The Serbian government has begun tender procedures for ten routes of public interest which are to be launched from January 1, 2022 and run until December 31, 2023, including seven from Niš Constantine the Great Airport and three from Kraljevo’s Morava Airport. Interested airlines will be able to operate all ten routes or a selection of destinations which have been divided into four separate groups. Group one includes flights from Niš to destinations in the European Union - Hahn, Cologne, Ljubljana and Athens - as well as from Kraljevo to Thessaloniki. Group two encompasses flights from Niš and Kraljevo to Istanbul, group three comprises of operations to Tivat, and group four involves domestic flights between Belgrade and Niš.
All routes will be maintained twice per week, with exception to the Belgrade - Niš service which will have four weekly rotations. Interested airlines are required to maintain operations from Niš with an aircraft that has the capacity to seat at least 140 passengers, with exception for flights to Belgrade and Athens. Services to the Serbian capital are to be run twice per week with a 140-seat jet and twice per week with a 65-seat aircraft, while operations to Athens can be served by either of the two. Due to runway constraints, all flights from Kraljevo are to be operated by turboprop aircraft with 65 seats or more.
Four of the ten routes will be maintained on a seasonal summer basis between June and September, including those from Niš and Kraljevo to Tivat, from Niš to Athens and from Kraljevo to Thessaloniki. The contract for all ten routes is valued at around 23.8 million euros over the two-year period. Flights to destinations in the EU will be covered to the tune of 13.1 million euros, to Istanbul amounting to 6.7 million euros, to Tivat 971.000 euros and the domestic service will be subsidised with three million euros over two years. Airlines have a month to express their interest. After a contract is signed, a flight schedule must be published within ten days.
Title should read "Serbia to subsidise Air Serbia's 10 routes".
ReplyDeleteAs if anyone else than JU has even theoretical chances of winning this tender...
To whome should Serbian money go? To Iberia?
DeleteWho flies PSO in Croatia? SAS? Of course not.
And so? What's wrong with that? I hope they get the tender. Supporting the flag carrier is far better than lining the pockets of some other "low-cost" airlines.
DeleteIdeally to the airline, that can operate the flights at the lowest cost.
DeleteBut we all know the tender is just there, so that JU's government subsidies wouldn't be completely obvious.
Smart way to get around the unfair EU rules on subsidizing a national airline. With this money JU will be able to lease some decent airplanes this coming season. Unless some other "expert" on this forum can think of another way for JU to raise quick cash without selling a controlling stake to another rich foreign company.
DeleteThis money can't be used for leasing aircraft because it will be covering the losses of these routes, as intended.
Delete"Unfair EU rules"
DeleteI bet if you worked for one of the airlines who isn't reliant on state aid to survive, and has to compete on the free market, you wouldn't be calling it unfair.
@11,27
DeleteWhich EU airline isn't receiving state support in some form?
W6 has it's rigged tender in BUD and subsidies to fly to many of their destinations.
FR was found to be illegally subsidised by airports.
LH forced the German government to not allow EK more destinations in Germany. LH terminated its codeshare with Jat quickly after Jat signed an agreement with EK to transfer pax to JFK via HAM.
AMS is being pressured to remove the slot capacities favouring KLM.
to Jatbegmel:
DeleteThere is a lot of difference between subsidies given by an airport or tourist organisation and subsidies given by the state owner of an airline.
The airport or tourist organisation pays via subsidies for maintaining a certain route and is happy to pay to any airline that will keep a given route as desired by an airport or tourist organisation at the smallest cost to an airport or tourist organisation given the subsidy. If for example the Greek tourism organisation wants to have more tourists into Greece from country X, they could subsidise airtravel between Greece and X. But they would do it, because they want to get more frequences, more capacity, cheaper tickets on that route at the lowest cost to them and not to enrich an airline being recipient of that subsidy. They would pay an airline only as much as they have to pay to get that service from an airline.
