000.

      Delete
    15. Anonymous13:25

      It's not surprising to read the usual conspiracy inspired rubbish that people are quick to post on this forum. Some more judicious screening by the Administrator would certainly add greater value to those who post comments that are genuinely thought provoking and encourage good discourse, unlike those who post slanderous and unsubstantiated comments. But, I guess that is the price that we pay for living in a society where people are free to voice their views - good, bad or ugly.

      So now to the facts - which I can speak to since I was with Etihad during the time these loans were actioned across all of the partner airlines.

      In JU's case, neither the CEO nor CFO could enter/signoff into these loan agreements, because the amounts in question exceeded their delegated levels of authority. It required approval from both of JU's two-tiered governing structure - firstly by the Supervisory Board and secondly, by the Shareholder's Assembly - both of whom are majority represented by the Government of Serbia.

      The Chairman of the Supervisory Board at that time was Sinisa Mali and the Chairman of the Shareholder's Assembly at that time was Luka Tomic.

      Dane Kondic was not involved in any of the decisions regarding these loans and James Hogan was only one of 9 members of the Supervisory Board (5 from the Govt of Serbia and 4 from Etihad), who unanimously agreed to accept both loans and their terms, while the Shareholder's Assembly subsequently also approved both loans and their terms - which in Serbia, is THE main legal and binding body for major decisions taken on behalf of the company.

      And, to satisfy the naysayers that certain people should be investigated/arrested, a simple examination of the Supervisory Board papers for the minutes approving this loan and who signed off, should put to rest any doubts around where and with whom, responsibility for this loan lies with.

      Lastly, what might be of interest to some people, is that Sinisa Mali as the Chairman of the Supervisory Board, made a personal visit to Abu Dhabi to meet with senior EY Finance people at that time in order to finalise the finer details of the second loan agreement. He was the only person from JU to make that visit.

      So there is no cloak of secrecy here. A simple look into the approved minutes of both the Supervisory Board Papers and the Shareholder Assembly Papers from that time, will reveal all. They are a matter of public record and if I understand correctly, Serbia has a Freedom of Information Act that governs all public enterprises, so anyone can request these - which should satisfy the curiosity of many on this blog and set the truth free !

      Delete
    16. Anonymous13:26

      @13.18

      As someone who is not from Serbia, I wonder why you are so obsessed with this airline and country. Don't see your distinctive comment style on any other news other than Serbia.

      Delete
    17. Anonymous13:27

      Anon at 13.23 - what are you smoking ?? Who was paying the bills that kept the airline open - staff or the govt ?

      Delete
    18. Anonymous13:55

      @13.25 - Mmm - alot of food for thought. It is easy to blame the public face of the company, but where is the culpability of those who actually signed off on these loan agreements ?

      Mali and co. have much to answer for. What's worse, he's in an even more dangerous position nowadays, given that he is in control of the purse strings as the Finance Minister. God only knows what coverups will be put in place to sweep up his own mess.

      Delete
    19. Anonymous15:03

      There is no better time in aviation for a default than now. Creditors won't be able to get a lot out of this. Etihad will get nothing out of this.

      When corona is over in a year or two new airline could be started by the government.

      Delete
    20. Anonymous15:07

      This is something we've all known from the start, the government knew everything that was going on in the airline and they gave the green light for pretty much anything. So it's no wonder they are the ones who need to pay for everything since this is their mess. Maybe if JU started off in 2013 the way it is now, business model and decision making process in Belgrade, maybe then it wouldn't be such a problem to pay back the loan now.

      Delete
    21. Jatovac18:06

      Anon 13.20, please do not speak bad about people if you do not know anything about them. I left JAT much before the public knew that Dane even exist. On other thing I will not tell anything because I am not involved in anything. I left JAT because of familiar problems not because of JAT. But I do not think anything good about Dane like much my collegues hate him actually. If he was good he would still be in JU or on some good position anywhere. Wish you all the best.

