Friday, February 3, 2012

Adria Tehnika reeling after Spanair collapse

Adria Tehnika counts its losses after Spanair collapse
The owner of Adria Airways Tehnika has announced that the aircraft maintenance company is in serious trouble following the bankruptcy of Spainair, its second largest client. Adria Airways Tehnika, the maintenance division of national carrier Adria Airways, was separated from the airline in January last year and sold to the government owned asset management firm PDP. It owns the company jointly with Ljubljana Airport which took a share in the company in return to writing off Adria’s debt to the airport. Adria Airways Tehnika has already reported poor financial results, which are set to be aggravated by the loss of its second biggest customer after Adria Airways. Spainair accounted for 25 to 30% of the company's revenues.

Spanair ceased operations last week in a surprise move after takeover talks with Qatar Airways failed and the Catalan government, which owns the majority of the Barcelona based airline, refused to come to its aid once again. On Monday the airline filed for bankruptcy. Currently, two of Spanair’s Airbus A320s are in Ljubljana. They were being serviced when the airline announced it was suspending operations. The maintenance work done on the jets has not been paid for. Adria Airways Tehnika is now negotiating with the owner of the Spanair aircraft, ILFC Leasing, to resolve the matter.

Spanair’s bankruptcy will prove as another blow to the already struggling maintenance company. Two years ago Adria Airways Tehnika posted a loss of five million Euros while the loss amounted to one million in 2011. However, this does not include millions of Euros owed by Adria Airways to its maintenance division. As a result, Adria Airways Tehnika plans to sue it main customer. Furthermore, its employees have been receiving only 90% of their pay recently and have not received social security payments. The management of Adria Airways Tehnika has put forward a restructuring plan, the details of which remain unknown.

Photo © Sierra5.net

Farewell Malev

Hungarian national carrier, Malev, has ceased all operations, ending with it services to Belgrade, Zagreb, Priština, Skopje, Sarajevo and Podgorica.

54 comments:

  1. Malev's home page announcement is in Hungarian only. So typical.

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  2. im sad about malev, but what can we do. its written today cancelled 70 flights. thats it. malev never needed to fly to so many destinations, with many flights per day to some of these destinations. sometimes planes were almost empty. what kind of economical policy was that? now, its the end of one of the best eastern eu airliners...

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    Replies
    1. Untill 1990's Malev was one of the worst eastern European airlines...

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  3. Sad news about Malev and reading this news today I’m getting the feeling Adria is next

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  4. It's not necessarily the end. It's a pity they couldn't make the transfer to another airline seamless. A new airline is sure to follow.

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  5. What do you think, can a new Hungarian flag carrier be set up in the near future? If I travel abroad I usually fly with them, so it is a really sad news for me...But how can national airlines in the Balkans still operate if we read so distressing news about their profitability also?

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  6. Shitt!!
    I have flown with Malev 2 days ago, PRG-BUD-SKP.Both flights were almost full, got a great fare.My return flight is on 20th February but it seems I will be forced to fly on other airline.
    If Wizz Air has a little bit of strategic thinking they ought to create a new base in SKP after 2 big customers left SKP-CSA and especially Malev!!
    RIP Malev!!One of the best european airlines flying B737NG.

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  7. We'll see what happens in Budapest next. There's already Wizz Air, Travel Service and Ryanair ready to jump in with additional capacity in the next few months.

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  8. Far it be from me to want to see to go bankrupt the airlines of the Ex-Yu countries, but what keeps them alive? I don't understand. The only airline which I could imagine to do break even is Croatian since of the tourism, but what about the others?

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  9. so let s see who from the oneworld airlines will cover now ex YU market

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  10. hmm most likely now AA will re- consider their flights to budapest, as they will not have many transfer pax now because of malev shutting down. is there possibility for them to shift operations to BEG? hmmm...

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  11. A little "out of topic qusetion" (but related to Adria Airways?
    Why LH is not offering specials out of Ljubljana via Germany to e.g. Asia?
    LH is offering these specials from Italy (also with Air Dolomiti), Spain, Austria from anywhere around.
    For example now it's on sale Qingdao (CHina) for only 399 eu from Venice, 427 from Trieste (included internal flight Munich . Frankfurt) but from Ljubljana is 900 euro plus.
    Even with ordinary flight prices it's few hundreds (!) euro cheaper to fly Air Dolomiti from Trieste than Adria - LH code from Ljubljana, transit via Germany, to e.g. Asia, Africa.
    Why no better LH prices out of Ljubljana?
    Anyone knows relation LH - Adria?
    Thank you.

