Air Serbia sees strategic partnership as model for expansion


Air Serbia has said it is open to strategic partnerships, noting it could be one of the tools used to further expand and ensure the carrier’s long-term sustainability amid an uncertain global market. It comes after Serbia’s President said he had asked the Emir of Qatar to review the possibility of Qatar Airways becoming Air Serbia’s future strategic partner. The Serbian carrier is currently majority state-owned with a minority 16.2% stake held by Etihad Airways, which is expected to exit from the arrangement in the near future. The Serbian carrier had previously made no secret that it wishes to work closely with a larger airline. In its 2021 annual report, the carrier noted as part of its future development goals, “We will work with all major carriers in the short-term and seek comprehensive cooperation with one of the main airline groups in the long-term”.

The President and CEO of the Qatar Airways Group, Akbar Al Baker, has said the airline is not interested in acquiring others for the time being. In a statement to “aeroTELEGRAPH” at the recent ITB Berlin fair, Mr Al Baker noted, “I am not interested in any other airline investments”. Qatar Airways owns a 25.1% stake in International Airlines Group, the parent company of British Airways, Iberia, Vueling, Aer Lingus and Level. Furthermore, it has a 10% stake in LATAM and Cathay Pacific, while it is also expected to take a majority stake in Rwanda’s RwandAir as part of a broader multibillion-dollar aviation deal. Serbia’s President noted he would discuss his proposal with the Qatari Emir in further detail upon the latter’s visit to Serbia later this year.

Meanwhile, Air Serbia has seen the strongest start to the year since it rebranded in 2013. Last Saturday, the carrier welcomed half a million passengers since the start of the year. The airline reached the milestone on May 10 last year, while during the pre-pandemic 2019, the figure was achieved on April 20. “The demand for our flights is very good and constantly growing. We are at the cusp of the summer season, which is traditionally the busiest, and during which we will be flying to more than twenty destinations we did not operate to last year. We believe that the months ahead will bring new records for Serbia’s national airline, and an even better flight experience for our passengers. With such a strong start to the year, we expect not only to exceed three million passengers this year for the first time, but also to possibly reach three and a half million”, Air Serbia’s CEO, Jiri Marek, said.


Comments

  1. Anonymous09:02

    I remember that Hogan said the same once, how JU wasn't on their radar but he was asked by the Emir to look into it so who knows

    ReplyDelete
    Replies
    1. Anonymous09:04

      It will be interesting to see how this develops. If QR does invest it will be a political decision like EY, not a business one.

      Delete
    2. Anonymous09:09

      Hogan never said something like that.

      Delete
    3. Anonymous09:10

      He did. I will try to find the quote for you.

      Delete
    4. Nemjee09:19

      I remember the same quote regarding Hogan. It was published about a decade ago.

      Delete
    5. Anonymous09:24

      It was more Velja Vukasinovic, I don’t remember anything similar from Hogan. Actually, he was quite exciting about the deal, although he always called “Jat” “Dzat”

      Delete
    6. Anonymous09:27

      No, it was Hogan. He said they were not looking at Jat but he was asked by their shareholder, the government of UAE, to look into into it and they made it "work".

      Delete
    7. Anonymous09:29

      So, not exactly “I am not interested in any other airline investments”

      Delete
    8. Anonymous09:30

      Qatar airways is a serious and sustainable airline, nothing similar to EY. The fact that ex JU CEO is a CFO of Qatar helped a lot with a code share, but is more or less it.

      Delete
    9. Anonymous09:42

      QR is sustainable as long as billions from gas sales keep on coming.

      Delete
    10. Anonymous10:36

      I really wouldn't take anything Al Baker says off the cuff seriously. He claimed that they will take Airbus to court and strike no deal beforehand and yet after Macron and the Emir talked, QR reached an "amicable" deal with Airbus.

      Delete
  2. Anonymous09:03

    Watch everything fall apart in July and August when they become overstretched and lots of delayed and cancelled flights!

    ReplyDelete
    Replies
    1. Anonymous09:08

      Someone woke up on the wrong foot this morning.

      Delete
    2. Anonymous09:10

      Not everything, but I also expect high level of chaos. They are unable to deal efficiently with this level of expansion. They luck good people and experience.

      Delete
    3. Nemjee09:21

      Last year was bad but in reality a lot of it had to do with BEG not having enough staff. However, I believe both JU and BEG need to coordinate their operations so that there is better synergy between the two.

      Delete
    4. Anonymous09:22

      Let's not be Nostradamuses and wait and see.

