Wednesday, September 21, 2011

Adria saved

Banks approve debt conversion plan

This afternoon, Slovenian banks unanimously approved to convert Adria Airways' multi million Euro debt into shares and endorsed a 50 million Euro cash injection from the government, saving the national carrier from bankruptcy. The banks will now gain ownership stakes in the national carrier granting them a share in future profits and decision making. Two weeks ago all banks agreed to convert debt into equity except for Nova Ljubljanska Banka (NLB), which was unhappy with certain terms of the debt conversion and requested for tougher cost cutting measures to be implemented. An agreement with the banks was a precondition for the government to provide a 50 million Euro bailout. A new political crisis in Slovenia will not impact on the state aid promised to Adria. Last night Slovenia’s government lost a confidence vote in parliament, affectively toppling Prime Minister’s Borut Pahor’s administration.

Adria Airways recorded a loss of 63 million Euros in 2010. Nevertheless, the airline’s management is confident that the Slovenian carrier will post a profit within two years. The management has told the media that it has come to a deal with employees after “marathon negotiations” took place for them to agree to a new collective agreement which will see their pay, allowance and holiday time slashed. Adria currently employs 450 people. Under the new restructuring plan, 22% will lose their jobs. Details of the recovery plan should be made public within the next few days.

Adria has had a crisis filled year as it celebrates 50 years of existence. The Star Alliance member concluded negotiations in January to acquire much needed liquidity and named Klemen Boštjančič, former Chief Supervisor of construction firm Vegrad, as its new CEO. By the end of August the airline carried 851.639 passengers, a modest increase on last year’s result.


  1. BREAKING NEWS (taken from I know this is off topic, but still:

    flydubai to Launch Dubai – Belgrade from Nov 2011
    by JL

    flydubai from 10NOV11 begins service to its 48th destination – Belgrade. The airline will operate Dubai – Belgrade 4 weekly service on board Boeing 737-800 aircraft.


    FZ741 DXB0910 – 1155BEG 73H x235
    FZ742 BEG1240 – 2045DXB 73H x235

    Service from 17JAN12 operates on Day x135

  2. Those flights have been listed in the new route launches section for several days already.

  3. Kind of sad for Adria but I’m not surprised. I hope that one day JP will get professional management rather than people who have no knowledge of aviation. Still I’m sure the banks will save Adria.

  4. Not really breaking news because someone has already spammed another, non Serbian related news/post with this bit of information.

  5. Most important for a new JP is that the cabin staff incl pilots are coming down one step and agree to lower wages too.
    it can not be that a senior flight attendant with no university degree earns more money than flight dispatchers who studied techn. engineer
    with all the respect and risk of a flight attendant job, a flight dispatcher needs much more knowledge and responsibility in his daily job

    OS and LX had both or still have (OS) their financial problems. How to relaunch a grounded or almost grounded carrier can be learned there...

  6. 2EX-YU Aviation: I'm the first anonymous who thought this was breaking news, I'm sorry for "spamming" this post, but I honestly didn't check the route launches section before posting my comment ... was browsing this morning and came across the post so thought would post it, didn't mean to cause any harm! peace!

  7. well Adria Airways as a mark should be from the slovenian/croatian cofounder (now Adria Airways Slovenia & Croatia Airlines Croatia) and they should buy JAT.

  8. For every business the crucial thing is the Cash Flow!
    How will they get this cash flow when they cut routes like Paris, London, Copenhagen, Istanbul and why would they need for example 14 flights to SKP and other EX-YU destinations when 80 percent of their pax are transfer pax?!
    And what is the necessity of a national airline that does not provide reliable service to major points in Europe.VIE, ZRH, MUC and FRA can be easily reached by train/car from Slovenia and can be flown by OS, LH, LX!
    If they cut these routes they will be definetely dead and LJU will become a local airport that wont serve more than 1mil. pax in best case!ZAG and BEG will be the winners cause they will capture the entire ex-yu market!

  9. This is a good news. Let's hope the cooperation with Croatia Airlines comes to fruition and they become one airline bearing Adria's name. I think Adria has a pretty neutral name that resembles something that's in common to all of us from Ex Yu.
    Good luck to them.

  10. Congrats to JP. Hope it is worth it ;)


  11. It would be nice if the blog admin would report about the new flydubai service to BEG...then there would be no need to spam this and other treads with offtopic news !!!!

    Come on ...everywhere you can read about that news...but where you can not : EX YU ?! AVIATION ?!

    What a shame this blog is...

  12. I thought it was not possible in the EU, but I was wrong

  13. Everybody wants to get in EU ...
    because if you are in EU you can do whatever you want !
    Rules are only for the ones outside
    of the EU...

  14. Regarding Flydubai (and the anonymous unhappy about its reporting), the news was posted here and here, where it can be discussed. There is no need for daily news about the service.

  15. What a joke economy and politics
    in EU now are !

  16. BREAKING NEWS: The flight we heard about a month ago and got updated on a week ago is still planned to begin.

    Oh thank god!

    As for the the actual topic, I agree with some of the previous posters that Adria does have a neutral name that would be perfect for a joint airline. I think all of our markets are too small to have individual airlines and the tremendous individual marketing costs associated with that.

  17. A joint airline is the same shit
    as the airlines we already have.

    Also it is the political will of most people in SLO and CRO to have
    NOTHING IN COMMON with Serbia...
    if this good or bad I dont know...
    but it is a fact !
    I did not want to insult anyone ..
    so please excuse me .

    What really makes life of customers in Ex Yu more convenient are airlines as Wizzair and Easyjet
    who only get money from people who are actually using their services
    ...and not those state owned airlines who feed on the money of the whole taxpayers...even of those who never use them !

  18. was it saved or not in the end?

  19. Saved for now...but
    everything dies..


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