And when it comes to subsidies given by the state owner of an airline, it is usually the other way around: inventing routes just for the sake of paying and overpaying for the sevice. It is not about the service, but about creating a legal cause for the money transfer.
And also the LH example is wrong: EK does not want to have open skies with the EU. If they had open skies they could fly into Germany as much as they only want. Why they do not want open skies? Because open skies means (subject to limited exceptions) no state subsidies. Open competition must be fair. So they prefer to stick to bilaterals, where state subsidies remain legal.
W6 and FR are a different case. Neither are owned by the government, and their government aren't regulating the market they operate in. And in case of FR, subsidies are coming from the local authorities where the airports are located, not even in the same country.
DeleteJU subsidies are coming from their owner (GoS), who also happens to regulate the market they operate JU operates in (CAD). We'll give JU money to fly those routes, and deny traffic rights to their competition. Just fair play in a typical open market, huh? Best of luck everyone.
See the difference?
No prizes for guessing who is going to win.
ReplyDeleteWhat is the problem with that? Tax payers stays at home. Once and if Serbia becomes EU member, let them play another game. This way, responsibility is toward Serbian budget, the other way, responsibility is toward other economies. As simple as that.
DeleteThen what is the point of the charade of organizing a tender?
DeleteThis is the point:
DeleteWe have cash-out for infrastructure. We will maintain it and use it. Still, if there is anyone else out there who can fit it and use it for smaller money, it is welcome to apply. If not, we will do it by ourselves.
anon 09:09:
DeleteWhen joining the european common aviation area Serbia agreed not to subsidise its airlines, subject to certain exceptions. In return Serbian airlines may fly to any airport in the EU at any frequency and capacity, as they only wish. So you are saying that agreement is no longer binding?
That's not how the agreement works and the agreement is implemented in phases. Currently it hasn't reached the phase where Air Serbia would be allowed to operate between two EU states.
DeleteI did not mention flying between two EU states. I mentioned things that already apply under the ecaa: a) prohibition on subsidies, b) the right to fly between Serbia and any EU airport at any fequency and capacity. So the question stands: is that agreement no longer binding?
Delete@ Anon 15:46:
DeleteIt is quite obvious it is binding. Otherwise, EC would have been reacting on JP file against SRB to EC in case of previous tender. And yes: legally-wise, the fact JP went belly-up in the meantime does not abolish EC since it was in possession of information/file which force EC to act upon it.
anon 17:29
DeleteThe truth is that the EC does not really care whether Serbia subsidises JU. Aparently it is not seen there as a threat to anybody.
Probably they would have to say something (precisely, they would be be forced to say something) if that happened in an express manner, but Serbia acts prudently and does not do it in an outright manner.
Interesting that in theory any airline can apply to operate domestic flights in Serbia. Only issue is, they require both turboprop and jet engine plane for the flights :D
ReplyDeleteThat way they insured that no one else can apply.
DeleteWell, if there is a foreign airline that values Serbia so much they are more than welcome to base two a/c in the country and win the tender!
DeleteYeah, as if a foreign airline with even 5 aircraft based in Serbia could even come close to winning any tenders...
DeleteI really do wonder who bought most of the ex-state giants/factories. Was it local guys or big foreign companies/funds. Foreign capital really has a hard time getting a foothold in Serbia. L O L.
DeleteHope that money can cover the losses that will be generated by these routes.
ReplyDeleteI think the only route that won't generate losses is TIV-INI/KVO.
DeleteI think you are wrong. :p
DeleteWhich other routes do you believe will be profitable?
DeleteIstanbul and Salonica
DeleteINI-HHN, INI-LJU, INI-TIV and KVO-SKG seemed to be the only routes out of 12 to have actually worked in the last tender as they have returned.
DeleteINI-ATH should easily do well as hundreds of thousands of Serbs each year visit Greece. Add in the possibility of A3 codesharing with JU and I think that the route could do well, even in the winter.
TIV has always been a hit in the summer. There shouldn't be a problem for it to work from KVO.
