Air Serbia is expected to terminate four routes served prior to the coronavirus pandemic as part of its cost cutting measures after the airline was recapitalised by the Serbian government for 100 million euros. The majority of the affected routes that are expected to be discontinued were introduced as part of the airline’s last network expansion in the summer of 2019. These include Helsinki, Cairo and Rijeka. In addition, operations to Beirut, which were suspended just weeks prior to the onset of the global lockdowns in the spring of 2020 due to the deteriorating financial situation in Lebanon, are not expected to be restored. Ticket sales for the abovementioned routes have been terminated and these cities have been removed from the airline’s route map, however, further changes remain possible.
The scope of the airline’s network out of its secondary bases in Niš and Kraljevo remain uncertain at this point. The Serbian Finance Minister, Siniša Mali, had previously said that as part of Air Serbia’s restructuring, unprofitable routes would be terminated. Due to the start of the coronavirus pandemic, the Serbian airline was unable to carry through with its 2020 summer expansion which was to see the introduction of flights from Belgrade to Geneva, Amman, Rostov-on-Don, Florence, Lviv, and Chisinau. None of these are expected to be introduced this year either.
During 2020, Air Serbia was able to launch one new route, from Belgrade to Oslo, which continues to operate over the winter and will be served throughout 2021 as well. “We were seriously shocked by the biggest crisis in commercial aviation in recent history, but we weren’t disheartened. We at Air Serbia are entering 2021 full of optimism and ready to adapt to new circumstances, because only those companies that adopt changes quickly and efficiently can survive and move forward”, the company recently said. This month, Air Serbia is operating 819 flights (both directions included) and has 94.770 seats on sale. It represents a 65.9% decline in capacity compared to the same month last year.
Air Serbia's top routes in January based on offered capacity
Not as bad as I thought.
ReplyDeleteHow about Air Serbia creates a new airline with 51% Air Serbia Ownership, 10% SLO government, 10% Bosnian government, 10% MNE and Macedonia each government ownership, 9% private capital, names the carrier Adria Airways and bases aircrafts in LJU TGD TIV SKP SJJ and operates flights fm these airports to FRA MUC ZRH CDG AMS BRU VIE CPH and all the rest goes via BEG
DeleteIs it a serious consideration? And what would be the point for all others than JU in doing this? Having 10% in a company means you have not much to say... And each single shareholder having a different goal, pushing for connectivity of its own airport - a clear recipy for disaster.
DeleteIf you really have money to spend and want to spend it, you talk to some existing airline to base a plane (planes) and pay them for doing this. They will fly wherever you only want. If they screw up or go bust, you fire them and commission a new one. They have to organise themselves to fly within the bidget you agree or lose their own money.
The only part I dislike about this idea is the part where Airserbia would have 51%.
DeleteIf at all, a more realistic model for our region would be the SAS model where when SAS was founded, Sweden had the biggest share package, but it did not exceed 50% (even though it is the biggest country by population and size).
Otherwise I really cannot imagine that the governments in Skopje or Ljubljana or Sarajevo or Podgorica would agree to own a part of the company in which the government in Belgrade would hold the majority voting shares.
The ownership shares cld be discussed but we need a construct which wins the mgt of Air Serbia and at the same convinces the governments of SLO MAC MNE B&H to invest in a construct which gives them somewhat of a national carrier and air connections to their hubs at lower costs than if they wld hve to set up an own carrier. And JU has already a good set up and since it seems that LH has no interest to set up a carrier for the YU market and all 4 reoublics are lacking an own carrier, this cld be an option. Of course its just an idea but in SLO MNE B&H there are discussions going on to establish a new national carrier. This could be a solution
DeleteGastarbajter routes continue to work for them.
ReplyDeleteKRR, OTP, TIA, JFK, BCN...are hardly gasterbajter routes
DeleteI meant they can rely on them during the pandemic.
DeleteThere are so many non Gasterbajter routes... Kiev, Thessaloniki, Athens, Istanbl, Venice, the ones mentioned above etc.
DeleteAnd what's wrong with gastarbeiter routes?
DeleteThere are routes where there is demand. Otherwise we will be reading more news like today's.
Are they going to start flying from Belgrade to Toronto Canada soon i can't wait
DeleteIt's interesting that routes like Nice will resume.
ReplyDeleteNice was even restored this summer.
DeleteLCA does well this winter. Last night LCA, both outbound and inbound, flights had 110 passengers. Athens had 65 passengers on the ATR.
