# BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

)

Application of )

)

JAT AIRWAYS A.D. BELGRADE ) Docket DOT

- OST

- 2013

- 0177

)

for an Exemption pursuant to )

49 U.S.C. § 40109 )

)

)

ANSWER OF THE AIR LINE PILOTS ASSOCIATION

Communications with respect to this document should be sent to:

Russell Bailey

David M. Semanchik

Air Line Pilots Association

1625 Massachusetts Avenue NW

Washington, DC 20036

Phone: 202

- 797

- 4086

Fax: 202

- 797

- 4014

Russell.Bailey@alpa.org

David.Semanchik@alpa.org

Attorneys for the

Air Line Pilots Association

Dated: October 4, 2013

# BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

)

Application of )

)

JAT AIRWAYS A.D. BELGRADE ) Docket DOT

- OST

- 2013

- 0177

)

for an Exemption pursuant to )

49 U.S.C. § 40109 )

)

)

ANSWER OF THE AIR LINE PILOTS ASSOCIATION

The Air Line Pilots Association (“ALPA”) her e by answers the A pplication of JAT

Airways a.d. Belgrade (“JAT”) 1 

# for an exemption from 49 U.S.C. § 41301 so that it may

provide scheduled foreign air transportation of persons, property and mail between

Serbia and the U.S. on a code

- share basis with current or future partners. For the

reasons set fo rth below, DOT should deny the A pplication or hold it in abeyance until

there is a determination of whether JAT will remain under the control of Serbia or

nationals of S erbia once Etihad Airways acquires a significant portion of JAT’s stock

and obtains the right to manage the carrier.

1 

# JAT is soon to be rebranded as Air Serbia and press and analyst reports use both

names

- JAT and Air Serbia

– when referring to the carrier. ALPA will here us e the

name that appears in the A pplication

– JAT.

# 2 DISCUSSION

T here is no air transport agreement in place between Serbia and the U.S. If the

U.S. and Serbia were to enter into an air tr ansport agreement, that agreement would

almost certainly include the “nationality clause” that is a standard component of such

agreements. That clause would require that “substantial ownership and effective

control” of JAT be vested in Serbia, its nationa ls or both. Air Transport Agreement,

model text, January 12, 2012. 2



# JAT asserts it is owned and controlled by Serbian citizens. ( Application at ¶ 8 )

.

However, the A pplication states that JAT is in negotiations regarding the sale of a 49

percent stake of JAT to Etihad Airways, a carrier of the United Arab Emirates.

(Application at ¶ 7). Press reports indicate that not only does Etihad plan to take this

significant ownership interest in JAT, but plans to enter into an agreement to manage

the Ser bian carrier as well. Attachment A, Air Serbia debuts this fall, backed by Etihad

Airways

, USA Today, August 2, 2013, available at

http://www.usatoday.com/story/todayinthesky/2013/08/02/air

- serbia

- to

- launch

- with

help

- of

- partner

- etihad

- airways/2611497

. Et ihad plans to invest $40 million in JAT, and

Etihad’s chief executive officer, Mr. James Hogan, is reported to have said that the

2 

# Section 3 of that model agreement states t hat each party shall grant appropriate

authorizations to an airline of the other party provided, inter alia , that “substantial

ownership and effective control of that airline are vested in the other Party, national of

that Party, or both.” Available at ht tp://www.state.gov/e/eb/rls/othr/ata/114866.htm

.

# 3 airline plans “to integrate [JAT’s] network and trim its workforce while modernizing its

fleet. . . .” CAPA Centre for Aviati on, Air Serbia’s upcoming expansion under Etihad to seek

creation of European hub ( Sept. 9, 2013 ) Attachment B, available at

http://centreforaviation.com/analysis/air

- serbias

- upcoming

- expansion

- under

- etihad

- to

see

- creation

- of

- eastern

- european

- hub

- 127314

. Moreover, the C APA report indicates

that Etihad “will take over [JAT’s] administration, revenue management and training

(which will move to Abu Dhabi).” Id

. In addition, w hile JAT’s A pplication shows what

appears to be an all

- Serbian Board and management team, Application Exhibits B and

C

, once Etihad takes over management of the airline this will almost certainly change

.

In fact, JAT’s Chief Executive Officer , Dane Kondic (Application Exhibit C), was

Etihad’s choice for th at position. First Flight of Air Serbia in October, BLIC Online,

August 2, 2013, available at http://english.blic.rs/Economy/9807/First

- flight

- of

- Air

- Serbia

in

- October/print

.

Running an air carrier ’ s administration, determining its network, training and

directing its workforce, and managing its revenue mean controlling it. These are not

peripheral, but core elements, of JAT’s business. Accordingly, if the cited reports are

accurate, there is a substantial likelihood that following completion of management

agreement and the taking of the ownership stake, it will be Etihad, not Serbia or its

nationals, that will have “effective control” of JAT.

# 4 CONCLUSION

For the foregoing reasons, DOT should deny JAT’s Application. In the

alternative, DOT should defer processing the Application until DOT and interested

persons have been able to review and consider whatever investment and management

arrangements are entered into by JAT and Etihad.

Respectfully submitted,

_________________________________________

Russe ll Bailey

David M. Semanchik

Air Line Pilots Association

1625 Massachusetts Avenue, NW

Washington, DC 20036

Phone: 202

- 797

- 4086

Fax: 202

- 797

- 4014

Russell.Bailey@alpa.org

David.Semanchik@alpa.org

Attorneys fo r Air Line Pilots Association

October 4 , 2013

# 5 CERTIFICATE OF SERVICE

I certify that I caused to have served , on this 4th day of October, 2013, the

foregoing document on the persons identified below by causing a copy to be sent by

electronic mail:

anita.mosner@hklaw.com

jennifer.nowak@hklaw.com

robert.wirick@aa.com

francis.heil@aa.com

sascha.vanderbellen@delta.com

anbird@fedex.com

sllunsford@fedex.com

dan.weiss@united.com

howard.kass@usairways.com

rsilverberg@sgbdc.com

jjohnson@sgbdc.com

tom.fosko@a irtransport.com

jcanny@amerijet.com

jrichardson@johnlrichardson.com

rpommer@atlasair.com

john.palo@evergreenairlines.com

charters@evergreenairlines.com

matwood@cozen.com

mlbenge@zsrlaw.com

kevin.montgomery@polaraircargo.com

peter.beckett@polaraircargo.com

john.allen@faa.gov

uskrs@state.gov

dberg@airlines.org

jcasey@airlines.org

R ussell Bailey

# ATTACHMENT A

### T O D A

Y I N T H E S K Y ( / B L O G /

T O D A Y I N T H E S K Y

/ ) 

# A i r S e r b i a d e b u t s t h i s f a l l

, b a c k e d b y E t i h a d A i r w a y s

J o v a n a G e c , A s s o c i a t e d P r e s s 9 : 0 7 a

. m

. E

D T A u g u s t 2

, 2 0 1 3



## B E L G R A D E

, S e r b i a ( A P )

- E t i h a d A i r w a y s s i g n e d a w

i d e

- r a n g i n g s t r a t e g i c p a r t n e r s h i p d e a l T h u r s d a y w i t h t h e

S e r b i a n g o v e r n m e n t t h a t w

i l l l e a d t o t h e l a u n c h o f t h e B a l k a n c o u n t r y ' s n e w n a t i o n a l c a r r i e r a n d s p e l l t h e e n d

f o r t h e o l d l o s s

- m a k i n g J A

T A i r w a y s

.

T h e d e a l e n v i s a g e s t h a t t h e U n i t e d A r a b E m i r a t e s c o m p a n y w i l l a c q u i r e a 4 9 % s t a k e i n t h e n e w c a r r i e r t h a t

w i l l b e c a l l e d A i r S e r b i a

, w

h i l e t h e S e r b i a n g o v e r n m e n t w i l l o w n 5 1 %

.