      Delete
    5. Anonymous09:27

      The news below about Lufthansa gives additional light to ambitious expansion plans in the current environment. But agree, I’m not Nostradamous, we will see soon in person.

      Delete
    6. Anonymous09:47

      I am not very optimistic about JU's ability this summer to execute its announced flight schedule properly with the continuous staffing issues it has.
      Both flight crews and ground staff. And I'm afraid BEG will again be short-staffed in both security personnel AND Police presence in and out of the airport.
      The regular traffic jams in the access roads to the airport persist and its not high season yet.

      Delete
    7. Anonymous09:56

      The access roads will be completed by the high season.

      Delete
    8. Anonymous10:58

      I flew with TK to IST on 13.03. evening flight and it took about 45 min to check in as there were about 12 passengers ahead of me in line. Airport Belgrade staff is handling TK check in process but it is SO slow that it is unbelievable...

      Delete
    9. Anonymous12:21

      My oh my, the access roads are all that's left for some people to nag about. I wonder what they'll nag about next year.

      Delete
    10. Anonymous13:47

      anonymous 12:21
      You sound like someone who's never been on an airplane! 😁

      Delete
    11. Anonymous07:53

      they do not lack experience and good workers, they reject such in favor of sns members or political connections. air Serbia has a terrible management left by all experienced people

      Delete
  3. Anonymous09:04

    Well done Air Serbia on those results. 500,000 in 2 months a 11 days is really good

    ReplyDelete
  4. Anonymous09:05

    What is up with their investment in Rwandair? I remember when it was announced they would buy 60% of Rwandair in 2021 along with the airport in Kigali but it is 2023 and nothing has happened yet.

    ReplyDelete
    Replies
    1. Anonymous17:06

      It's a political transaction that is on hold.

      Delete
  5. Anonymous09:06

    I find it impressive that they expect up to 3,5 million pax. I think that's very close to old JAT record.

    ReplyDelete
    Replies
    1. Anonymous09:08

      What was JAT's passenger record?

      Delete
    2. Anonymous09:11

      Jat had more than 5m

      Delete
    3. Anonymous09:13

      ^ it didn't. Why do you make things up?

      Delete
    4. Anonymous09:14

      "JAT registered its busiest year in 1987 when it welcomed 4.531.000 passengers on board its aircraft"

      https://www.exyuaviation.com/2023/01/air-serbia-outlines-fleet-network-and.html

      Delete
    5. Anonymous09:14

      JAT's best result was in 1987 - 4.5 million passengers.

      Delete
    6. Anonymous09:22

      My bad, more than 4m not 5

      Delete
    7. Anonymous09:33

      Jat days and managememnt are the best. Miss the goold old days with the dots and the BEST ever.

      Delete
    8. Anonymous09:35

      LOL

      Delete
    9. Nemjee09:37

      They are talking about JAT, not Jat last Anon.

      Delete
    10. Another one here who agrees with Nemjee. JAT was serious and excellent company, especially in the last decade of Yugoslavia, 1980-1990. Jat (Airways) was total failure and disaster. Let's hope Air Serbia gets as close as possible to JAT. Definitely not Jat.

      Delete
    11. Anonymous13:54

      Jat was not allowed to grow organically. It had a very independent brand and fleet compared to the current Air Serbia which is again expected to be bought by arabs from Qatar.
      Jat symbolised and represented Serbia.

      Delete
    12. Vlad14:25

      "Jat symbolised and represented Serbia."

      That is very true, in the worst possible way.

      Delete
    13. Nemjee15:13

      Jat's main problem was that by 2005 many people who ran JAT retired. At the same time they put the DC-9 and the B727 out of service. DC-9 was especially painful because they replaced a 100 seater with a much larger B733. This is where their problems started.

      Add to that a government that didn't care about them and a market that was increasingly deregulated led to a steady decline. In 2010 when visas were removed their competition attacked them and they didn't know how to respond. Little by little they were rotting away. We all remember in what state they were in 2013.

      Delete
    14. Anonymous17:56

      Serious and excellent... LOL!

      Delete
    15. You can LOL as much as you want, it will not change the fact JAT was Europe's 10th biggest and World's 30th biggest airline, transporting almost 5 million passengers annually, operating to some 80 destinations on 5 continents, with aircraft coming straight from the manufacturers plants, and during its last decade with one of the best on time records and good in flight service, with excellent marketing and good share of transfer passengers from all over the World, and all of the above listed with no state aid or intervention of any kind. That is both serious and excellent, and only someone whose knowledge of the aviation is zero, or who is deliberately mean, can LOL to that

      Delete
  6. Anonymous09:07

    Does QR still own a stake in the operator of Pulkovo Airport?

