Air Serbia is prepared to introduce additional routes and move in to fill gaps should competitors withdraw from specific services in Belgrade, following the example of its planned new route to Munich, announced after Lufthansa reduced operations between the two cities. Speaking to “Euronews Serbia”, Air Serbia’s CEO, Jiri Marek said, “I believe we have a very strong team we can rely on. They’ve learned to be resilient in every crisis, treating each one as an opportunity and responding with a high degree of flexibility and agility to every opening in the market. We have announced ten new destinations, but if any competitors suspend a route, we can make a decision within three days, seize the opportunity, and move quickly to introduce a new direct service”.
Commenting on the situation in the industry caused by the conflict in the Middle East and the rise in fuel prices, the CEO noted, “We implemented all the measures we had planned. We also had certain buffer mechanisms in place, and we’ve been in contact with our partners to explore whether they could offer temporary relief, particularly in terms of lease payments or discounts on aircraft leases. Some have been very accommodating, and I would like to take this opportunity to thank them, while others have maintained their prices, and some have even increased them, so they have been less flexible”. He added, “On the revenue side, we are working to optimise our income streams and capitalise on new market opportunities. Ultimately, however, significant cost increases will, sooner or later, unfortunately be reflected in ticket prices for passengers”.
The carrier’s CEO noted the airline is in a good position to absorb the ongoing shocks on the market. “The situation is highly dynamic and unstable. We are monitoring it closely and taking the necessary measures to maintain stability and ensure the continuity of our operations. It is not easy, but over the past few years we have delivered strong financial results, which has allowed us to introduce internal safeguards to better cope with such volatility. We will have to see how things develop, as the situation remains very turbulent”. Mr Marek added, “In the short term, I believe demand will remain strong or even grow. However, over the longer term, once a chain reaction sets in – rising fuel prices feeding through into inflation and higher living costs – it will inevitably impact demand, which will then begin to decline”.
