Tuesday, June 18, 2013

Ryanair requests swift Adria investigation

Ryanair vs Adria

Ryanair has requested for the European Commission to swiftly act and conclude its investigation into whether Adria Airways accepted state aid and benefits from the Slovenian government to the tune of up to 85.5 million euros from 2007 to 2011, contrary to European Union competition laws. Europe’s largest low cost airline has asked for end to the delays in the Commission’s ruling. In a letter to the Commission from Ryanair’s legal department, the airline says, “State aid was provided to Adria despite its inefficiencies while Ryanair has to develop its own market and is losing revenue”. Ryanair, which has a tense relationship with the Commission, has itself been the subject of investigations for subsidies received from various airports.

The European Commission opened an investigation into Adria’s state aid payout last year. It is expected for a ruling to be made by the end of this year. The Commission is investigating whether one or more of the capital injections within the past four years have procured an economic advantage to Adria Airways over its competitors in the EU Single Market. Latvian flag carrier airBaltic is also under investigation for acquiring state aid. The European Commission can order Adria to pay back the aid it received if it considers the payments from the government to the national carrier were illegal. Last year, both the Hungarian national carrier Malév and the Barcelona based Spanair went bankrupt after the Commission ordered the airlines to pay back state aid received by the Hungarian and regional Catalan governments respectively.

Adria insists it played by the books. Commenting on the issue, the Slovenian carrier has said, “We would like to stress that it is in the interest of Adria to prove that all the measures so far were carried out in accordance with the applicable legislation” Meanwhile, Mark Anžur, who has led the company on a temporary six month basis from January to June has been re-elected as the airline’s CEO. Adria has embarked on an aggressive plan to reduce costs which have so far proved successful as losses have been reduced. Furthermore, recently, Adria’s passenger numbers have begun to rise after over a year of constant reductions.

24 comments:

  1. I hope it will not be before August, when I fly them.

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  2. This is what will happen to Croatia Airlines once Croatia becomes an EU member in a few weeks.

    Wizz Air and Ryanair have done the same to airBaltic, LOT, Cyprus Airways, Malev...

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  3. Globalization and European union real face:

    RYANAIR TO COMPLAIN, but still blackmail airports and local governments to give them SUBVENTIONS (ups, sorry, those are commercial to promote destinations, flights and airports in Ryanair web page).

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    1. You are not right, airport subventions are there for everyone to grab but government aid is exclusive for national carriers. That's the difference.

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    2. Is it? Who is paying subventions for Ryanair in Croatia? Croatian Tourist Board and local tourist boards. Are they state organization? Yes they are? Are they financed from parafiscal taxes (tourist tax that all tourists must pay when they are lodged)? Yes they are! So, what is the different?

      Is Ryanair financed from some local governments in some of destinations in Europe? Yes, it is!

      Can you give me example where airports subvent national carriers? In Croatia for sure not, but still they subvent Ryanair.

      So, what do you want do say? Those airport subventions are designed for LCC especially Ryanair and that is OK...

      ...but in same time national subventions which is designed for national carriers are not OK, doesn’t meter that
      - those national companies fly all year around even in Winter when it is not commercial, Ryan will never do that
      - in same time it is investment in Country property (as Country is usually owner of national carrier)
      - when they subvent national carrier they subvent employment (all Ryanair workers have contract in Ireland, paying workers taxes there, not in country where they fly even if they are residents of that country) – they base plane in Zadar and non of workers have Croatian contract, they don’t pay taxes in Croatia
      - in same time national carrier pay taxes in that country (so part of money come back to country), what you subvent Ryanair money goes to Ireland

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    3. The whole point is that these subventions are there to promote tourism and employment in less developed regions and they are in line with the Lisbon Treaty.

      Companies such as Croatia Airlines are loss making not because they fly in winter when its not profitable but rather because of their organizational and structural failure. The European Union does not want national government to spend tax payer's money on keeping unsustainable companies alive.
      Ryanair gets the subventions but still, even without them they could record profits. On the other hand Croatia Airlines would sink and fall apart without them. That's the main difference.

      The European Union is based on neo-liberal ideologies, get used to it. If you ain't profitable you ain't interesting. That's the simple truth.
      In about a few years from now (and I am being kind) Croatia Airlines will face a deep crisis when its future will be uncertain, especially once Adria is shut down. Who do you think is next on Ryanair's list?

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    4. Neoliberalizam is ideology designed for big and rich nations to be even richer. It was not OK for Croatia to finance their shipyard and to save 10.000 workers, but just few year latter it was OK to save 50.000 Airbus workers (and compare France+UK+Spain+Germany and thing what is 50.000 workers compare to 10.000 in little Croatia), then Peugeot, Renault, Fiat... workers. It was not OK that we invest in our banks, but in recession they can put billions to their banks.

