Air Serbia marks first year of China operations with strong results


Air Serbia celebrated its first anniversary yesterday since entering the Chinese market and launching flights between Belgrade and Tianjin. As the only European carrier serving the city, some 130 kilometres south-east of Beijing, the airline has carried over 20.000 passengers on the route in its first year of operations with a total of 55 flights each way. The airline’s annual average cabin load factor on the route stood at 75%. Businesspeople and outbound Chinese tourists made up the majority of travellers on the service during its first year. Over the January - October period in 2023, a total of 78.427 Chinese tourists visited Serbia.



The Belgrade - Tianjin route launched with one weekly rotation and has increased to two per week since October 29 of this year. Commenting recently on the Tianjin service, Air Serbia’s CEO, Jiri Marek, said, “As a collateral benefit of Covid we saw a great opportunity to open China. We launched Tianjin while Covid restrictions were still present in China in December of last year and the service became profitable from day one. For us, the main development now is on the Chinese market where we see potential. Tianjin was the only option available to launch during Covid because there were a lot of restrictions in place. We initially considered it as a temporary destination which would be replaced with another point in China once the market opened up. However, since it became profitable and there is no other European carrier serving the city, before Covid there were LOT and Neos from Italy, why would we change it”.



The Chinese market remains a priority in Air Serbia’s long-haul development plans. “We secured traffic rights for Guangzhou and Shanghai. As soon as we get the third and fourth [widebody] aircraft, those are the destinations which will come first. The Chinese market is based on leisure and corporate demand. It has different seasonality than North America because demand is more spread out throughout the year and there is a peak in January and February, which fits well into our strategy and development”, Mr Marek noted. The service to Tianjin has also benefited from significant cargo volumes, which is expected to further increase after Serbia and China inked a free trade agreement this October.




Comments

  1. Anonymous09:03

    For first year long haul service that's a good result.

    ReplyDelete
    Replies
    1. Anonymous12:27

      what we have been hearing is that these flights are sold out. Sold out is very far from 75% LF

      Delete
    2. Anonymous12:58

      Yes flights are sold out in certain periods of the year. Yields are high and route is profitable. During the first two months all flights were sold out, or do you have a conspiricy ready that the booking system was lying? Nadzak babe all around.

      Delete
    3. Anonymous23:58

      ‘Sold out’ could refer to numerous figures. They may have 75% LF but they may also be blocking seats and only selling 80% of them with the remaining 20% being factored into cargo. They have said numerous times that cargo on the route is high as well. Although, for an airline with no alliance or affiliation with local company in China, this is still a good result. For those going in to Europe who could do a domestic China and 1 stop connection, choosing Serbia instead as their connection point is a good sign as well.

      Delete
  2. Anonymous09:03

    Hope they get the extra A330s soon.

    ReplyDelete
  3. Anonymous09:05

    Do we know how many frequencies they were granted to Shanghai and Guangzhou?

    ReplyDelete
    Replies
    1. Anonymous09:06

      3 weekly Guangzhou, 2 weekly Shanghai.

      Delete
    2. Anonymous09:09

      Not bad. Thanks

      Delete
    3. Anonymous19:33

      Two weekly to each destination in China would be perfect. 2x Shanghai, 2X Tianjin and 2X Guangzhou.

      Delete
    4. Anonymous10:17

      Guangzhou needs 3x weekly, because it is close and well conected to all other south-eastern tourist destinstions, also majority of chinese diaspora in Serbia and south Europe, and Serbian and Balkan diaspora mainly lives in this region as well, Shenzhen, Guangzhou and more south ..Shanghai is much further north

      Delete
  4. Anonymous09:06

    Apparently they have been found.

    ReplyDelete
  5. Anonymous09:10

    What are the latest news about third widebody? Will it arrive soon?

    ReplyDelete
  6. Anonymous09:12

    I wonder if Belgrade-Urumqi would work, 25 million PAX airport with 0 flights outside of Asia

    ReplyDelete
    Replies
    1. They will leave it to OU. OU is so famous for their brave moves in scheduling and in thinking out of the box. Plus they are just about to receive brand new shiny A220 fleet, which would fit perfectly for Urumqi and which will position them among World's strongest carriers, hahahahahahahaha

      Delete
    2. Anonymous17:05

      That's an interesting insight. If they've managed to make Tianjin work, maybe Urumqi is not so crazy.

      Delete
    3. Anonymous00:21

      OU is great company ahead of Malev for example.

      Delete
    4. Not just great. The greatest. Ever. Minken Vrankvurt Vrankvurt Minken Greatest for Uhljebs Airlines

      Delete
  7. Anonymous09:13

    Interesting that they plan to keep Tianjin. I'm surprised it actually worked, as they are as well. But that's good to hear in any case.