      Delete
    22. Anonymous09:09

      Jat was less than a month away frim complete insolvency and bancruptcy, so getting the loan, any loan to do anything was impossible. All the domestic banks refused any kind of loaning to Jat and would not even meet Jat representatives. So a loan with 7% interset was not a bad option, it was the only option in a ruined country, economy and company. Today is a different situation and environment, and although it will be difficult, it is not a lost cause anymore. I agree though that all privatisations should be investigated, starting from Fiat and US Steel, and naturally, Jat included.

      Delete
  4. Anonymous09:04

    Ouch

    ReplyDelete
  5. Anonymous09:04

    What happens next month then?

    ReplyDelete
    Replies
    1. Anonymous09:05

      Nothing, they will just reprogram the debt the same way creditors did with OU.

      Delete
    2. Anonymous09:06

      The creditors just rejected to reprogram the debt...

      Delete
    3. Anonymous09:09

      +100

      Delete
    4. Anonymous09:24

      They rejected request for write off of 82% of debt...

      Delete
    5. Anonymous09:26

      And ordered them to pay the full sum.

      Delete
    6. Anonymous09:44

      Negotiations are complicated and involving more subjects then AirSerbia...
      This is just one piece of puzzle.

      Delete
    7. Anonymous10:04

      Exactly.

      Air Serbia is just a piece of it and despite some wishes here will continue to exist further.

      Delete
    8. Anonymous10:36

      Nobody doubts that JU will continue to exist since the government will continue to give tens of millions of Euros every year.
      But even the most fanatic fanboys must have realised by now that the business model of the company is loss making.

      Delete
    9. Anonymous10:54

      A zašto bi vlada davala pare?Vansi na godišnjem nivou plaća i do 15 mil.e na ime koncesione nadoknade u zavisnosti od povećanja broja putnika. AS generiše naj veći procenat rasta i tih 10-ak mil. ide njima za dalji razvoj, Svi srećni i zadovoljni tako da poreski obveznici ne bi trebali puno da brinu.

      Delete
    10. Anonymous10:55

      They rejected the 82% discount, they didn't reject the idea of a reprogram.

      Delete
    11. Anonymous11:36

      Exactly, EA Partners I & II B.V. rejected the write-off. A restructure of the loan is still possible. The write-off request had no chance if you ask me. The company (at least try to) shows huge profits every year, and to the outside world is representing themselves as a healhy company.

      Next month, if they fail to pay interest or the repayment, they are in default. The financial statements of EA Partners I B.V. disclosed the following about that situation:

      'The Deposits are also non-derivative financial fixed assets. These come available as
      collateral each IPD if and when one of the Borrowers incurs a default.'

      In most cases the deposits/collateral are the shares of the company. Given the importance of the company to the Government of Serbia, the company will not end up in the default situation. Therefore the company will try to restructure the loan (discuss the interest % or maturity date of the loan) or the Government will repay the loan and find alternative funding afterwards.

      Given the excellent financial performance of the company, it should not be so hard to find new lenders, should it?

      Delete
    12. Anonymous15:09

      Excellent financial performance was the case before corona, no airline is functioning well now. If you read the text once again you will see that they paid a part of the loan in March, so just before the mess. Obviously improved finances allowed them to do so. Jat never did that, the loans they took were just paid by the government in the end.

      Delete
    13. Anonymous09:04

      If you read the text well once again, only interest has been paid in March. The loan has to be repaid in full at maturity date, next month.

      Delete
  6. Anonymous09:08

    Not good.

    ReplyDelete
  7. Anonymous09:09

    It was a stretch to believe they would ever agree to this 82% reduction. Despite some people here claiming they will accept it.

    ReplyDelete
    Replies
    1. Anonymous10:04

      Some people said here it was a good move to try to cut 82%.

      Delete
    2. Anonymous10:55

      They said it was a good negotiating tactic

      Delete
  8. Anonymous09:11

    This is actually quite funny, and worrying at the same time.

