CEO: Decision on Air Serbia’s long haul expansion imminent


Air Serbia’s CEO, Jiri Marek, has said the airline is soon expected to make a decision on weather to lease a second Airbus A330-200 aircraft in order to expand its long haul operations. An additional twin-aisle jet will enable the Serbian carrier to launch new destinations in Asia and North America, as well as increase frequencies on its New York service. Earlier this year, Air Serbia undertook due diligence and drafted a business plan for the introduction of flights from Belgrade to either Shanghai or Beijing in Asia, as well as Chicago or Toronto in North America. Mr Marek confirmed the airline had initially planned to wet-lease an A330-200 for this summer season but gave up on the idea due to rising fuel prices.

Last year, Air Serbia replaced its A330-200 jet with another aircraft of the same type, that has lower leasing costs, which is believed to have contributed to pushing its sole long haul service, between Belgrade and New York, into profitability. This summer, in addition to serving the Big Apple, the jet has also been trialled on shorter popular routes such as Paris, Barcelona, Zurich, Istanbul and Moscow.

Earlier this year, Serbia’s President, Aleksandar Vučić, said, “After almost five years of hard work, the service to New York is finally profitable. Now we want to increase frequencies on that route and introduce another destination in North America, either to Toronto or Chicago”. He added, “In Asia, we are initially planning one route to China, which would increase to two. We are talking about Belgrade - Shanghai and Belgrade - Beijing. I believe we can be successful in this pursuit. Of course, we are seeking certain discounts and incentives from the Chinese side, in terms of airport fees and taxes. We believe that flights to China will become profitable earlier than was the case with New York”.

During the pre-pandemic 2019, China (excluding Hong Kong) was the largest long haul market from Serbia based on OAG data, just outperforming the United States, which was followed by Canada. Shanghai and Beijing were Belgrade Airport’s two busiest unserved routes in 2019. That year, a total of 62.526 passengers flew indirectly between Serbia’s capital and China’s largest city, while a further 52.289 travelled indirectly between Belgrade and Beijing on a single itinerary. Despite the coronavirus pandemic, Shanghai was still Belgrade Airport’s busiest unserved destination in 2020, while Beijing came fourth, falling behind Toronto and Chicago. There is also believed to be notable cargo demand between the two countries.



Comments

  1. Anonymous09:03

    Finally!

    ReplyDelete
    Replies
    1. Anonymous15:42

      Fingers crossed for Saskatchewan! Just in time for the Grey Cup!

      Delete
    2. Anonymous22:54

      Yes! Go Bombers!

      Delete
  2. Anonymous09:03

    Good old Vucic running the company...

    ReplyDelete
    Replies
    1. Anonymous09:04

      Or maybe JU briefed him on their plans?

      Delete
  3. Anonymous09:04

    Interesting that new long haul was planned this summer with wet leased plane.

    ReplyDelete
    Replies
    1. Anonymous09:05

      They really like wet leases at JU lately.

      Delete
    2. Anonymous09:51

      If you have high seasonality, if the forecast was not accurate and changing on a short notice no matter what the reason was (bad planning or changes in the market or mix of the two), wet lease is perfect solution ... Yes, I would like they have 50 owned planes, but that doesn't mean that they do something wrong wet leasing.

      Delete
    3. JATBEGMEL11:06

      They've relied too heavily on wet leases this year and it's really bitting them in the as*. Seasonality is there, however it shouldn't be to the point that almost 20% of the fleet is wet leased.

      Delete
    4. Anonymous12:26

      The costs of wet leasing may be lower than dry leasing plus rest (crew, maintenance, insurance) if you have a small fleet with just a couple of aircraft of the same type. Certainly wet leasing one A330-200 would be cheaper than dry leasing plus the rest.

      Delete
  4. Anonymous09:06

    So realistically we can get new long haul routes next summer?

    ReplyDelete
    Replies
    1. Anonymous09:10

      Maybe even sooner.

      Delete
    2. Nemjee09:11

      Or they could use the spare capacity they have in winter to launch flights to Chicago, they could test the waters with seasonal flights around Christmas.

      Delete
    3. Anonymous09:13

      My thoughts too. Seasonal flights during holiday period would make sense.

      Delete
    4. Anonymous09:37

      I think it will take until next summer. They will have to find a plane to lease, train extra crew for the A330, get permits for all of those routes (except Chicago).

      But like Nemjee says. They could operate a few flights to ORD during Christmas/New Year. At least for a month.