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    1. Don t know why. I just checked the LH tariffs out of LJU and why they are so much higher. Write them an email and ask

      Did u compare AF/TK rates ex LJU to Asia?

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    2. The answer is because LH and JP have a monopoly over the Slovenian market. Why would they lower the price if no one else is competing with them and therefore they can charge as much they want. Simple as that.

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    3. Disastrous! The same story is with LH prices ex BEG to North America. ie - BUD-BOS-BUD cca 600eur, but BEG-BOS-BEG cca 950eur??! is BEG that far away from BUD?? lol

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  12. http://www.ryanair.com/en/news/ryanair-to-open-budapest-base-in-two-weeks-with-31-new-routes

    .. subject to reaching agreement. ;)

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  13. yes, according to the Hungarian media Ryanair has started its operation out of Budapest, and it is planning to launch more than 31 destinations in the near future....There is growing discontent among Hungarians towards European Commission as it ordered the Hungarian Gov. to pay back all of the subsidies that the former Socialist Gov. given to the airline. This was the last thing which helped the airline to go bust...Of course free market and bla bla

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  14. Ufffff... Davor ovo je ogromno!

    LJUDI NISTE NI SVJESNI DA POCINJE VELIKI RAT!

    1. Ryan sigurno nece rjesiti "potrebe" vlade da BUD bude centar i da forsira gravitiranje prema BUD (sjediste podruznica za jugoistocnu i istocnu Europu), posto on sigurno nece letjeti za Cluj i slicne gradove...

    2. Ryan ovime prvi puta ulazi u direktan sukob sa Wizzom. Prije 4 godine rekao sam da je sigurno i neizbjezno da dodje do sukoba sa preostalim "vecim" igracima. Evo pocelo je. Wizzu je BUD srediste, okosnica njihova poslovanja. Do sada je Wizz podvijao rep i micao se od tamo gdje je Ryan pokazao zube (BTS primjerice). Sada sigurno vise nema gdje i mora uci u sukob. LCC moze postojati samo ako se siri. Realno se vise u Zapadnoj Europi nemaju gdje siriti. I ostaje Istok. Jer je lakse uci u sukob sa Wizzom nego Norwegianom, Germanwingsom (Lufthansom), Veulingom (Iberia), Tranaviom (KLM-Air France). I kao sto sam tada rekao ostat ce 3 ili najvise 4 velika LCC u Europi. Sigurno je samo da u dogledno vrijeme nece doci do direktnog sukoba Ryana i Easya(a vjerovatno i nikada, osim ako se ne desi neki poremecaj pa jedan zbog nekog vanjskog utjecaja ne posustane, a drugi to sikoristi da ga dokrajci).

    Ovaj sukob nece biti lagan kao kod npr. SkyEurope, no tu ce Wizz sigurno dobit po nosu i u dogledno se vrijeme pridruziti dugoj listi bivsih, nekada "uspjesnih" LCC:
    Virgin Express
    Sterling
    Centralwings
    Volare
    MyAir
    SkyEurope
    Go
    Debonair
    (...)

    3. I dalje mislite da je ovaj politicko-gospodarstveni Kissingerovski udar bio slucajan, tj. da to nije bio samo alat "prepoštene liberalne ekonomije"?
    I dalje mislite da je Ryan bas uspio reagirati u 7 dana i pronasao avione, radnike i tonu toga sto je potrebno da se otvori baza za 2 milijuna putnika i 31 tjednim letom u samo 15 dana...?

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    Replies
    1. well if you didnt know, ryan has some 80 aircrafts parked this winter

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  15. Purgeru, good post - I would agree with the point, even if I don't agree with the observations justifying it.

    I agree that a great war is starting. Check Wizz Air's announced switch of operations couple of days ago to Warsaw Modlin in spite of Ryanair's announcement they'd open a base there. This Budapest announcement might be the first response.

    Other than that, 90% of those bankrupt airlines were mostly due to Wizz Air's pressure, especially SkyEurope. Norwegian, on the other hand, is only slightly bigger than Wizz Air, whatever else you might think.

    In any case, we'll see if Ryanair's announcement is true. It'd be seemingly a very dumb, almost suicidal move by the Hungarian government if they subsidized Ryanair's basing 4 a/c.