    I would be worried with a management:
    - capable of taking a loan at such a high interest rate. (Remember that Air Serbia did not get the full amount, but they had to pay a 5%+ fee for it (?!?!)
    - capable of sending such a letter. You either declare bankruptcy, and restructure your debt (e.g. the famous Chapter 11 in the US), or you cough up the money. The way they are acting is almost like games for preschool.

    ReplyDelete
  9. Anonymous09:11

    Can someone explain to me do they expect that JU pays the full 52.9 million next month or they pay that installments?

    ReplyDelete
  10. Anonymous09:19

    How does this loan effect the liquidity of the airline?

    ReplyDelete
  11. Anonymous09:20

    My guess is the government will next month reveal its aid package to Air Serbia (which has been announced months ago). It will probably be something like 200 million EUR from which 53 million will go to repay this loan.

    ReplyDelete
    Replies
    1. Anonymous09:29

      Most likely

      Delete
    2. Anonymous10:21

      That money would have been much better spent to long term unemployed instead off being given to JU.

      Delete
    3. Anonymous15:11

      Anon 10.21 that's a stupid comment, how many more unemployed there would be if JU went bust? Not only those who would lose the job at JU but also at BEG, in hotels and so on.

      Delete
    4. Serbia as a country doesn't have 200 mil $ in their budget let alone to give that amount of money to so called 'Air Arabia"

      Delete
    5. Anonymous07:18

      Well they have close to 2 Billion Euros to build a highway through Шумадија and they have enough money to pay for many other things so these JU related expenses are peanuts for them.

      Delete
  12. Anonymous09:20

    Air Serbia should ask Etihad to pay for it.

    ReplyDelete
    Replies
    1. Anonymous09:21

      And the answer would be the same.....NO!

      Delete
  13. Anonymous09:23

    I smell relationship is coming to an end.

    ReplyDelete
    Replies
    1. Anonymous09:25

      It's not Etihad Airways that gave them the loan or rejected the reduction. Read the article.

      Delete
    2. Anonymous09:36

      Yeah I know.. But lets be honest, who do you think is being Etihad Partners.... Obviously someone from EY... It's just money funneling from one end to another...

      But in all fairness, many airlines including OU and JU have gone to the creditors, lessors, suppliers etc and asked for reduction of fees, deferral of payments, delaying of aircraft deliveries and so on... And have been more or less successful.

      So it really suprises me as to why Etihad Partners would not cooperate in some way?? Maybe 82% is too high but some counter offer would be expected during these times.

      And does anyone know what happens if JU just forgoes on this payment in September?

      Delete
    3. Anonymous09:37

      EA Partners is certainly not Etihad. Or do you think Etihad is being sued by Etihad to repay Alitalia's loans? For the fun of it

      Delete
    4. Anonymous09:42

      This is bigger then Air Serbia, lots of airlines (all from the group) and lots of cash is involved:

      https://www.reuters.com/article/us-etihad-airways-debt-restructuring-exc/exclusive-etihad-bondholders-put-airline-on-notice-with-debt-revamp-sources-idUSKBN22X1CS

      Delete
    5. Anonymous09:45

      No I didn't say that, maybe someone is just funneling money from these airlines, including EY into their own private pockets (read funds, investments etc). And that individual or a group of them are involved in some way with EY. It all comes down to money, there is no patriotism or sense of belonging or pride to a company you work in, it's just business for some and a vehicle for making money.

      Delete
    6. Anonymous09:49

      Problem is, Etihad is out of cash and they dont care about other airlines where they have a stake, so they will not pay that amount of money fir JU.

      Delete
  14. Anonymous09:23

    At least someone writes it correctly. Most Serbian media can not get it through their heads that this is not a loan from Etihad (the airline).

    ReplyDelete
  15. Anonymous09:32

    Good luck with the repayment.

    ReplyDelete
  16. Anonymous09:33

    Is Etihand actually investing something in Air Serbia? I mean they own 50% of the company, they should be contributing something. It seems that the Government is pouring in cash, while Etihad just sits and waits will there be some profit for them. The State should get rid of them ASAP.