A i r S e r b i a w

i l l s t a r t f l y i n g o n O c t

. 1

, a n d J A T o p e r a t i o n s w

i l l c e a s e

.

T O D A Y I N T H E S K

Y : C h e c k b a c k d a i l y f o r t h e l a t e s t a v i a t i o n n e w s ( h t t p : / / w w w

. u s a t o d a y

. c o m / b l o g / t o d a y i n t h e s k y / )

U S A T O D A Y : G u l f a i r l i n e s l u r e f l i e r s w

i t h n e w p l a n e s

, t o p s e r v i c e ( h t t p : / / w w w

. u s a t o d a y

. c o m / s t o r y / t r a v e l / f l i g h t s / 2 0 1 2 / 1 1 / 1 2 / q a t a r

- e m i r a t e s

a i r l i n e s / 1 7 0 0 6 0 9 / )

" W e m a d e s o m e t h i n g t h a t w

i l l b e c o m e a n e w f a c e a n d a n e w s t a r t f o r o u r c o u n t r y

, s o m e t h i n g w e w i l l b e p r o u d o f

, " s a i d S e r b i a n D e p u t y P r i m e M i n i s t e r

A l e k s a n d a r V

u c i c

.

J A T A i r w a y s

, o n c e a m a j o r E u r o p e a n a i r l i n e

, w i l l c e a s e t o e x i s t a f

t e r 6 6 y e a r s i n s e r v i c e

. J A

T h a s b e e n c r i p p l e d b y i n t e r n a t i o n a l s a n c t i o n s i m p o s e d o n

S e r b i a d u r i n g t h e w

a r s o f t h e 1 9 9 0 s w

h e n m o s t o f i t s f l e e t w

a s g r o u n d e d a n d i s s u r v i v e d o n l y o n b i g g o v e r n m e n t s u b s i d i e s

.

" T h e b o t t o m l i n e i s t h a t w

e w o u l d n ' t b e h e r e i f w

e d i d n ' t b e l i e v e A i r S e r b i a h a s a n e x c i t i n g f u t u r e

, " p r e s i d e n t a n d c h i e f e x e c u t i v e o f E t i h a d A i r w

a y s

J a m e s H o g a n s a i d d u r i n g t h e s i g n i n g c e r e m o n y

. H e s a i d l o n g

- t e r m g o a l i s t o t u r n A i r S e r b i a i n t o a " l e a d i n g c a r r i e r i n t h e r e g i o n

. "

T h e p a c t i s t h e l a t e s t p a r t n e r s h i p f o r f a s t

- g r o w i n g E t i h a d

, w

h i c h i s l o c k e d i n c o m p e t i t i o n w i t h o t h e r G u l f c a r r i e r s

, t h e D u b a i

- b a s e d E m i r a t e s a n d Q a t a r

A i r w a y s

. A b u D h a b i

- b a s e d E t i h a d a l r e a d y h a s i n v e s t m e n t s i n E u r o p e a n c a r r i e r s A i r b e r l i n a n d I r e l a n d ' s A e r L i n g u s

. S H A R E



### 7

4

C O N N E C T 

### 2 1



# ( h t t p s : / / t w i t t e r

. c o m / i n t e n t / t w e e t ? u r l

= h t t p : / / u s a t

. l y / 1 e g e e R I & t e x t = A i r % 2 0 S e r b i a % 2 0 d e b u t s % 2 0 t h i s % 2 0 f a l l

, % 2 0 b a c k e d % 2 0 b y

% 2 0 E t i h a d % 2 0 A i r w a y s & v i a = u s a t o d a y ) T W E E T



### ( P h o t o : D a r k o V o j i n o v i c

, A P )

## H o g a n s a i d " J A

T r e q u i r e d a f r e s h s t a r t a s a l e g a c y c a r r i e r

. "

" T h i s i s n ' t n e w f o r E t i h a d A i r w a y s

, " h e s a i d

, n o t i n g t h a t h i s c o m p a n y h a s a s i m i l a r d e a l w i t h A i r S e y c h e l l e s

.

O f f i c i a l s s a i d E t i h a d a n d S e r b i a w i l l i m m e d i a t e l y i n v e s t $ 4 0 m i l l i o n e a c h i n t o t h e n e w c o m p a n y

. A f u r t h e r $ 6 0 m i l l i o n e a c h w i l l b e p r o v i d e d i n t h e f u t u r e

.

T h e n e w c o m p a n y w

i l l b e m a n a g e d b y E t i h a d i n t h e n e x t f i v e y e a r s

.

A i r S e r b i a ' s n e w f l e e t w

i l l i n c l u d e 1 0 A i r b u s A 3 1 9 a i r c r a f t

. J A T ' s c u r r e n t a g i n g B o e i n g 7 3 7

- 3 0 0 s w i l l b e p h a s e d o u t

.

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, a n A u s t r a l i a n o f S e r b i a n o r i g i n

, s a i d t h e a i m f o r t h e n e w a i r l i n e i s " d r i v i n g t o w a r d p r o f i t a b i l i t y i n t h e n e x

t

2 4 m o n t h s

. "

" A n e w b r a n d s i g n a l s a n e w s t a r t

, " h e s a i d

.

A i r S e r b i a i s e x p e c t e d t o t a k e o v e r J A T ' s c u r r e n t 3 0 r o u t e s w

i t h i n E u r o p e a n d t o t h e M i d d l e E a s t

, a n d a d d s e v e r a l n e w o n e s

.

_ _ _ _

A s s o c i a t e d P r e s s w

r i t e r D u s a n S t o j a n o v i c c o n t r i b u t e d

.

C o p y r i g h t 2 0 1 3 T h e A s s o c i a t e d P r e s s

. A l l r i g h t s r e s e r v e d

. T h i s m a t e r i a l m a y n o t b e p u b l

i s h e d

, b r o a d c a s t

, r e w r i t t e n o r r e d i s t r i b u t e d

. S H A R E



### 7

4

C O N N E C T 

### 2 1



# ( h t t p s : / / t w i t t e r

. c o m / i n t e n t / t w e e t ? u r l

= h t t p : / / u s a t

. l y / 1 e g e e R I & t e x t = A i r % 2 0 S e r b i a % 2 0 d e b u t s % 2 0 t h i s % 2 0 f a l l

, % 2 0 b a c k e d % 2 0 b y

% 2 0 E ti h a d % 2 0 A i r w a y s & v i a = u s a t o d a y ) T W E E T

# ATTACHMENT B

### 1 0

/ 4 / 1 3 A i r S e r b i a ’ s u p c o m i n g e x p a n s i o n u n d e r E t i h a d t o s e e c r e a t i o n o f E a s t e r n E u r o p e a n h u b | C A P A

- C e n t r e f o r A v i a t i o n

c e n t r e f o r a v i a t i o n

. c o m

/ a n a l y s i s / a i r

- s e r b i a s

- u p c o m i n g

- e x p a n s i o n

- u n d e r

- e t i h a d

- t o

- s e e

- c r e a t i o n

- o f

- e a s t e r n

- e u r o p e a n

- h u b

- 1 2 7 3 1 4 1 / 8 

# A i r S e r b i a ’ s u p c o m i n g e x p a n s i o n u n d e r E t i h a d t o s e e c r e a t i o n o f E a s t e r n E u r o p e a n h u b

9 t h S e p t e m b e r

, 2 0 1 3

© C A P A

A i r S e r b i a ’ s r e c e n t r e b r a n d i n g f r o m J a t A i r w a y s i s t h e b e g i n n i n g o f a n u m b e r o f s i g n i f i c a n t d e v e l o p m e n t s f o r t h e a i r l i n e w h i c h w i l l a l s o l e a d t o c h a n g e s i n t h e S e r b i a n a v i a t i o n

m a r k e t

. T h r o u g h i t s p a r t n e r s h i p w i t h E t i h a d A i r w a y s

, A i r S e r b i a w i l l b e e s t a b l i s h i n g a m e d i u m s i z e d h u b i n B e l g r a d e w i t h a r e s t r u c t u r e d n e t w o r k f e a t u r i n g 1 2 n e w d e s t i n a t i o n s

a n d a n e w f l e e t o f A 3 1 9 a i r c r a f

t

. T h r o u g h t h i s h u b o t h e r a i r l i n e s w i t h i n t h e E t i h a d ’ s ‘ e q u i t y a l l i a n c e ’ w i l l b e a b l e t o t a k

e a d v a n t a g e o f a n i n c r e a s e d p r e s e n c e i n t h e E a s t e r n

E u r o p e a n r e g i o n

.

