Air Serbia to retire older aircraft
The Serbian Minister for Finance, Siniša Mali, has said the country’s national carrier will retire older noisy aircraft, as well as those producing greater gas emissions. Mr Mali said the move will be part of the carrier’s restructuring program which includes fleet rationalisation, the reduction of the company’s workforce and termination of select routes. The restructuring program should unlock access to state aid, which will be used to mitigate the financial impact of the ongoing coronavirus pandemic. However, the Minister reiterated his support for the carrier, noting, “We have connected Serbia to Europe and the world. Almost every other passenger either departing or arriving in the country has been carried by our national airline. Even in these tough times, we continue to proudly protect our wings which have been in the skies for almost a century. With some good tailwinds, we will fly faster and better, to the end of the world and back, thanks to our Air Serbia”.
Air Serbia’s fleet currently consists of 21 aircraft. It has returned an Airbus A320 jet (registered YU-APG) and one ATR72 (registered YU-ALV) to their owners as their lease with the company had expired. Two former Adria Airways A319 aircraft were recently delivered to Belgrade with one of them (YU-APM) entering revenue service last week. The jet still dons Adria Airways’ cabin interiors. One of the remaining three Boeing 737-300 aircraft in Air Serbia’s fleet (YU-AND) has not been in operation since the pandemic started and is unlikely to return to service. However, the remaining two, one of which is the world’s oldest passenger 737-300 still in operation, continue to be utilised across the network. The lease for the carrier’s wide-body Airbus A330-200 runs until May of next year, after which the airline could extend it or replace the jet.
Since the onset of the pandemic, the airline has renegotiated leasing terms for its aircraft, with power by the hour contracts concluded, where leasing costs are accounted based on the number of hours the aircraft has been utilised rather than a fixed rate. The Serbian government previously said it was the “right time” to acquire aircraft for the company. “We are thinking about starting negotiations for the acquisition of some aircraft. This is the right time, because there will never be an opportunity like this where prices on the market will be as low”, the Ministry for Construction, Transport and Infrastructure said in May. Prior to the pandemic, Air Serbia planned to lease up to four ATR72 turboprops, which were to join the fleet in the summer of 2020, in addition to the two A319s.
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