Air Serbia has outlined several long-term strategic objectives in its recently published annual report, focusing on expanding transfer traffic through its Belgrade hub, forging new partnerships to support long-haul operations, and enhancing the customer experience while maintaining profitability.
As part of its growth strategy, the airline emphasises its commitment to "pursuing profitable international growth opportunities by leveraging competitive advantages to improve margins, primarily through the expansion of transfer traffic via Belgrade and by competing effectively in both the business and leisure travel segments to and from Serbia".
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| Air Serbia's passenger share at Belgrade Airport |
The carrier also highlights its intention to "explore partnerships to launch new nonstop long-haul routes, which are crucial for further expanding the regional network and strengthening Air Serbia’s position as a regional leader".
In the short term, Air Serbia notes it plans to strengthen cooperation with a range of carriers, while its long-term strategy includes deeper integration with one of the major international airline groups. Beyond expanding its network, the airline sees itself as a platform for broader regional consolidation. By positioning itself as an “incubator for cooperation among airlines across the Balkans”, Air Serbia aims to promote closer integration and reinforce the overall competitiveness of the region’s aviation sector.
Internally, the airline says it is placing a strong emphasis on transforming its workplace culture. It notes significant investments are being made in training and employee development to support the delivery of improved customer service.
At the core of Air Serbia’s strategy remains a dual focus on profitability and growth. The airline says is actively pursuing initiatives aimed at reducing operational costs while increasing revenue streams. In a recent interview, the airline's CEO, Jiri Marek, noted, "We strive to align our cost structure with that of low-cost carriers while offering select premium services that passengers are willing to pay extra for. The balance between low operating costs and value-added services is what enables us to remain profitable".
Interesting to see Air Serbia aiming for deeper integration with a major airline group. Could this mean joining an alliance soon?
ReplyDeleteI think it's just a long term plan but I think passengers would have a lot to gain from it.
DeleteBravo JU 🇷🇸
DeleteLong haul growth is key
ReplyDeleteYes. That way they feed short haul
Delete+1
DeleteI’m curious if these “regional cooperation” plans involve any concrete partnerships with airlines like Air Montenegro
ReplyDeleteMore like Bulgaria Air.
DeleteThe Balkans aren’t exactly known for airline cooperation.
Delete^ well there aren't many airline around to begin with.
DeleteI actually think there is more room for cooperation with Bulgaria Air.
DeleteAgree for Bulgaria Air. Perfect fleet for regional to mid-haul plus they are an EU country registered airline.
DeleteYou do realise that Bulgaria Air is in Bulgaria and in some EU countries mostly regarded as Mickey Mouse level enterprise of a syndicate?
DeleteWhat is that supposed to tell us?
DeleteSmells like Skyteam or Oneworld...
ReplyDeleteOneworld makes most sense.
DeleteI really hope they join an alliance. I think it would be a win win both for them and passengers.
DeleteOneworld is the only one missing a member in this part of the world, so I also think it would most make sense.
DeleteJoining an alliance would be the best for them as then they wouldn't have to develop their own corporate program. They could just use someone else's.
DeleteNot really, they only have Madrid and London-Heatrow as hubs in Europe. SkyTeam would make more sense because they have CDG, AMS, CPH, ARN, MAD as hubs. Potentially LIS too.
Delete^ with so many hubs in Europe they would become a feeder airline. That's why oneworld is better. No such risk.
Deleteoneworld would be the worst option for them because it would limit them a lot.
DeleteBest solution is to focus on SkyTeam.
Tarom is useless and they are going through a deep crisis which seems to have no end. If JU plays their cards right, then they could actually funnel a lot of SkyTeam traffic through BEG. Their role could become even greater now that ITA switched to Star Alliance.
On top of that, it could help them finally get closer to Delta. This would mean a lot for their JFK operations.
Fully agree on Sky Team. Much better choice. The most stable alliance which does not suffocate smaller members
DeletePlus KL already has a great schedule to BEG and connections would be great onto JU.
DeleteNeither AF nor KL are exactly successful in the Balkans.
The issue with Oneworld is that it is laser focused in serving its main members with lottle to no regard to the rest.
DeleteIt is an alliance pre ocupied with IAG-AA-QF-CX.
And yet the 'weak' Tarom is flying to Beirut, Cairo, Tel Aviv, Amman...
DeleteWhat is keeping JU so far from the Middle East?
DeleteYou are really going to argue that TAROM is not weak? Seek help.
Delete@13.53 maybe yields, market size, maybe because Air Serbia is not a loss making TAROM which is on the brink of bankruptcy. Maybe because Romanian market is different from Serbian and its population is more than double the size of Serbia. Maybe because their priority is not to fill flights to US or Paris with low yielding passengers from Beirut. These are things you don't learn playing airline tycoon.
DeleteJust because JU doesn't fly to BEY, CAI, TLV or AMM doesn't mean their network is inadequate. They are just focusing on other markets out there.Plus, don't forget that both Tarom and MEA are SkyTeam members so I am sure that helps them as well.