      Delete
    5. Anonymous09:43

      If they are to wet lease a plene, they don`t need to train any crew.

      Delete
    6. Anonymous09:47

      I believe the wet lease was just a temporary solution.

      Delete
    7. JATBEGMEL11:44

      @nemjee

      I agree. Boosting JFK to 3 pw and launching ORD at 2 pw would keep the A330 adequately busy for the winter. A second aircraft could arrive in March to allow ARB to go for maintenance, to be back in April as frequencies pick up in April.

      Delete
    8. Anonymous14:18

      I flow few times to Chicago and mostly I used KLM and Air France services and almost always CCA 30% of the plane was filled with Balkan people. It is just unbelievable how many people from this area lives in Chicago and nearby places. For me it was very strange that nobody from JU haven't noticed this or did some market research... I must admit that I was always traveling in summer time period but there is enormous potential regarding ORD.
      My thoughts are that this route would be way more lucrative than NYC but I am also sure that people from JU are well informed and that they have long term plans.

      Delete
    9. Anonymous15:05

      The plane for dry lease has been identified, additional crews trained... From the information I have the expansion should come earlier than the next summer. Lets hope it materializes

      Delete
    10. Anonymous23:25

      Interesting. Do you know how much earlier? :)

      Delete
  5. Anonymous09:07

    Shanghai should be their China destination. Wonder if they chose YYZ or ORD in North America.

    ReplyDelete
    Replies
    1. Anonymous09:26

      The air deal between Serbia and Canada was negotiated for a reason so it would make sense that it is Toronto.

      Delete
    2. Anonymous09:32

      The Balkan Diaspora is huge in Chicago and Toronto.

      Delete
    3. Anonymous09:33

      There is at least 300,000 ex-yugos living in greater Toronto and Chicago.

      Delete
    4. JATBEGMEL11:48

      @09,26

      An air agreement was made with India as well. It doesn't mean they will launch flights to India.

      JU might not want to operate YYZ at 2 pw as allowed under the current agreement. Something else would need to come with YYZ if they were to go ahead with the route.

      Delete
    5. Anonymous23:26

      YYZ 2 per week
      PVG 2 per week

      Does that leave room for anything else?

      Delete
  6. Anonymous09:08

    Great news

    ReplyDelete
  7. Anonymous09:09

    Fuel prices will only get higher

    ReplyDelete
  8. Anonymous09:10

    JFK will be increased this winter from what I've heard.

    ReplyDelete
    Replies
    1. Anonymous23:26

      To how many? 3 per week I assume?

      Delete
    2. JATBEGMEL00:56

      November to mid December is still 2 pw. Frequencies increase to 4 pw by mid December. Nothing out of the usual as per their current schedule. They're probably waiting for the last minute to add the additional frequencies, if they are increasing them this winter.

      Delete
  9. Anonymous09:10

    So they are sticking with the A330s.

    ReplyDelete
    Replies
    1. Anonymous09:16

      Makes sense with such a small long haul fleet

      Delete
  10. Anonymous09:16

    China is slowly reopening. Etihad becoming first international aitline to resume flights to Beijing, once per week. They are going to make huge money from it, especially in these early days.

    ReplyDelete
    Replies
    1. Anonymous10:16

      China announced today it is cutting quarantine for overseas visitors to 7 days from 14 previously

      Delete
  11. Anonymous09:20

    Perhaps JU could try flying to Toronto-Hamilton? Pearson is currently an absolute mess and I believe YHM offers incentives for new airlines. It's not too far away from YYZ either, maybe a 45 minute or so drive. They could definitely attract transfers on their European network from Canadians who want to avoid YYZ.

    ReplyDelete
    Replies
    1. Anonymous09:26

      Plus YYZ is really expensive.

      Delete
    2. Anonymous09:28

      I like the idea, and actually, lots of Serbs live in Hamilton area.

      Delete
    3. Anonymous09:38

      It actually is not a bad idea at all! Great idea :)

      Delete
    4. Anonymous12:16

      Good idea but how well is YHM connected by AC and other Canadian airlines with regards to connecting passengers to other parts of Canada / USA ? Do not lose focus on saving a tree and losing a forest!

      Delete
    5. Anonymous08:58

      All the above mentioned are pros, but as Anon 12:16 said, we can’t forget about the rest of Canada/US. Whilst it’s more expensive, YYZ is way better connected.

      Delete
  12. Anonymous09:24

    And people were complaining there would not be long haul expansion :D

    ReplyDelete
  13. Anonymous09:24

    wow nice!