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  16. 17 boeing 737 NG were flown from BUD to SHannon in IReland if i am right. WHat will happen with those aircraft and also what will happen with q 400?

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  17. Also, as already mentioned, Oneworld is left without a Central European airline, nearest being AB. This is really an opportunity for regional airlines to try to lure in let's say AA's transatlantic cooperation for covering this part of Europe. Such a pity JU being in such a turmoil right now...

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  18. JU and/or OU should (together or alone) use this once in a life time opportunity and try to transfer large number of pax from BUD to BEG/ZAG with easy-to-get second hand aircrafts in the beginning. Think about it. Why to let WZZ and FR profite??

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    1. where will they get thes econd hand aircraft, since Malevs planes are in Ireland already.

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    2. well, what about spanairs MDs? JAT Tehnika already serviced MDs in the past... why not again, just for the first couple of months, until JAT establishes itself?

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    3. JAT managment is too dumb to do that

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    4. and for the second hand planes, two 737(300 and 500) are parked in Skopje since last year, Kontiki and Skywing

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  19. Aman ljudi, sta se ovo desava?!
    Prvo Spanair, Air Alps i Czech Connect Airlines. Sada Malev. I to sve u roku od samo SEDAM DANA!? Ko je sledeci? Belleair? B&H? Adria? Jat? Czech Airlines? Cimber? Air Baltic?
    Hoce li na kraju ostati samo toliko jaki i veliki igraci poput IAG grupe, Lufthanza grupe i AF-KLM? Hoce li interkontinentalni prevoz biti prepusten samo BA, AF i LH?! A da do ostalih delova evrope dolazimo Ryanair-om, Wizzair-om i easyJet-om? - koji ce se na kraju toliko okomiti i izbezobraziti da ce za let od jednog sata naplacivati 300-400 evra po pravcu? Hoce li manji aerodromi postati zaboravljeni?

    Uzas.

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  20. ne razumem kako će rajan i viz ući u direktan sukob kad čak nemaju ni zajedničke rute, mislim, rajan leti samo za 5,6 gradova i to za one za koje viz nema let. ako viz iz budimpešte leti za madrid, a rajan za dablin, kakav je tu sukob u pitanju. znam da je nekoliko prethodnih godina viz bio zaštićen od strane aerodroma u budimpešti, jer je rajan otišao zato što aerodrom nije hteo da mu odobri taxe koje je taj o'nil zahtevao. kao da je njegova kompanija jedini loukoster u evropi. uvek se ponaša jako drsko prema vladama pojedinih zemalja, aerodromima i ostalim kompanijama. sećamo se natpisa na njegovom boingu 'bye bye lufthansa', kao rajaner će uništiti tržište lufthanse, zatim njegova decenijska borba sa izijem i slično. ja osobno ne gotivim nešto posebno rajaner i veoma mi je žao što rukovodstvo u vizu nema planove za letove unutar gradova zapadne evrope kao što to čini rajan. uostalom, iskreno, više mi prija letenje A320icom nego 737-800. mali vetrić, a boing se ljulja kao da je oluja... živeo viz i nadam se da će opstati na tržištu istočne i zapadne evrope i da uključi u svoj program što više mediteranskih gradova..

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    Replies
    1. http://www.ryanair.com/en/news/ryanair-to-open-budapest-base-in-two-weeks-with-31-new-routes

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  21. BUD Airport is now become the heaven for no-frills airlines. Might it means a degree of downgrade for the airport too in terms of service? Hope Malév will be re-started in the forseeable future! Chin up...

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  22. Sad news for SKP!
    First CSA will leave,now Malev...

    Also i doubt BA would switch from PRN to Skopje
    although they have such a classy new terminal.

    At least they have Wizz...Wizz should start
    SKP-PRG-SKP!

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  23. Well Ryanair may announce a big station in BUD, but what they forget: the o/d traffic from BUD is quite well served by legacy carriers, charters and Wizzair. Several airlines have already increased their schedules or upgraded their equipment. So, Ryanair will cannibalize those and Wizzair. The big looser is BUD airport since MA had huge transfer traffic streams to PRN, SKP, TIA, SOF, BEY , SJJ, SKG, TLV and so on. This traffic is lost and will go to VIE, ZRH or somewhere else. I expect BUD airport to have 10% less pax in 2012 minimum.