    ReplyDelete
  8. Anonymous09:13

    Excellent news

    ReplyDelete
  9. Anonymous09:16

    Can't wait for JU's third A330 to arrive

    ReplyDelete
  10. Anonymous09:16

    Anon 09:06
    Interesting, do you happen to know which A330s they found?

    ReplyDelete
  11. Anonymous09:20

    I’m wondering why China is so important for them?

    ReplyDelete
    Replies
    1. Anonymous09:21

      Because it brings them money.

      Delete
    2. Anonymous10:18

      I am wondering what makes them bring money?

      Delete
    3. Anonymous10:34

      Lots of businessmen, mostly. Tourists as well

      Delete
    4. Anonymous10:48

      Chinese tourists doesn’t need visa for Serbia, Bosnia, Montenegro, so they travel a lot. Unfortunately, third A330 is late for Lunar New year season, starting very soon…

      Delete
  12. Anonymous09:20

    I think the selected markets are good and I see JU flying three destinations in China by mid next year.

    ReplyDelete
    Replies
    1. Anonymous12:52

      What else do you see my friend?

      Delete
  13. Anonymous09:21

    Glad that we have a clear strategy for long haul development. They were stuck just on New York for far too long.

    ReplyDelete
    Replies
    1. Anonymous09:36

      Agree. Excellent to see that they plan to further develop long haul network.

      Delete
  14. Anonymous09:22

    South Korea and Japan.

    ReplyDelete
  15. Anonymous09:24

    Them praising Tianjin performance several times, I believed LF is 95%

    ReplyDelete
    Replies
    1. Anonymous09:25

      Load factor is irrelevant if you are making a profit on a long haul route within the first 12 months of its launch.

      Delete
    2. Anonymous09:27

      Cargo numbers are great

      Delete
    3. Anonymous09:28

      Average load of 75% for the entire year is quite good actually. Especially in year number 1 and especially during a year where travel to/from China was heavily impacted by various restrictions.

      Delete
    4. Anonymous09:29

      Seriously? You know that for the first 2 months there were actual load restrictions on this route. Jeez, some people on here.

      Delete
  16. Anonymous09:24

    What about Thailand? I'm sure it has more passengers than both South Korea and Japan from BEG.

    ReplyDelete
  17. Anonymous09:40

    Too much competition to Thailand, requiring low fares. On another note, it's great to see that Serbian passport holders can now get an electronic visa for Thailand. It is a much quicker process and you get a visa within 24 hours, compared to the 2 weeks it took previously as they needed to send your passport to the Thai embassy in Greece.

    ReplyDelete
  18. Anonymous09:41

    They should really think about Hong Kong

    ReplyDelete
    Replies
    1. Anonymous09:46

      Guangzhou is close to Hong Kong.

      Delete
    2. Anonymous12:13

      Maybe there is not a lot of demand for Hong Kong.

      Delete
    3. Anonymous12:16

      I remember in some articles in the past, Hong Kong actually had quite healthy indirect traffic.

      Delete
    4. Anonymous12:21

      Hong Kong is a good transfer point to the rest of China too.

      Delete
    5. Anonymous12:26

      Especially they won't have to deal with so much bureaucracy when starting flights to Hong Kong.

      Delete
    6. Anonymous13:07

      Would get some transfer traffic from Australia as well via HK.

      Delete
    7. Anonymous01:02

      Codeshare with Cathay Pacific, why not? :D

      Delete
    8. Anonymous01:07

      Actually Cathay codeshares on Qatar's flights between Doha and Belgrade.

      Delete
    9. Anonymous04:21

      Hong Kong has double daily BA, double daily EK, double daily QR, daily LX, soon-to-be-double daily LH, daily AY, daily AF, daily KL, daily TK, and soon also Aeroflot. Not to say, CX has a broad European network as well. So no chance as well.

      Delete
  19. Anonymous09:42

    They already said that while they may be full to Bangkok the yields would be bad because it is oversaturated with Middle Eastern airlines offering cheap fares.

    ReplyDelete
  20. Anonymous09:46

    Considering how long it took JFK to make a profit, this is fantastic.

    ReplyDelete
  21. Anonymous09:46

    Goof to hear about the visas though.

    ReplyDelete
  22. Anonymous09:46

    * good

    ReplyDelete
  23. Anonymous09:47

    My vote goes for Tokyo

    ReplyDelete
  24. Anonymous09:49

    Air Serbia's A330s are in desperate need of a refresh. They should have dealt with those before getting a third A330.

    ReplyDelete
    Replies
    1. Anonymous09:51

      +1

      Delete
    2. Anonymous09:56

      Agree, they improved their balance sheet and numbers, now It's time to start improving the quality of services and customer satisfaction overall.

