Adria to launch, Prague, Warsaw and Tirana - Frankfurt flights
Adria Airways CEO, Mark Anžur, has announced plans for the Slovenian carrier to expand its operations next year after two years of network downsizing and cost cutting. Speaking in an interview to the Slovenian Press Agency, Mr. Anžur said Adria will relaunch flights to Warsaw next summer and introduce services to Prague. Furthermore, the Slovenian airline will inaugurate flights from Tirana to Frankfurt, in line with earlier announcements to place more focus on the Albanian market following its success in Kosovo. Currently, Adria’s most profitable destinations are Frankfurt, Zurich, Moscow and Brussels. Its worst performing routes are Belgrade and Sarajevo. In addition, the airline sells the greatest share of discounted tickets to Paris, London, Amsterdam, Pristina, Skopje and Copenhagen.
Mr. Anžur admits Adria will have to change its business model if it is to operate successfully. The airline is willing to adopt a hybrid low cost - full fare business model, similar to the one used by Air Baltic. “It is essential that in the long run we change our business model and focus on getting passengers from point to point. If, for example, a passenger travels with us from Ljubljana to Frankfurt and then with Lufthansa to New York, Adria earns much less than if the passenger travelled only between Ljubljana and Frankfurt”, Mr. Anžur explains. Adria’s current cost cutting measures are proving successful with the airline expecting to post a profit in 2013 for the first time in several years.
However, despite Adria’s plans to introduce new routes next summer, it will also reduce frequencies on several destinations. “We must reduce our frequencies on flights. Our strategy is to operate larger aircraft and fewer frequencies. This way we can offer cheaper prices”, Mr. Anžur says. Adria’s CEO has also noted the airline has sold one of its Airbus A320s while a Bombardier CRJ200 has been grounded and is to be sold. Furthermore, the airline is selling its property and flight school in an attempt to solve its liquidity problems.
Mr. Anžur refused to comment on why the initial agreement to lease two of Adria’s A319s to Jat Airways this summer fell through, adding that Adria does not feel threatened by the newly launched Air Serbia. “We fly to Belgrade and we will see how things play out. At this moment Adria is not threatened”, Mr. Anžur concluded. The Serbian carrier will launch flights to Ljubljana later this year.
Mark Anžur, who has led the company on a temporary six month basis from January to June was recently re-elected as the airline’s CEO.