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  24. OT: TAP portugal started codesharing OS flights from Belgrade to Vienna. TP 8753 is the flight number. So i guess this is a result of Spanair's demise

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  25. I expect Wizz to return the favor and step onto Ryan's turf soon. Offense is the best defense.

    What I don't like about Wizz is that they can hardly differentiate themselves from Ryan's model. Wizz has started charging for the 'air you breathe'. Booking and baggage fees are outrageous. If you can't differentiate, scale wins.

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  26. I heard just a little about some kind of air agreement signed between Srbija and Montenegro, and from what I heard the businessmen looking to create a new JAT are planning on flying out of Montenegro too?

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    1. If I understood correctly, the agreement is on air traffic control, not related to air freedoms or joint investments. So, that should not happen now...

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  27. A sad, sad day for Malev. Their flights out of SJJ were useful (if not expensive) and provided good service on board.

    Does OU have any slack in the fleet (winter likely yes, summer??) to immediately introduce daily round-trips to BUD? There is going to be a niche market for service carriers into the city that the airline could tap into, as well as links into the exYU which MA covered well.

    As to Tehnika, insurance (surely they have it??) will pay for the work currently done to the JK fleet. It's all about what they do *now* to attract a new airline or two for maintenance services...

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    Replies
    1. If they take Adria's A319s or A320s as rumured, there is plenty. Whether they do it or not's another story

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  28. OK, hajmo razviti malo teoriju urote

    1. Prebogati i preutjecajni bogovi kapitalizma u Ryanu odluce uci u rat sa Wizzairom
    2. No, da bi to mogli treba im trziste, slobodne linije, negdje oko 40% trzista. Jer istovremeno se boriti i sa Malevom i Ryanom tesko bi proslo. I gle cuda, tko je ranjiv? Malev, kompanija na rubu bankrota, kompanija koja vec 10-tak godina gubit bitku i stoji nad provalijom
    3. Ekipa priremi sve za pokretanje akcije, avioncice, posade, linije, logistiku, ljude...
    4. Nazove se "prijatelje" i sluge "postenog liberalnog kapitalizma" i trazi ih se usluga
    5. I gle cuda... Europska komisija se taman 5 godina kasnije odjednom "sjeti" da Malev mora vratiti parsto milijuna EUR. Nisu se to sjetili 2007, ni 2008, ni 2009, ni 2010, ma cak ni cijele 2011... nego eto bas sada.
    6. Klasicno odradjeno po Kissingeru slijedi nagli bankrot Maleva.
    7. Ryan je odjednom spreman prebaciti najmanje 7 aviona u BUD i pokrenuti 31 liniju (sto je bar 150 tjednih polazaka) sa najmanje 2 milijuna putnika. I to u roku od 15 dana. No, to ipak ne bi povjerovao ni sestogodisnjak da je moguce tako nesto napraviti u 2-3 tjedna.

    ...a neuk gledatelj ce reci "gle kako je Ryanu pala sjekira u med"! Klasican Kissinger!

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    1. Ako mozes da pojasnis tacku 7: 150 tjednih polazaka sa 7 aviona, hvala

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    2. Pa jednostavno, 7 aviona za 7 dana, sa tri destinacije dnevno (sto je prilicno konzervativno za Ryanair, ali neka bude) - to je 147 polazaka nedeljno iz BUD. Ja bih se kladio da ce biti vise od 200.

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  29. @ MD

    what about air traffic control? from the little i heard, i thought I heard something about air freedoms, and "avio saobracaj" and something to do with the new airline the Serbian businessmen are planning on opening.

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    1. Well, not quite sure either, the tv report was a bit confusing. If I got it right, the agreement is about further cooperation in air traffic control (RS and ME already have a joint agency for that).

      Reporters asked Mr. Mrkonjic about the tycoons investing in JU newco and he then "confirmed the roumors about the negotiations with the tycoons".

      Further air freedoms (5th and above) between RS and ME on bilateral basis would probably not happen because it would prove far more beneficiary to Montenegro Airlinies by opening BEG-Europe market for them (also increasing competition to Jat), than it would serve Jat by opening 2.5 times smaller Montenegro market for them. At least those tycoons would not allow that to happen. Further traffic rights between the countries will get introduced through ECAA agenda, but only in a few years time...

