Tuesday, September 13, 2011

Fresh problems for crisis hit Adria

Adria considering Niš flights
Despite the prospect of bankruptcy, cost cutting and state aid, Slovenia’s national carrier, Adria Airways, is considering commencing flights to Niš this winter. The service would be subsidised by the local city authorities. Slovenia’s logistics company, Intereuropa has begun negotiations with the state carrier for the route to take off. Adria has previously announced that it was interested in flying to Niš. A similar service was launched last year, to Banja Luka in Bosnia and Herzegovina. The airline operates the service 4 times per week with an average load factor of 6 passengers per flight. Despite subsidies by local authorities in Banja Luka, Adria has managed to record a loss of 50.000 Euros in the first 5 months since the service was launched.

Meanwhile, Executive Director, Robert Vuga, has announced Adria will revise contracts with all travel agents who sell their tickets after the airline’s losses per destination were leaked on the web. The list was also posted by a visitor to this blog on August 13, 2011 in the news item “Adria considering Copenhagen suspension”. It shows that only flights to Brussels, Munich, Frankfurt and Zurich made a profit for Adria in 2010. On the other hand, the airline’s flights to Istanbul accumulated a loss of over 3 million Euros.

Adria will continue its talks with Slovenian banks on September 21. The airline is hoping for the banks to convert debt owed by Adria into shares. Slovenia’s largest bank has refused to play part in the deal which is why negations will continue next week. Furthermore, other banks have now requested for Adria’s workers to sign a new collective agreement which will see their wages significantly cut. On top of the bad news, the airline saw a passenger decrease in the busy month of August A similar scenario was seen this July as well.

28 comments:

  1. how can a travel agent have insight into the financial performance of Adria ?!?

    makes no sense

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  2. I really hope the flights to Nis will be operated and will be succesful. Personally I think they will be a lot more succesful than Banja Luka but I guess we'll just have to wait and see.

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  3. popular routes from nis would be: frankfurt, munchen, milan, paris and amsterdam, i think...

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  4. @anonymous

    Popular routes from Nis must be direct but Adria will offer only hub connection via LJU. I still think that Adria should provide only VIE and ZRH routes but daily.

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  5. Adria means expensive! So for Nis standards - NO!

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  6. lol in the current mess they are in they want to open flights to INI. If I didn’t know the management at Adria I would think you were joking but sadly they probably think this is the brightest idea to revive the airline. BTW I think very soon we will see JP grounded as pilots and crew will go on strike.

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  7. I agree with the last anonymus, Adria is good, but for current living standards in EX YU far to expensive. BNX would have been doing better(not great, but much better) if the prices were lower, i am sure as people desperatly wanted to fly from BNX, changing at LJU to another destination, but well overpriced and below affordability of majority people.

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  8. ZAG is not far from BNX and usually much cheaper which is why only 6 people fly on average. Probably half are government related business.

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  9. There is only 1 airline that can make the regional airports like Nis, BNX, etc work - Wizz.

    End of story.

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  10. Either way, I am sure that the flights to Nis with Adria will be more succesful than the flights to Banja Luka.

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  11. My opinion is that INI flights will have more pax than BNX flights. I also think that flights will end up in losses on both sides - JP and city of Nis. It is simply matter of market. As someone before says when you see Wizz on airport that one has chances, you ask why? Because Wizz has tight budget and they are not politically controlled like all Balkan companies ADR, CRO, JAT, MGX,....All those players will go down sooner or later cause they are small. Unfortunately some other will jump in instead. My opinion only...

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  12. Wizz is increasing Belgrade - Malmo from 3 to 5 weekly from DEC2011

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  13. This comment has been removed by the author.

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  14. And Eindhoven flights won't be operated by 320 based in BEG but from EIN.

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  15. 747-400 at Beograd today from Liege with LY airlines..

    http://www.beg.aero/passengers/flights/arrivals.121.html

    and Aeroflot has recently been sending their A321 most days to BEG

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  16. @ JU500

    do you know other destinations where frequencies will be increased?

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  17. LY is Israeli EL AL. This was a cargo flight.

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  18. @Alex
    That is the only destinations for now. Malmo is doing great...
    I guess theyll base another 320 in S12 with daily LTN and some new destinations...

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  19. @last anonymous

    yeah i know just saying.

    @JU500

    yeah it looks like it. they will probably introduce some new routes and add frequencies hopefully!

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  20. W6 will ASAP announce new routes from BEG because of one big competitor. Guess which competitor. It is not a difficult task.

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  21. should we excpect any new arrivals to Beg?
    thanks

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  22. Aerodrom Ljubljana (LJU), should buy Aerodrom Maribor (MBX) and select lowcosts from other airliners!

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  23. Anybody know what flights to Ljubljana are those almost daily by Iran Air A-300s and A-310s?Looks like a passenger liner stop for a refueling only?!

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  24. I'm guessing Ryan Air, EasyJet, Qatar, FlyDubai, Pegasus might start flying to BEG soon. Also, can't wait to see which new destinations Wizz has in store for BEG :)

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  25. Qatar, Pegasus and FlyDubai are not Wizz's Competition :)

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  26. @Andrej767: I think it's technical stop (=refueling) for the flights Koeln-Tehran, twice a week (Thu and Sat). They don't refuel in Koeln, I guess they are refused.

    Read this post:
    http://exyuaviation.blogspot.com/2011/06/iran-air-ends-belgrade-technical-stop.html

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