      Delete
    3. Anonymous10:24

      I was talking about this months ago, but everybody were trigged by my comment and said that the product is good. I will repeat my self now: JU needs to improve the product overall but most importantly they need to offer the same product on all flights. The product is what makes the airline different then others. Look at Virgin Atlantic, they are spanding hundreds of thousnts of dollars to desine new bussines class, different then others. Also, flying white planes is bizzare! When the white A320 lands in BCN nobody will know which airline it is. Marketing is one of the most important things for success and needs to be done well, simply by painting the aircraft and offering the same product. Air Serbia is already very good airline and has lots of routes as of this year, the upgrade of the product will bring them even more success, overall well done JU.

      Delete
    4. Anonymous11:02

      Yes potential business class flyer sits in Barcelona Yachting Club and chanting whose this white A320 coming everyday.

      Delete
    5. Anonymous11:30

      People simply said that your main problem with a white planr is completely misguided. Much more important is what is offered onboard.

      Delete
    6. Anonymous12:23

      Okay you are right.

      Delete
  25. Anonymous09:50

    For long haul development they also need a lot of feed. Increasing frequencies to their existing intra-european routes is a priority.

    ReplyDelete
    Replies
    1. Anonymous09:57

      That's what they are doing.

      Delete
    2. Anonymous01:02

      Yes, they started this winter. Let's see if they keep up next summer. They said they will.

      Delete
  26. Anonymous09:51

    There is a rumor that the third A330 arrive this spring but then YU-ARC goes on cabin reconfiguration. Don't know if true or not.

    ReplyDelete
  27. Anonymous11:11

    If the route was not profitable, they could have changed it with Shanghai, and deployed the same aircraft. But it seems they want to keep this route alive and develop it further.

    ReplyDelete
    Replies
    1. Anonymous11:32

      But it is profitable.

      Delete
  28. Anonymous11:22

    Maybe they can make some kind of combination with a Chinese company to fly under the JU flag? Yes, that means Chinese staff flying the plane, but it will certainly increase the frequency JU-labelled flights.

    ReplyDelete
    Replies
    1. Anonymous11:32

      Chinese aviation bureaucracy is so complex that it would take 10 years to get approvals for something like that.

      Delete
    2. Anonymous12:15

      Their bureaucracy is notoriously slow and they require the same amount of documentation as US FAA.

      Delete
  29. Anonymous11:33

    I assume Tianjin Airport gives them good incentives for this route. I would also want to keep my only European airline.

    ReplyDelete
    Replies
    1. Anonymous01:01

      Without doubt. I remember reading just before the route launched that the local authorities in Tianjin also gave them some incentives.

      Delete
  30. @Ex YU
    Can we have more info how is this 75% calculated? Since 20.000 is 69% of 29.000, I am assuming that it is calculated differently or there are some other variables that make this calculation more complex. Thanks in advance

    ReplyDelete
    Replies
    1. Anonymous12:00

      There were load limits for the first 2 months of operation, this the difference

      Delete
    2. Anonymous12:00
      I know, but author commented that load factor is calculated on total number of seats, not really available (with restricted capacity) capacity, confirming comments that real load factor should be even higher, so it's really confusing me. We have 69%, 75% and some higher percentage, that is "actual" load factor.

      Delete
    3. Anonymous13:02

      What difference does it make to you? What is the obsession? The route has made a profit from day one. So much anger, spite, and bitterness instead of being happy that they saw an opportunity to make money and they did it and it had returned good results. Running an airline isn't easy and many factors are in play in terms of route profitability. Unfortunately most here lack that knowledge, seeing LF as some divine indicator. If they offered free tickets year round load factor would have been 100%. I guess you would celebrate that then?

      Delete
    4. First of all, what is your obsession with anyone asking questions? Second, I want you to pinpoint "so much anger, spite, and bitterness" in my comment. You, seeing every questioning as "anger, spite, and bitterness" is the real problem here, not LF, because if you bothered to read at all, I never said that I think it is bad

      Delete
    5. Anonymous09:15

      @Branko It was the same during the initial operational period of JU's JFK flights. Despite the low numbers and -obvious- financial loss, authorities (name it, JU management or government representatives) denied it and hid the information. And very soon it has been claimed that the route is successful, not making loss, its benefits are fantastic etc. It is understandable that no one likes to hear bad news, even though this is in the nature of making business, especially in commercial aviation where the profit margin is between 1-3%. Add the political motivation to the business and voila, no route loses money, no decision is wrong, everything becomes a success story... until the governing power changes.

