Smaller EX-YU airports continue to struggle

Niš Constantine the Great Airport in Serbia is negotiating with several airlines to commence flights to the city, the CEO of the airport told Serbian media. The airport currently only has 7 weekly flights to Podgorica, operated by Montenegro Airlines, which are subsidised by the local authorities. “I cannot disclose which airlines are in question but I am optimistic that talks will be finalised soon”, Dragan Bugarinović, the airport’s CEO says. Recently, Adria Airways announced it was considering introducing flights from Ljubljana to Niš.

In 2010 the airport handled 23.650 passengers, an increase of 38% compared to 2009. In the first few months of 2011, the airport is continuing to report passenger growth, with a 40% jump compared to the same period last year. In 2010, the low cost Italian airline, Wind Jet, operated flights to the city but were eventually suspended as subsidies for the route dried up. The airport also had financial problems last year, although Belgrade Airport eventually bailed it out by providing much needed funds. Jat Airways has refused to operate flights from Niš in the past few years saying that it is unprofitable to operate services to the city (unsubsidised).

Small secondary airports in the EX-YU region, such as Niš, have been struggling for years. Banja Luka, Mali Lošinj, Portorož, Tuzla, Mostar and Maribor all report minimal services throughout the year and most are struggling financially. However, governments continue to open airports throughout the region with the Croatian Government recently announcing it will go ahead with plans to construct an airport on the island of Korčula. The Serbian Government is funding the construction of an airport in Kraljevo while Montenegro is keen on building an airport in Berane.

Banja Luka Airport may have to close its doors

Banja Luka Airport could soon be closed, the Ministry for Traffic and Infrastructure of Republika Srpska announced this week. The airport has not payed wages to its employees and could lose its operational license, barring any aircraft from departing or landing at Banja Luka. The airport ended 2010 with a loss of over 660.000 Euros. Adria Airways, operating flights to Ljubljana and B&H Airlines to Zurich are Banja Luka’s only two customers. However, Adria’s service is heavily subsidised and reporting big losses. Even though the Government of Republika Srpska created Sky Srpska, which was to be based in Banja Luka, and approved the purchase of 2 jet aircraft, they were never ordered due to the financial crisis, a ministry spokeswoman says. She adds that the government will do everything within its power to help the airport as its closure would be a huge loss to the community and the entire entity. Airport employees have begun court procedures against the airport for unpaid wages.

Banja Luka Airport was opened on May 21, 1985 but was restricted to domestic traffic only. The airport never had too many customers with links to Belgrade, Vienna, Frankfurt, Athens and Tivat over the years. Banja Luka Airport experienced its greatest boom from 1999 to 2003 thanks to Air Srpska, set up by JAT Yugoslav Airlines. However, with the situation normalising back home, JAT withdrew from Air Srpska and the airlines ceased operations.

Good start for Croatia Airlines

Croatia Airlines is reporting improving passenger figures this year after a 6% slump in 2010. During March, Croatia Airlines’ figures improved by 10%, compared to the same month last year, with the result being driven by an increase in international passengers. During the crisis years of 2009 and 2010, Croatia Airlines heavily relied on its domestic traffic to substitute for losses made on international flights, however this sector is now improving. In March, the airline’s cabin load factor also increased, by 5.6%. Srećko Šimunović, Croatia Airlines’ CEO, told the “Poslovni dnevnik”, “The renewal of our fleet, with the introduction of the Bombardier Dash 8 Q400, has been justified by these figures”. Croatia Airlines has introduced 6 Dash8s since 2008.

The national airline of Croatia recorded a 21.6 million Euro loss in 2010. However, the loss was decreased compared to 2009 by 5 million Euros. Croatia Airlines will hope to profit from recent and ongoing unrest in North Africa with many expected to choose Croatia as their summer holiday destination.

Soon in Skopje

It has been a Macedonian infused week of news and the latest is sure to be warmly greeted by aviation enthusiasts. Wizz Air is once again spreading its wings in the EX-YU region. The low cost airline will commence scheduled seasonal flights from London’s Luton Airport to Alexander the Great Airport in Skopje. Flights are set to operate 3 times per week, every Monday, Wednesday and Friday. The service will be inaugurated on June 20.