    ReplyDelete
    Replies
    1. Anonymous09:10

      They never had a stake. Qatar Investemnt Authority does. 10%.

      Delete
    2. Anonymous09:16

      Ah thanks

      Delete
    3. Anonymous09:25

      It's more or less the same thing. Qatar - the country- is run like a corporation. Al Baker is the CEO of Qatar Airways, Doha Airport, Qatar Tourism Board etc.

      Delete
    4. Anonymous09:40

      All belong to the Emir. He just has different names for his pockets.

      Delete
    5. Anonymous09:59

      True

      Delete
    6. Anonymous20:41

      Just like the snotty bata Andrej in Serbia

      Delete
  7. Anonymous09:07

    Great job Air Serbia!!!

    As for Qatar, we will see...what ever happens, it was good to be productive.

    ReplyDelete
  8. Nemjee09:17

    Back in the day Hogan wasn't interested in Jat Airways but his views changed after Sheikh said otherwise. If there is political will in Doha then I don't see how Al-Baker can oppose it. After all, Qatar Airways is a political project which required billions in subsidies before their business model became successful.

    On the other hand, I think it's too early for JU to be thinking about such moves. They have more pressing matters that need addressing. Their workforce morale is a burning issue, their network is still relatively weak as very few destinations have at least double daily frequencies and passenger numbers are still low for them to be a relevant player beyond the relatively poor and insignificant ex-YU market.

    Then there is also their commercial strategy which seems to be a never-ending mess. In my opinion they should not think of any major moves in the next 5 years. In that period they should work on getting their ducks in order and only then think of such complex matters.

    Look at how well Aegean is run despite being based in a country like Greece. Faced with excessive taxation, an expensive hub, incredible amount of competition, regular strikes in Athens... they managed to grow from a small, regional carrier to an airline that profitably operates a fleet of 63 aircraft from multiple airports.

    A decade at Aegean (2009-2019)

    Fleet:
    2009: 33
    2019: 62

    Passenger numbers:
    2009: 6.6 million
    2019: 15 million

    Proft after tax:
    2009: €23 million
    2019: €78.5 million

    Naturally this was all before covid but it shows a business strategy that was being implemented even after corona. This year they are set to grow even more continuing with the implementation of their long-term strategy. Aegean thrived because they had a fantastic commercial strategy which set them apart from the rest.
    Don't forget that their journey wasn't easy yet they fought their way to the top killing OA in the process, defeating Ryanair on their home market, restricting growth of Wizz Air, acquiring or defeating numerous Greek startup companies and triumphing on ATH-LCA which is one of the biggest sources of O&D demand from both Greece and Cyprus. Mind you, they even managed to kick EK from this market forcing them to delink these two cities and restore LCA-MLA.

    Air Serbia should learn a thing or two from Aegean.

    ReplyDelete
    Replies
    1. Anonymous09:22

      Has Qatar's business model become successful and sustainable though without state subsidies.
      I don't think so.

      Delete
    2. Anonymous09:25

      Aegean for 2022 will exceed 2019 revenues and profits. It is going to be its best year in financial performance in its history.

      Delete
    3. Anonymous09:25

      ^ same as JU.

      Delete
    4. Anonymous09:35

      in reality Jat brought many benefits especially their rigid model, it was the leading airline in the balkans

      Delete
    5. Nemjee09:47

      Last Anon:
      Actually, Serbian aviation is a pioneer especially when we look at how successful AeroPut was. Let's not forget that AeroPut was a private airline funded by Serbian capital.

      JAT as a government owned carrier was successful as far as circumstances allowed it. However compared to other airlines during the Cold War era they were not lagging behind. We can't compare those highly regulated times with the current deregulated market dynamics. JAT's 4.5 million back then equates to at least 9 million in today's terms.

      For some it seems like Serbian aviation started in 2013 when Air Serbia started. In reality our aviation history started much earlier than that.

      Delete
    6. Anonymous10:58

      Well said Nemjee

      Delete
  9. Anonymous09:20

    If a deal is made, it will be a process like with Etihad. First codeshare (done), then screening, the MoU, then equity investment.

    ReplyDelete
  10. Anonymous09:23

    I don't see what Qatar could bring to Air Serbia that would be any different than Etihad

    ReplyDelete
    Replies
    1. Anonymous10:46

      There are many ways Qatar Airways could assist Air Serbia, especially in long haul development.

