Adria launches new business strategy
Adria Airways has started adopting measures used by low cost airlines as the Slovenian carrier begins its transition from a full service to a hybrid - no frills carrier. CEO Mark Anžur has confirmed that from April 22 all economy class passengers will be charged for on board food and beverages. “With the option to purchase on board, we will not earn much. However, we will significantly reduce the need to stock our aircraft with supplies. As a result, we will achieve substantial savings. Using this approach we are shifting towards other low cost airlines”, Mr. Anžur says. He adds, “When a low cost airline lands at an airport it does not have many expenses, only the bare essentials, which is fuel”.
In addition, Adria will also increase capacity on its aircraft this summer. “Capacity is very important to low cost airlines. We will add an additional nine seats to our Airbus A319s”, Mr. Anžur says. Adria’s two A319s currently seat 135 passengers, which will increase to 144 this summer season. “It doesn’t sound like much, but if the aircraft is full, our revenue increases by a tenth”, Adria’s CEO explains. The carrier’s Bombardier CRJ900s are also expected to receive an additional row of seating. Therefore, the jets will be fitted with an extra four seats.
Many low cost and full service carriers are morphing to a range of hybrid models. In Europe alone there are numerous examples including Air Berlin, Norwegian Air Shuttle, Brussels Airlines and Niki, to name a few. However, Adria is also awaiting its privatisation which could take the Slovenian carrier on a completely different course to the one it is starting to adopt. “Potential investors are awaiting a ruling by the European Commission”, Mark Anžur says. Adria is being investigated for state aid received between 2007 and 2011 to the tune of 85.5 million euros. “The ruling will be made in June. We believe the judgment will be in Adria’s favour”, the CEO concludes.