Wednesday, February 19, 2014

PM: Adria to be privatised by year end

Adria to be sold by the end of 2014 as losses reduce

The Prime Minister of Slovenia, Alenka Bratušek, has said the country’s national carrier will be sold by the end of 2014. Speaking to the German business daily “Handelsblatt”, Ms. Bratušek said talks with potential investors are already under way. “We're making good progress with the sales negotiations. There will be no delays", Ms. Bratušek said. Slovenia, which scraped together funds to bail out its banks in late 2013, has compiled a list of fifteen state run companies to be privatised as soon as possible. Investors have bought two of the state run companies with another thirteen remaining, amongst which is not only Adria but also Ljubljana Airport. It marks the second attempt by the government to sell its national carrier after failing to do so in 2012. Ljubljana Airport has previously stated it expects to be sold during the summer of 2014.

Meanwhile, despite plans to break even in 2013, Adria recorded a loss of 3.1 million euros. The result is still a significant improvement on the year before when losses amassed eleven million euros. In a statement, the airline said, “The negative result is a consequence of one-off negative effects which in most cases relate to past operations. In particular, these are the negative impact of the sale of part of the company's assets at below book value, a penalty for the return of a leased asset and additional provisions relating to potential liabilities”. During 2013, Adria reduced its debt by 8.9 million euros.

Adria believes it has performed well in 2013 which should make it more appealing to potential investors. “By the end of 2013 the company successfully carried out a large number of operational restructuring measures which contributed to extremely positive trends in operations and signals the company's long term survival and successful growth”, the Slovenian airline concluded. During 2013 Adria carried 1.026.839 passengers, positioning itself as the third busiest carrier in the former Yugoslavia.

25 comments:

  1. I doubt about this selling. I guess it will be nothing to sell by the end of the year.
    And I am sorry to think like this.

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  2. When will the verdict from the EU come? I doubt they could sell the airline before the verdict arrives.

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    Replies
    1. http://exyuaviation.blogspot.com/2014/02/adria-aid-ruling-this-summer.html

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  3. Samo sanjajo kdo bo pa kupil to zapufano Adri-o.

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  4. I hope Adria survives, I really like flying them. It is very special feeling, almost like privit jet :D

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  5. Wonder how much can Slovenian Government get for Adria, as to the EU ruling it might delay sale of the airline to any potential buyer, Adria has to pay back 85 million euro, or what ever the amount is.

    EU can only rule one way and that is to order Adria pay back what is took from Slovenian government, the only question is, how will the payments be made, over several years or sale of the airline and this way rise the necessary funds.

    Adria Airways has a great potential for 1.5 million passengers and revenue exceeding $220 million and long term potential is even greater, 3 million passengers and revenue of $500 million, question is, can Adria's management see the potential?

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    Replies
    1. Who says that Adria will have to pay back? EU doesn't kill companies just like that... if company made some improvment whit this money. If it would be so than company would close the door an stop being active. As we see Adria is doing many things to prove that it can survive.

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    2. Hope Adria goes well!

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    3. I doubt that Adria will have to pay back (everything). The commission will consider that it is the only carrier in the country and that they are an alliance member which is responsible for sustainable development of air transport in Slovenia.

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    4. Malev was an alliance member which was responsible for sustainable development of air transport in Hungary and does Hungary have a national carrier right here, right now --- No!

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    5. But they have Wizzair :D

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  6. What happens in Air Serbia today? It is just half a day and huge delays

    arrival
    Tel Aviv 2:10 hours delay
    Moscow 0:45 hours delay
    Zurich is for now 2:15 hours delay, and still no idea when it will be landed

    Istanbul Sabiha for now 1:00 delay in departures.

    + small delays.

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    Replies
    1. ZRH landed after 2:25 hours delays. Any idea why?

      And there will be delays for BNX, SKP, FRA and LHR flights. What is going on?

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    2. BNX,SKP,FRA,LHR were on time. On departure they will come 10 minutes before.

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    3. Lufthansa's Embraer broke down this morning! The plane left early in the afternoon. Same thing happened to Aeroflot a few days ago.

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    4. But what happend to ZRH?

      ...and TLV, SVO?

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  7. Just bullshit talking from Bratušek. Just to talk just blabla.
    Who will buy Adria? Till end of 2014?
    She don't believe it either.
    But for business daily she must talk about business
    for her and her PR
    bullshit is ok for “Handelsblatt”


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  8. ExYu why route Zagreb-Rijeka by Trade Air (Croatia Airlines) is on list, and Rijeka-Split-Dubrovnik is not.

    I hope you will put it on list.

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  9. Please don't talk off topic.
    I don't care about airserbia delays.

    For Adria I hope for a long term investor

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    Replies
    1. lol if there were no off topics on Slovenian news day there would be more or less no discussion.

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  10. Some of the things you look at when investing is risk and future potential. I’m afraid that both of those are stacked up against JP today. Not that OU is without its problems but if you compare two companies and you’d like to park your money somewhere, to me it is much better proposition, lower risk and much bigger potential with all those tourists coming every year.

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  11. OT:

    Austrian A320 diverted to BEG. Flight from LCA to VIE. 15 minutes ago.

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    Replies
    1. Pax died on a plane. Not on emergency landing list cause other passengers wont disembark..sorry

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  12. Lets just hope they go till the end this time and sell Adria to a good and stable airline. Fingers crossed for an out of EU partner like China Southern that could then use LJ as a hub for Europe...That would give LJ great connectivity that it lacks now... Optimism dies last ;)

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