A s p r e v i o u s l y r e p o r t e d b y C A P A

, S e r b i a ' s G o v e r n m e n t a n d E t i h a d A i r w a y

s e s t a b l i s h e d o n 1

- A u g

- 2 0 1 3 a s t r a t e g i c p a r t n e r s h i p t o s e c u r e t h e f u t u r e o f J a t A i r w a y s w h i c h w a s

s u b s e q u e n t l y r e n a m e d a n d r e b r a n d e d a s A i r S e r b i a

. T h e p a r t n e r s h i p i n c l u d e d t h e a c q u i s i t i o n o f 4 9 % o f A i r S e r b i a b y E t i h a d o n 0 1

- J a n

- 2 0 1 4 a n d E t i h a d b e i n g a w a r d e d a f i v e

y e a r m a n a g e m e n t c o n t r a c t

E t i h a d a n d t h e S e r b i a n G o v

e r n m e n t a g r e e d t o b o t h i n j e c t U S D

4 0 m i l l i o n i n t o t h e a i r l i n e w h i l e b o t h p a r t i e s w i l l e a c h p r o v i d e u p t o U S D 6 0 m i l l i o n i n f u r t h e r f u n d i n g

. D e b t f r o m J a t

A i r w a y s w a s a l s o w r i t t e n o f f b y t h e S e r b i a n G o v

e r n m e n t w h i c h w i l l a l l o w A i r S e r b i a t o l a u n c h f r o m a c l e a n s h e e t

.

[ h t t p : / / w w w

. e t o u c h e s

. c o m

/ e h o m e / 6 8 1 1 7 / h o m e / ]

S e e r e l a t e d r e p o r t : J a t A i r w

a y s

- E t i h a d d e a l s e c u r e s J a t a n d S e r b i a ' s f u t u r e

, m a k i n g E t i h a d ' s 6 t h e q u i

t y a l l i a n c e m e m b e r [ h t t p : /

/ c e n t r e f o r a v i a t i o n

. c o m

/ a n a l y s i s / j a t

- a i r w a y s

- e t i h a d

- d e a l

- s e c u r e s

- j a t

- a n d

- s e r b i a s

- f u t u r e

m a k i n g

- e t i h a d s

- 6 t h

- e q u i t y

- a l l i a n c e

- m

e m b e r

- 1 1 9 1 5 5 ]

E t i h a d ' s E U R 4 0 m i l l i o n l o a n f

a c i l i t y w i l l b e c o n v e r t e d i n t o e q u i t y o n 0 1

- J a n

- 2 0 1 4

. T h e a g r e e m e n t a l s o i n c l u d e d p l a n s f o r A i r S e r b i a t o c o d e s h a r e w i t h E t i h a d a n d a i r b e r l i n

, w h i c h i s o n e o f f i v e o t h e r c a r r i e r s i n E t i h a d ’ s

e q u i t y a l l i a n c e

.



# A i r S e r b i a i s n o w E t i h a d A i r w a y s ’ s i x t h e q u i t y a r r a n g e m e n t

T h e a g r e e m e n t w i t h A i r S e r b i a i s E t i h a d A i r w a y s ' s i x t h e q u i t y a r r a n g e m e n t

, f

o l l o w i n g t h o s e w i t h A e r L i n g u s

, a i r b e r l i n

, J e t A i r w a y s ( p e n d i n g )

, A i r S e y

c h e l l e s a n d V i r g i n A u s t r a l i a

. E t i h a d ’ s s t r a t e g y o f b u i l d i n g i t s o w n

a l l i a n c e b e g a n a f

t e r 2 0 0 7 w h e n t h e g l o b a l a l l i a n c e s t o l d t h e a i r l i n e t h e y w e r e n ’ t i n t e r e s t e d i n h a v i n g E t i h a d a s a m e m b e r

.

A t C A P A ’ s A u s t r a l i a P a c i f i c A v i a t i o n S u m m i t i n A u g

- 2 0 1 3 E t i h a d A i r w a y s C E O J a m e s H o g a n s a i d t h e c a r r i e r ’ s a l l i a n c e s t r a t e g y i s a b o u t c r e a t i n g s c a l e a n d n e t w o r k a n d i s a l s o a b o u t l o w e r i n g c o s t s b y e s t a b l i s h i n g

e c o n o m y o f s c a l e a n d j o i n t p u r c h a s i n g

. M r H o g a n ’ s m a n d a t e f r o m A b u D h a b i i s t o b u i l d u p s c a l e

, e f f i c i e n c y a n d b e b e s t i n c l a s s b u t n o t t h e b i g g e s t

. " I t ' s a b o u t w o r k i n g s m a r t e r

, " h e s a i d

. T h e p a r t n e r s h i p s h a v e a l s o

h e l p e d E t i h a d b e c o m e p r o f i t a b l e

.

E t i h a d r e p o r t e d a n e t p r o f i t o f U S D

4 2 m i l l i o n f o r 2 0 1 2

, a 2 0 0 % y

e a r

- o n

- y e a r i n c r e a s e

, a n d i s o n t r a c k f

o r a n o t h e r p r o f i t i n 2 0 1 3

. M r H o g a n t o l d t h e S u m m i t t h a t i n 2 Q 2 0 1 3 “ w e c e r t a i n l y h i t a l l o u r n u m b e r s ”

.

E t i h a d r e p o r t e d 2 Q 2 0 1 3 p a s s e n g e r r e v

e n u e o f U S D 9 2 1 m i l l i o n

, u p 8 % y

e a r

- o n

- y e a r

. 1 H 2 0 1 3 p a s s e n g e r r e v

e n u e g r o w t h w a s e v

e n s t r o n g e r

, u p 1 3 % y

e a r

- o n

- y e a r t o U S D 1

. 8 b i l l i o n

. O v

e r a l l

, t o t a l r e v e n u e ( i n c l u d i n g

c a r g o ) g r e w t o U S D 2

. 5 b i l l i o n f

o r t h e f i r s t s i x m o n t h s o f 2 0 1 3

, a n i n c r e a s e o f 1 4 %

. O f t h i s

, E t i h a d ' s p a r t n e r s h i p r e v e n u e c o m p r i s e d 2 0 % o f t o t a l p a s s e n g e r r e v e n u e i n b o t h p e r i o d s

.

