Sunday, January 4, 2015

CEO: Adria’s expansion in Slovenia limited

Adria eyes 20% passenger growth in 2015 after “disappointing” year

The CEO of Adria Airways, Mark Anžur, says the airline’s chances for expansion out of Slovenia are limited due to the small size of its market. As a result, it has been opening bases outside of the country. The carrier will introduce new flights from Ljubljana to Stockholm and Berlin this summer season but the CEO adds, “The question is, what are the chances for further expansion out of Ljubljana”. Mr Anžur notes that in 2016 Adria will consider launching flights to London, despite fierce competition from low cost airlines. In the long-term, the carrier is looking at introducing flights from the Slovenian capital to either Madrid or Barcelona. “We could offer connecting flights to South America through Spain and, at the same time, lure visitors to Slovenia as well. Personally, I think Madrid would be more interesting than Barcelona because it is bigger but this will be decided in 2016”, Mr. Anžur says. He adds, “Additional routes to Germany, such as Dusseldorf and Hamburg, could be of interest. Perhaps we could fly to St. Petersburg and Milan as well. These are under consideration. We should not rush from Ljubljana, I think Lodz has much greater potential at the moment”.

Adria’s CEO admits that 2014 was somewhat disappointing for the airline, despite an improvement on 2013. “The results will be a little bit better than last year, but this is somewhat disappointing. We planned for better results”, the CEO says. He continues, “In Europe, revenue per passenger fell by 7% in 2014, which is huge”. By December 2014, Adria recorded a 7% increase in passenger numbers and is expected to have ended the year with similar growth. However, revenue per passenger is said to have decreased by 10%. The airline estimates to have ended 2014 break even. “Next year we expect to grow with a 20% increase in passenger numbers and a 15% jump in revenue”, Mr. Anžur explains.

The Slovenian carrier took out a bridging loan this winter in order to stay afloat and concluded a sale and leaseback arrangement of two of its Bombardier CRJ900 aircraft in order to boost liquidity. “As a result, we have secured cash flow throughout the winter season. We will use part of the money to repay our debts and the other part will stay with us for winter operations”, Mr Anžur says. He adds that the airline is still negotiating with Ljubljana Airport’s new owner, Fraport, over a planned fee hike. Mr. Anžur has previously warned that the introduction of new routes from the Slovenian capital is under threat due to a planned increase in fees.

76 comments:

  1. If Adria wants the chance to do anything with INI, this is their last chance before Wizz expands and floods everything. Adria could have easily connected Nis with a lot of Star Alliance hubs such as Vienna, Frankfurt, Munich, etc.

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  2. Good luck Adria, hope this year will be better!

    OT:

    Split Airport 2014

    1 752 657 passengers

    + 10,8 %

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    Replies
    1. +170k pax. So many routes are announced for 2015, this year might be close to 1.95mil.
      But they desperately need an expansion of terminal!
      Good job SPU!

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    2. Fantastic results for Split. I remember about 8, 9 years ago Paphos city and airport authorities forged a deal with the European Union where they developed a programme called 65+. Brussels paid for half of the holiday package while the person paid the rest. It was aimed at attracting retired people, hence the name.

      Passengers were flown from places like Spain, Italy, Germany... and it proved to be a huge success.
      Maybe Split should do the same in order to boost its rather bad performance during the slow months. It could work especially since Ryanair already operates seasonal flights to the airport. Like this they could keep one or two routes throughout the year which would be great for both the city and the airport, not to mention that it would also reduce their dependence on Zagreb and OU.

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    3. Ryanair to Split?
      You have Zadar in mind.

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    4. My bad, thanks for the correction.

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    5. @AnonymousJanuary 4, 2015 at 9:18 AM

      Spit is getting new terminal soon, the EU funds should kick in this year, Spit airport itself is putting up around 25%, Croatian Government another 25% and the EU is coming in with 50% for total of around 70 million investment in to new 25500sqm terminal that will be built adjacent to the current 12500sqm terminal, once completed in mid 2018 combined terminal will be around 37000sqm, 4 passenger boarding bridges will be added as part of the 2nd phase sometimes after Split passes 3.5 million pax per year which is expected around 2020.

