Monday, November 11, 2013

Adria replacing its CRJ200 fleet

Adria to replace CRJ200s with larger aircraft

Adria Airways is planning to modify its fleet by further downsizing on the number of its Bombardier CRJ200 aircraft and replacing them with the larger CRJ900 version. The Slovenian carrier will shortly remove two of its CRJ200s from service, registered S5-AAD and S5-AAE. Both aircraft were delivered new to Adria and are now almost sixteen years old. The airline is to replace both of the 48 seat jets with the larger CRJ900ER aircraft, which have the capacity to seat ninety passengers. The aircraft will be leased from Italy’s Air One. Adria’s CEO, Mark Anžur, announced plans earlier last month to replace the CRJ200s.

The airline has begun to ease its reliance on the aircraft in line with its new business strategy announced earlier this year. “The CRJ200s are only suitable for the development of new routes. Our strategy is to operate larger aircraft and fewer frequencies. This way we can offer cheaper prices”, Mr. Anžur said recently. In late September Adria sold one of its CRJ200 aircraft to SCAT Airlines from Kazakhstan. Furthermore, as EX-YU Aviation News learns, the Slovenian carrier is planning to lease out its Airbus A320 on a short term basis to Cambodia’s Skywings Asia Airlines until the summer of 2014 when it will be needed in Ljubljana to operate lucrative summer charter flights.

Adria is preparing for a big year ahead as it plans to expand its route network out of Ljubljana, station an aircraft in Verona and exercise seventh freedom rights out of Tirana. Furthermore, the Slovenian carrier is still mulling the possibility of basing an aircraft in Klagenfurt in Austria. At the same time, the airline is anticipating for its privatisation process to be launched soon and is also waiting for the European Commission to rule on whether it accepted state aid contrary to EU competition laws.

33 comments:

  1. I hope Adria's plan to open new bases work.

    Question about freedoms. Is Adria going to fly from Tirana directly to Frankfurt? If so, then it's 7th freedom, not 5th. And if they fly via Ljubljana than it's 6th freedom.

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  2. Typo: "Airbus A320 on a shirt term basis"

    I try to, but I still don't understand their business model, I thought the point of today's aviation industry is that more frequencies are better for business, since passengers need flexibility. In most of the discussions regarding JU it was usually said that one of the best things that they are changing is that there will be less destinations that are not served seven days a week. :/

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    1. It all depends on what market the airline serves or what kind of passengers they are trying to attract. There are probably not enough business passengers heading to Ljubljana so the airline doesn't need to concentrate on building up frequencies. My guess is that Brussels is one that sees the most business and government traffic for obvious reasons.
      It is obvious that the airline is concentrating on O&D traffic which is a viable alternative since the airline took care (more or less) of its cost structure. The removal of the CRJ-200 aircraft is a move in the right direction especially if we take CASM into consideration.
      By successfully restructuring the company and by coming close to posting a profit, they are actually reducing their chances of being shut down by the European Commission.

      You can't compare JU and JP because the markets they serve are quite different and the business strategy is also different. We can see that JU is trying to attract transit passengers while JP is working on luring O&D/VFR travellers. That's why it makes sense for one to work on frequencies while not for the other. In my opinion JP stands a good chance in attracting passengers from the wider region, the same way airports in the wider region are attracting passengers from Slovenia.

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    2. By successfully restructuring the company and by coming close to posting a profit, they are actually reducing their chances of being shut down by the European Commission.

      Adria will not be shut down by EU Commission
      If European Commission is ruling on that Adria accepted state aid contrary to EU competition laws

      need to pay the money back.
      That's all.

      Hard task for Adria.

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    3. And where exactly will Adria find the money to give it back to the Slovenian government? If I remember correctly the sum is well over €100 million. If the Commission rules against JP, then it's the end. Same way Malév was closed.

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    4. need to pay the money back.
      That's all.

      Hard task for Adria.

      Good logic sir, and like explained, that is not possible. And what you get with your wish. 400 people on the street for which government will need to pay like a year of benifits which in case of leaving the company alive will not happen.
      I am ll for returning the money but you must look as a owner which the government is. And this is the responsible act of owner to capitalise the company. And once per 10 years government is allowed to do so.