DeleteAny update on when the Frequent Flyer Program will be introduced?
ReplyDeleteThey said it will be introduced at the end of the year and just a few weeks ago they signed an agreement with visa for a cobranded credit card.
DeleteGlad to see focus on improving customer service and employee training. That’s been lacking in the past.
ReplyDeleteStrategic goals sound solid, but it all depends on execution. Let’s hope they stay profitable while growing.
ReplyDeleteAir Serbia is not the regional leader. Lufthansa group is the market leader in the Balkans.
ReplyDeleteYou are comparing one airline to seven?
DeleteI also don't see the point in comparing it to a whole group of airlines. And they are now negotiating to buy Air Europa and no one seems to make an issue that they are controlling half of the European market through their purchases. If it were anyone else there would be competition concerns etc.
DeleteAS is regional leader according routes, size and passengers. It will only grow. Hhahah
Delete@10:44 Alaska Airlines (AS) does not fly to Belgrade.
DeleteJasmineeee!!! Jel'se olad'la kahva?
ReplyDeleteHE'S BACK!
DeleteTo stay!!! 🙂🙂🙂
DeleteThey don't have enough widebodies. If they increase China frequencies PVG, CAN to 3pw, open PEK 2-3pw, open MIA 2-3pw as already talked about, they won't have enough A330s. If they add one A330 by next summer, they might not have enough for all of this. Certainly not enough for all of this and to launch YYZ 2pw.
ReplyDeleteThe plan is to definitely add more wide bodies.
DeleteWhere are they going to park all the A330s considering BEG's limited size?
DeleteThey talked about YU-ARC lease end in Nov 2026. Air Serbia would need to get 3 A330s to replace ARC and add all the mentioned new routes and destinations.
DeleteLet's just hope they don't extend the YU-ARC lease.
DeleteAdding all mentioned by next summer is going to be an operational challenge. For new routes, they need at least 8 months for ticket sales. If they start ticket sales for new destinations like MIA in a couple of weeks on 1 Sep, 8 months is 1 May 2026. So something will have to be postponed for 2027. My guess is Toronto will be pushed back to 2027.
DeleteWell if they add more widebodies then they will have to put a greater focus on the midnight bank. I think morning and noon waves are full as it is.
DeleteThis summer, for the first time ever, you have 2 or 3 planes parked in the morning the de-icing platform. All other parking positions are occupied.
That's why it's good JU is adding more and more A320s. There are a lot of markets out there that could use additional capacity.
If they stopped failed Tianjin route just a couple of months earlier last year they would have enough to launch 2pw YYZ. This summer they have 4 A330s, enough to insert 2pw destination. Next summer China and MIA will be priorities. They keep kicking the can down the road year after year.
DeleteYYZ is being talked for 20 years BUT it never materializes.
Delete@09:14..interesting..Summer 2023 and 2024 they operated 11-12 flights weekly with 2 aircraft, now you're saying they wouldn't have enough planes to operate 20 flights with 4 aircraft..
DeleteThat depends of the timings and slots. Also, they have 12 hour layovers in China
DeleteThey want to avoid costly Wamos scenarios by having reserve capacity in case of equipment issues. For example, last week YU-ARB pushed back to fly to JFK, only to sit on the apron and then return to the gate some half an hour later. Replacement A330 jumped in, JU500 was late couple of hours, but in the end Wamos was not needed as in the previous years.
DeleteThat's a lot of money to spend not to have Wamos for the odd occasion. BTW - you can also rebook your passengers onto KLM, LH, OS, LX etc to JFK if you have this situation without hiring Wamos - which would be more of a planned substitution anyway.
Delete^ thank goodness we have so many aviation business experts here like you. JU used its reserve aircraft for a month and a half this summer because a ground car hit and damaged another A330. But thankfully you, who has no clue on leasing rates or what kind of leasing arrangments they have, has given us your expert opinion.
DeleteAir Serbia has come a long way
ReplyDelete+1
DeleteThey have come to have half the numbers of LOT from a 40 million EU country. So yeah, they have come a long way.
DeleteYou can't really compare them to LO because their geography is their biggest handicap. WAW is all the way to the east so connecting to Western Europe requires a backtrack. On top of that, with the closure of the Russian airspace, LO's strategy to Asia has faced a lot of challenges.
DeleteJU on the other hand is being smart and is profiting from BEG's favorable geographical location. Talking of LO, check out their new cabin on the MAXs. JU should follow suit and finally upgrade their own cabins.
You can compare numbers and numbers, what's the issue with that??!
DeleteDespite its geographical 'challenges' as you muster, LO has a lot more advantages compared to JU.
By your logic one can compare JU and DL since numbers are... numbers. Right?
DeleteOnly advantage LO has is that it operates out of a richer market. That's all. WAW has many space restrictions, Warsaw is served by two airports, Belgrade by one.
WAW and Poland are all the way in the east of Europe while the entire Russian and Belorussian airspaces remain closed for them. JU has no such problems etc.
It seems the vine they gave you on your flight to Brussels was too good and still holding you.