S e e r e l a t e d r e p o r t : E

t i h a d r e p o r t s a n o t h e r 6 m

o n t h s ' r e c o r d d o u b l e

- d i g i

t g r o w t h ; 2 0 % o f r e v e n u e s f r o m p a r t n e r s h i p s [ h t t p : / / c e n t r e f o r a v i a t i o n

. c o m

/ a n a l y s i s / e t i h a d

- r e p o r t s

- a n o t h e r

- 6

- m

o n t h s

- r e c o r d

- d o u b l e

- d i g i t

g r o w t h

- 2 0

- o f

- r e v e n u e s

- f r o m

- p a r t n e r s h i p s

- 1 1 7 8 6 3 ]

E t i h a d d e s c r i b e s t h e a l l i a n c e a s t h e w o r l d ’ s f i r s t ‘ a i r l i n e e q u i t y a l l i a n c e ’ w h i c h o f

f e r s b e n e f i t s s u c h a s s t r e a m l i n i n g e n t r y i n t o n e w m a r k e t s w i t h i n f o r e i g n i n v e s t m e n t l i m i t s

, e n a b l i n g r a p i d e x p a n s i o n v i a e s t a b l i s h e d

b r a n d s a n d o f f e r i n g s t r o n g e r c u s t o m e r p r o p o s i t i o n

. T h e a l l i a n c e a l s o o f f e r s l o w e r c o s t s a n d h i g h e r p r o d u c t i v i t

y w h i l e a l s o o f f e r i n g m o r e c h o i c e t o p a s s e n g e r s

. E t i h a d A i r w a y s s a y s t h e a l l i a n c e n o w c o v

e r o v e r 4 1 0

u n i q u e d e s t i n a t i o n s

, c a r r y i n g o v

e r 9 6 m i l l i o n p a s s e n g e r s p e r a n n u m o n a f l e e t o f o v e r 5 0 0 a i r c r a f t

.

### 1 0

/ 4 / 1 3 A i r S e r b i a ’ s u p c o m i n g e x p a n s i o n u n d e r E t i h a d t o s e e c r e a t i o n o f E a s t e r n E u r o p e a n h u b | C A P A

- C e n t r e f o r A v i a t i o n

c e n t r e f o r a v i a t i o n

. c o m

/ a n a l y s i s / a i r

- s e r b i a s

- u p c o m i n g

- e x p a n s i o n

- u n d e r

- e t i h a d

- t o

- s e e

- c r e a t i o n

- o f

- e a s t e r n

- e u r o p e a n

- h u b

- 1 2 7 3 1 4 2 / 8 E t i h a d A i r w a y s ‘ a i r l i n e e q u i t y a l l i a n c e ’

S o u r c e : E t i h a d A i r w a y s p r e s e n t a t i o n a t C A P A A u s t r a l i a P a c i f i c A v i a t i o n S u m m i t

E t i h a d A i r w a y s ‘ e q u i t y a l l i a n c e ’ c o m p a r e d t o o t h e r a i r l i n e g r o u p s

S o u r c e : E t i h a d A i r w a y s p r e s e n t a t i o n a t C A P A A u s t r a l i a P a c i f i c A v i a t i o n S u m m i t

M r H o g a n a l s o s a i d a l l t h e e q u i t

y c a r r i e r s E t i h a d A i r w a y

s h a d i n v e s t e d i n w e r e p r o f i t a b l e i n 2 0 1 2 a n d E t i h a d A i r w a y s r e c o u p e d i t s i n v

e s t m e n t i n a i r b e r l i n i n t h e f i r s t e i g h t m o n t h s o f t h e r e l a t i o n s h i p a n d i t s p a r t n e r s h i p

c o n t i n u e s t o e n h a n c e r e v

e n u e a n d p r o v i d e c o s t s y n e r g i e s

.



# E t i h a d A i r w a y s t o f

o l l o w A i r S e y c h e l l e s m o d e l i n t u r n i n g a r o u n d A i r S e r b i a

M r H o g a n s a i d t h e a i r l i n e p l a n s t o i n t e g r a t e A i r S e r b i a ’ s n e t w o r k a n d t r i m i t s w o r k

f o r c e w h i l e a l s o m o d e r n i s i n g i t s f l e e t

, r e p l a c i n g o l d e r a i r c r a f t w i t h n e w A 3 1 9 s

. T h e o v

e r a l l a i m f o r A i r S e r b i a i s t o t r a n s f

o r m i t s

o p e r a t i o n s a n d t u r n B e l g r a d e i n t o a E u r o p e a n h u b

.

U n d e r t h e p a r t n e r s h i p E t i h a d A i r w a y

s w i l l t a k e o v e r A i r S e r b i a ’ s a d m i n i s t r a t i o n

, r e v

e n u e m a n a g e m e n t a n d t r a i n i n g ( w h i c h w i l l m o v e t o A b u D h a b i )

. T h e r e w i l l b e o p p o r t u n i t i e s f o r b o t h c a r r i e r s t h r o u g h n e t

w o r k

l i n k a g e a n d r e s o u r c e s h a r i n g

.

M r H o g a n s a i d t h e A i r S e r b i a s t r a t e g y i s e s s e n t i a l l y t h e A i r S e y c h e l l e s s t r a t e g y

. A i r S e y

c h e l l e s t u r n e d a p r o f i t o f U S D 1 m i l l i o n i n 2 0 1 2 c o m p a r e d t o a l o s s o f U S D 2 5 m i l l i o n i n 2 0 1 1

. A s t h i s f o r m u l a w o r k e d f o r A i r

S e y c h e l l e s

, E t i h a d i s c o n f i d e n t i t c a n a l s o w o r k f o r A i r S e r b i a

.



# F l e e t m o d e r n i s a t i o n f r o m 7 3 7

- 3 0 0 s t o A 3 1 9 s

U n d e r i t s p a r t n e r s h i p w i t h E t i h a d A i r w a y s

, A i r S e r b i a w i l l e x p a n d i t s n e t

w o r k w i t h 1 2 n e w d e s t i n a t i o n s w h i l e a l s o m o d e r n i s i n g i t s f l e e t w i t h 1 0 A 3 1 9 a i r c r a f t i n i t i a l l y

. T h e a i r l i n e p l a n s t o t a k

e d e l i v e r y o f i t s f i r s t A 3 1 9

a i r c r a f t o n 2 7

- O c t

- 2 0 1 3

.

I n i t i a l l y t w o A 3 1 9 s w i l l b e l e a s e d f r o m E t i h a d a n d t h e a i r l i n e a l s o h a s e i g h t n e w A 3 1 9 s o n o r d e r f o r d e l i v e r y b e t w e e n 2 0 1 3 a n d 2 0 1 6 ( o n e s c h e d u l e d f

o r d e l i v e r y i n 2 0 1 3

, o n e i n 2 0 1 4

, f

o u r i n 2 0 1 5 a n d t

w o i n 2 0 1 6 )

. T h e s e a i r c r a f t w i l l r e p l a c e t h e a i r l i n e ’ s a g e i n g f l e e t o f 1 0 B o e i n g 7 3 7

- 3 0 0 a i r c r a f

t

.

A i r S e r b i a a l s o c u r r e n t l y o p e r a t e s s i x A T R 7 2

- 2 0 0 a i r c r a f t o n i t s r e g i o n a l n e t

w o r k

. T h e s e h a v

e n o t y e t b e e n m a r k e d f o r r e p l a c e m e n t a l t h o u g h r e p o r t e d l y c o u l d b e r e p l a c e d i n 2 0 1 4 w i t h B o m b a r d i e r t u r b o p r o p s

.

A s A i r S e r b i a ’ s i n i t i a l f l e e t p l a n d o e s n o t p r o v i d e f o r e x p a n s i o n

, j u s t r e p l a c e m e n t

, t h e a i r l i n e w i l l l i k e l y r e v i e w i t s e x i s t i n g n e t

w o r k a n d c o u l d c u t o r r e d u c e c a p a c i t

y o n r o u t e s n o t p e r f

o r m i n g w e l l i n o r d e r t o b e a b l e t o

o p e r a t e i t s p l a n n e d 1 2 n e w r o u t e s

. T h e a i r l i n e ’ s o v e r a l l c a p a c i t y i s l i k e l y t o i n c r e a s e s l i g h t l y a s i t s B

o e i n g 7 3 7

- 3 0 0 a i r c r a f

t a r e c o n f i g u r e d w i t h 1 2 7 s e a t s i n a s i n g l e

- c l a s s c o n f i g u r a t i o n w h i l e A 3 1 9 a i r c r a f t a r e a b l e t o

b e c o n f i g u r e d w i t h 1 3 8 t o 1 5 6 s e a t s

.