Wizz Air’s arrival in Macedonia is the first major win for Skopje Airport’s operator, TAV, which has been working on attracting low cost airlines to the country. Wizz Air CEO, Josef Varadi, told the “Utrinski Vesnik” newspaper that the airline is considering commencing flights to Skopje out of Frankfurt, Paris, Amsterdam and Barcelona.

There is more good news for Macedonia’s hub with Mat Airways planning to commence flights to Amsterdam this summer season. A total of 40 flights are planned between the two cities. Skopje Airport handled 700.000 passengers in 2010, an increase of 13.7% compared to 2009.

Flight details for the new Wizz Air service can be found in the new route launches section on the right hand side.

Will Niš keep the momentum?

Niš Constantine the Great Airport in Serbia handled 23.627 passengers in 2010, up by 37.6% on 2009, thanks mostly to Montenegro Airlines. In 2010, Niš was predominantly served by 2 airlines, the low cost Italian Wind Jet and Montenegro Airlines. Despite subsidies from the city authorities, Wind Jet suspended flights from Forli to Niš back in October 2010. The city provided some 1.1 million Euros to Wind Jet and bought out 50 seats per flight, although there was an average of only 25 passengers during the peak summer season. It is Montenegro Airlines that has transported the bulk of passengers heading to and from Niš. The Podgorica – Niš – Podgorica service, which operates 5 times per week, is also subsidised, as the city purchases 40 seats per flight.

While Niš handled the most passengers since 2007, the airport will have to find new airlines if it wishes to attract more passengers. In late 2010 the airport was closed for several days due to a dire financial situation until its rival, Belgrade Nikola Tesla Airport, provided it with some much needed cash. Last year, Adria Airways’ regional director for Serbia, Montenegro and Bosnia and Herzegovina, Orhan Hodžić, said the airline was planning to introduce flights from Ljubljana to Niš in the summer of 2011, although there is no evidence that the Slovenian carrier, which is struggling with its own finances, will be doing so. It is believed that the city authorities no longer have funds in order to subsidise airlines to commence flights to Niš.

Niš Constantine the Great Airport is currently advertising itself on the market, claiming that flights from Niš to Frankfurt Hahn, Zurich (4 times per week), Paris (2 times per week), London (2 times per week), Vienna (3 times per week), Munich (2 – 3 times per week), Istanbul (2 times per week) and Moscow would be a success.

B&H still penning 2011 summer timetable

Following an article published on Monday, in regards to B&H suspending services from Sarajevo to Vienna and Belgrade in the upcoming summer season, the airline says that these routes are still under consideration. Despite the fact that passengers can no longer book tickets for these services from March 27, Edin Hrapović, from B&H marketing, says that the airline is still formulating its summer season timetable, just over a month from its initiation. While Vienna is likely to proceed into the summer season, flights to Belgrade are still under consideration. The airline is set to continue its flights to Copenhagen, Frankfurt, Amsterdam, Gothenburg, Stockholm, Zurich and its signature route to Istanbul. Summer charters will also be operated.

Meanwhile, B&H’s hub airport, Sarajevo, reported some good news as the airport handled 563.266 passengers in 2010, up by 6.2% on 2009. The airport saw the number of flights increase by 5%. 2010 marks Sarajevo Airport’s 7th consecutive year of growth.

A year to remember ... Zadar Airport

Overall Croatian airports staged a respectable recovery in 2010. Most of the country’s hubs managed to see an increase in the number of handled passengers, despite a lacklustre start to the year. Airports on the Croatian coast, such as Dubrovnik and Split, had an exceptionally good year while the likes of Rijeka struggled both economically and passenger wise. Despite new low cost flights from Zagreb, Croatia Airlines’ slash in frequencies saw Zagreb post only a small increase.

In 2010, a total of 5.180.866 passengers were handled at airports across Croatia, an increase of 5.7% compared to 2009. According to analysts, 2011 is expected to be another year of growth.

The following are results Croatia’s main airports posted in 2010:

Airport	Passengers 2010	Passengers 2009	Change (%)
Zagreb	2.067.646	2.056.388	▲ 0.5
Dubrovnik	1.257.770	1.109.934	▲ 13.3
Pula	313.793	302.448	▲ 3.7
Split	1.187.921	1.080.121	▲ 9.4
Zadar	254.802	195.163	▲ 30.5
Osijek	20.824	20.503	▲ 1.5
Rijeka	61.478	110.208	▼ 44.2

All fugures have been provided by the Croatian Bureau of Statistics.

