Wednesday, August 20, 2014

Adria to open new bases and double passengers

Adria considering up to four new operational bases

Adria Airways has detailed plans to hit two million passengers and a 220 million euro turnover by 2020, supported by a fleet of sixteen aircraft and several new bases across Europe. Even though the Slovenian carrier handled just under one million passengers last year and recorded revenue of 150 million euros, Adria’s CEO, Mark Anžur, is confident the airline will reach its goal within six years by reducing frequencies, increasing capacity and serving “unpopular routes”. “Last year was the first year we were profitable at EBIT level, with a one million euro profit, but we still had a three million euro net loss due to historical reasons”, Mr. Anžur says.

The results achieved last year are still a marked improvement on 2012 when the airline posted losses of 67 million euros. “During 2012-13, we started a restructuring program, which set the airline on the path of future growth”, Adria’s CEO says. He adds that faced with stiff competition from low cost airlines such as Wizz Air and easyJet, both of which operate flights to the Slovenian capital, Adria has been forced to reorganise its business, cut 200 jobs and decrease frequencies while increasing capacity. “We now specialise in serving unpopular European routes with aircraft which have the capacity to seat less than 100 passengers”, Mr. Anžur notes. The airline’s six year growth plan foresees the opening of three to four new bases across Europe. Outside of Ljubljana, Adria has a base in Pristina and plans to open one in Tirana next summer season. “The Slovenian market is small and is not growing. We now receive 70% of our revenue outside of our main market”, Mr. Anžur explains.

The carrier’s CEO believes opening new bases, without creating subsidiaries in different countries, is a sound business plan which will see the airline double its passenger numbers within six years, even without a strategic partner. In order to support such growth, Adria is looking into growing its fleet. It will retire all of its unprofitable Bombardier CRJ200 aircraft by the end of next year and its fleet will consists of sixteen CRJs and Airbuses by 2020. However, Adria’s CEO says the exact type of aircraft to be operated will depend on the carrier's destination network. The airline recently grounded one of its CRJ200s leaving it with only two in its fleet. Adria is now seeking out a buyer for its grounded Bombardier jet.

29 comments:

  1. How is Adria doing profit wise in Q1 and Q2 in 2014? And passenger wise for that matter

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    1. It said in the article just a few days ago here

      "With its new business model in place, which has seen Adria Airways transform into a hybrid full fare – low cost airline, the Slovenian national carrier welcomed almost 478.000 travellers during the first six months, an improvement of 6.6%. In June alone Adria handled 110.000 passengers, up 3.8% on the same period last year. The airline’s busiest routes so far this year have been Frankfurt, Zurich, Munich, Moscow, Brussels and Vienna. The Slovenian carrier is extremely happy with the performance of its newly launched flights to Prague and Warsaw, as well as services from Tirana to Frankfurt and from Munich to Lodz in Poland. Notable growth has also been recorded on the airline’s seasonal flights from Ljubljana to London Gatwick and Pristina to Malmo."

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    2. S15 they plan to fly to Stockholm and Madrid or Barcelona

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  2. "“We now specialise in serving unpopular European routes" LOL!

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    1. If this brings growth and profit - why not?

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    2. Sounds rather counter-intuitive to me ... seems like all they will be carrying is fresh air and sunshine and not much else ....

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    3. sometimes the most counterintuitive things are the most effective, like a amouring of bomber command aircrafts in WW II http://en.wikipedia.org/wiki/Operations_research#Second_World_War

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  3. For me the most important sentence is: "....without a strategic partner"....This means that Slovenia will pursue its way of mercantilistic state capitalism. We will see how ADRIA will manage this in a globalized world and with a new economic crisis on the horizon.

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  4. 70% revenue outside of Slovenia. That's impressive. Adria is the only airline in the region that has realized the market is too small and embraced using its EU perks to expand freely throughout Europe.

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    1. I think that only Adria and Air Serbia can survive in this market which is obviously to small so you can expand outside ex yu or you can make your base a hub...

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    2. Sure, and Croatia Airlines in a country with several airports, domestic traffic and 7 million passengers every year won't survive?

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    3. The Croatian market will live on. Croatia Airlines most likely won't. Unlike both Air Serbia and Adria, it has continuously failed to restructure itself. Furthermore, Croatia Airline carries like 30% of the total traffic which is not that much.

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    4. @AnonymousAugust 20, 2014 at 4:31 PM

      He's just a troll, don't bother to answer him.

      admin should remove that post clearly its there to provoke and troll.

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    5. The restructuring process is not finished yet, things in aviation change very fast, I wasn't provoking, if someone says that only Air Serbia and Adria will survive, I would like to hear why. Until yesterday, most of you wanted for Adria to go bankrupt, most of you still making fun of it. Btw., 30% of 7 million is a lot for a small country like Croatia.

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  5. He he something is fishy here,

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  6. ou as well wii survive....

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  7. Ja sam mislio da su samo srpski vazduhoplovni menadzeri budale. Sad vidim da i drugi dele te univerzalne vrednosti. Hibrid low cost u kombinaciji sa underserved rute uz istovremeno smanjenje frekvencija ali podizanje ukupnog kapaciteta itd.... tacno su svi ostali koji recimo rade obrnuto ( ryanair,easy, bliskoistocni, americki, .....) tu u stvari u prolazu i cekaju da im partija oci otvori.

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  8. Etihad Regional: FOCA intervenes

    The real balance of power in the Ticino airline will not comply with the statutory provisions.


    For months, the Federal Office for Civil Aviation (FOCA) explores the question of whether Etihad Airways, "unduly" takes a lot of influence at its Swiss subsidiary Etihad Regional (formerly Darwin Airline), in which it holds only 33.3% - Airlines from outside the EU can not exercise de facto control of an airline in the EU region namely. This "Ownership & Control» -Investigating is now complete. According to "Blick newspaper" the FOCA has concluded that "the intended cooperation mechanisms could cause Etihads control over Darwin and thus would be inconsistent with the statutory provisions."

    Until the end of September Etihad Regional has time to make adjustments; then FOCA will re check the situation again.

    Whether the golf Airline agrees with its rightful status as a minority shareholder, remains to be seen. In the center of the investment strategy of the Arab Carriers is the opportunity to have a say in active markets, where legal restrictions prevail. The competition will monitor tensely the further development of the situation.

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  9. I hope he doubles pilot's salaries by the year 2020 as well or he will need UAVs for his prophecy to come through. Lol. What an amateur.

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  10. Off-topic, Air Serbia will be increasing Belgrade-Amsterdam from daily to 10 weekly.

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  11. OT: There are reports this morning that Tarom is considering restarting flights to Bejing with their A310. Could this be an answer to Air Serbia's intentions in that market.

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  12. Eurolot has announced new route from WAW to ZAG from the start of winter season, 7 flights weekly

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    1. Great news for Zagreb!

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    2. Why not the mainline?

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    3. Jel sa Q400 :)
      INN

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    4. da, sa Q400...

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  13. To ih tera DLH da im opsluzuju linije.
    INN

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