      Delete
    6. Anonymous14:16

      Previous government opened Morava Airports and presented it as a success story. It was closed shortly after. They kept pouring hundreds of millions into national airline without any positive effect but presented it as a valiant effort to save the airline. You don't want to talk about this.

      Delete
  31. Anonymous12:13

    This is good to read. I'm happy Tianjin is performing well this early with sales.

    ReplyDelete
  32. Anonymous12:26

    If that is true, they won't be able to commence new long haul route until Pupin is back.

    ReplyDelete
  33. Anonymous12:27

    Mostly all is good about this airline except on time departure performance. The usual delays are about 30 minutes but there are days with multiple hours. Today is one of those "bad" days, this morning JU departures out of Belgrade are heavily delayed. Anyone knows the reason this can not be fixed?

    ReplyDelete
    Replies
    1. Anonymous13:00

      The last few days fog has been a problem at BEG.

      Delete
    2. Anonymous13:03

      No complaints when Munich closes down for 2 days because of snow. Imagine if that happened in Belgrade. There would be 5000 comments about how everything is bad

      Delete
    3. Anonymous14:41

      MUC closure for days is not acceptable but that doesn't affect JU flights out of Belgrade and I am sure they got a fair share of negative comments for poor managment of the situation. The question is why are JU flights constantly delayed regardless of the weather be it summer or winter? Anon 13:00 fog has not prevented on time arrivals from ATH, SKP, OTP so departures from BEG should not be affected either although most all flights were heavily delayed. Wizz to Rome / Stockholm left more or less on time.

      Delete
    4. Anonymous14:49

      Airbus fleet doesn't have same limitations as ATRs in fog conditions. But you would know that if you were an expert.

      Delete
    5. Anonymous15:00

      You think, he thinks that he is an expert?

      Delete
  34. Anonymous12:29

    Good luck JU! Good work so far

    ReplyDelete
  35. Anonymous14:57

    Air Serbia had hopes to sign lease for the third A330 by the end of November and have it flying during Chinese Lunar New Year. It does not look it will happen.

    ReplyDelete
  36. Anonymous15:04

    ^ the first part of your statement is correct, the second you made up.

    “At the moment, we have some interesting leads for aircraft that we believe we will be able to finalise in November. After the finalisation, the actual arrival of the aircraft will depend on maintenance, painting and shop visits, and we will try to be ready before the second quarter of 2024."

    https://www.exyuaviation.com/2023/11/air-serbia-hopes-to-finalise-third-a330.html

    ReplyDelete
  37. Anonymous16:14

    That was not said explicitly but the ambition to fly during that period was obvious from Air Serbia comment in that same article:

    "The Chinese market fits in well with our strategy of addressing seasonality, as in the first quarter there is the high season during the Chinese Lunar New Year”, Air Serbia’s CEO said.

    ReplyDelete
  38. Anonymous18:56

    Cabin Managers are wearing white ties/scarves on the 330.

    ReplyDelete
  39. Anonymous19:25

    Why Tokyo?

    ReplyDelete
  40. Anonymous19:32

    They need a codeshare partner in China

    ReplyDelete
    Replies
    1. Anonymous01:00

      They have a codeshare with Air China.

      Delete
  41. Anonymous19:33

    Shanghai should be their top China destination.

    ReplyDelete
    Replies
    1. Anonymous01:00

      Agree. It was Belgrade's busiest unserved route in 2019. Over 200,000 passengers.

      Delete
  42. Anonymous19:33

    Nice that they marked the anniversay at Tianjin

    ReplyDelete
  43. Anonymous19:47

    I must say I really like the new uniforms. They look much more stylish.

    ReplyDelete
  44. Anonymous23:41

    Hongkong and Singapore make most sense as new destinations outside of mainland China.

    ReplyDelete
  45. Anonymous00:04

    Hong Kong maybe, Singapore has double daily BA, triple daily EK, double daily QR, daily EY, daily LX, double daily LH, daily AF, daily KL, double daily TK… plus the SQ flights that currently operate. I’d rather get SQ with a 787 coming to BEG as this will open up more connectivity from other parts of the world on to BEG. JU will struggle to compete with those frequencies and would need 2x A330 to operate a single daily flight. Less than daily is pointless when you have competition doing far more than that.

    ReplyDelete
  46. Anonymous01:07

    SQ would be nice but there is absolutely no chance.

    ReplyDelete
  47. Anonymous04:20

    Hong Kong also has double daily BA, double daily EK, double daily QR, daily LX, soon-to-be-double daily LH, daily AY, daily AF, daily KL, daily TK, and soon also Aeroflot. Not to say, CX has a broad European network as well. So no chance as well.

    ReplyDelete
  48. Anonymous09:17

    I have to agree with you.

    ReplyDelete

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