DeleteThat must have been an uncomfortable flight to Athens on a full ATR.
DeleteI think it's about the same as Prague.
DeleteI know, not the most comfortable to either one on a turboprop.
DeleteThere are many other longer routes on turboprops in the neighbourhood so I don't think this one will be the most unpleasant.
DeleteBetter than ZAG-AMS.
Deleteatr is a particularly uncomfortable and loud plane.
DeleteTrue dat. ATH at least should go back to A320.
DeleteEach bit older turpoprop is uncomfortable and loud plane.
DeleteQ400 might be faster but it's not a comfy plane to fly on.
DeleteQuieter yes, but otherwise, how is it "way more comfortable"? Same 2-2 seating and cramped overhead space.
DeleteI was flying both. Not big difference. Certainly not "way more".
DeleteI agree. The Dash 8 is not too pleasant to fly either
DeleteThe Dash 8 has a wider and taller cabin than the ATR. It is also quieter and faster.
DeleteYou are wrong.
DeleteQ400 has bit taller cabin but it is also narrower and not wider than ATR
Cabin height:
ATR 1.91 m
Q400 1.95 m
Cabin width:
ATR 2.57 m
Q400 2.51 m
So ATR is wider more than Q400 is taller. Q400 is faster but it is also noisy.
So in total for passenger there is no big difference and for airline ATR is far more economical
Q400 is faster & has higher flight altitude...this translate into smoother flight experience. ATR definitely has better economy.
DeleteSorry, but you are wrong again.
DeleteNow when we concluded that Q400 is narrower I need to dissapoint you again.
Both of the planes service ceiling at 25.000 feet. So, Q400 does not have higher flight attitude.
That's the service ceiling. The Dash 8 cruises higher than the ATR. I still doubt your average passenger will notice the Dash's smoothness compared to the ATR but ok
Delete@Anon 11:59
DeleteYou don't need to have such an attitude :) That was my first message, so not somebody who posted before. Second, Q400 has higher both cruising speed & altitude, you better check your facts before teaching lessons to others :)
Yet in the end ATR was far more successful than the Q400.
DeleteOr we can just agree that the best small seater is the A220
DeleteSure, but it was about ATR vs Dash. The A220 has no chance of being acquired by any ex-yu airline in the near future
DeleteSo who offers more seats in SKP? OU or JU?
ReplyDeleteIn normal circumstance OU. Usually double the capacity. In corona times JU.
DeleteWhat about JFK service? A330 is flying over Saudi Arabia.
ReplyDeleteWhat about JFK service? It operates normally.
DeleteIts next flight is on Thursday from BEG to JFK.
DeleteIs A330 going back to Abu Dhabi?
DeleteIt may be going for maintenance or to pick up medical cargo. So don't hatch a conspiracy. It's back in Belgrade by Thursday.
DeleteI checked online and the flight to JFK in Thursday is not on sale. Is the plane being returned to EY?
DeleteStop spreading false information! The flight on Thursday is on sale and available on their website (see screenshot). What's the point of spreading these false rumors?
Deletehttps://ibb.co/C8J7WnH
Good, nice to see that they are not returning the plane. We need JFK to stick around.
DeleteSo what was the point of you making things up?
DeleteI wasn't the one who wrote it.
DeleteYU-ARA seems to be landing in Dammam. I guess it's taking some cargo, not weapons since it's not going to a military base.
DeleteSo much for it going back to Etihad nonsense.
DeleteWhy do people have that strong desire to spread false news about Air Serbia's wide body plane here?
DeleteNo one said anything false about it.
DeleteReally?
Delete"I checked online and the flight to JFK in Thursday is not on sale. Is the plane being returned to EY?"
Better check your facts
He asked you a question because he saw that flight was not on sale. He is not spreading false informations kid. Chill.
DeleteNo, he was not asking a question. He claimed there is no flight to JFK on Thursday. It was a lie.
DeleteNo need to play dumb here.
Why are you so angry and furious on that person? He asked a question about a plane because he didnt saw tickets on sale. I dont se where is a problem. Just chill a little bit.
DeleteAre you blind? The flight is on sale and a screenshot was provided for you. So it is false infotmation.
DeleteARA went to BAH and is back in BEG.
DeleteThe lease for ARA ends in May and not in January, which has been commented here at least a hundred times. Tickets are being sold for the entire upcoming summer. A 30 second dummy booking on airserbia.com reveals wonders.
