Thursday, February 9, 2012

Adria’s decline continues

Passenger slump at Adria
Adria Airways has continued to see a large decline in passenger numbers in 2012. In the first month of the year the Slovenian carrier handled only 56.214 passengers, its lowest January result in years. The airline’s numbers were down 14.3% on January 2011 when it welcomed 65.635 passengers. However, it should be noted that Adria has significantly decreased the number of flight operations compared to last year. In December, Adria saw similar results as the airline recorded a passenger slump 14.5% accompanied by a 18% reduction in flights and a load factor of only 57%.

In an attempt to offset the worrying figures Adria is offering special fares for stranded Malev passengers, following the collapse of the Hungarian national carrier. Passengers holding a Malev ticket have been offered special prices for Adria’s direct scheduled flights. The price for one flight coupon in economy class is 60 Euros, except for Moscow (200 Euros) Brussels (80), Frankfurt to Priština (120) and Munich to Priština (100). The offer is valid for travel until February 29. The Centre for Aviation believes that Adria, along with Austrian and Croatia Airlines, will absorb a portion of the transit traffic previously carried by Malev.

Meanwhile, Adria Airways Tehnika, which is struggling following the collapse of Spanair has said that staff has agreed to 20% reduction in wages. Spanair was Tehnika’s second largest client after Adria itself. On a brighter note, Adria Tehnika’s new hanger at Ljubljana Airport is nearing completion.

19 comments:

  1. I feel sorry for Adria. It was a good airline once but I think the same fate awaits all small Lufthansa feeder airlines.

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  2. Well, I keep repeating, all airlines that are trying to concentrate on 4-coupon traffic to the Balkans will see the same fate of Malev. You just can't make profit out of these ethnic markets. JP will learn this lesson probably after burning another 50 million € this year. Better would be to create a sister company called Balkan (name is neutral) and place 1-2 aircraft in PRN and 1-2 in SKP. JP should be flying out of LJU just to main airports on daily/ddaily basis and codeshare with others where they don't fly (if mastermind LH allows that). Keep fingers out of "hubbing" into LJU.

    ReplyDelete
    Replies
    1. You have it only half-right!

      There were actually *too many* carriers trying for connecting traffic in Central Europe with a market (exYU/Balkans) that is not mature yet. MAs departure, OK and JPs numerous withdrawls brings closer into line the right level of supply with demand. And nearly all locals economies are struggling!

      There is actually good money to be made with multi-coupon tickets from a yields point of view. But then, many on this forum incorrectly think filling a plane with cheap seats rendering the route a loss is more important than flying a half-empty plane which is breaking even, or even better. OUs transformation in fortunes is due to changing to smaller, efficient, inexpensive Q400s. JP must dump their thirsty CR2s, they are not right for today's market.

      The other big question which nobody will answer is: which market are these flights trying to serve? Local O&D? Connecting pax? High-yield business travellers? Leisure travel? Diaspora traffic? You *can't* do all of these at the same time!!

      Delete
    2. why not?

      offer a nice business class product and cheap eco class, and you get em all. just look at Emirates.

      Delete
  3. at least I can confirm that the VRN-PRN flights are running pax figures wise ok. Each flight more than 110 passengers. Of course we don t know yield.

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  4. Great blog yet we are beginning to be tired of hearing the same staff about JAT and Adria over and over... I don't think "Adria's problems" and "Jat's takeover" should be mentioned anymore until something big really happens...

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    Replies
    1. Good point. What about extending this blog to the whole of Balkans including Albania, Greece and Bulgaria. @ Administrator: what about more news from the whole region?

      Delete
  5. A bit off topic, but I can't wait to see the full resolution picture on the Facebook page from the convertible Yugos waiting to be boarded for NYC...

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    Replies
    1. Right mouse click on picture > View image, and it opens in better resolution :)

      Delete
  6. Adria was a good airline...

    Adria can be happy that it is in Star Alliance .
    Also it can be happy to feed LHs
    Frankfurt and Munich .
    LH is also feeding Adria dont forget this !

    All this stupid complaining ...always some others are guilty for own faults .

    As long as Adria dont fly direct to North America
    Slovenia get its tourists with LH as a feeder .

    Without Star Alliance and LH Adria would be
    gone ...some years before !

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  7. One suggestion for the Admin team!!
    It would be great if you could publish a 2012 Summer Timetable showing all routes in the Balkans/ExYu region for this summer?? Showing weekly frequency, departure days, operator etc
    It really would be very useful to have all the routes in one table/spreadsheet
    Cheers
    Jack

    ReplyDelete
    Replies
    1. +1. excl. charters of course.

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    2. i think that it would take too much time to do that, althought i would really appreciate if admin could do that. It does not matter when!!

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  8. More interesting would be LOADFACTOR of foreign airlines flying to Ex Yu...

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  9. I think Slovenia's economy is in a major tailspin due to this global recession more so than Croatia's. Many Slovenian companies and banks are close to bankruptcy.
    Droga Kolinska was sold to Atlantic Grupa from Croatia because of the controlling stakeholders had to sell their profitable asset due to failures elsewhere...samething with Mercator. The controlling stake holders NLB and Lasko and others are looking to sell their stakes to Agrokor of Croatia, but Agrokor has now pulled out of the deal due to the prolonged process of the aquisition. Now the Slovenian stock market is taking a major dive... Things don't look good for Slovenia in general.

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  10. Agrokor has pulled out becuase small share holders of Mercator didn't want to sell their shares.which is good, considering what kind of "zombie" company Agrokor is!and we all know why agrokor wanted to buy Mercator- entrance to serbian market.

    ReplyDelete
    Replies
    1. Agrokor has more of a market share in Serbia than Mercator does. They have a supermarket chain in Serbia named idea and own Frikom and other brands!

      http://en.wikipedia.org/wiki/Frikom

      http://www.idea.rs/Naslovna.html

      Agrokor is not just a regional food company it is becoming a global one. They have began investing in North America and in Russia as well. Their Jana water sells in nearly 40 of the 50 states in the United States. They sponsor the New York Knicks and the New York Rangers and Jana is the official water of Madison Square Garden.

      Do a little research and you will see just how big Agrokor has become. I predict that Agrokor will become a publicly traded company on the NYSE within 5 years time.

      There is a major financial crisis unfolding in Slovenia. I think it will only get worse for them. Especially once Croatia officially joins the EU.

      Delete

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