Wednesday, October 17, 2012

Adria facing bankruptcy without loan

Adria awaiting nine million euro loan

The CEO of Adria Airways, Klmen Boštjančič, warned yesterday that without a nine million euro loan the national carrier will not make it past the 2012/2013 winter season, Slovenian media report. The loan, which the airline was to be granted from NLB and Unicredit Bank by the end of September, still hasn’t been cleared. However, Boštjančič notes that the carrier’s restructuring program is performing better than expected. The prerequisite for the loan was for Adria to show it has made enough progress in its restructuring process, a requirement it has fulfilled according to the banks themselves. The airline has managed to cut its losses so far this year and plans to be in profit by the end of 2013. Bonštjnačič noted that the nine million euro loan will cover the losses the airline expects to have over the winter months. The CEO made the announcement yesterday during the presentation of the company’s 2012/2013 winter season timetable.

Regarding Adria’s destination network, Boštjančič notes that the Slovenian carrier will be returning to London next summer season and that the service to the British capital is operating as a seasonal route. Furthermore, the airline is considering returning to Paris next summer as well. It will do so either by operating its own flights or code sharing on Air France’s service. Air France itself will be halving its number of flights to the Slovenian capital as it pushes through its own cost cutting measures.

There was no word of the recent tender for the takeover of 74.87% of Adria Airways. Slovenia is said to have received more than ten non binding bids for the share package, however, no names have been revealed, more than a month after tender procedures were completed. Slovenian daily “Dnevnik” reported that financial investment firms make up the majority of those seeking shares in Adria. Klemen Boštjanćić said the airline will run better once it is privatised, “A strategic partner is needed because we are a small and vulnerable business. It will be much easier to operate once there is no state ownership”.

20 comments:

  1. Is it just me or did they make their plane a flying billboard again?

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    Replies
    1. They hope for the huge market of luxury cars in Pristina...LOL.

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    2. That's funny. I first thought someone had Photoshopped that on. I wonder how much they get for that. I think the other ex-yu airlines should get in on the act too
      JA = Violeta
      JU = Paloma
      OU = Olala

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    3. Livery is due to its contract with Jaguar/Daimler, flying customers, car merchants and reporters to Marakesh, for presentations/test drives of new Range Rover, in October and November.

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  2. OT from aviokarta.net (I really dont wanna translate, use google lol) : Aerodrom "Nikola Tesla" u Beogradu nije se našao u ovoj novoj raspodeli Vuelinga što je dosta čudno s obzirom da je linija Beograd - Barselona koju je nekada održavao Spanair bila veoma popularna. Kako Aviokarta.net nezvanično saznaje Vueling je više puta bio u pregovorima oko uspostavljanja redovne linije ali je svaki put odustajao kod skoro postignutog dogovora. Kada je Spanair bankrotirao, Vueling je postigao dogovor da zameni ovu kompaniju na liniji između Barselone i Beograda, ali je u poslednjem trenutku doneo odluku da umesto u Beograd leti u Zagreb. Interesantno je da je Zagreb prema tadašnjim zvaničnim podacima Spanair-a ostvarivao dvostruko lošije rezultate (i prema broju putnika i finansijski) na liniji prema Barseloni nego Beograd. Naš izvor potvrđuje da postoji zainteresovanost Vueling-a za letove do Beograda, kao i da postoje dobri uslovi za ostvarivanje ove linije, ali da uvek ostaje tajna koji su razlozi da linija još uvek nije uspostavljena.

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    Replies
    1. Lufthansa lobby? Every passenger from Serbia to Spain now has to transit MUC.

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    2. Actually, Alitalia doing great job with spanish routes!

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  3. Again loan loan loan
    always the same
    loans money never given back
    beware making business with Adria means
    losing money losing all.
    Only tax payers money can feed this.
    No serious (for revenue investor) can be interested in Adria unless changing the management and making new policy.
    Labour organisation is strong can't drink boiling 100% alcohol.

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  4. actualy it is not a new loan, it is last part of 50 milion state investment from last year.

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  5. OT (sorry if it was already discussed here): starting from 24th of October, wizzair is charging 10E for carry-ons. small bags which fit under the seat are (still) free of charge...

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    Replies
    1. Wow, they outdid Ryanair.

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  6. Aerial is expired since LH has control over the Balkans. OU is next in line.

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  7. Hmm..Vueling can fly to Banjul in Africa,
    Pegasus can fly also to every shithole.
    But they all fail in flying to BEG.
    Seems that its fault of Serbian authorities .
    Worse than Africa...Serbia !

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    Replies
    1. I must agree, even though Im from Serbia..

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  8. Please stop it! Close the company. Lufthansa will decide who will fly to Ljubljana anyway.....

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  9. This company will never close unfortunately !
    I predict that ADRIA will be here long time after Slovenia will be gone.
    As with Jat.,.Jugoslovenski Air Transportation.

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  10. @ExYu...Do you know anything about Easyjet starting to fly from Tivat. On Sunday a Easyjet plane flew from Tivat to Nice (not sure if it came from Nice or not) which to me seems like they were checking out the facilities. Launching this route would make sense as it would link Monaco with Porto Montenegro and allow tourists and the yacht crews to travel direct. Have you heard anything about this route or other Summer 13 developments at Tivat?Ryanair, haha?!?! Jack

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  11. ^
    Calm down. This was a one-off charter flight for some 40 VIPs. Nothing more to read into this at all. Purely a one-off.

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  12. actualy it is not a new mortgage, it is last aspect of 50 milion condition financial commitment from last season.

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