ARA, nor any JU aircraft has been used for weapons transportation, so I dont understand where that comment has come from. Out of all the humanitarian flights ARA has done bringing medical supplies to Serbia and a few other countries the past several months, it's surprising to read 'weapons transportation'.
Like you know the exact cargo that is being carried with every plane from/to Serbia LOL!
DeleteWasn't the ARA contract until May 2021? It seems that there are 2 weekly flights to JFK / every Saturday and Thursday.
DeletePaid to troll
ReplyDeletePity Beirut didn't work out. It though it would be good for transfers.
ReplyDeleteWhen the Lebanon bounce back, the route to Beirut will return. It is a dire situation there.
DeleteBR, Eight.
Wishing those planned destinations for 2020 would be launched :( would be nice to have flights to places like Amman or even Chisinau. Would be interesting to visit for a weekend.
ReplyDeleteGreat to see Florence is not bring cut.
DeleteWhat do you mean? It was never launched... It was supposed to start in June 2020.
DeleteYes and it is still in their plans to be launched once the situation calms down. Don't forget that Italy is a massive market for JU. Milan was supposed to be increased to 9 weekly on A319 this year before China virus hit.
DeleteWe can only guess it's going to be launched once the situation calms down...
DeleteBy using the same logic you san see that Chisinau has not been cut, but realistically spoken JU won't be flying there at least in next couple of years.
DeleteNothing wrong with using that logic especially since those routes were not cut, at least not officially.
DeleteI still think some routes that are still scheduled will not be returning. Kiev for example.
ReplyDeleteYep, don't see them surviving against Windrose and SkyUp.
DeleteA lot regarding next summer will depend on travel restrictions.
ReplyDeleteSerbs can enter Oman now without any restrictions, even without PCR. Slovakia suspended the ban as well. Seems like the tide is slowly turning.
DeleteYou need PCR to enter Oman. It's just that the Serbian Foreign Ministry website has been wrongly stating for months that Serbs can enter Oman without any restrictions. We can only enter since two weeks ago. And you still have to have a test and quarantine.
DeleteSource? I mean since you seem to know better than the ministry of foreign affairs. LOL
DeleteThe source is the immigration website of Oman and because I have family there! And yes the ministry website has been wrong for months. They wrote back in June that we could enter even though Oman suspended issuing entry visas for all foreigners and only started 2 weeks ago. So yes, I know better then the ministry of foreign affairs. LOL.
DeleteI still trust the ministry more as they publish information they get from their colleagues in Oman.
DeleteYou should then book a trip to Oman and see how you go. You can cite the ministry website and the starleta that compiles the information to explain to them why you don't have a test, can't go to quarantine and can't wear the tracking bracelet you'll get on arrival. Also the ministry has been showimg you can enter Oman since June which is so wrong as the airport and land borders opened only last month. But go ahead. Afraid you won't be able to get pass check in at Belgrade Airport. I would strongly recommend you double check all information on that website.
DeleteIf you want to travel to Oman contact the Oman authorities not the Serbian Foreign Ministry.
DeleteI really wonder what's going to happen with their Nis and Kraljevo flights.
ReplyDeleteMy money is that KVO-INI will stay.
DeleteThere has never been any KVO-INI flights.
DeleteUnless your saying that it might work?
No chance that KVO-INI would work, not even in the goods time.
DeleteBEG-INI mazbe.
KVO is meant to be a cargo hub and not really rely on passenger traffic. This subject was covered here.
DeleteNobody brought up cargo until you did.
DeleteWe were talkin about pax travel
Februar će biti pravi izazov. Od marta uz masovnu vakcinaciju koja počinje krajem ovog meseca trebalo bi da stvari krenu na bolje.
ReplyDeleteGood luck
ReplyDeleteParis holding up quite well
ReplyDeleteShame about Cairo :( with just a negative PCR test needed for Serbs, and Egypt lifting all airport fees, why don't they give it a try? Tour operators could make packages.
ReplyDeleteThe flight is probably too long and not viable with the general redction in demand.
DeleteI think JU hasn't used opportunities well to fly to markets where just negative PCR test is needed. There are several.
DeleteThe government increasing fees for PCR tests doesnt help grow demand for travel.
DeleteIt's going to be a second very tough summer. I fear more financial aid will be needed.
ReplyDelete+1
DeleteLufthansa just raised another €1.5 billion by using its planes as collateral.
DeleteAt the time these destinations were introduced they were the part of first big wave of Air Serbia's new destinations touching the markets long time not served or not at all served in the past.