Jat conscious of low cost threat

This summer Jat is preparing to significantly increase frequencies to many of its destinations on top of introducing new services. This summer, the Serbian carrier will serve Athens daily. The service was recently increased from 3 to 4 per week as it tries to fill the void left by Aegean Airlines’ suspension of the route. The extra frequencies are being primarily introduced for the Macedonian diaspora from Australia, which will be able to use Etihad Airways and Qatar Airways flights to Athens and transit via Belgrade to their home country. The additional frequencies are set to be added to reservations systems soon. Jat will also be reintroducing services to Ohrid. The seasonal flights will be operated 5 times per week, 4 of which will be nonstop and 1 of which will operate via Skopje. The airline will fly to Macedonia’s capital city 15 times per week this summer. Furthermore, Jat’s service to Dubai will be increased from 3 to 4 times per week and the airline also plans to fly 9 times per week to London Heathrow.

In a statement issued to the Serbian press this weekend the airline says, “We have now realised the threat we face from low cost airlines”. It continues on by saying that Jat is preparing various measures to fend off the competition. In only one week the airline sold 9.000 tickets on their special discount fare sale. In 2010, Jat handled some 1.100.000 passengers, although official statistics are yet to be released. Jat says that low cost airlines have taken some 400.000 passengers from the airline.

Next week, the CEO’s of Jat and Croatia Airlines will meet and decide which routes the two airline should open between the two countries.

Limak expresses interest for Podgorica, Tivat and Berane

The Turkish conglomerate Limak Holding is interested in taking over both of Montenegro’s airports according to the “Novosti” newspaper. The Montenegrin Government is in talks of selling its airports to the Turks, which already have a presence in the region as part owners of Priština Airport. The company is also interested in developing Berane Airport, located in the country’s East.

However, the CEO of the government owned Montenegro Airports, which runs both Tivat and Podgorica, Milovan Djuričković, is less than thrilled with the idea, saying that there is no need to privatise the company. “There can only be three reasons for privatising a company. One is if the management is bad, which in this case it isn’t, the second is if the company is unable to finance further development, which isn’t the case and lastly if the government is strapped for cash”, Djuričković says. He goes on by explaining that airports form an integral part of a country’s infrastructure system and that it would be surprising if a country decided to sell it.

In 2010 Montenegro’s two airports had a record year, beating the 2008 record by 8%. The two airports handled a combined total of 1.193.478 passengers, an increase of 21% compared to 2009.

Soon in Dubrovnik

Aeroflot has made good on its promise from late last year and will commence scheduled flights from Moscow Sheremetyevo Airport and the seaside city of Dubrovnik. Flights will commence on May 27 and will operate on a daily basis with the Airbus A320. The line will additionally boost the arrivals of Russian tourists to Dubrovnik. After years of charter flights, Dubrovnik and Moscow will now, for the first time, be connected with scheduled services. Croatia has seen a massive increase in Russian tourists in 2010, thanks in part to the abolishment of visas, required by Russian passport holders entering Croatia in the past. Russians are seen as advantageous tourists because they spend more money and stay on holiday for longer than their Western counterparts.

In 2010, Dubrovnik handled 1.270.062 passengers just under the 1987 record when it handled 1.460.354 passengers. Compared to 2009, the airport saw a passenger increase of 13.1%. In 2010, Dubrovnik opened a new terminal, making it most modern airport in Croatia.

New flights from Pula this summer

The CEO of Pula Airport, Bruno Rugović, has confirmed that Jat Airways will resume flights between Belgrade and Pula this summer after a 2 year absence. Despite the fact that Croatia Airlines and Jat will talk routes at their upcoming meeting in Belgrade next week, the Pula flights, which will replace the services Jat operated to Portorož, in Slovenia, last summer season, are certain to commence. “In 2008 Jat’s Pula flights had a load factor of 95% and were extremely popular”, Rugović said.