# 1 2 n e w d e s t i n a t i o n s f r o m B e l g r a d e p l a n n e d f r o m w i n t e r 2 0 1 3 / 2 0 1 4

A i r S e r b i a c u r r e n t l y s e r v

e s 3 2 d e s t i n a t i o n s

, 3 1 o f w h i c h a r e w i t h i n E u r o p e a n d o n e t o N o r t h A f r i c a ( M o n a s t i r i n M o r o c c o )

. W i t h A i r S e r b i a ’ s p l a n n e d n e t w o r k e x p a n s i o n w i t h 1 2 n e w r o u t e s f r o m w i n t e r 2 0 1 3 / 2 0 1 4

, t h e

a i r l i n e ’ s N o r t h A f r i c a a n d M i d d l e E a s t n e t w o r k s w i l l s e e c o n s i d e r a b l e e x p a n s i o n a l o n g w i t h n e w E u r o p e a n r o u t e s

.

### 1 0

/ 4 / 1 3 A i r S e r b i a ’ s u p c o m i n g e x p a n s i o n u n d e r E t i h a d t o s e e c r e a t i o n o f E a s t e r n E u r o p e a n h u b | C A P A

- C e n t r e f o r A v i a t i o n

c e n t r e f o r a v i a t i o n

. c o m

/ a n a l y s i s / a i r

- s e r b i a s

- u p c o m i n g

- e x p a n s i o n

- u n d e r

- e t i h a d

- t o

- s e e

- c r e a t i o n

- o f

- e a s t e r n

- e u r o p e a n

- h u b

- 1 2 7 3 1 4 3 / 8 F i v e o f t h e n e w r o u t e s h a v

e p l a n n e d l a u n c h d a t e s w h i l e t h e l a u n c h o f t h e r e m a i n i n g s e v e n r o u t e s h i n g e s o n t h e d e l i v

e r y o f a d d i t i o n a l A 3 1 9 s

. T h e i n i t i a l f i v

e n e w r o u t e s f o r A i r S e r b i a a r e A b u D h a b i

, B

a n j a L u k a i n

B o s n i a H e r z e g o v i n a

, P r a g u e i n t h e C z e c h R e p u b l i c

, B u c h a r e s t i n R o m a n i a a n d L j u b l j a n a i n S l o v e n i a

. T h e s e v e n s u b s e q u e n t r o u t e s t h a t a r e p l a n n e d b u t d o n ’ t y e t h a v e l a u n c h d a t e s a r e B e i r u t i n L

e b a n o n

, C a i r o i n

E g y p t

, K i e v i n t h e U k r a i n e

, S o f i a a n d V a r n a i n B u l g a r i a a n d W a r s a w i n P o l a n d

.

A i r S e r b i a ’ s p l a n n e d B e l g r a d e n e t w o r k e x p a n s i o n

R o u t e F r e q u e n c y L a u n c h d a t e C u r r e n t o p e r a t o r s

B E G

- A U H 4 / w e e k * 2 7

- O c t

- 2 0 1 3 E t i h a d A i r w a y s

B E G

- B N X T B A 0 1

- D e c

- 2 0 1 3 N / A

B E G

- P R G T B A 0 1

- D e c

- 2 0 1 3 N / A

B E G

- O T P T B A 0 9

- D e c

- 2 0 1 3 T

A R O M

B E G

- L J U T B A 0 9

- D e c

- 2 0 1 3 A d r i a A i r w a y s

B E G

- B U D T B A T B A N / A

B E G

- B E Y T B A T B A N / A

B E G

- C A I T B A T B A N / A

B E G

- K B P T B A T B A N / A

B E G

- S O F T B A T B A N / A

B E G

- V A R T B A T B A N / A

B E G

- W A W T B A T B A L O

T P o l i s h A i r l i n e s

S o u r c e : C A P A

– C e n t r e f o r A v i a t i o n a n d I n n o v a t a

N o t e s : * p l a n i s f o r B e l g r a d e

- A b u D h a b i t o i n c r e a s e t o d a i l y a s A 3 1 9 f l e e t e x p a n d s

B E G

= B e l g r a d e N i k o l a T e s l a A i r p o r t ; A U H

= A b u D h a b i I n t e r n a t i o n a l A i r p o r t ; B N X

= B a n j a L u k a I n t e r n a t i o n a l A i r p o r t ; P R G

= P r a g u e V á c l a v H a v e l A i r p o r t ; O T P

= B u c h a r e s t O t o p e n i I n t e r n a t i o n a l A i r p o r t ; L J U

=

L j u b l j a n a J o z e P u c n i k A i r p o r t ; B U D

= B u d a p e s t F e r e n c L i s z t I n t e r n a t i o n a l A i r p o r t ; B E Y

= B e i r u t I n t e r n a t i o n a l A i r p o r t ; C A I

= C a i r o I n t e r n a t i o n a l A i r p o r t ; K B P

= K i e v B o r y s p i l I n t e r n a t i o n a l A i r p o r t ; S O F

= S o f i a

A i r p o r t ; V A R

= V a r n a A i r p o r t ; W A W

= W a r s a w F r e d e r i c C h o p i n A i r p o r t

.

O f A i r S e r b i a ’ s 1 2 p l a n n e d n e w r o u t e s

, f o u r a r e c u r r e n t l y o p e r a t e d b y o t h e r c a r r i e r s

, t h o u g h A i r S e r b i a c o d e s h a r e s o n E t i h a d A i r w a y s ’ d a i l y B e l g r a d e

- A b u D h a b i s e r v i c e w h i c h i s a l s o o p e r a t e d w i t h A 3 1 9 s

.

T h e e i g h t d e s t i n a t i o n s n o t c u r r e n t l y s e r v e d w i t h a d i r e c t l i n k f r o m S e r b i a w i l l s e e S e r b i a ’ s i n t e r n a t i o n a l l i n k s g r o w

, p a r t i c u l a r l y t o E a s t e r n E u r o p e a n d a l s o t o N o r t h A f r i c a a n d t h e M i d d l e E a s t

. S e r b i a ’ s e x i s t i n g

i n t e r n a t i o n a l c a p a c i t

y o f a b o u t 1 0 0

, 0 0 0 s e a t s p e r w e e k a l s o s t a n d s t o i n c r e a s e a s A i r S e r b i a e x p a n d s i t s n e t w o r k

.

S e r b i a i n t e r n a t i o n a l c a p a c i t y ( s e a t s p e r w e e k ) b y r e g i o n : 9

- S e p

- 2 0 1 3 t o 1 5

- S e p

- 2 0 1 3

### 1 0

/ 4 / 1 3 A i r S e r b i a ’ s u p c o m i n g e x p a n s i o n u n d e r E t i h a d t o s e e c r e a t i o n o f E a s t e r n E u r o p e a n h u b | C A P A

- C e n t r e f o r A v i a t i o n

c e n t r e f o r a v i a t i o n

. c o m

/ a n a l y s i s / a i r

- s e r b i a s

- u p c o m i n g

- e x p a n s i o n

- u n d e r

- e t i h a d

- t o

- s e e

- c r e a t i o n

- o f

- e a s t e r n

- e u r o p e a n

- h u b

- 1 2 7 3 1 4 4 / 8 S o u r c e : C A P A

– C e n t r e f o r A v i a t i o n & I n n o v a t a

A s i d e f r o m B e l g r a d e

- A b u D h a b i s e r v i c e

, o f t h e 1 2 n e w d e s t i n a t i o n s f o r A i r S e r b i a

, E t i h a d A i r w a y

s c u r r e n t l y o n l y o p e r a t e s t o B e i r u t a n d C a i r o

. T h e r e m a i n i n g n i n e d e s t i n a t i o n s a r e n e w t o E t i h a d A i r w a y s a n d t h e r e f o r e

w i l l r e p r e s e n t a c o n s i d e r a b l e e x

t e n s i o n o f E t i h a d ’ s r e a c h i n t o E a s t e r n E u r o p e

.