ReplyDeleteAs last year brought what it brought it is logical now to see HEL, CAI, RJK cut (as the destinations with the most probably weakest LF and yield), but hope to see them back in 3-4 years.
So TLV once again is the only Middle Eastern destination left.
ReplyDeleteLet's be honest to ourselves, those 4 routes were never profitable even before Corona.
ReplyDeleteCAI - way too much competition for transfers
BEY - highly seasonal airport and again way too much competition
HEL - few airlines have succeeded there - an expensive airport and a Finnair territory
GVA - no surprise here, this is is not the first time it happens. Plus, U2 is very aggressive deploying bigger planes and offering very low prices
As for OSL, I don't see how ASL will compete with W6 and DY. The same goes for BCN with VY and eventually W6. We will see.
JU already competed against VY last summer in BCN and they did just fine. Why would the future be any different? Also JU flew into BEY for years and that route survived even when others were cut (VAR, BUD, WAW...) so it means that it was making at least enough money for JU.
DeleteMy opinion is that JU will blow away W6 and especially VY in BCN. Better product with better flying times including connecting possibilities.
Delete10:44
DeleteYear ago, everyone were praising JU for these routes.
anon 10:53
DeleteHow do you know, they were doing fine? No airline publishes financial results for specific routes. Overall as an airline they were loss making.
You may only say that these routes where performing for them better than some of their other routes. Whether these routes were profitable or just less loss making is something that no airline will disclose.
Obviously its a comment with made up 'information'.
Delete- GVA was never launched (was supposed to be in the new list for 2020) so I dont see how you can judge its performance.
- CAI is soo competitive that KLM just recently launched ops to CAI, and that with a B777.
- BEY always performed well. It was one of the destinations that regularly saw the larger A320. Problem was Lebanon's financial crisis and not the routes performance.
- BCN was increased almost immediately from launch, and was excepted to again be increased last year. VY had poor timings and on time performance.
- W6 isnt launching OSL, its TRF. And that was supposed to be launched last year, yet they delayed it while JU is started OSL and continues to fly there.
Jatbegmel:
DeleteYou judge performance based on the size of the plane, frequences etc., but what about financial performance? Etihad just cancelled BEG and we know how big was the plane, how high were the loads etc. All was presumably there, but in total it just did not make money.
CAI is opened by KLM for leisure. In todays market many airlines that were focusing on business traveller, switch because of changed demand to more VFR routes and leisure routes. JU was in CAI not for leisure travellers like KLM is, but for transfers. A different market segment.
- You dont increase capacity and frequencies if your not making money from them. Overall, JU isnt a profitable operation, but it isnt a massive burden to the budget either, and has shown signs of great financial improvement the past 2 years, on top of the massive expansion it had in 2019. There are other factors as well affecting JU's financial performance such as expensive aircraft leases. Just the renegotiating of the A330 price saves JU almost a third of their losses for 2019. Plus factor in that a couple A319's have been noted to be under expensive lease contracts.
DeleteEY cancelling BEG doesnt say much other than how incompetitant they are.
- As for KLM to CAI, my understanding is that they take on a decent amount of cargo, hence the B777. JU didnt have their full network available for CAI due to the distance and timing. However, it was commented that MXP was a popular route for CAI transfer pax, which itself was to be 9 pw for summer 2020.
"You dont increase capacity and frequencies if your not making money from them. "
DeleteThere is no such rule. You may increase both capacity and frequences, despite losing money on a given route. This is when you think that the original setting of capacity and frequences was the reason for the financial failure.
For example you may think that more flexibility given to your pax as a result of more frequences will bring you more higher paying pax. For example you may want to try a route with bigger planes, hoping that lower cost per seat will allow you to lower the fare without losing your margin per seat, while bringing in more pax, and in consequence make money on a route etc.
"Overall, JU isnt a profitable operation, but it isnt a massive burden to the budget either, and has shown signs of great financial improvement the past 2 years, on top of the massive expansion it had in 2019. There are other factors as well affecting JU's financial performance such as expensive aircraft leases. Just the renegotiating of the A330 price saves JU almost a third of their losses for 2019. Plus factor in that a couple A319's have been noted to be under expensive lease contracts."
To judge that you would need a full insight into its financial position, which understandibly is only available to insiders. You would need to count in particular: a) direct subsidies, b) fees paid to JU for "Serbia Creates" advert, c) other money given by GoS not as subsidies but for "promotion of tourism" from marketing budgets etc., d) discount at BEG that Vinci agreed to upkeep for a certain time in the concession agreement (that obviously lowered the concession fee that would otherwise be payable)... Basically, we don't know what this position actually is and critising or praising has really not much point.
