Serbia’s largest long haul markets and prospects

PREMIUM


Serbia is currently the only market in the former Yugoslavia with nonstop long haul flights throughout the year. Air Serbia has maintained services from Belgrade to New York since June 2016. In 2017, Chinese carrier Hainan Airlines introduced flights from Beijing to the Serbian capital via Prague, however, those were short-lived, with the service terminated after one year. The government has made attempts to secure additional long haul operations by renegotiating Air Service Agreements with Canada and the United States, as well as conducting talks with Chinese and Indian authorities over potential services. Belgrade Nikola Tesla Airport’s operator VINCI previously noted, "We are working on all fronts, on developing both short and long hauls. There will certainly be new routes from Belgrade. At the same time, we are working on attracting a new generation of long haul airlines".

During the last normal year for commercial aviation in 2019, China (excluding Taiwan and Hong Kong) was Serbia’s largest long haul market, followed by the United States, Canada, Australia, Hong Kong, India, Thailand and Japan.

Indirect two-way passenger traffic from Serbia to main long haul markets in 2019


China

Serbia’s President, Aleksandar Vučić, recently noted that efforts were under way to restore operations between China and Serbia. “Serbia is very popular in China due to its friendly relations and we are considering for Air Serbia to launch flights to the country in the coming period, with assistance from China. We are in discussions”, the President said. The Serbian Ministry for Construction, Transport and Infrastructure noted, “There are valid reasons for the resumption of these flights, considering the existing economic cooperation between the two countries and an increase in the number of Chinese tourists visiting Serbia”.

United States

Nonstop flights between Serbia and the United States have been ongoing for almost five years, with Air Serbia carrying 319.712 passengers between Belgrade and New York from June 2016 up until today. Serbia and the United States renegotiated their Bilateral Air Service Agreement in 2016, giving carriers from both countries the opportunity to operate to the other without restrictions. In 2016, Air Serbia noted flights to Chicago could launch within two to three years, however, these never materialised.

Canada

The Serbian President and the Canadian Ambassador to Serbia held talks this February with both sides concluding that the establishment of nonstop flights between the two nations is the one of their highest priorities. In a joint statement, the two said, “We express hope that nonstop flights between Belgrade and Toronto will be launched shortly, which would not only improve economic ties but connectivity between Serbia and Canada as well. The Serbian diaspora in Canada serves as an important bridge between the two countries”. In October last year, the now former Canadian Ambassador to Serbia, Kati Csaba, said the two countries were in advanced talks over the introduction of flights between Belgrade and Toronto, despite the coronavirus pandemic. Serbia and Canada signed a new Air Service Agreement in late 2018, paving the way for flights. At the time, the Canadian Embassy in Belgrade said services would begin in either 2019 or 2020. Toronto's Pearson Airport confirmed in 2018 that it too held talks with Air Serbia over the resumption of flights between Belgrade and Canada's largest city. "We will continue to work with Air Serbia to find an opportunity to add Toronto Pearson as one of their newest travel destinations", the airport said.

Japan

The Serbian Ministry for Construction, Transport and Infrastructure noted that a new bilateral Air Service Agreement with Japan will be signed soon in order to facilitate the introduction of new services. In 2016, All Nippon Airways (ANA) expressed initial interest in operating charter flights between Japan and Belgrade, however, no concrete agreement was reached and the services never materialised.

South Korea

Korean low cost carrier Jin Air previously announced plans it would launch flights from Seoul to Belgrade as part of its expansion into Europe. The airline's CEO noted services to the Serbian capital would be introduced in 2020, however, this was derailed by the coronavirus pandemic. The budget airline, which commenced long haul operations in December 2015, is a subsidiary of Hanjin, a holding company which also runs the national flag carrier Korean Air.

India

Indian tour operators are seeing increasing potential for the launch of flights between the subcontinent and the former Yugoslavia, amid an increase in local interest for travel to the region. "The Balkan states of Croatia, Slovenia, Serbia and Montenegro constitute another belt that is emerging besides Hungary, Poland and Austria. A lot of Bollywood films have been shot in locations such as Serbia", Romil Pant, the Senior Vice President of Thomas Cook India said. He added, “Certain destinations there are getting very competitive. Serbia is visa free and one can do a five to seven-day Serbia trip for under Rs 1 lakh (1.200 euros). These are travellers who have visited Western and Southern Europe and now want to experience the beauty of Eastern European destinations that are rich in culture, architecture and cuisine. With improved air connectivity, this region will see an increase in traffic in the coming years”. India's largest and busiest carrier, IndiGo, has become the first airline to express interest in the region. "We have been involved in fruitful discussions with the Serbian government and the local tourism board through an intermediary concerning potential operations to Serbia. We plan to continue these talks and explore opportunities to serve the market sometime in the future", the company previously said. IndiGo's parent company, InterGlobe Enterprises, has expressed interest in linking the two countries to cater for Indian tourists visiting the entire region. "Serbia is aggressively looking at tapping the Indian outbound market. Abolishing visas for Indians travelling to Serbia has proved quite helpful and is becoming a unique selling point for Serbia as a destination. The next few years are very important in terms of marketing and promoting Serbia effectively in India. From India, Serbia is targeting young professionals and backpackers who like to explore countries and are open to new experiences", the Serbian Embassy in India said.

Long haul leisure flights

In the winter of 2016, Air Serbia was interested in deploying its Airbus A330-200 on several long haul leisure destinations. It held talks with the National Association of Travel Agencies of Serbia (YUTA) to discuss cooperation. "Keeping in mind that YUTA is one of Air Serbia's biggest partners in charter travel through our members, Air Serbia suggested a meeting with tour operators where we would discuss possible charters to far-off destinations", YUTA said at the time. According to the Association, tour operators were interested in long haul charter flights to Thailand and Cuba during the winter months, as there is sufficient demand for those markets. However, in 2017 Air Serbia said the flights would be too costly. “There are very few destinations where you can fly the A330 that are going to be appealing to tour operators. Serbia is a price sensitive market and when we gauged interest for charters to Thailand – which is further to fly to than New York – the economics required to make it breakeven were too large. Another option we considered was the Caribbean, but that also can't be sustained from a market such as Serbia”, the airline said.