A i r S e r b i a i s a l r e a d y t h e l a r g e s t o f t h e f l a g c a r r i e r s b a s e d i n t h e E X

- Y U r e g i o n a n d o f f e r s m o r e c a p a c i t

y w i t h i n t h e r e g i o n t h a n a n y o t h e r c a r r i e r

. T h i s w i l l e x p a n d f u r t h e r w i t h t h e a n n o u n c e d n e t w o r k e x p a n s i o n

.

A i r S e r b i a n e t w o r k : a s a t 0 9

- S e p

- 2 0 1 3

### 1 0

/ 4 / 1 3 A i r S e r b i a ’ s u p c o m i n g e x p a n s i o n u n d e r E t i h a d t o s e e c r e a t i o n o f E a s t e r n E u r o p e a n h u b | C A P A

- C e n t r e f o r A v i a t i o n

c e n t r e f o r a v i a t i o n

. c o m

/ a n a l y s i s / a i r

- s e r b i a s

- u p c o m i n g

- e x p a n s i o n

- u n d e r

- e t i h a d

- t o

- s e e

- c r e a t i o n

- o f

- e a s t e r n

- e u r o p e a n

- h u b

- 1 2 7 3 1 4 5 / 8 S o u r c e : C A P A

– C e n t r e f o r A v i a t i o n & I n n o v a t a

E t i h a d w i l l p a r t i c u l a r l y b e a b l e t o l e v

e r a g e t h e c a r r i e r ’ s s t r o n g n e t

w o r k i n t h e E X

- Y U r e g i o n

.

P o d g o r i c a a n d T i v

a t i n M o n t e n e g r o a r e A i r S e r b i a ’ s l a r g e s t r o u t e s a n d a r e c u r r e n t l y s e r v e d w i t h t h r e e d a i l y f l i g h t s

, a c c o r d i n g t o I n n o v a t a d a t a

. S k o p j e i n M a c e d o n i a i s s e r v

e d w i t h n i n e w e e k l y f l i g h t s a n d S a r a j e v o i n

B o s n i a a n d H e r z e g o v i n a o n c e d a i l y

.

A s e c o n d d e s t i n a t i o n i n M a c e d o n i a

, O h r i d

, i s s e r v e d w i t h f o u r w e e k l y f l i g h t s

. A i r S e r b i a a l s o f l i e s t o t h r e e C r o a t i a n c i t i e s

– D u b r o v n i k

, P u l a a n d S p l i t

– w i t h f

o u r t o f i v e w e e k l y f l i g h t s t o e a c h d e s t i n a t i o n

. S e v e r a l o f

t h e s e d e s t i n a t i o n s c o u l d s e e c a p a c i t

y i n c r e a s e s a s t h e y a r e n o t s e r v

e d b y E t i h a d a n d t r a f

f i c w i l l l i k e l y i n c r e a s e a s B e l g r a d e e v

o l v e s i n t o a r e g i o n a l h u b f

o r E t i h a d

.

W h i l e d i r e c t s e r v i c e s t o W e s t e r n E u r o p e w i l l p r o b a b l y b e m a i n t a i n e d ( P a r i s

, Z u r i c h

, L o n d o n H e a t h r o w

, F r a n k

f u r t

, D u s s e l d o r f a n d A m s t e r d a m a r e a l l a m o n g A i r S e r b i a t o p 1 0 r o u t e s )

, A i r S e r b i a ’ s g r o w t h u n d e r E t i h a d

m a n a g e m e n t w i l l m o r e l i k

e l y b e f o c u s e d o n r e g i o n a l s e r v i c e s

. T h e f

e e d f r o m E t i h a d s h o u l d a l l o w A i r S e r b i a t o e x p a n d i n t h e E a s t e r n E u r o p e a n m a r k e t s

, g i v i n g i t a n i m p o r t a n t c o m p e t i t i v

e a d v a n t a g e o v e r o t h e r

c a r r i e r s f r o m t h e r e g i o n

. C u r r e n t l y a b o u t o n e t h i r d o f A i r S e r b i a ’ s s e a t c a p a c i t y i s a l l o c a t e d t o o t h e r E X

- Y U c o u n t r i e s

.

E t i h a d ’ s o n l i n e n e t

w o r k c u r r e n t l y d o e s n o t i n c l u d e a n y d e s t i n a t i o n s i n M o n t e n e g r o

, M a c e d o n i a

, B o s n i a a n d H e r z e g o v i n a o r C r o a t i a

. T h e U A E f l a g c a r r i e r w i l l b e a b l e t o u s e A i r S e r b i a t o i n c r e a s e i t s p r e s e n c e

s i g n i f i c a n t l y i n t h e E X

- Y U r e g i o n a n d o f

f e r c o n n e c t i o n s v i a A b u D h a b i t o d e s t i n a t i o n s t h r o u g h o u t t h e M i d d l e E a s t

, A f r i c a a n d A s i a

- P a c i f i c

.

C o m p a r e d t o o t h e r k

e y E u r o p e a n c a r r i e r s

, A i r S e r b i a w i l l o p e r a t e a s i g n i f i c a n t E a s t e r n E u r o p e a n n e t w o r k

, p a r t i c u l a r l y i n t h e E X

- Y U r e g i o n

.

A i r S e r b i a ’ s u p c o m i n g E a s t e r n E u r o p e a n n e t w o r k i n c o m p a r i s o n t o o t h e r k e y E u r o p e a n c a r r i e r s

A i r l i n e N u m b e r o f

E a s t e r n

E u r o p e r o u t e s N u m b e r o f

R u s s i a / C I S

r o u t e s T o t a l

A i r S e r b i a e x

. B E G 9 ( 1 8 f o l l o w i n g

e x p a n s i o n ) 1 1 0 ( 1 9

f o l l o w i n g

e x p a n s i o n )

A i r F r a n c e

- K L M ( A i r F r a n c e

e x C D G a n d K L M e x A M S ) 1 3 8 2 1

I A G ( B r i t i s h A i r w a y s e x L H R

, I b e r i a e x M A D a n d V u e l i n g e x

B C N 1 5 1 1 2 6

L u f t h a n s a / G e r m a n w i n g s

( L u f t h a n s a e x F R A

, G e r m a n w i n g s e x C G

N ) 2 7 1 8 4 5

S o u r c e : C A P A

– C e n t r e f o r A v i a t i o n

N o t e : A c c o r d i n g t o I n n o v a t a d a t a f o r 0 2

- S e p

- 2 0 1 3 t o 0 8

- S e p

- 2 0 1 3

W h i l e t h e l a r g e E u r o p e a n a i r l i n e g r o u p s h a v e b i g g e r E a s t e r n E u r o p e a n a n d R u s s i a n / C I S n e t w o r k s t h a n A i r S e r b i a

, f

o r A i r S e r b i a ’ s s i z e i t h a s a c o n s i d e r a b l e E a s t e r n m a r k e t p r e s e n c e

, w h i c h w i l l s i g n i f i c a n t l y i n c r e a s e

f o l l o w i n g i t s u p c o m i n g r o u t e e x p a n s i o n

. A i r S e r b i a a l s o h a s t h e a d v a n t a g e o f o p e r a t i n g a c o n s i d e r a b l e W e s t e r n E u r o p e a n n e t w o r k w h i c h c a n f

e e d p a s s e n g e r s o n t o i t s E a s t e r n E u r o p e a n n e t w o r k

, w h i c h f e a t u r e s a

n u m b e r o f r o u t e s u n i q u e t o A i r S e r b i a c o m p a r e d t o t h e a b o v e a i r l i n e g r o u p s ( s u c h a s t o P o d g o r i c a i n M o n t e n e g r o )

.