As to leases, pls note that a huge advantage of JU is that they not only have many planes in ownership, but also that these are pretty old, ie I expect already fully amortised. At LH, if they have their own plane, they still amortise it and the amortisation charge reduces net result.
"EY cancelling BEG doesnt say much other than how incompetitant they are."
Pls Mr. Armchair CEO stop this talk about incompetence of EY. They have the biggest experience out of all involved in exYu aviation and a good example of that is that GoS is keeping many of those people in, despite Etihad actually leaving.
Norwegian is dead anyway.
Delete- You dont 'try' larger capacity and frequencies for 6 years, as is the case with BEY. You do have a point with your comment, however with JU we have seen them play with capacity and frequencies, what they have increased and what they have cancelled, from which we can have a fair guesstimate as to what seems to be working.
Delete- We have a good understanding of the amount of subsidies JU recieves each year, and there are several articles where this has been debated to the death.
- JU has almost 100 years of experience, EY 15. But you are right, EY definately have experience, however showing to be a good example of what not to do, Swiss Air version 2. I wont even bother commenting on our government and their running of JU.
As for me being an arm chair CEO, is that the pot calling the kettle black?
"- We have a good understanding of the amount of subsidies JU recieves each year, and there are several articles where this has been debated to the death."
DeleteIf you have such a good understanding: pls tell me how much is the yearly remuneration for JU for the "Serbia Creates" livery?
I will surprise you - it is not bad management by idiots, it is life. The ex-Yu airlines need subsidies from the relevant states, because the market they operate in, is just not profitable. So the public needs to provide subsidies to them, because it wants the connectivity. Therefore I hardly understand all this bashing on this site.
But pls don't tell me that as an outsider you may judge real financial situation of JU year by year or in particular say which routes are profitable.
Thank you for the capacity updates. Always interesting to see.
ReplyDeletethese 4 routes less will not be enough to get back into positive results
ReplyDeleteYes, they need to find and open "new" OSL
DeleteObviously these cuts are to show that JU is taking measures to justify the cash injection by the government. BEY was cut before the pandemic, RJK went from year round to seasonal, HEL was 2 pw and amongst the couple of new destinations not expected to see increases for 2020. CAI was limited with transfer possibilities in BEG due to the timings, however that was as well only a couple of flights a week and during the midnight wave when JU always had spare capacity.
Deletesure but if all they do is steps to only"justify" another round of state injection then nothing will change. These 4 routes were not their prime problem
DeleteI think that expensive aircraft leases were a decent portion of their losses, my guesstimate being 50%. The savings from the A330 is around 30% of the losses JU made in 2019 alone.
DeleteWhere is Etihad to put in some money in the company? They are owners as well. Why only Serbian people need to pay for money losing company?
ReplyDeleteThey don't have money for their own company...
Deletethey should stop with that expensive political INI "low cost" experiment and offer double daily INI-BEG with one of their ATR's instead
ReplyDelete+1
DeleteThe one thing that would slightly concern me with all of these cuts is that JU needs to develop a broad network to continue its model of being a transfer airline with a hub in BEG. We saw that last time they cut routes, it didn't end well so hopefully they will avoid repeating something similar this time. They need to expand their network to gain critical mass which is especially important since they are a small airline.
ReplyDeleteWell, Etihad is almost out, but Etihad thinking is deeply rooted in JU. What Etihad was doing for the last years, was gaining "critical mass", while flying everywhere with huge yearly losses, hoping that some day they will turn profit, ie. when they grow big enough. They were growing but there was no point, where they were "big enough" to actually break even. Now, they finally understood this is a road to nowhere.
DeleteI guess these routes will be cut short term as part of their 'cost cutting' measures. The pandemic has severly reduced air travel, as well as the restrictions in place, so simply there currently isnt demand for many destinations and higher frequencies. We saw with Wizz and their 'expansion' plans the past several months as to how 'successful' that was.
DeleteI think transatlantic travel won't really recover until summer 2022. For summer 2021 it is already in question as people who normally book flights to the Balkans are holding off to see what will happen.
DeleteMontenegro just cancelled PCR test for people coming from Serbia. I expect JU loads too boom right now. Good thing is that YM is dead so they can profit in these dark times for civil aviation.
ReplyDeleteHow is Tirana performing?
ReplyDeleteThe night arrival to Tirana is terrible the other one is ok.
Yesterday it was 80% LF>
Delete