IST was supposed to be the first destination from KVO back when the first ATR landed at the newly constructed terminal. IST is a large hub, lots of connection possibilities and TK and JU do codeshare which can potentially be expanded on the 3 new routes (ESB-BEG being the third).
BEG-INI will be great for transfer pax via BEG. The aircraft and crew have to be ferried to INI anyway, might as well sell seats. I don't see it being popular with O&D but there may be a few that find it convenient.
I think overall the money given will not be wasted.
It's at least good to see that all airports will have traffic next year.
ReplyDelete+1
DeleteSo they will put tickets on sale days before the flights start?? What is the logic in this?
ReplyDeleteExactly my thought. Why not start from March. Planes will be empty in January and February.
DeleteThey did the same way last time too.
DeleteGreat news but it's unfortunate many of the previous routes out of Nis will be cut.
ReplyDeleteI think the selection of routes is much more reasonable now compared to two years ago.
DeleteRoutes were cut because they did no perform well. INI-BUD was cut within 2 months with an average I believe of 3 pax per flight. Statistics were shared for the Germany-INI routes, if I remember right, they had an average of 45-65 pax with exception to HHN. Nothing unfortunate about canceling routes that don't work.
DeleteThis tells me Air Serbia will definitely need more planes next summer.
ReplyDeleteIt will have to, otherwise it will be at the expense of their BEG flights, which I doubt will happen.
DeleteI can't wait to fly BEG-INI :D
ReplyDeleteI wonder what the price will be
DeleteMe too. And I will aim for those operated by A319.
DeleteFares will be very cheap as is the case with all their fares from INI and KVO.
DeleteI don't think they will be as cheap as the 1.500 din (13€) return bus fare between Belgrade and Niš.
DeleteBEG-TGD/TIV is around 10.000 din return with luggage as the light fare is not available on the route.
I doubt JU will sell BEG-INI under 3.000 din return.
I'm not sure what will be the benefit of 4 pw rotations Belgrade to Nis, usually for such routes if the demand is as expected, there should be multiple rotations per day to 'compete' against the busses
ReplyDeleteI'm guessing the aim to get transfer passengers for Air Serbia's flights from Belgrade and in that way also compete against LCCs in Nis.
DeleteI think it's more to compete against Swiss which will be flying to Nis next summer as well. They can't compete against LCCs.
DeleteIt is possible that the 4 weekly rotations will be organized in such a way that two operate on one day and two on the other. So there might be morning and evening departures on the same day.
DeleteI am so excited about the development of Air Serbia and Belgrade Airport. It's a shame that my airport and the associated airline are miles away and don't take a step forward. Greets from Zagreb
DeleteUmm your airport has numerous domestic flights...
Delete@9.18 agree. I guess they realized it makes more sense for Air Serbia to carry transfer passengers rather than Swiss
Delete@Anon 9:29 In general, I said that I was impressed by what the airport is doing. Always on the move with lots of news
Delete@09,15
DeleteThe distance is too short to be properly competitive with busses. Besides, a return ticket by bus is around 1.500 din with alot of times per day to choose, something JU cannot adequately compete with. The route is obviously targeted for transit pax.
That's a lot of money.
ReplyDeleteIn theory, could KVO flights be operated with smaller jet plane, E or CRJ, without weight restrictions?
ReplyDeleteYes, they could.
DeleteSo KVO-VIE is ending at the end of the year?
ReplyDeleteYes. I can imagine what the loads were like...
DeleteMaybe Air Montenegro applies for the Tivat routes
ReplyDeleteThey can't because they can't operate to Kraljevo with E190. And also the E190 has under 140 seats so it does not qualify for Nis route.
Deletehaha they thought of everything to disqualify any airline other than JU.
Delete@09,37
DeleteThey didn't the first time and then FR wanted to launch HHN-INI.
I think BEG-INI might be a surprise and there will actually be decent demand.
ReplyDeleteI have a good feeling about BEG-INI as well
DeleteI have a tingling feeling about BEG-INI.
