Thursday, June 23, 2011

Adria aid gets all clear

Adria looks to the future as it secures state aid
Three parliamentary committees have given the government the all clear to take part in the bailout of flag carrier Adria Airways, which requires a 50 million Euro cash injection to stay in the air. Opposition MPs argued against the aid saying that Adria’s agony would only be prolonged by granting the aid and that the national carrier should look for a strategic partner which would lead to privatisation. Despite the fact that the European Union does not look kindly upon government bailouts for state owned companies, emergency support is allowed under EU rules for the rescue and restructuring of firms in difficulty. The government warned that this was a “one off” and further aid wouldn’t be granted. Adria has also announced it will take a further 40 million Euro credit from the banks. The airline is currently struggling to pay off debt of up to 100 million Euros.

The airline’s management touted their recent visit to India as major success. Thanks to a deal with Adria, Air India is expected to begin flights to the United States via Ljubljana as well as codeshare on Adria’s regional services. The airline’s CEO, Klemen Boštjančič, says that Adria is looking at signing similar deals with other airlines. He blamed high oil prices at Ljubljana Airport, amongst other things, for the airline’s ever increasing losses. Adria will also introduce an additional service to Banja Luka from July 14, increasing the number of weekly subsidised services to 5.

The airline says it is talking to 10 potential strategic partners but says that the airline must first improve its financial state before it can be sold as no one wants to take over a debt ridden company.

12 comments:

  1. Absolutely crazy to pump another 50 m € into this bancrupt company.Only to keep it state-controlled like many other ventures in Slovenia. The EU has already critisized the slow privatization and state monopolies in many fields in Slovenia. Too many managers from former communist government still firmy holding the strings in "most western" ex Yugoslav republic. By the way: I think the j/venture with AI will end up in a disaster like it did in Frankfurt. JP is, I suppose, providing transit pax from the Balkans for AI. However in FRA AI planes where always several hours, sometimes even days late and hundreds of pax had to be rebooked onto other airlines. JP will have fun with this people stranded in LJU.......

    ReplyDelete
  2. 100million euro oh god save me

    ReplyDelete
  3. 5O m Euro in the dust plus 40 m Euro lost? TOTALLY ILL! The state supported (by tax payers) Adria is using various escamotages -that someone sooner or later need to pay- it's a clinical dead still getting artificial respiration.
    Can't figure that tinny Slovenia has no other way more urgent priorities IT'S UMBELIEVABLE.

    ReplyDelete
  4. Adria will also introduce an additional service to Banja Luka from July 14, increasing the number of weekly subsidised services to 5.

    gulp!

    The airline says it is talking to 10 potential strategic partners but says that the airline must first improve its financial state before it can be sold as no one wants to take over a debt ridden company.

    10 partners ... but thay can find even 1.

    ReplyDelete
  5. just to show you how sustainable there strategy is:

    BNX flights of the coming days:

    24JUN LJU-BNX 14 pax CR2
    24JUN BNX-LJU 06 pax CR2
    26JUN LJU-BNX 08 pax CR2
    26JUN BNX-LJU 13 pax CR2
    27JUN LJU-BNX 07 pax CR2
    27JUN BNX-LJU 08 pax CR2
    29JUN LJU-BNX 11 pax CR2
    29JUN BNX-LJU 04 pax CR2
    01JUL LJU-BNX 05 pax CR2
    01JUL BNX-LJU 07 pax CR2

    CR2 seat capacity: 48

    ReplyDelete
  6. For JU520 BEGLAX
    thank you for your posting!
    If ia umbelievable low!
    How are the loads from Pristina International Airport Adem Jashari?
    Are Ljubljana - Vienna, Paris, Podgorica, Warsaw etc. profitable?

    To make it short: which Adria regular destinations have good load and are profitable?
    Any current data? (or is a scret)
    I doubt they are many.

    ReplyDelete
  7. @JU520 BEGLAX

    Would you happen to know the figures for Nis - Podgorica?

    ReplyDelete
  8. @JU520 BEGLAX

    Would you happen to know the figures for Nis - Podgorica?

    ReplyDelete
  9. Last month Adria Airways got 2 "new" (modernisation of the fleet) Airbus A320:
    1. from 20/04/2011 code S5-AAS delivery date 20/10/1993,
    2. from 25/05/2011 registrazion code S5-AAT delivery date 28/06/1991.
    Old so old.

    ReplyDelete
  10. Well as for Adria and Belgrade in May this year they transported 1.992 passengers compared to 1.203 last year.

    Airlines like Lufthansa, Malev, Germanwings and Cimber have recorded declines year over year.

    ReplyDelete
  11. ^Considering JU no longer flies to LJU the increase is expected. What is interesting is that Adria was struggling on the route badly and wanted a code share with JU so they would be able to take over some of their passengers in a last attempt before they ditched the service. Since at the time JU had a moron of a CEO who didn’t even know what a code share was he happily signed and publicised it and it made a huge difference to Adria. A year later JU suspended LJU.

    ReplyDelete
  12. Steafan,

    It's interesting that this May they had only one additional flight (I think 32). I suppose that Belgrade Airport Authority included the codeshared flights between the two cities.
    But I wonder if they are making any money on the route as the Crj-200 is not the best aircraft around.

    ReplyDelete

Before posting a comment be mindful of other participants and readers. EX-YU Aviation News does not tolerate insults, excessive swearing, racist, homophobic or any other chauvinist remarks or provocative posts with the intention of creating further arguments. Such comments will be deleted as soon as possible. The opinions expressed by those providing comments are theirs alone, and do not reflect the opinions of EX-YU Aviation News. Thank you for your cooperation.