    ReplyDelete
    Replies
    1. Anonymous10:22

      +1000
      EY made a fantastic deal for themselves with the government...

      Delete
    2. Anonymous10:22

      Etihad's presence is the only reason JU is allowed to operate in Europe. Otherwise it would be banned due to the state aids provided.

      Delete
    3. Anonymous10:25

      @Anonymous 10:22
      LOL the BS we read here!

      Delete
    4. Anonymous10:26

      Serbia is not in the EU!

      Delete
    5. Petar10:29

      Neither are the UAE but Anon 10:22 is having dilussions.

      Delete
  17. Anonymous10:01

    All will end well

    ReplyDelete
  18. Anonymous10:01

    JU will survive

    ReplyDelete
  19. Anonymous10:09

    That is very bad news for Serbian tax payers.

    ReplyDelete
    Replies
    1. They will have to pay 60 mil, good luck w that Serbia

      Delete
    2. Anonymous07:19

      And how many Tito's loans are we still paying off today? We profited from those much less than we do from JU which is a key part of economic development of Serbia.

      Delete
  20. Anonymous10:09

    In other words the airline will go bankrupt if they have to pay this on their own.

    ReplyDelete
  21. Anonymous10:14

    Let's see what happens.

    ReplyDelete
  22. Anonymous10:15

    The new project Air Serbia passed through so many hurdles and obstacles since 2013. Boutique, chic... expansion... suddenly loss making... then LCC model... then expansion then fleet issues and cancellations... then another expansion... then a couple of destinations dropped then another expansion and then came Corona and now loan issues...
    During the last 7 years, the biggest mistake was not to renew the fleet first and then focus on expansion. Every single airline in the region did it. An ageing fleet will remain an issue. You can't just be loss making since the beginning, still fly with planes since the fall of Yugoslavia and have a loan with such a high interest. Also, anything related to EAP or EY is horrendous. Let's see what and how Air Serbia will proceed but the state will end up paying dearly for this, instead of giving this money to the ones in need.

    ReplyDelete
    Replies
    1. Anonymous10:23

      Great post, agree 100%.

      Delete
    2. Anonymous10:35

      agree.

      Delete
    3. Anonymous12:19

      It's very rare here to read something as accurate and objective as this comment here. Well done.

      Delete
    4. Anonymous15:12

      They partially renewed their fleet, those A319s and A320s were not inherited from Jat. From that time they had those nasty Bulgarian B733 with no legroom

      Delete
    5. Anonymous16:03

      Aviolet and the ATRs really need to be replaced. RO for instance upgraded to the new AT72, FB got rid of their 733s and bought new E190s in 2012. So did B2. Even Air Moldova today, has a more modern fleet.
      Let's see what will happen with the Sukhoi deal.

      Delete
    6. Anonymous10:05

      Nothing will happen to Sukhoi deal.

      Delete
  23. Anonymous10:51

    Air Serbia will not have to pay te whole sum as Etihad owns 50 percent .
    The credit was turned into equity .

    ReplyDelete
    Replies
    1. Anonymous10:53

      You are mixing things and different loans.

      Delete
    2. Anonymous10:55

      No it hasn't.
      The company Air Serbia owes the loan. Not the stock owners. The stock owners can decide to not infuse any new funds to it. Nobody can force them to.

      Delete
  24. Anonymous11:00

    Were this loans counted as part of revenue or whatever in 2015/2016? Were there any more loans in the following years? It looks like this + yearly state aid means that JU is burning through even more millions yearly then we thought earlier.

    ReplyDelete
    Replies
    1. Anonymous11:01

      No and no. You can see it in their financial report.

      Delete
    2. Anonymous11:03

      Thanks for the info!