      So, as I understand, it is OK for you to subvent Ryanair for Zadar-Frankfurt Hann route, but it is not OK that in same time they subvent Croatia Airlines Zadar-Frankfurt route. Sure, I don’t think it is normal to give apriori subventions to Croatia Airlines like today, but also it would be normal that Croatian Government when find interest in Zadar-Frankfurt route first finance Croatia Airlines (with workers who pay taxes in Croatia, company which pay taxes in Croatia, and where Croatia has 97% ownership, so by that way protect it’s own property), especially if conditions are almost the same as Ryanair one (that is why you make tender for precise routes).

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    5. Completely agree with Purger.

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    6. Wow never thought id agree with Purger.... Top Post

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  4. I truly hope Adria goes bankrupt and Ryan sets up a base in Slovenia.

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    1. No thanks, not everyone wants to fly that sh*t airline

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    2. And taxpayers don't want to keep subsidizing Adria. I rather fly "that sh*t airline".

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  5. n accordance with the applicable legislation

    blablbla

    please
    1. investigators not coming from SLovenia
    2. not linked with SLovenia

    it 100% sure
    Adria give money back

    EU Comission do your work pl.
    EU and Slovenia taxpayers money STOP stealing from Adria and related "mafia"
    don't throw your money again and again.

    It's clear m

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  6. It's about time Ryanair were ordered to pay back their subsidies and get shut down due to their low safety standards!

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    1. it would be interesting to compare the quality of the cockpit crews of Ryanair and flag carriers.
      Is the difference in their qualifications and requirements as high as in salary & perks ?

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  7. Da li neko zna zasto je flyNiki imao danas let iz Beograda Airbasom A321, upravo je poleteo sa BEG a vidim i na beckom aerodromu je predvodjen dolazak. Je l' se on to vratio da leti za/iz Beograda?

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    1. Mislim da je jos jedan Air Berlin (Niki je firma kcerka) let koji je vratio srbijanske azilante nazad u Srbijuy

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    2. Ti bogca, pa to je svaki drugi tjedan avion sa azilantima. Pa kolko toga ima?

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    3. VIE-BEG EMPTY, BEG-VIE 120 PAX.

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    4. možda palma opet vodi zemljoradnike iz jagodine u beč

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  8. Zalosno je sve ovo sto dopustamo da se desava...Scenario buducnosti ce biti, da ukoliko se zapocne proces Adria Airways na zalost ce imati istu sudbinu kao i MALEV, a zatim nakon ulaska Hrvatske u EU ubrzo ce isto doziveti i Croacia :/ sve je to planski odredjeno i dogovoreno, zatim ce i JAT propasti ako ne ode u ruke ETIHADA, a na njihovo mesto ce doci debili poput RYANAIRa EASYJETA i naravno LH_a nemaca sa svojim cerkama kompanijama.......tuga brate tuga :( imali smo nismo znali sta smo imali JAT! YU- ne JU

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    1. Epa da Adria, Croatia, JAT, nekadasnji MAT, Montegero A. i B&H Airlines imaju jak i ne koruptivan menadzment uspjele bi da budu "velike" lokalne aviokompanije.

      Sam Ryanair je poceo od jednog aviona, a danas ima gotvo 300 737-800 u floti.

      Znam da se tesko suociti sa istinom i pomisliti da bi Ryanair mogao biti odgovoran za "propast" navedenih aviokompanija, ali kako god sam Ryanair moze podnijeti tuzbu protiv Adrije, tako i Adrija moze protiv Ryanair-a.
      Osim toga: ako Ryanair moze otvratai baze u Ex-Yu, isto tako mogu i Ex-Yu kompanije da otavaraju baze po citavoj EU.

      Nadam se da ce se sve dobro zavrsiti.
      Ryanair je jedna uzasna low coast kompanija sa jako uskim sjedistima, jako skpom politikom prevoza prtljaga, slijecu daleko od gradova,...

      Na primjer:
      München - Barcelona

      Vueling: München - Barcelona
      110€ sa svim taksama i prtljagom

      Ryanair: Memmingen - Girona
      65,99 € karta + 70€ prtljag + autobus München - Memmingen Airpirt + Autobus Girona - Barcelona (103 km)

      Znaci na ovoj relaciji je jeftinije letiti sa Veulingom pa cak i Lufthansom nego polijetati i slijetati na desetinama kilometara dalekim aerodromima.

      Tako isto i Wizz Air koristi najjetinije aerodrome poput Memmingena ili Skavaste (Stockholm) sa tim, da je aerodrom Skavasta citavih 110 km udaljen od Stockholma...

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  9. Hello June 18, 2013 at 3:53 pm,
    we are drowning in our own bribery and corruption

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  10. A shame that takeover of Jat failed!
    At least we have Etihad flying to Belgrade with their own aircraft.
    I have no doubt in the success of that new route and will use their service together with my family!

    Jats fleet problems will only worsen.
    I see them flying only with ATRs in future on some regional routes equivalent to what B&H is doing.
    Wizz and Easyjet will completely take over their network to Western Europe.

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