T h e o t h e r E u r o p e a n m e m b e r s o f t h e E t i h a d e q u i t y a l l i a n c e

, A e r L i n g u s a n d a i r b e r l i n

, h a v e e x t e n s i v e W e s t e r n E u r o p e a n n e t

w o r k s b u t d o n o t h a v

e s u c h a l a r g e p r e s e n c e i n t h e E a s t e r n E u r o p e r e g i o n

. A e r L i n g u s

c u r r e n t l y h a s f o u r E a s t e r n E u r o p e a n d e s t i n a t i o n s w h i l e a i r b e r l i n h a s 1 0

. A i r S e r b i a ’ s e n t r y i n t o t h e a l l i a n c e w i l l s e e t h e i r r e a c h i n t o t h e r e g i o n g r e a t l y i m p r o v e

, t h r o u g h c o d e s h a r e a r r a n g e m e n t s

.

T h r o u g h A i r S e r b i a ’ s c o d e s h a r e a r r a n g e m e n t s w i t h E t i h a d A i r w a y s a n d o t h e r a i r l i n e s i n t h e e q u i t

y a l l i a n c e

, p a s s e n g e r s f r o m t h e s e o t h e r c a r r i e r s w i l l a l s o b e a b l e t o b e f e d i n t o A i r S e r b i a ’ s E a s t e r n n e t

w o r k

. A i r

S e r b i a ’ s E a s t e r n E u r o p e a n n e t

w o r k w i l l l i k e l y c o n t i n u e t o g r o w w i t h s u p p o r t f r o m E t i h a d A i r w a y s a n d o t h e r m e m b e r s o f t h e E t i h a d e q u i t y a l l i a n c e

.



# A i r S e r b i a a l r e a d y t h e l a r g e s t a i r l i n e i n S e r b i a

### 1 0

/ 4 / 1 3 A i r S e r b i a ’ s u p c o m i n g e x p a n s i o n u n d e r E t i h a d t o s e e c r e a t i o n o f E a s t e r n E u r o p e a n h u b | C A P A

- C e n t r e f o r A v i a t i o n

c e n t r e f o r a v i a t i o n

. c o m

/ a n a l y s i s / a i r

- s e r b i a s

- u p c o m i n g

- e x p a n s i o n

- u n d e r

- e t i h a d

- t o

- s e e

- c r e a t i o n

- o f

- e a s t e r n

- e u r o p e a n

- h u b

- 1 2 7 3 1 4 6 / 8 

# A i r S e r b i a a l r e a d y t h e l a r g e s t a i r l i n e i n S e r b i a

A s S e r b i a ’ s n a t i o n a l c a r r i e r a n d s o l e s c h e d u l e d a i r l i n e

, A i r S e r b i a p l a y s a n i m p o r t a n t r o l e i n p r o v i d i n g i n t e r n a t i o n a l a i r t r a n s p o r t a t i o n t o S e r b i a n c i t i z e n s

. S e r b i a ’ s s c h e d u l e d a i r t r a n s p o r t m a r k e t i s p u r e l y i n t e r n a t i o n a l

a n d o p e r a t e s m a i n l y f r o m t h e c a p i t a l ’ s B e l g r a d e N i k o l a T e s l a A i r p o r t i n n o r t h e r n S e r b i a a n d f r o m N i s K o n s t a n t i n V e l i k i A i r p o r t i n s o u t h e r n S e r b i a

.

A i r S e r b i a i s c u r r e n t l y t h e l a r g e s t a i r l i n e w i t h a l m o s t 4 5

, 0 0 0 s e a t s o f f e r e d

, r e p r e s e n t i n g a b o u t 4 2 % o f S e r b i a ’ s o v e r a l l a v a i l a b l e c a p a c i t y f o r t h e w e e k c o m m e n c i n g 9

- S e p

- 2 0 1 3

. A i r S e r b i a i s f o l l o w e d b y W i z z A i r w i t h

a r o u n d 1 3 % o f c a p a c i t

y a n d b y L u f t h a n s a a n d M o n t e n e g r o A i r l i n e s

, w h i c h e a c h p r o v i d e a r o u n d 8 % o f c a p a c i t y

.

S e r b i a i n t e r n a t i o n a l c a p a c i t y ( s e a t s p e r w e e k ) : 9

- S e p

- 2 0 1 3 t o 1 5

- S e p

- 2 0 1 3

N o t e : * i n d i c a t e s a f o r e i g n c a r r i e r

S o u r c e : C A P A

- C e n t r e f o r A v i a t i o n a n d I n n o v a t a



# A i r S e r b i a ’ s n e t w o r k c u r r e n t l y f

o c u s e d o n E u r o p e

A i r S e r b i a ’ s n e t w o r k i s c u r r e n t l y f

o c u s e d o n E u r o p e w i t h o n l y o n e r o u t e ( B e l g r a d e

- M o n a s t i r ) t o N o r t h A f r i c a

. H o w e v e r f o l l o w i n g s i g n i n g i t s p a r t n e r s h i p w i t h E t i h a d A i r w a y s

, t h r e e o f i t s 1 2 p l a n n e d n e w r o u t e s w e r e

a n n o u n c e d t o b e t o A f r i c a a n d t h e M i d d l e E a s t ( A b u D h a b i

, B e i r u t a n d C a i r o )

.

A b u D h a b i w i l l b e c o m e a k

e y r o u t e f o r t h e a i r l i n e d u e t o i t s c l o s e l i n k

s w i t h E t i h a d A i r w a y

s t h o u g h o v e r a l l t h e a i r l i n e ’ s o w n f

o c u s w i l l c o n t i n u e t o b e o n E u r o p e

, p a r t i c u l a r l y E a s t e r n E u r o p e

. A i r S e r b i a w i l l o f f e r m o s t

d e s t i n a t i o n s i n A f r i c a

, t h e M i d d l e E a s t a n d A s i a v i r t u a l l y t h r o u g h a c o d e s h a r e w i t h E t i h a d

. B e i r u t a n d C a i r o w i l l b e e x c e p t i o n s a s t h e r e i s s u f f i c i e n t l o c a l p o i n t

- t o

- p o i n t d e m a n d f

o r t h e s e d e s t i n a t i o n s t o s u s t a i n a d i r e c t

s e r v i c e

.

T h r o u g h E t i h a d A i r w a y

s a n d t h e o t h e r a i r l i n e s i n w h i c h E t i h a d h a s e q u i t y s t a k e s i n

, A i r S e r b i a w i l l b e a b l e t o g r e a t l y e x p a n d i t s g l o b a l n e t w o r k t h r o u g h c o d e s h a r e a g r e e m e n t s

, i n c l u d i n g t o A u s t r a l i a

. A i r S e r b i a a l s o

s t a n d s t o b e n e f i t f r o m r e c e i v i n g t r a f

f i c o n t o i t s o w n n e t

w o r k f r o m c o d e s h a r e p a r t n e r s

.

A i r S e r b i a i n t e r n a t i o n a l c a p a c i t y b y r e g i o n ( s e a t s p e r w e e k ) : 9

- S e p

- 2 0 1 3 t o 1 5

- S e p

- 2 0 1 3

### 1 0

/ 4 / 1 3 A i r S e r b i a ’ s u p c o m i n g e x p a n s i o n u n d e r E t i h a d t o s e e c r e a t i o n o f E a s t e r n E u r o p e a n h u b | C A P A

- C e n t r e f o r A v i a t i o n

c e n t r e f o r a v i a t i o n

. c o m

/ a n a l y s i s / a i r

- s e r b i a s

- u p c o m i n g

- e x p a n s i o n

- u n d e r

- e t i h a d

- t o

- s e e

- c r e a t i o n

- o f

- e a s t e r n

- e u r o p e a n

- h u b

- 1 2 7 3 1 4 7 / 8 S o u r c e : C A P A

- C e n t r e f o r A v i a t i o n a n d I n n o v a t a N o t e : T h i s g r a p h d o e s n o t i n c l u d e t h e a i r l i n e ’ s t w i c e w e e k l y B e l g r a d e

- M o n a s t i r s e r v i c e

.