      Delete
  25. Anonymous11:05

    The Serbian government can order a debt moratorium for the airline .
    That means that debt has to be paid completely, but at a later time .
    Also while in the debt moratorium the airline will not get any funding from the international financial market ( private Investors ) .
    In that time it only can get its funding from a government .

    ReplyDelete
    Replies
    1. Anonymous11:27

      Or JU can file for bancruptcy protection .
      Thai Airways for example is an airline under bancruptcy protection .

      Delete
  26. notLufthansa11:19

    this "partnership" is obviously of sado-mazo nature....

    ReplyDelete
  27. Anonymous11:45

    R.I.P. Air Serbia
    112 million USD debt to Etihad Partners + debts to banks in Serbia
    40 million USD to be payed to Etihad in case they brake contract.
    6 planes more than 30 years old
    High leasing costs (more than 30 million EUR per year) for rest of the fleet.
    Corona (2 months did not fly + modest number of flights and LF after that)

    ReplyDelete
    Replies
    1. Anonymous11:49

      Load of rubbish.

      Delete
    2. Anonymous13:47

      Anon at 11.45, you need to add EUR380M of old JAT debt onto that pile .... the numbers just keep adding up and it is horrific when you think what numbers stand behind this project.

      This has to be one of (if not) THE most expensive airline projects ever initiated for an airline of this size. Think of how much startup capital Aegean or Wizz Air had not that long ago and what either would be today if they had (back then) what Air Serbia has had thus far ....

      Mind boggling .....

      Delete
    3. Anonymous13:55

      Hahahaha. A3 was started by a very very rich Greek dude (he already owned the Hertz franchise in Greece for almost three decades at that point) and Wizz... Sure, I can only imagine how little money those American investment funds have.

      Delete
    4. Anonymous14:05

      Well, JU had a debt writeoff of EUR380m and an injection of EUR100m from the new joint owners. Do the maths and work out what that comes to in terms of start up capital - neither of which company had when they launched. And if they had have had this, who knows how big they would be today, rather than growing as they did - slowly, surely and profitably.

      After 6 years since their start, both airlines were significantly bigger and cash positive - something which after 6 years, JU is not

      Delete
    5. Yes anonymous 13:55 you are right. But the difference is that A3 was profitable since day 1,something you can't say for JU.

      Delete
    6. Anonymous07:23

      Main difference is that Serbia isn't as rich as those countries are and those airlines didn't have their government meddling in their affairs. JU had those things to worry about and to deal with. Like when they planned to boost their network in BEG and then the government decided to open INI base without first securing a plane for that adventure. The last time I checked the Greek government never forced Aegean to open a base in Thessaloniki nor was airBaltic forced to open a base in Liepaja. So given these circumstances JU is doing pretty well. Imagine what would have happened if there was no corona?

      JU will become a force to be reckoned with. Just remember where LO was back in 2004-2005.

      Delete
  28. Anonymous13:42

    The second reason cited why they seek a loan reduction, "was to allow the company to generate and accumulate the necessary cash to make such payment once trading activities recommence”.

    If it hasn't / wasn't able to "generate and accumulate the necessary cash" over the past 5 years in which to repay this loan (knowing that this day was coming) while it was crowing about making profits every year over the past 5 years and is now saying that due to the crisis of the past 5 mths, it needs more time - then sadly, it has by its own admission, admitted that it is insolvent and that the business is unable to generate sufficient cash to meet it's liabilities.

    The business is as good as dead and surviving on life support provided by generous and supportive govt handouts from year to year. The business will die as soon as the govt stops with the handouts; OR the EU says enough: OR there is a change of Govt. What is however certain, is that this is not sustainable over the long term.

    ReplyDelete
    Replies
    1. Anonymous13:57

      Just like any remaining ex-YU airline. What would happen to OU if the government decided to stop giving them handouts? They need to pay like EUR 200 mil+ to Airbus otherwise they can be sued. And YM? Lol. Neither of these will go bankrupt because that means that the current government at that time will have to be the one who pulls the plug, meaning they have "failed".