    ReplyDelete
  14. Anonymous09:24

    I'm guessing it wouldn't make much sense to start China before it open up.

    ReplyDelete
    Replies
    1. Anonymous23:27

      It is starting to open up. In China, people are saying that September will be reopening for international travel. Honestly, China flights are used primarily by Chinese who can enter the country.

      Delete
  15. Anonymous09:24

    Exciting times. Which would work better? Chicago or Toronto?

    ReplyDelete
    Replies
    1. Anonymous09:26

      Probably Toronto

      Delete
    2. Anonymous09:32

      YYZ is some 45 minutes shorter than ORD so it will make it easier to fit into the network.

      Delete
    3. Anonymous09:57

      ORD is the second biggest market in North America, right after New York so it would make sense to go there.

      Delete
    4. Anonymous10:03

      Why not combine ORD & YYZ?

      Delete
    5. Anonymous10:12

      It would be uncompetitive and a very long rotation.

      Delete
    6. Anonymous14:50

      CHICAGO!!!

      Delete
  16. Anonymous09:33

    Are they crazy?

    ReplyDelete
    Replies
    1. Anonymous09:35

      Why?

      Delete
    2. Anonymous09:58

      No

      Delete
    3. Anonymous23:28

      Smart planning actually.

      Delete
  17. Anonymous09:33

    Any long-haul expansion should be followed with the strengthening of the regional network.

    ReplyDelete
  18. Anonymous09:35

    So JFK would go daily in summer?

    ReplyDelete
    Replies
    1. Anonymous09:38

      Most likely.

      Delete
    2. Anonymous09:39

      Not necessarily. When they talks about adding frequencies it could be in the off season.

      Delete
    3. Anonymous09:41

      *talk

      Delete
    4. Anonymous09:46

      In off season they can already add frequencies without an issue with one plane.

      Delete
  19. Anonymous09:35

    Will be interesting to observe this adventure

    ReplyDelete
  20. Anonymous09:37

    Since no foreighn long haul airline is interested all those years coming to Belgrade , We have Mr Vucic saying he will start a new long haul route , knowing he has the back up from the tax payers at least for 5 years ! Nice !!!

    ReplyDelete
    Replies
    1. Anonymous09:38

      It's interesting how all your comments are very nasty and all are related to Serbia. Easily recognizable by your spacing.

      Delete
    2. Anonymous09:59

      This one again with his hysterical messages. lol

      Delete
    3. Anonymous23:24

      He’s got a point though.

      Delete
  21. Anonymous09:42

    Wondering what the frequencies would be like if they start YYZ and PVG.

    ReplyDelete
    Replies
    1. Anonymous09:56

      Thrice weekly in summer. Twice weekly in winter.

      Delete
    2. YYZ is limited to 2pw by bilateral

      Delete
    3. Anonymous10:04

      True. Forgot about that

      Delete
  22. Anonymous09:59

    They could consider BEG-LJU-JFK in winter

    ReplyDelete
    Replies
    1. Anonymous12:26

      They already have 11x weekly flights to LJU. Really no need for that.

      Delete
    2. Anonymous20:26

      People really need to let go the JAT route planning strategies.

      Delete
  23. Anonymous10:04

    Hope it materializes.

    ReplyDelete
  24. Anonymous10:04

    They really need to join an alliance if they want more US flyers and destinations.

    ReplyDelete
    Replies
    1. Anonymous10:09

      ASAP

      Delete
    2. Anonymous15:50

      No benefit from joining an alliance for US destinations unless they are part of a joint venture. Air Serbia is not likely to be part of joint venture unless they grow to dozens of widebodies.

      Delete
  25. Anonymous10:09

    Wow at Shanghai having the most pax from BEG. Never would have guessed.

    ReplyDelete
    Replies
    1. Anonymous10:17

      It has been the case for the past few years.

      Delete
    2. Anonymous12:30

      It does not really say where all those pax end up in China, but just says which of the Chinese airlines these pax use to go to BEG. Namely it says they use more a Chinese airlines with its hub at Shanghai than a Chinese airlines with its hub in PEK.

      Delete
  26. Anonymous10:11

    Fantastic!

    ReplyDelete
  27. Anonymous10:16

    Finally something from the management itself about long haul. This sounds promising and I expect to see new long haul destinations next summer.