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    5. Yes but the point is that there were a few government aid packages in a decade, that's the problem. If it was one then it shouldn't be a problem.

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    6. They don't care in EU... If they did not care about Malev and 5.000 jobs, why would they care about Adria?

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    7. It's sad but true, Fort Brussels cares only about its own interests.

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    8. @NemjeeNovember 11, 2013 at 12:23 PM

      Adria Air is similar position Croatian Airline is in, so they'll just have to restructure and pay off loan they took in certain amount of time, 100 million isn't a lot for Adria due to to good and solid base Adria operates from, namely its a solo state airline with relatively good market, and strong potential for future growth. Why shut an airline that has strong and solid base, and its a solo operator strategic for a country.

      Malev's situation was way more complicated and its debts were greater than actual turnover of the entire airline, actually several times greater.

      Also Adria posted profit in first 6 months, indicating airline has sound strategy regarding its future and plans to repay its debt to the state.

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    9. Well, yes but at the same time Malév financial performance was actually improving. Especially since they did a lot to reduce their expenses. All of that was presented in the Hungarian government's white paper on Malév at the end of 2011.

      All I am saying is that it will be a political decision in Brussels. It all depends how competent the Slovenian politicians will be at lobbying for JP. They are going against Wizz Air so we will have to see how it all plays out. It also depends what time frame JP will have to pay back the money given by the Slovenian government.

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  3. ?
    Are CRJ200 registered as S5-AAD and S5-AAE totally owned by Adria?
    Is it still some loan to be paid for these old birds?

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    1. Owned by Adria

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    2. After 16 years they're owned by an airline, I'd imagine it was lease to own contract similar to what Croatian airlines has with its Dash-8s.

      Not sure how much they can get for these, i'd imagine $2-3 million per aircraft, enough to pay for lease of larger aircraft without inuring loss as a result of lasing new aircraft.

      I think Adria should be looking at leasing larger Aircraft perhaps even consider in a longer term getting several CS100 or even CS300 (around 2020).

      Both aircraft can be purchased same way CRJ200 were for $50 million each (CS100) with 10 year lease to own (around $6-7 million per aircraft). Croatian Dash 8s were $4 million per aircraft lease to own, and airline is making a killing on them, they're very profitable for Croatian, albeit they have few technical issues, front landing gear and problem with the engines, from reports, something Croatian airlines will need to pay a great attention to.

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  4. Mr. Anžur said recently. In late September Adria sold one of its CRJ200 aircraft to SCAT Airlines from Kazakhstan.

    How much money Adria got from this transaction?
    Amount anyone?

    Transaction (how done) not clear.



    ReplyDelete
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    1. Not sure what you mean by the last sentence.

      According to Finance.si CR2 was sold for around 3,2 million EUR (4,3 million USD).

      I think they will be able to lease CR9 from Alitalia Cityliner (former Air One Cityliner) for a good price since Alitalia/AirOne have most of their 10 CR9 stored as of oct/nov 2012. They are all 6 to 7 years old.

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  5. Can anyone shed light on the remaining order of one CR9 that was not yet delivered by Bombardier? Adria ordered 5 CR9, only 4 were delivered. What is happening with the 5th airframe?

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  6. OT:

    Did anyone know the reason behind this morning cancelation of JU801 from AUH? Airplane A6-SAA is still there. Also this evening departure to AUH has been canceled as well.

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    1. -APC is in Podgorica right now. It's scheduled to land at BEG at 16:30. Flight to Abu Dhabi is at 17:10. How much time do all preparations for next flight take? I know it's not possible at the moment, but maybe someone knows.

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    2. I know that the second A319 was flying to AUH yesterday, the A6-SAA. Also i know that the departure from AUH to BEG was also canceled. But the flight that should arrive in BEG tomorrow morning is scheduled... maybe they had some technical issues..

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    3. JUs Abu Dhabi flights are not popular and four times a week is too much frequency not to talk about dailies.
      EYs flights are more than enough and offer also a much better product (IFE).

      The problem is that there is a significant market between Serbia and the UAEs but bad connections to Dubai.
      Only 3-4 times with Flydubai instead of daily.
      FZ could fill daily flights but with their monopoly they prefer to increase prices by reducing frequency.