DeleteI don't have a problem so much that this is a fixed tender for JU, what I have an issue with is that they will put tickets on sale literally a day or two before they start. What is the point in that?
ReplyDeleteJU really doesn't care about that, they literally get paid to fly empty planes as well so it's no loss for them.
DeleteBut it's a loss for the government. So I don't get it.
Delete@11,02
DeleteWasting money is not an issue for the Serbian Government.
https://balkaninsight.com/2021/11/09/serbia-pays-price-of-delays-errors-and-costly-cars-in-rail-upgrade/
They will have to open domestic flights section of the airport.
ReplyDeleteWhy not BEG-INI-KVO-BEG and vice versa route?
This is great news, finally BEG-INI.
ReplyDeleteA good example of how to activate smaller airports.
ReplyDeleteNot really. You are just throwing money at them without making them self sustainable.
DeleteLet's see if all these routes survive the two years.
ReplyDeleteI think they will. It is a much smarter selection of routes compared to two years ago.
DeleteCongratulations and good luck.
ReplyDeleteNiš to Budapest is missing....
ReplyDeleteNis-Budapest was in the previous tender. The route was so successful it lasted a month.
Delete@anon 10:25 Before you try to act supersmart, try to understand the irony.
DeleteWill JU have enough aircraft to cover those 10 routes? They will be forced to get new ATRs especially in KVO. With their current fleet 15-17 it will be quite tough.
ReplyDeleteThey will obviously be getting additional aircraft.
DeleteHopefully not wet leased equipment.
DeleteApparently there is the 'special' few that think that it is normal for an airline to announce routes and not have aircraft to operate them. Apparently JU hasn't taken on aircraft the past 8 years. Only 11 A319's, 2 A320's, 2 A330's, nothing major, just a majority of their fleet.
DeleteI really do not see why to subside summer destination like Tivat in summer. Just no sense
ReplyDeleteSo tickets are cheap and accessible to local population I guess
DeleteGive the voters cheap holidays and bingo....
DeleteGood news for Ljubljana too :D
ReplyDeleteSo it seems Kraljevo - Thessaloniki performed well this summer if it is back next year too.
ReplyDeleteHow many passengers could we see at INI next year then?
ReplyDeleteThe govermnet will pay 140,50€ per seat for each return flight from Nis to Belgrade, regardless of whether the ticket is sold or not?! WTAF! It would have been smarter if they had bought one new ATR72-600 for 22 milions and create whole new regional airlines that serves Nis and Kraljevo only!
ReplyDeleteIt is to transfer some money to JU, and that`s how it`s often done.
DeleteNiš used to pay YM 40 seats at 199€ each per flight.
Delete1.1 million Euros was given to Windjet for the short time they were operaing Forli-Nis.
And no, it's not smart to buy a new ATR to set up a regional airline (not airlines) to operate KVO and INI only. Buying an aircraft doesn't mean expenses stop.
Looks like Istanbul will be served from all cities in Balkan soon lol
ReplyDeletePerhaps there is a smart airline CEO somewhere in Europe that can take advantage of this offer. Air Serbia certainly does not deserve this tender nor does it deserve to be subsidized by the govt. And yes I know other airlines are subsidized by their governments but that is a waste of tax payer money as well.
ReplyDeleteWhat? Air Serbia does not deserve to be subsidized by own government? Other airlines are also subsidized. Still, let smart CEOs of other subsidized airlines get this subsidy, just not Air Serbia? Are you okay?
DeleteAir Serbia becoming again a communist government run airline burning money for empty flights .
ReplyDeleteThe new Air Koryo of Europe .
Of course just to spite the lccs .
LCCs can't operate the majority of the routes.
DeleteNo lcc would waste their money on those routes .
DeleteWizz happy taking money subvention from government in Macedonia Bosnia everywhere. Is that making communist Wizzair now?
DeleteIt would be interesting if Serbia have several other Serbian airlines such as in Greece, Bulgaria, Romania.
ReplyDelete