Air Serbia will restructure its business for a second time in six years in order to produce savings and enable the government to provide state aid to cover losses incurred during the coronavirus pandemic. The Serbian Finance Minister, Siniša Mali, said a plan for the restructuring program will be adopted by the end of the year. “The airline has been working on a restructuring program for months, similar to the likes of Air Baltic and other European carriers. The government can not help the airline with a single penny until the restructuring program is adopted, which is in line with European Union regulation on state aid. The Serbian carrier was profitable up until the start of the Covid-19 pandemic, so the government will only cover the losses resulting from the crisis”.
Mr Mali said that once the restructuring program is adopted, it will be reviewed by the Serbian Commission for State Aid Control, after which it will be sent for approval to the European Commission. Although Serbia is not a member of the European Union, as a candidate state it must adhere to European Union regulation in order to progress in its negotiations to join the block. “Once we send it to the European Commission for approval it will be clear to everyone exactly how much money will be given and for what. I think it is clear that we will support our national carrier”, Mr Mali noted.
Restructuring entails reorganising the legal, ownership, operational, or other structures of a company for the purpose of making it more profitable, or better organised for its present needs. Air Serbia previously drafted a restructuring program in 2016, which saw the company transform from a full fare into a hybrid carrier. It included the termination of unprofitable routes, reorganising parts of the business to produce savings and increasing other revenue streams. The program was approved by the State Aid Commission in 2018. “Every country has provided support for their national airline. So, there is no difference between what the Serbian government plans to do and what other European countries have done so far. We will not allow for the national carrier to fail. Air Serbia is restructuring, the number of employees is being reduced, wages have been slashed and unprofitable routes terminated”, Mr Mali said.
Comments
True dat!
ou can restructuring once in 10 years.
+1
In other words every country looks to protect its airlines for s good reason.
EU will approve no matter what Serbia sends them. They were already desperate enough for good PR during covid crisis. They are not going to risk their reputation even more especially at a time when China is becoming increasingly active here.
Plus, the vaccine that will take a long time if efficienct to be widespread and the passenger confidence. The new reality is here.
For example, Air Baltic, which is used as an example by the minister has received 250 million. Their restructuring plan includes reduced fleet and changes to route network. They called their plan Destination 2025 CLEAN.
Places like Turkey offer good rates, JU has done its A330 there in the past, I have a feeling JAT Tehnika is not as efficient as it could be to support JU growth
https://www.exyuaviation.com/2020/11/mtu-inks-contract-with-air-serbia.html
-Smanjenje flote (izbace Boinge što je i u planu za sledeću godinu)
-Smanjenje destinacija (ne pokrenu linije planirane za ovu godinu)
-Smanjenje radne snage(već su pokrenuli odlazak kroz socijalni program)
Rekonstruisanje uspešno,država može da pomogne.
This is just one of many examples. Other things include an absolutely atrocious corporate program and a lack of a frequent flyer program.
And wasn't he the one who reacted promptly after Atlas left BEG?
Also wasn't he the one who actually made LJU work as soon as JP collapsed?
Isn't it his result that JU signed code share with TK?
Naysmith yes, Jiri no
LH had a base in Bangkok?
Baš su Turci dolazili sa Air Serbiom.
Verovatno zato je AS pre nekoliko godina ukinula liniju za Istanbul, nisu mogli da se odbrane od navale turskih turista. :-)
Also, how much would that refurberation cost, and is there a demand for that much cargo, to/from Serbia?
А ко онда лети са ЈУ ако не туристи који долазе у Србију? Слободно погледај број турских туриста у Србији након што је ЈУ увела летове за Истанбул. Бројке су почеле поново да расту након благе стагнације проузроковане ограничењима из међудржавног споразума.
Иначе, ово је ваздухопловни портал, научите кодове.
AS = Alaska
JU = Air Serbia
Considering that they would not be in everyday use.
Converting such an old aircraft to cargo, only to expect it to scrap it in 5 years makes no financial sense.
He never worked for LO, so I don't understand your point.
У авијацији, или ваздухопловству, користе се посебни кодови који означавају авио-компанију о којој се ради, дакле JU је Air Serbia а AS је Alaska.
By the way: compare a discount structure at BUD and BEG and you will see what subsidies for a local carrier mean.