    ReplyDelete
  28. Anonymous10:24

    Wow Euphoria! CEO indicates only decision whether to lease (or notnif analysis is negative) aircraft. Supposing that this decision will be taken on a strong analysis (not just wishes).

    ReplyDelete
    Replies
    1. Anonymous10:25

      And where do you see euphoria? People are discussing the news. That is the point.

      Delete
    2. Anonymous11:30

      I see it in posts starting with words "finally" "fantastic" "exciting" "wow" etc. even news states that decision is yet to be made. And that is the point..

      Delete
    3. Anonymous11:35

      Out of over 60 comments you find several people who are excited about the prospect of long haul expansion. What a crime. I really don't understand what your true problem is.

      Delete
    4. Anonymous12:02

      Yeah, prospect but not final decision (as fuel prices might influence).Forget, let’s wait for the final decision in the near future hopefully.

      Delete
  29. Anonymous10:48

    Air Serbia need to take advantage of their right to flight over Russia to launch long haul flight to Shanghai. It means they can go there faster and burn less fuel. So they can propose cheaper flight ticket or have a bigger margin if they flight there for the same price as an european carrier.By the way this route will also attract more transfert passenger.

    ReplyDelete
  30. Anonymous11:28

    Letovi za JFK lepo idu ovih dana. Iz Amerike su letovi rasprodati po 10-ak dana unapred a biznis klasa se prodaje i po 1000e.Apsolutno su se stekli uslovi za otvaranje novih dugolinijskih ruta.Možda za početak u Oktobru čim spuste JFK na 4X pokrenu YYZ 2X.

    ReplyDelete
    Replies
    1. Anonymous12:21

      1000e i nije bas tako puno za biznis! A kakva je popunjenost iz Beograda?

      Delete
    2. Vlad12:48

      Business class is going for €4k+ per leg in July.

      Delete
    3. Anonymous15:58

      Anon 11:28 Did you mean 1000eur upgrade bid from economy to business class? You can't buy a business class ticket for JFK for 1000eur now.

      Delete
    4. Anonymous00:37

      Omašio sam jednu nulu,biznis ide i do 10000e.

      Delete
  31. Anonymous11:49

    Good luck JU. I think the most realistic new long haul route will be Toronto and Shaghai but who knows. We will see.

    ReplyDelete
  32. Anonymous11:59

    Really hope to see Air Serbia add second wide body and start more long haul flights.

    ReplyDelete
  33. Anonymous15:52

    Air Transat is currently flying A330 twice per week from Toronto to Zagreb so Air Serbia starting with 2 per week A330 between Belgrade and Toronto should not be a problem.

    ReplyDelete
  34. Anonymous20:23

    Kao i juce sto sam naveo da je steta sto je odlozen drugi A330 zbog cele ove situacije. Uz JFK,ORD,YYZ i PVG zimi se avion moze iskoristiti i za neke egzoticne destinacije. Mnogo Balkan ima Potencijala pogotovu HR i CG primorije i pogotovu RO i BG. Jos uz prosirenje Afrike i Bliskog istoka moze se postati ozbiljan igrac.
    INN-NS

    ReplyDelete
  35. Anonymous21:08

    BEG-YYZ-ORD-BEG, like once with DC10-30 Dubai, Kuala Lumpur, Melbourne and Sydney or with Singapore and Bangkok.
    Also, Calcutta and Beijing or to USA to Cleveland, Detroit Metro, Pittsburgh, even to Los Angeles and San Francisco/Vancouve.
    It was set flight to Johannesburg, but war happened instead of it.

    ReplyDelete
    Replies
    1. Ho Ho Ho, hold your horses mate. I am the first one to criticize OU for not growing much more in the past in order to feed its own long haul, and to praise JU for doing so over short period of time. And I am sure they both have potentials for 2 or 3 North American and 2 or 3 Far Eastern destinations. But 1985-1990 are years long gone, and speaking about Sydney, Melbourne, Calcutta, Pittsburgh, Cleveland and Detroit today is absolutely and totally unrealistic

      Delete
    2. Anonymous23:27

      @ pozdrav

      I agree.

      Delete
    3. Anonymous23:27

      I did not expect this from mr Pozdrav. Bravo!

      Delete
  36. Anonymous23:24

    That demand data looks good for China.

    ReplyDelete
  37. Anonymous23:24

    I remember Sinisa Mali said last year flights to China would start in H2 2022. Seems more realistic now.

    ReplyDelete
  38. Anonymous06:10

    YU ARA is still paied by ASL

    ReplyDelete

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