      Delete
    2. Anonymous14:13

      Just can't help yourself can you ? .... you just have to bring in OU and YM into the discussion. I know it's tough, but take some cool-aid as it might help to keep you focused on today's topic and keep that enthusiasm in check when there is a relevant topic on OU or YM for you to share your "hard-to-keep-to-yourself" views

      Delete
    3. Anonymous14:51

      What was not correct in his post?

      Maybe it hurts but it is reality.

      Delete
    4. Anonymous15:03

      What hurts is that I don't give a flying fuck about OU or YM or any other airline. I care with what happens to JU and what decisions get made that affect the airline. As soon as there is any critique or adverse discussion about JU, people like this guy immediately use OU or YM as a yardstick to justify their own position vis-a-vis JU. The truth of the matter is that BOTH OU and YM are are far worse examples of poorly managed companies than is JU. I hold out hope that JU can and should be better than both of these airlines and cannot accept any comparison or justification for the state of JU by using even worse airlines as examples

      Delete
  29. Anonymous15:08

    I can smell insolvency unless AV saves it
    We don't want a second Adria

    ReplyDelete
    Replies
    1. Anonymous16:11

      Yes, I agree. Actually we may witness a second version of Adria.
      Similar to JU, Malév also was also a unprofitable company with huge losses. MA also had an excellent, European coverage with double daily flights to many European cities.
      It was given to the Russians and they destroyed it.

      Delete
    2. Anonymous21:05

      Varadi destroyed MA

      Delete
  30. Anonymous17:26

    Air Serbia bankrupcy is an ideal way to get rid of those loans and Etihad part ownership at the same time. Serbia Airlines or some other name can be used for new 100% domestic owned airline.

    ReplyDelete
    Replies
    1. So you think if Air Serbia changes the name that the all of the debts will disappear? Big joke my friend.

      Delete
    2. Anonymous04:35

      Go through bankrupcy process. Airline has no real estate, no cash in the bank, no planes worth a cent. Try to sell a brand for 50k. Not much debt would be recovered.

      After a couple of years think about starting a new airline with a new name.

      Delete
    3. Anonymous07:24

      It won't work because the government gave guarantees meaning if JU goes bust, it's the government that still has to pay. So why create extra expenses from creating a new airline and repaying the old one's debt?

      Delete
  31. Anonymous18:20

    Good news for JU is that from today there is no more quarantine for passport holders and those with residency in Switzerland. Another market that will recover quite fast.

    ReplyDelete
  32. Anonymous21:41

    The Sebian government still can nationalize Air Serbia and initialize a debt memorandum .
    That would be pure socialism but it is possible .
    Governments actually have more power than people nowadays think .

    The lenders will cooperate with the government and finally accept some debt relief .
    There is the possibility that after the debt memorandum the airline gets partially or fully privatized and debt gets swapped into shares .

    ReplyDelete
  33. Anonymous00:12

    100 mil is nothing compared to 13 bil that this govt under Vucic has made us owe in last 8 yrs and of course under high interest rates, we will end worse than Greece, and yes we can blame govt, globalists, satanists, it doesn't matter who, people will suffer so handful of them can enjoy, justice has died on its birth, but don't worry it catch whole world sooner or later,only difference is that it comes sooner to poor country's but don't worry it will come to richer also,evil is wining wake up stronger ones and help weaker ones otherwise you are next.

    ReplyDelete
    Replies
    1. Anonymous07:25

      I blame the Satanists!

      Delete
  34. Anonymous07:27

    My prediction is that in the end ex-YU region will have two airlines left: Air Serbia and Wizz Air.
    JU will have its hub in BEG and INI as well as a focus city in KVO and potentially BNX or SJJ in the future. They will probably introduce charter flights from more cities in the future while Wizz air will keep on expanding left and right. I predict a LJU base after corona.

    Only thing that I see changing is FR becoming more aggressive down the road. YM and OU won't be around in the next 5 to 10 years.

    ReplyDelete

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