Sunday, August 21, 2011

Adria network cuts decision in September

Key decisions to be made at Adria
Slovenia’s Adria Airways will announce reductions to its destination network in September, which will take effect from the 2011/12 winter season which begins on October 30. Due to its financial woes, the airline is expected to terminate several destinations. Short listed for the cut are the biggest loss making routes such as Paris, London, Istanbul, Warsaw and Copenhagen. According to the Slovenian daily “Delo”, the airline’s only profitable flights are those to Frankfurt, Zurich, Munich and Brussels, mostly feeder flights for the Lufthansa Group of airlines. According to the same newspaper, Adria is reporting big losses on its charter flights this year. Last year the airline did not make a profit on any of its charter services, making the decision to lease 2 Airbus A320s this year incomprehensible.

The next few weeks will be of great importance for Adria with a decision on its future financing and shareholder structure to be made. Furthermore, a decision on how to distribute state aid and bank loans, as well as implement cost cutting measures will be made on August 31. The extent of Adria’s financial problems were made public late last year which was followed by a complete change in management. The Slovenian Government has stressed the importance of Adria to the Slovenian economy. Passenger wise Adria had a good start to the year with solid growth. However, passenger numbers have begun to slip over the summer.

7 comments:

  1. When in September the decision of suspended routes will be formalised. Will be the beginning or end of the month?
    How can they continue to sell tickets for destinations that will cut (nearly sure)?
    Totally unprofessional.
    They need to suspend the sales till the situation is clear.
    Seems no one is booking Adria well in advance.
    Bad excuse.

    ReplyDelete
  2. Can someone explain why is MUC profitable? I have flown MUC-LJU lots of times and it was always half empty.
    Has it to do with the high LH ticket prizes , over 90 % of the people always continue with LH, JP probably gets its costs back from there.. no clue

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  3. close down! help slovenian market to get better airliners without spending our public money for bad managmenet!

    ReplyDelete
  4. This is truly incomprehensible. How can an airline with something around 80% seat load factor be losing this much money?
    The problem seems not to be with routes but with high costs at Ljubljana airport, and with unreasonable overheads and too many staff.

    ReplyDelete
  5. Grounding is the best solution.

    ReplyDelete
  6. Sure we have to wait for early September since all JP - management is now in Spain, Egypt, Dubrovnik....taking a bath and eating scampis. The tax payer can wait a little bit no matter how much money this airline burns...

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  7. Summer vacation is religion in Slovenia.
    Same as cars (old and new - religion).
    Adria Airways is government job so
    higher you are in the system there less you have to bother.
    No fight for job and money for "higher" Adria
    people.

    ReplyDelete

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