      Delete
    2. Anonymous10:49

      Improving on board service would be an area Qatar Airways could help with.

      Delete
  11. Anonymous09:23

    Honestly their investment in Meridiana was a complete disaster so I hope it doesn't happen.

    ReplyDelete
    Replies
    1. Anonymous09:37

      +1

      Delete
    2. Anonymous09:57

      What happened in the end. Was it an issue with unions like with Etihad's Alitalia investment or they just decided to leave?

      Delete
    3. Anonymous10:48

      They wanted to invest in the airline but the majority stake holder Alisarda said it saw little sense in putting more money into such a troubled enterprise. So in the end they shut it down.

      Delete
    4. Anonymous10:50

      Air Italy (Meridiana) losses after QR takeover
      2018 €160 million
      2019 €230 million

      Delete
    5. Anonymous11:36

      As the above commenter hinted, QR reshuffled the entire airline, and expected immediate profit. They got MAX's immediatelly, retired some older planes too early, and switched from 767s to A330s leased from QR, likely at horrific rates, the same thing EY did to ASL and AZ.

      They also gave up on the Sardinia-North Italy axis of operations Meridiana succesfully operated, and instead centralised the airline (wrongly), on Milan, and to make it even worse on Malpensa, with long haul routes to JFK, where they competed with 3 other airlines...even AZ managed to slaughter them on that route, not to mention EK.

      There are also hints that commerical strategy was a complete miss. They for example opened flights to New Delhi, which completely failed, meanwhile ITY opened the flights as well, and they are aparently performing great. Both airlines had a comparable national feeder network.

      As a cherry on top, add all of the legal trouble QR got them in, and its no wonder they managed to destroy a 50+ year old airline in basically 18 months

      Delete
  12. Anonymous09:29

    All the signs for some strategic partnership are there. Basically, they are doing everything they can to boost their image, show profitability and growth, and then find a partner who will look at their performance and say this is a good airline to invest in.

    ReplyDelete
  13. Anonymous09:29

    What happened to all the discussion of strategic partnership with Turkish, which I believe makes much more sense and brings a lot greater value to both sides. I wonder if its gone quiet for now until after the Turkish Presidential elections.

    ReplyDelete
    Replies
    1. Anonymous09:58

      They are cooperating very much behind the scenes. Their A330 is currently over there getting serviced by Turkish Technic. They never said they wanted a strategic partnership with TK. Just a JV on Turkey-Serbia flights.

      Delete
  14. Anonymous09:33

    With big 3 alliances not sure Star will work, probably OneWorld could make some sense but it could be a stretch. There was a good post on djaftekurafte blog regarding shifts in alliances vs. when they were introduced some 20 years ago. Clearly they are becoming way more picky and controlling regrading costs, perks, etc.

    ReplyDelete
    Replies
    1. Anonymous09:58

      Oneworld makes the most sense.

      Delete
    2. Anonymous10:21

      It makes complete sense for Oneworld too.

      Delete
    3. Anonymous10:21

      They are definitely leaning towards it
      https://www.exyuaviation.com/2023/01/oneworld-option-for-air-serbia-but-no.html

      Delete
  15. Anonymous10:33

    Does anyone know when the Qatari emir is supposed to come to Serbia?

    ReplyDelete
  16. Anonymous10:34

    I'm excited to see where this will lead.

    ReplyDelete
    Replies
    1. Anonymous10:37

      Nowhere according to Al Baker.

      Delete
    2. Anonymous10:42

      Let's wait and see. His statement at ITB was less than 24 hours after Vucic said he would talk about it with the Emir. If Al Baker gets the orders to do it, it will happen.

      Delete
  17. Anonymous10:37

    Good results Air Serbia!

    ReplyDelete
  18. Anonymous10:43

    I read a recent article in Serbian media that the US and EU have asked Qatar (the country) to invest heavily in Serbia when the Kosovo deal is signed. Apparently, both gave the same nudge to UAE to invest in Serbia back in 2013 when the Brussels Agreement was signed.

    ReplyDelete
    Replies
    1. Anonymous10:56

      Sounds a bit far fetched to me.

      Delete
    2. Nemjee11:31

      Yeah, I highly doubt that. The EU (read Germany) couldn't even get Qatar to supply them with enough quantities of LNG as partial replacement for the Russian gas.
      Furthermore, both the EU and the US are becoming second rate players in the Middle East. China restoring diplomatic ties between Saudi Arabia and Iran is best proof of it. Qatar is sandwiched between the two so they will realign their foreign policy to match this new reality.