The Jat flights are one of many that should secure a strong summer for the seaside airport. Croatia Airlines, Norwegian Air Shuttle, Ryanair and Germanwings have already confirmed their presence in Pula this summer. Furthermore, negotiations are underway for a direct service between Pula and Barcelona. In 2010, Pula Airport handled 313.793 passengers, up by 4% compared to 2009. Rugović is confident that in 2011 the airport will see even greater growth.

Another Croatian airport is set to announce many new flights. The embattled Rijeka Airport is poised for a comeback in 2011. More news regarding Rijeka’s new flights later in the week.

Adria’s future to be decided in March

An independent auditor has completed its assessment of Adria Airways’ financial performance. Its findings will be presented to the Ministry of Transport which will then decide whether to extend Adria Airways’ operating license. If it decides against prolonging the license, the Slovenian carrier will be grounded. The ministry has until mid March to make their decision.

Meanwhile, changes are set to be made at the top of the embattled state carrier. The CEO, Tadej Tufek, is expected to resign. It is believed the management changes were discussed at yesterday’s management board meeting. Recently, the airline received 4 million Euros in bailout funds by Slovenian banks. However, recent information has come to light that Slovenia’s largest bank (and Adria share owner) NLB, has backed out of the credit arrangement. The bank gave Adria a 6 million Euro loan in early 2010 which is yet to be payed off.

In light of the airline’s worsening financial performance, Adria is now planning, besides cutting its workforce and salaries, on cutting destinations. In 2010, Adria handled 1.170.235 passengers, an increase of 2.3% compared to 2009. Adria recently launched a promotional ticket sale, symbolically slashing prices up to 50% for its 50th birthday anniversary, to be celebrated in March.

New arrival in summer

After Turkish Airlines gains complete control over the national carrier of Bosnia and Herzegovina a second Airbus A319 is set to join the fleet, sources close to the airline state. The Airbus is expected to join the carrier sometime during the peak summer season and serve on charter flights. Turkish also plans for B&H to open several other Western European destinations later in the year, although none are currently planned for the start of the 2011 summer season which begins on March 27. The new arrival won’t impact on the current fleet of 2 ATR72s and 1 Airbus A319 which will remain with the airline. Original plans, drafted 2 years ago, intended for B&H to have three A319s by the summer of 2011.

Turkish Airlines is willing to acquire 100% of B&H’s shares as soon as possible, although internal politics inside the Federation are slowing the process down. In 2010, B&H Airlines handled almost 139.000 passengers, an increase of almost 57% compared to 2009. The airline recently launched a discounted ticket sale in hope of luring passengers to its flights until the start of the summer season.

Zagreb’s terminal to be expanded

Zagreb Airport’s passenger terminal will receive a 9.4 million Euro facelift as a temporary solution to the airport’s congestion problems. The project anticipates the construction of a new domestic check-in and arrivals area, which will extend the current terminal to the airport’s control tower. The new part of the terminal will stretch over 5.872 square metres. Originally, the airport planned to spend some 5 million Euros on the project and commence construction work in December 2010, however both have been modified. The construction of Zagreb’s much needed new terminal is not expected to begin until August 2012. If all goes to plan, the first phase of the new terminal should be completed in 2014.

Tonči Peović, the CEO of Zagreb Airport, told the “Poslovni dnevnik” portal that several major European airports are interested in participating in Zagreb’s expansion project. The current terminal is too small to handle the volume of passengers using the airport and big delays at check-in desks have become frequent at peak hours.

Zagreb Airport posted a profit of approximately 4 million Euros in 2010 and handled some 2.070.000 passengers, although official statistics are yet to be released.

2 expansion projects for Belgrade Airport in 2011

The CEO of Belgrade Nikola Tesla Airport, Velimir Radosavljević, has said that with nearly 3 million passengers in 2010, Belgrade’s airport can expect large scale investment in 2011, Serbian media report. From January 1, Belgrade slashed its landing fees, which should attract more low cost airlines. According to the CEO, the airport will see an increase of at least 15% in 2011 compared to last year , passenger wise, most of which will come from low cost carriers. Wizz Air will open its base in Belgrade on April 1. “We are trying to create a free and fair market for everyone. No one has any special treatment and no one is discriminated against”. Radosavljević noted.