A i r S e r b i a t o p 1 0 i n t e r n a t i o n a l r o u t e s ( s e a t s p e r w e e k ) : 9

- S e p

- 2 0 1 3 t o 1 5

- S e p

- 2 0 1 3

S o u r c e : C A P A

- C e n t r e f o r A v i a t i o n a n d I n n o v a t a

N o t e : B E G

= B e l g r a d e N i k o l a T e s l a A i r p o r t ; T I V

= T i v a t A i r p o r t ; C D G

= P a r i s C h a r l e s d e G a u l l e A i r p o r t ; S V O

= M o s c o w S h e r e m e t y e v o A i r p o r t ; T G D

= P o d g o r i c a G o l u b o v c i A i r p o r t ; Z R H

= Z u r i c h A i r p o r t ; S K P

= S k o p j e

A i r p o r t ; L H R

= L o n d o n H e a t h r o w A i r p o r t ; D U S

= D u s s e l d o r f A i r p o r t ; V I E

= V i e n n a A i r p o r t ; A M S

= A m s t e r d a m A i r p o r t S c h i p h o l

.

S i x o f A i r S e r b i a ’ s t o p 1 0 r o u t e s ( b a s e d o n w e e k l y s e a t c a p a c i t y ) a r e t o W e s t e r n E u r o p e a n d e s t i n a t i o n s w i t h t h e r e m a i n i n g f o u r t o E a s t e r n E u r o p e a n d e s t i n a t i o n s

, r e f l e c t i n g t h e a i r l i n e ’ s o v e r a l l n e t w o r k c a p a c i t y

### 1 0

/ 4 / 1 3 A i r S e r b i a ’ s u p c o m i n g e x p a n s i o n u n d e r E t i h a d t o s e e c r e a t i o n o f E a s t e r n E u r o p e a n h u b | C A P A

- C e n t r e f o r A v i a t i o n

c e n t r e f o r a v i a t i o n

. c o m

/ a n a l y s i s / a i r

- s e r b i a s

- u p c o m i n g

- e x p a n s i o n

- u n d e r

- e t i h a d

- t o

- s e e

- c r e a t i o n

- o f

- e a s t e r n

- e u r o p e a n

- h u b

- 1 2 7 3 1 4 8 / 8 S i x o f A i r S e r b i a ’ s t o p 1 0 r o u t e s ( b a s e d o n w e e k l y s e a t c a p a c i t y ) a r e t o W e s t e r n E u r o p e a n d e s t i n a t i o n s w i t h t h e r e m a i n i n g f o u r t o E a s t e r n E u r o p e a n d e s t i n a t i o n s

, r e f l e c t i n g t h e a i r l i n e ’ s o v e r a l l n e t w o r k c a p a c i t y

a l l o c a t i o n s w i t h o v

e r 5 0 % a l l o c a t e d t o W e s t e r n E u r o p e

. T h i s c o u l d c h a n g e

, h o w e v e r

, a s A i r S e r b i a s t a r t s t o f

e e d E t i h a d a n d o t h e r m e m b e r s o f t h e E t i h a d e q u i t y a l l i a n c e w i t h a f

o c u s o n p r o v i d i n g c o n n e c t i o n s t o

E a s t e r n E u r o p e

.

O f t h e a i r l i n e ’ s t o p 1 0 r o u t e s

, A i r S e r b i a c u r r e n t l y d i r e c t l y c o m p e t e s w i t h o t h e r a i r l i n e s o n f i v e r o u t e s a n d i n d i r e c t l y o n t

w o r o u t e s

. A i r S e r b i a i s c u r r e n t l y t h e s o l e o p e r a t o r o f s e r v i c e s f r o m B e l g r a d e t o S k o p j e

, D u s s e l d o r f a n d A m s t e r d a m

.



# A i r S e r b i a h a s a g r e a t l y i m p r o v e d c h a n c e o f h a v i n g a l o n g

- t e r m f u t u r e

W i t h a m o d e r n i s e d f l e e t a n d a r e v i s e d n e t w o r k i n c l u d i n g i n c r e a s e d c o d e s h a r e o p e r a t i o n s

, A i r S e r b i a s t a n d s a m u c h i m p r o v e d c h a n c e o f s u r v i v i n g a n d b e i n g a b l e t o c r e a t e a s u s t a i n a b l e o p e r a t i o n

. D e s p i t e b e i n g a

s m a l l c a r r i e r

, A i r S e r b i a w i l l h a v

e t h e o p p o r t u n i t

y t o e n j o y a n e c o n o m y o f s c a l e t h a t i t o r o t h e r c a r r i e r s i n t h e r e g i o n w o u l d n e v e r b e a b l e t o a c h i e v

e o n t h e i r o w n

. T h e r e s o u r c e s h a r i n g a n d j o i n t p u r c h a s i n g

o p p o r t u n i t i e s a n d b e n e f i t s A i r S e r b i a w i l l g a i n t h r o u g h i t s p a r t n e r s h i p w i t h E t i h a d A i r w a y s w i l l a l s o g r e a t l y a s s i s t t h e c a r r i e r t o r e t u r n t o p r o f i t a b i l i t y

.

S e e r e l a t e d r e p o r t : E

t i h a d p a r t n e r s h i p s t r a t e g y e v o l

v e s f u r t h e r a s j o i n t p u r c h a s i n g w i

t h a i r b e r l i n a n d J e t i s p u r s u e d [ h t t p s : / / c e n t r e f o r a v i a t i o n

. c o m

/ a n a l y s i s / e t i h a d

- p a r t n e r s h i p

- s t r a t e g y

- e v o l v e s

- f u r t h e r

- a s

- j o i n t

p u r c h a s i n g

- w i t h

- a i r b e r l i n

- a n d

- j e t

- i s

- p u r s u e d

- 1 1 5 9 7 8 ]

M e a n w h i l e E t i h a d A i r w a y

s a n d t h e o t h e r m e m b e r s o f t h e E t i h a d a i r l i n e e q u i t y a l l i a n c e w i l l s e e t h e i r g l o b a l r e a c h e x p a n d e v e n f u r t h e r w i t h t h e a d d i t i o n o f A i r S e r b i a a s t h e s i x t h m e m b e r t o t h e a l l i a n c e

. O v

e r a l l

, i f J a t

A i r w a y s ’ t r a n s f o r m a t i o n i n t o A i r S e r b i a i s s u c c e s s f u l

, i t s l o n g t e r m s u r v i v a l w i l l b e m o r e s e c u r e a n d i t w i l l b e i n a s t r o n g e r p o s i t i o n t o f e n d o f f f u r t h e r e x p a n s i o n b y c a r r i e r s s u c h a s l o w

- c o s t o p e r a t o r W i z z A i r

, w h i c h

a r e c o n t i n u i n g t o e x p a n d t h e i r p r e s e n c e i n t h e E a s t e r n E u r o p e a n r e g i o n

.

[ h t t p : / / w w w

. e t o u c h e s

. c o m

/ e h o m e / 6 8 1 1 7 / h o m e / ]

© 2 0 1 3 C A P A C e n t r e f o r A v i a t i o n : : C o n t a c

t U s : : T e r m s & C o n d i t i o n s : : P r i v a c

y P o l i c y : : G l o s s a r y : : F e e d b a c k : : A l l t i m e s a r e i n A E S T ( G M T + 1 0 )