Jat Airways

Flag carriers of the former Yugoslavia urged to unite

National carriers in countries of the former Yugoslavia are struggling to survive in the current economic environment as operating costs rise and they face competition from large network carriers and expanding low-cost carriers. The former Yugoslavian nations of Bosnia and Herzegovina, Croatia, Montenegro, Serbia and Slovenia all have national airlines but are struggling to become profitable, while the national carriers of Kosovo and Macedonia have already failed and have not been revived. 

Association of European Airlines (AEA) secretary general Ulrich Schulte Strathaus recently told Slovenian newspaper Dnevnik that national carriers in the former Yugoslavia need to unite into a single carrier in order to survive. Mr Strathaus stated, “the once single Yugoslav market is now fragmented and a regional solution is necessary. The region needs an airline that would cover local needs and connect with global hubs.”

The main airlines in the region are Bosnia and Herzegovina’s B&H Airlines, Croatia’s Croatia Airlines, Montenegro’s Montenegro Airlines, Serbia’s Jat Airways and Slovenia’s Adria Airways.

Europe's fringe carriers look for partners to overcome financial crisis; Cyprus Airways latest

Airlines on Europe's southern and eastern periphery are becoming more precariously positioned, but are looking for for partners to help overcome the growing financial crisis. Cyprus Airways is the latest such carrier, and reported a widening in first half losses in the six months to 30-Jun-2011, as lower top-line revenue fell and higher fuel costs squeezed the airline in the period. Cyprus Airways is also turning to implementing a raft of measures aimed at stemming operating losses.

Serbia attempts another JAT Airways sale – third time lucky?

Serbia’s government has announced plans to again attempt to offload a stake in national carrier JAT Airways, its third attempt at doing so after heavy losses at the airline and a severe economic downturn in Eastern Europe sapped investor interest. It remains unclear whether Serbia will have much more luck this time around, as the companies that have previously shown interest have backed away from the deal.

European airlines report single-digit traffic growth in 2010; profits remain weak

European airlines reported single-digit growth last year - a welcome improvement from 2009's depressed level - but 2010 was a lacklustre year overall. Full year data has been released by the Association of European Airlines (AEA), the European Low Fares Airline Association (ELFAA) and EUROCONTROL. As noted by EUROCONTROL, growth across the continent last year was driven mainly by LCCs.