Two major investments are planned for the airport in 2011, the expansion of Terminal 2 and the expansion of the parking platform. “The most important investment in 2011 will be the expansion of the terminal which will increase passenger comfort and services. We have to be very careful not to disturb other traffic during the expansion. This is why we have divided the project into 14 phases. There will be 8 new gates added to the terminal and the new areas will be opened once each phase of the project is complete”, Radosavljvević explains. He added that the expansion of the parking platform, which will allow more airlines to use the parking area instead of the gates, has already begun. “We have already connected our two main platform areas. We will add another one stretching over the size of 2 football pitches”.

Montenegro Airlines named “Hottest to watch in 2011”

In 2010, Montenegro Airlines carried 630.000 passengers, an increase of 20% compared to 2009. The airline recorded similar losses as in 2009, amounting to approximately 6 million Euros. Zoran Djurišić, the airline’s CEO, told a media conference in Podgorica that 2010 was one of the most difficult years in the airline’s history. He explained that the airline’s losses accumulated primarily due to an increase in fuel prices on the Montenegrin market. Djurišić outlined that the Montenegrin carrier operated more flights last year, up by 16% compared to 2009, while its average return ticket (without taxes) amounted to 93 Euros.

In 2011 Montenegro Airlines will commence flights to Milan and Brussels and increase its frequencies to London. Commenting on the recently failed privatisation drive, Djurišić said that the carrier should remain in government ownership for now.

Meanwhile, the Centre for Asia Pacific Aviation (CAPA) has published a list of 75 airlines “Hottest to watch in 2011”. Montenegro Airlines is the only EX-YU airline to be included in the list with the likes of Lufthansa, easyJet, Wizz Air, S7, Malaysia Airlines and Etihad.

2010 was a year of thrills and spills for the aviation industry. While most airlines managed to see an increase in the number of passengers after the disastrous 2009, no one could predict that a volcano in Iceland would bring the aviation world to a standstill. At the end of the year, mother nature paralysed air links once again as snow storms swept across Europe and the United States. In the EX-YU region, most national airlines saw a recovery in terms of passengers served, however, financial losses have continued to haunt all carriers. There was the regular strike here and there, several unfulfilled promises and several management changes. Here is a short, light hearted, recount of the year national carriers from the EX-YU had.


Adria finished 2010 with a bang ... and not in a good way. The airline’s management revealed that the Slovenian carrier is on the brink of bankruptcy and in need of finding a strategic partner in 2011 in order to survive. However, it wasn’t all that bad for Adria. It managed to see its passenger numbers increase, it opened a new base in Priština in December and relaunched flights to Belgrade after almost 2 decades. Adria’s final Airbus A320 was retired while the airline brought in new A319s. Furthermore, Adria continued its regional expansion by launching subsidised flights from Ljubljana to Banja Luka.


B&H Airlines saw its passenger numbers explode as the airline introduced new flights. The airline launched flights to Belgrade, Banja Luka and Zagreb although it retained its tradition of opening and suspending flights after several weeks. Nevertheless, the airline replaced its Boeing B737-400 with an Airbus A319 and launched the much awaited Sarajevo – Amsterdam service. The carrier of Bosnia and Herzegovina saw its CEO bid farewell to the airline as he took over business at the Bosnian Embassy in Qatar. The highlight news item of the year relating to B&H was when local media revealed that the airline was no longer serving pork and alcoholic beverages on its flights. The claims were refuted by the carrier and the story was quickly forgotten. On December 15, citizens of Bosnia and Herzegovina were freed from visa restrictions to some 27 European countries, which is expected to benefit the national carrier.


“Losses” was the catchphrase at Croatia Airlines in 2010. The airline lost passengers and lots of money. It was only fitting that the airline’s CEO stood down after 13 years at the helm, while at the same time working for Lufthansa CityLine. Croatia Airlines also saw its cabin crew stage strikes, unhappy with pay cuts. Low cost airlines increased their presence in Croatia in 2010, especially in Zagreb, much to the dislike of the national carrier. The planed 4 weekly service from Zagreb to Belgrade, scheduled to begin on May 1, was dumped. However, it wasn’t all grim news. The airline welcomed new Dash aircraft to its fleet and retained the name of the EX-YU regional leader in terms of passengers carried.