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  30. I feel sorry for all those people losing their jobs,maybe some of them will work for wizzair or ryan but still.....Jat should be veeeryyy happy that serbia is not in the Eu...

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  31. Single European market...we could not expect dozens of airlines all around. Only alliances/big an strong LCC will survive! In a few years this blog will become ex-ex-yu aviation blog!

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  32. Sad news indeed! I have already posted here what I think of LCC; they may seem like a good solution at first, but in the end they are not.
    The original idea of flying into low pax and somewhat obscure airports is a good one since most major carriers do not find viable to fly there. These LCC's are good for Ohrid, Nis, Zadar, Cluj, Plovdiv, cause they bring tourists into theses cities. But someone has to pay the difference in price! THere is no free lunch! They are usually subsidized by the local governments (in reality the taxpayers) and this may be OK for the cities I mentioned above because they bring in tourists which through their spending then compensate for the paid subsidies.
    But these LCC are a cancer for large airports and commercial airlines.
    I absolutely abhor the policy of paying extra for every little thing, no connections to long-haul destinations, no awards miles, no code sharing, and many other things. I often fly ZAG-CDG route, and naturally look into all options. If I book a piece of luggage and an option to be able to change my ticket should I have the need for it, the price often exceeds that of OU on the same route. So, I mostly fly OU (Miles & More), but once I had a misfortune of flying on Air France which was an utter shit.
    CRJ, a very small plane, service was horrible, the plane stops in the middle of nowhere at CDG and then it takes forever to bus you to the terminal building. OU has its slot at the air bridge, flies A319 or A320, nicer service and better food.
    Even the route CDG-Lisbon was not much better save for the fact that we flew on A321 (which I loved) but the same horrible service. I think our steward was over 60 years old, they offer a nasty sandwich wrapped in plastic and handed out by hand (no little trays).
    LCCs and companies like Air France who have been forced to downsize because of LCCs kill everything I like about flying, the glamour, the excitement, the feeling of exclusiveness. I miss those days. I miss the beautiful cabin crew.
    And, I do not think it is realistic to expect and to pay some 70 euro for a round trip from ZAG to London or Paris. Yes, I understand some people here will say, no you do not need to eat on the plane since it is a short flight, bring little luggage with you on the plane to save the baggage costs, etc... Are you listening to yourself?

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  33. Well I have to agree with Purger in many points, but I go further. The EU commission cleary acts in favour of the big players like AF, LH, BA and FR. They are bashing small airlines like Malev, Air Malta, CSA and others, who are lifeline for their countries, for their subsidies. On other hand LH group collects a 500 million € present from Austrian government just to purchase AUA! This is a huge subsidy and then the commission "forces" LH+OS to give some routes between Germany and Austria to "competition", which then went to Adria who (what a surprise) closes them after 2-3 years. Ryanair collects hundreds of millions from local governments (indeed taxpayers) to fly to some odd places like Hahn(in the middle of nowhere) or Magdeburg-Cochstedt(somewhere over the rainbow). I think that the commision acts clearly towards destroying small airlines and prepare the market for the big 4. After that there will almost no more competition and fares will go up! Bingo!

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  34. Ryanair announced 31 destinations. Most of destinations they open have every day frequencies, just very few less, but never less than 3 per week. What more some of destinations, for sure, would have more than one flight per day.

    That means there would be between 150 and 200 flights per week. For 150 weekly flights, with 6 flights per day per plane, you need some 7 planes based in BUD.

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  35. Serbia and Belgrade only have profited by the situation.
    EU has nothing to say there and so you have better choice and competition than at many other airports.

    Belgrade airports offers everything for every taste:
    the ones who fly have choice of LCC like Wizzair
    and JAT(JAT is lCC!) or legacy airlines like LH or AF.
    Not only Star alliance but also Skyteam!
    Nobody dominates the other!
    You really have a choice.

    JAT lives and Vulture Ryanair stays out!
    I like this.

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    Replies
    1. Not completely accurate since solely LH's companies 2 years ago operated 1/4 of capacities flown to/from BEG, while SkyTeam airlines performed at only 10% (wich decreased until now). Oneworld is now not present at all at BEG. Star Alliance is performing far more operations to/from BEG than SkyTeam...

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  36. Onewqorld is in Belgrade :
    NIKI/AirBerlin twice daily to Vienna !

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    Replies
    1. Right, completely forgot about Niki...

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