      JU would better open their own flights to Dubais new airport Al Maktoum.
      There is no Emirates or FZ so EY does not have to fear anything.

      Also the southern parts of Dubai (Palm islands and Jebel Ali) are nearer to Al Maktoum airport as driving from the old airport takes longer especially at rush hour.

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    4. It doesn't matter if JU offers a worse inflight experience than EY does. They are part of a same alliance and both of their BEG flights profit from EY's growing network out of AUH.
      JU's flight to Al-Maktum airport would be a suicide as it would be somewhere in between the two cities which are both served directly from Belgrade.

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    5. i was wondering since it started why it was necessery for AS to fly AUH? is it kind of sisters policy or something else? if we dont have 4 weekly flights for auh, we could have daily to bcn. i just remember i was flying spanair 4 times when they were presented here, and all four rt flights were around 80% full. maybe i dont understand many things about airliners politics and those slots, but isnt it shame that beg is not connected to some airports such as bcn, ham, szg etc, instead of sof, iev or var.. sorry for ot..

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    6. Thats because Etihad will stop flying to Belgrade next summer and all flights will be replaced by Air Serbia for feeding.

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  7. Is it true that the Crj200 is a gas guzzler and that even with 100% loadfactor it is not profitable?

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    1. Ofcourse it's not true, BUT it's not far from true... Thing I like to point out the most - when you fly to some destination, if that destination is rather close, you are burning a lot of fuel 'cause you don't get the time to go to high altitude.

      I'm an aircraft mech and trust me I know what I'm talking about... It's like a car, imagine that you live on bottom of the hill and work on the top of the hill... you will burn a lot of fuel to get to the top.

      CRJ is great alternative for Dash 8/ATR but jet engine is jet engine, expensive as it is.

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    2. Your explanation with the car was really good.
      I really appreciate it!
      I dont think anybody could explain it better...

      Delete
    3. Well, it all depends on the price of your tickets. If you are competing on a short flight with a Dash-8 or an Atr then you are most likely going to bleed money. If you have a monopoly then you are most likely going to have a better performance.
      One thing is for sure, the CRJ 200 is not an aircraft you get if you want to make a lot of money.

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  8. Who is going to buy these two CRJ200? Some airline from Africa or from ex Soviet union maybe?

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    1. both AAD and AAE will be scraped

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  9. Air India and Adria signed codeshare agreement, they will be operating flights from Delhi to Ljubljana with stopover in Frankfurt, starting in second week of December.

    More: http://ttgasia.com/article.php?article_id=22077

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    1. Nothing really nothing to talk about.
      Air India has loads of codeshare agreements to many destinations.

      India via Frankfurt Lufthansa Airlines Amsterdam, Athens, Barcelona, Basel, Belgrade, Berlin, Berne, Birmingham, Bologna, Bratislava, Bremen, Brussels, Bucharest, Budapest, Cologne, Copenhagen, Dresden, Dublin, Dusseldorf, Edinburgh, Florence, Friedrichshafen, Geneva, Genoa, Gothenburg, Graz, Hamburg, Hanover, Helsinki, Hof, Istanbul, Kiev, Krakow, Leipzig, Linz, Lisbon, London, Lyon, Madrid, Manchester, Marseille, Milan, Minsk, Moscow, Muenster, Munich, Naples, Nice, Nuremberg, Oslo, Paderborn, Paris, Prague, Rome, Sofia, St.Petersburg, Stockholm, Stuttgart, Toulouse, Trieste, Tunis, Turin, Venice, Verona, Vienna, Warsaw, Wroclaw, Zagreb, Zurich, Atlanta, Boston, Charlotte, Chicago, Dallas, Denver, Detroit, Houston, Los Angeles, Mexico, Miami, NewYork, Orlando, Philadelphia, Portland, San Francisco, Sao Paulo, Seattle, Toronto, Vancouver, Washington


      Adria flying the FRA Ljubljana leg.

      http://www.airindia.com/code-share-partners.htm

      A news would be Air India flying physically to Ljubljana.

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  10. India via Vienna Austrian Airlines Altenrhein, Budapest, Graz, Innsbruck, Klagenfurt, Linz, Salzburg,

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