Jat vs. Competition

Competition mounts

With the low cost Niki launching flights from Vienna to Belgrade yesterday, February 1, a total of 21 scheduled airlines now use Belgrade Airport. Three new airlines have confirmed their arrival in the coming months and several are awaiting approval. The result of this competition has seen Jat’s share of flights from its hub airport decline from 46.2% to 40.2%. A total of 78% of the airline’s flights are in direct competition with other carriers. Despite being faced with greater competition Jat is still managing to beat some big rivals, including a low cost airlines, while on some markets it has become a distant memory.

In 2009, Jat had success on the Belgrade - Stuttgart line. Despite being exposed to direct competition from the low cost Germanwings, according to data processed on behalf of Belgrade Nikola Tesla Airport, Jat regularly has more passengers than its rival. Although the route is far from popular, it has given the carrier some confidence in managing to overcome the onslaught of low cost airlines expected to arrive soon. Jat has also claimed victory over British Airways on flights to London Heathrow Airport. In 2009, Jat transported 72.310 passengers on this route, which is 1.9% less then last year. On the other hand, British Airways carried 52.244 passengers in 2009 and recorded a decline of 7.3%. Thus, Jat’s share on the route increased from 57 to 58%. Whether this share will be destabilised by the announced Wizz Air flights from London Luton Airport remains to be seen.

However, Jat is trailing on routes to Istanbul, Vienna, Frankfurt, Athens and more notably Montenegro. Jat only holds a share of 29% of all transported passengers to Istanbul, the other 71% going to Turkish Airlines. According to Belgrade Airport data, Jat transported 57.121 passengers to Podgorica in 2009 compared to 143.076 by Montenegro Airlines. To Tivat Jat carried 57.121 passengers (47.5% less than in 2008). This is in comparison to 133.063 passengers carried by Montenegro Airlines. Jat has begun reviewing its flights to Montenegro for the 2010 summer season in hope of attracting more passengers.