There’s never a dull year at Jat Airways. 2010 started off with a strike by its catering supplier and set the tone for the rest of 2010. The airline did not receive new aircraft as planed but managed to increase passenger numbers as competition blasted off from its home turf. Loathing its company’s management, employees finally had their day in December when it was replaced. In 2010, Jat saw several marketing campaigns and several grounded aircraft returned to its fleet. The Serbian carrier continued with its traditional financial losses but managed to secure a multi million Euro loan.


Montenegro Airlines took its turn to become 2010’s failed privatisation. The airline didn’t sell 30% of its shares but sold more tickets and as a result saw it passenger numbers significantly increase. The Montenegrin carrier received a new Embraer jet and relaunched flights to Niš.

In the following few weeks 2010 results for EX-YU airlines and airports will be published including Macedonia, which spent another year without a national carrier. 2011 is expected to be another recovery year in the aviation industry.

What are your predictions for the abovementioned airlines in 2011? Leave a comment.

Soon in Istanbul

Croatia Airlines will commence scheduled flights from Zagreb to Turkey’s largest city, Istanbul, from March 27. Flights will operate 3 times per week every Tuesday, Thursday and Sunday using the Airbus A320. Croatia Airlines rarely expands its scheduled network to the East of the country. Earlier this year it was criticised by its own employees for not focusing more on markets such as Turkey and Russia. Until now, Turkish Airlines has been the only airline operating between Istanbul’s Ataturk Airport and Zagreb’s Pleso Airport.

Along with Istanbul, which will be an all year round service, Croatia Airlines is launching several new seasonal flights this summer including services from Dubrovnik to Athens and Venice, from Zadar to Munich, from Split to Hamburg and from Rijeka to London.

Croatia Airlines has had a disappointing year passenger wise. While in 2010 most airlines (including all other national EX-YU carriers) saw an increase in the number of passengers, Croatia Airlines’ numbers have dipped by almost 7%. All flight details for the Zagreb – Istanbul service can be found on the right hand side in the new route launches section.

Adria to follow in MAT’s footsteps?

A dramatic month at the Slovenian national carrier continues this week. After revealing that the company is tackling financial problems and facing potential bankruptcy, the Slovenian Government has said it will review the airline’s financial performance which could see the carrier’s operating license revoked, effectively grounding the airline. The news came after the Minister for Transport, Patrick Valičič, held talks with Adria’s management.

A financial body is set to review the airline’s performance, after which it will be decided whether Adria’s operating license will be revoked, extended by 12 months or left as it is. Adria’s demise would have great impact on the Slovenian economy and it is unlikely that the government would let the carrier go. However, with the Slovenian Government owning most of the airline and with strict European Union laws forbidding any sort of aid, the airline will quickly have to be privatised.

On Monday, the Adria’s management cut employee wages by 20%. The airline has accumulated losses of up to 86 million Euros in the past 10 years with banks no longer willing to extend the loan repayment period. The company is expected to end 2010 with a loss of between 8 and 9 million Euros, after a 14 million Euro loss in 2009. More alarming was a statement made by an Adria Airways spokesperson yeasterday, who gave out advice on the actions passengers should take if Adria goes bankrupt and they happen to have booked a seat on one of their flights, published by a local newspaper.

Belgrade Airport ends 2010 on a high

Belgrade Nikola Tesla Airport has announced that with just over a week to go until 2010 becomes history, it expects to handle 2.7 million passengers, the record number of passengers since 1990. Thus, the airport expects to end 2010 with a 14% passenger increase. December has been particularly strong for the airport, with a recorded increase of 30% compared to the same month last year. “In 2010 we handled more passengers, more aircraft and have recorded a better financial performance”, the airport’s director Velimir Radosavljević told the Serbian media over the weekend. He revealed that from January 1 the airport will be decreasing handling fees by 7% for all carriers.

Several new routes have already been announced from Belgrade in 2011. Wizz Air will commence flights to Gothenburg, Stockholm, Charleroi, Eindhoven and Memmingen. airBaltic will resume flights from Riga on March 27 while Albanian Airlines has announced it will commence services from Tirana to Belgrade in 2011. Although planed for January 13, Jat Airways is unlikely to commence flights from Belgrade to Portorož due to low interest.