Friday, September 9, 2011

Adria to cut nine routes

Cost cutting measures to affect Adria destination network
Adria Airways will suspend flights to 9 destinations by the end of next month, Slovenian media reports, as the national carrier attempts to get back on its feet and avoid bankruptcy. As a result, the airline hopes to save up to 9 million Euros. Although the carrier will announce its network cuts later this month, rumoured for suspension are Podgorica, Belgrade, Moscow, Copenhagen, Istanbul, Paris, London and Warsaw. Adria claims that it is not the case that these lines aren’t popular with passengers, rather, they are frequented by tourists who find the lowest possible ticket prices leading the airline to make losses.

Last week, Adria failed to negotiate a deal with the banks, to which it owes millions, to convert their claims to the company into ownership stakes. “We are a little closer, but we are still far away from making an agreement”, Adria Airways CEO, Klemen Boštjančič, said. Adria owes 77 million Euros to 5 banks. Adria has also had major problems with signing a new collective agreement with its employees. Furthermore, if an agreement with the banks isn’t made, the government will withhold 50 million Euros in state aid.

Ljubljana Airport is not loosing time to find a replacement for Adria’s routes. Last week, RusLine from Moscow began 2 weekly flights to the Slovenian capital. According to the airport, the line will grow into daily flights next year. Ljubljana Airport is also looking for an airline to commence flights out of New York.

26 comments:

  1. Will Jat start Ljubljana then? I need those flights :(

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  2. Who will fly from NY to LJU?

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  3. and which will be the 9th one?

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  4. 9th one - Ljubljana!

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  5. The 9th one is ARN. Sad news indeed. LJU won't have direct flights to some of the European biggest cities such as London, Paris and Moscow. To some extent, I can understand why they are cutting off WAW, CPH, ARN as these are more seasonal destinations but LGW, CDG, SVO? I would think that those destinations attract passengers throughout the year. Adria used to have monopoly over the Ex Yu market. Now, when other airlines started flying to Croatia, Macedonia, Kosovo, Serbia and Bosnia, LJU has lost a significant amount of those transit passengers. Anyway, I hope Adria gets back on its wings and finds a way to replace its inefficient CRJ200s.

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  6. Adria can not compete with other airlines on ANY destination, e.g. with AirFrance and EasyJet to CDG, with EasyJet to LON, with Turkish to IST. Even monopoly routes are not profitable for them. I hope Aeroflot will come back to LJU since Adria has full airplanes on this route.

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  7. Nemjee:

    Do you have the load factors of LX out of BEG in August.
    They had almost 15000 pax, is that right?

    Thks

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  8. I m wondering what they will do with all the planes, which flew those 9 destinations...

    I know they can t get rid off the 320s and 319s without paying a high compensation penalty

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  9. According to official data LX had 14682 PAX (including INFs) in BEG. It is hard to estimate load factor because they used not only A319s and A320s, but frequently Fokker100 and 2-3 times A321.

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  10. what I never understood, why they did not change (after entering ito Star Alliance) LGW with LHR. BD and other Star Carriers such as AC,UA,CO are all in LHR.

    or was it not possible to get a slot at LHR?

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  11. Hey,

    Yeah that's correct. They had 14.682 passengers in August up by 54% when compared to last year.

    On a side note, since I do not have time to update the blog that often I am just publishing small random facts related to the airlines in Belgrade and their performance.

    Cheers

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  12. Nemjee

    u know we ex YU freaks are more than delighted to get your BEG side notes, load factors and pax figures..

    thanks a lot for all. ciao from ZRH

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  13. @JU520 BEGLAX They sold their slots at LHR, moved to LGW and it was point of no return

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  14. From where is all this data in article? I don't know any Slo media in this day that report which routes will be cancel?

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  15. http://www.siol.net/gospodarstvo/2011/09/v_adrii_bijejo_plat_zvona.aspx

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  16. If Adria Is a smart company they shell open a sister company in Macedonia(Adria- Macedonia with 3 aircraft for example CRJ200/900) and they will make money flying to destinations like Zurich,Vienna,Dusseldorf,ljubljana on daily basis from Alexander the Great-Skopje, and from friday to sunday from Skopje via Ohrid St.Paul The Apostle airport(there is a tax benefit by TAV).The average Pax fulfilment per aircraft in this direct destinations is high 86%)
    This also can be a great oportunity for CROATIA Airlines

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  17. Yes, there are a lot of oportunities from here and there, but why then few domestic companies like MAT, Palair and few more could not make anything on such market? It is crisis everywhere, and on ex-yu teritories there are almost 20 airports with potential of 20-something milion (relatively poor)people....I would never put money on that, it is easier sitting in caffe (or kafana) and producing good ideas for somebody else. JP was also cash cow for few businessmans and few politicians...cheers!

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  18. The 9 routes which will be cancel are:

    LJU-LGW
    LJU-CDG
    LJU-WAW
    LJU-IST
    VIE-FRA
    PRN-BRU
    PRN-CDG
    PRN-CPH
    PRN-DUS

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  19. So Adria will close it's Pristina base?

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  20. It's good that they are keeping Belgrade in the end.

    In 2010 Adria carried more passengers than Jat, 11,506 vs 11,964 even if Jat's numbers represented a drop of 18%!

    January-August their numbers are up by 10% so let's hope that they can at least reduce their loss a bit on the route.

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  21. that much for the Skopje base discussion

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  22. Adria will stay in Pristina with following routes:

    LJU-PRN
    PRN-MUC
    PRN-FRA

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  23. http://www.delo.si/gospodarstvo/podjetja/banke-upnice-adrii-postavljajo-pogoje.html
    So the main problem are the passengers because they prefer cheaper fairs, better transfer options or more convenient travel time. Come on! There is no hope for the airline with that attitude and mind set.

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  24. It is better for JP to have less pax they will make less debt!!!

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