DeleteI don't know where you went to school if at all (or you had 0 in maths) but yeah, numbers CAN be compared. JU is minuscule compared to DL and from a different continent/market, compared to LO not so much.
Please read more carefully what I already wrote and why the markets served by JU and LO are not the same and why they can't be compared. Please stop trying to be witty because you are failing miserably at it.
DeleteWho and where was comparing markets?
DeleteLO had 10.7 million pax last year, 87 jets in its fleet plus orders for another 55 NEW jets.
DeleteStop comparing apples and oranges please.
@10:51
DeleteThat's what we said. That JU carries roughly the half of pax as LO. Nothing more, nothing less.
Well, JU used to carry more passengers than LO back in the eighties :)
DeleteBack in the 80s Poland was behind the iron curtain and JU was the flag carrier of a country of 20 million people with a strong tourism industry.
DeleteLO 10.7 million
DeleteJU 4.4 million
Air Serbia handled 41% of what LO carried. Not a bad result but hardly one JU should be bragging about. In my opinion, JU should be happy once they have 6 to 7 million passengers.
Wow didn't realise they had 55% share in 2016!
ReplyDeleteWizz Air downsized big time back then. They only started growing from BEG again when VINCI took over.
Delete@09:32 Which means they have ceded a lot since then and that was before they had widebodies.
DeleteVery few European legacy carriers have over 50% share at their home airport. All you can do is spit and cry.
Delete''...through the expansion of transfer traffic via Belgrade and by competing effectively in both the business and leisure travel segments to and from Serbia"
ReplyDeleteWithout a high number of frequencies to key Western European markets they will not attract business traffic. Let's hope they achieve this with more and more Embraers joining their fleet.
That said, last week I had my first flight on Bulgaria Air's E90, BRU-BEG in business. LF was very good, 2-96 and roughly half of the passengers were transfers (mostly Turks). Makes you wonder if there is room for a 4th weekly flight to Brussels, at least during summer. The E90 seems to be a wonderful plane for such a market.
I actually think these E90 have the best business class product on the JU narrowbody fleet. This is because the first two rows have different seats which are much more comfortable. The crew was Serbian and the purser was fantastic. She even spoke Russian to the other guy in business class which he appreciated.
All things considered, JU isn't a bad carrier. It offers a basic, three star service. If you don't expect much then you will not be disappointed. One thing that was absolutely horrible is the fact they offer Informer and similar newspaper in business class. They should either drop these or replace them with some higher quality Serbian magazines.
On the other hand, that morning I flew BEG-MUC-BRU with the second flight being on SN. If anyone wants to experience an absolutely horrible airline then they should book a flight on SN Brussels. Absolutely everything about them was extremely disappointing, from the plane, crew, uniforms, onboard product... like Ryanair pretending to be a legacy carrier.
Yeah yeah yeah...
DeleteInteresting comment! Looking forward to check how it goes for me, I'm will be flying CDG-BEG-CDG, with one of the leg in Business Class : discovered just randomly that I could redeem my good old Etihad Guest points that were going to expire anyway : it was a good surprise as it will be my first time with JU
DeleteHow can a crews uniform be disappointing?
DeleteAnon 10.27
DeleteHope you enjoy your flight. Do you know what plane is scheduled to operate the flight? Is it A319, A320 or Getjet?
Anon 10.53
Well, all LH Group airlines put a lot of effort into their branding and corporate identity. Meanwhile SN crew looked sloppy and their uniforms are bland and very basic. These things matter, after all that is why JU came up with new ones while many others (QR, AF, TK, EK...) put a lot of effort into making sure their crew stand out.
@Nemjee - Thanks! It is supposed to be an A319, I deliberately chose not to fly with GetJet to keep my JU experience unbiased. My other options are BVA with W6, or BRU like you did, but CDG had a major advantage: it's directly connected to the high-speed train to my hometown, train is stopping below terminal 2, which makes things much more convenient to me, thus my choice to fly JU/CDG.
DeleteI think they will be a SkyTeam member soon. Air France -KLM group working hard to establish the way Lufthansa- group working with their airlines.
ReplyDeleteI hope you are wrong. LHG is predator. AFKL are much more about cooperation than about taking advantage only whereLHG is absolute champion. But maybe I'm the one who is wrong, we'll see
DeleteCould Tarom object to JU becoming a member of Sky Team since it is the only member of the alliance in the Balkans?
DeleteTAROM and JU cooperate.
DeleteCodesharing is very different to being in the same alliance.
DeleteTAROM is on life support tbh. JU is not threat.
DeleteIdemo dalje...
ReplyDeleteZa iste pare? 🙂
DeleteWell, China Southern is Sky Team member, so it would be logical move, if AS focus is establishing strong connection within China, as thay have been saying many times so far..
ReplyDeleteChina Southern left Sky Team on 1.1.2020
DeleteReally, I didn't know that....Where are they now, which alliance?
DeleteThey are not in any alliance anymore. Their official reasoning for leaving Sky Team was that they wanted to pursue codeshares and partnships outside the alliance...
Delete