      That said, for many years now, Serbia has been pushing deeper and deeper into the region. It all started with the opening of embassies in the region and by promoting Serbian exports there. Growing ties between Serbia and the Middle East has little to do with the EU and the US. It has to do with Serbia's increased diplomatic and economic activity in the region.

      Serbia and Qatar established bilateral relations in 1989.

      In 2015, Dacic visited Qatar.
      In 2016, then president Nikolic also visited Qatar.
      In 2017, a high ranking diplomatic mission from Qatar visited Serbia.
      In 2019, Serbian parliamentary delegation visited Qatar.

      In 2020, economic exchange between the two countries was modest and it stood at €5.945.000. Serbian exports were €5.605.000 and imports €340.000.

      Delete
    3. Anonymous17:03

      Not to mention that within that period Qatar also opened its embassy in Serbia, Serbia in Qatar and Qatar abolished visas for Serbian citizens.

      Delete
    4. Anonymous19:15

      I heard this story too. It has been reported in Hungarian press

      https://www.origo.hu/nagyvilag/20230315-katari-penzzel-jutalmazhatjak-meg-szerbiat.html

      You can use google translate.

      Delete
  19. Anonymous11:21

    Air Serbia does not need a strategic partner. It just needs to continue doing what it's doing. And I think their relationship with Etihad proves my point.

    ReplyDelete
    Replies
    1. Anonymous17:03

      Agree but at one point the government will have to stop providing funds to the airline. This is where a strategic partner comes in.

      Delete
  20. If JU wants to be "leader in their region" and fly "shiny brand new A220 fleet", to be "profitable", and even to have Adria fate, they should definitely try to become "partner airline" within the Cartel. Success guaranteed. "Danke Deutschland" could also be written on the fuselages. Well, not on 330 for sure, because it would be phased out. But that's why they get the opportunity to fly to Munich, finally, ten times per day, including from Kraljevo and Nis.

    ReplyDelete
  21. Anonymous13:00

    JU could actually be a very good investment for a major carrier in a year or two considering their growth and profit.

    ReplyDelete
    Replies
    1. Anonymous13:48

      +1

      Delete
    2. Anonymous13:49

      I agree. Completely different story compared to 10 years ago.

      Delete
    3. I agree as well JU is doing excellent job at the moment, and as such it has investment potential. But investment only is what I think should be done, not any "strategic partnerships", which usually benefit the bigger and harm the smaller "partner"

      Delete
  22. Anonymous17:02

    I think EY did a good job in the beginning to bring Air Serbia to where it is today, because without it we would still have a politically appointed management running the airline (or we wouldn't have an airline at all). Qatar Airways could serve to complete the second part of the story in growing the airline further and turning it into a real regional player.

    ReplyDelete
  23. Boris17:04

    Qatari “strategic partnership” is a step in wrong direction at this moment for Air Serbia.
    I don’t think anything will come out of it. Qataris are in quite difficult spot now. Stay the independent course.

    ReplyDelete
    Replies
    1. Anonymous17:22

      How are the Qataris in a difficult spot?

      Delete
    2. Boris18:01

      Qatar is not a country in traditional sense. It is more like Corporation with shareholders living somewhere else. When things go south shareholders will try to dump, sell their shares.
      Saudis and Iranians coming to peace terms will leave Qatar exposed Politically, economically as smallest entity. Qatar was in economic blockade not long time ago by the Gulf countries and shares geographically the last big remaining gas fields with Iran.
      Air Serbia should build solid regional partnerships first and foremost and stay as much independent and flexible.

      Delete
    3. Anonymous19:08

      Good points

      Delete
  24. Anonymous17:05

    Why not? If not Qatar then someone else. They did the same with the airport. The government created the conditions for the airport to grow. It added over 3 million passengers in just a few years and then they gave it up for concession for a massive amount of money at the best possible time (before the pandemic). They can now do the same with Air Serbia. They have supported the airline in order to get to where it has with an impressive network and clean finances. They could sell a share for some good money.

    ReplyDelete
    Replies
    1. Anonymous19:08

      +1

      Delete
    2. Anonymous20:44

      The government created conditions for the clique around the Pu**ymouth to fill their pockets

      Delete
  25. Anonymous19:15

    Air Serbia should not become like those women who replace their rich husband every two years for a new one .

    ReplyDelete
  26. Anonymous00:29

    Што лепо не каже, Хоћемо да Катар спонзорише наш улазак у Oneworld?

    ReplyDelete

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