      Works on new terminal should start in late 2015, after tourist season, this is if all the finances and architectural works have been completed, so far problem was with the land around the airport and questions regarding the ownership, same problem Zagreb had.

      Hope is all can be done by the end of October so the works can start in earnest, keep fingers crossed.

      BTW all 3 main airports in Croatia are getting loads of new routes this year, Dubrovnik 10-12 so far, Zagreb same and Split at least .


      BTW made some predictions for coming year, projected traffic at major airports in ex-YU. for 2014 and (2015), would love to see how accurate I was at the end of 2015.

      Belgrade - 4.65 million (5.2 million)
      Zagreb - 2.44 million (2.85 million)
      Split - 1.75 million (1.9 million)
      Podgorica/Tivat - 1.68 million (1.83 million)
      Dubrovnik - 1.60 million (1.72 million)
      Ljubljana - 1.31 million (1.45 million)
      Skopje - 1.21 million (1.4 million)
      Pristina - 1.3 million (1.35 million)
      Sarajevo - 710 000 (800 000)
      Zadar - 495 000 (520 000)
      Pula - 355 000 (385 000)
      Tuzla - 150 000 (180 000)
      Rijeka - 125 000 (175 000)

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    6. Forget your dreams it's too early for SKP to pass LJU and PRN with passengers !!
      Never !!

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    7. 400.000+ for Zagreb, one big LOL

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    8. could you explain how you can achieve 3.5 million pax p.a. with that runway system at SPU?

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    9. @AnonymousJanuary 4, 2015 at 2:52 PM

      This year they plan to expand the runway add additional 500m to it, they plan to expand the full length of runway to 4000m, with actual runway to be around 3000m, with Cat IIIB landing installed and taxiway added, they' are still negotiating land issues, runway as it is now is 2.5km long and not suited for wide body aircraft, other than B767.

      Additional 40 000sqm platform will be constructed adjacent to one built recently as new taxiway is laid down.

      http://www.slobodnadalmacija.hr/Portals/0/images/2013-10-05/Kastela/AERODROM%20-%20TERMINAL2.jpg

      Split airport will eventually be able to handle up to 10 million pax once these improvements are implemented and in summer months airport will need it, with projected 7-8% growth yoy in summer months airport will need all the capacity.



      Actual capacity of new 37000sqm terminal will be around 5.5 million, once all is added up, number Split airport might not reach before 2025 and you have to understand airport only gets really busy in June, July and August, with May, September and October being busy nothing out of the extraordinary, an average of 150 - 250 000 pax per month, something new terminal will be easily able to handle and cater for.

      Problem is June, July and August where on weekends airport can have 30-35 000 passengers, reason why so far airport management avoided building a taxiway, to encourage airlines to use weekdays instead of weekends to bring in the tourist, this has proven to be highly unsuccessful for airlines are bringing tourist in when they make most money, which is weekends.

      So new taxiway might be laid down in early 2016 if all the paperwork are in place, airport has the money to finance the entire project on its own, the EU funds might kick in, for Airport has already applied for a 75 million euro from investment/structural fund.

      Croatia was given $12.5 billion from EU fund for 2015 to 2020 (not 2020, up to) or around $2.5bn per year, but in the past Croatia has struggled to come up with projects and withdrawing money from the EU wasn't easy, so far only $1bn out of $2.1bn have been used up, that is for 2013 and 2014 period, barely half the money.

      But as Croatian administration becomes more accustomed and in tune with the EU, things should move faster, current Government has already promoted 6.8 billion euros worth of projects for said period, with around 10 billion euros to be spent for the period ,with 3.2 billion most likely to be allocated over time on need to basis.

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  3. Jedino se trude Gospodin Dane i Gospodin Anzur da njihove kompanije izvedu na pravi put.
    INN-NS

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  4. To Increase fees it's a must.
    Adria has a privileged situation in Ljubljana. And you see the results. Other airlines not flying there because costs are to high. Even fuel is overpaid. Except for Adria that has a special treatment.

    End this. Point.

    Please and talking with this small market and similar blalbla Once small market next big terminal just invest invest mafia money.
    Slovenians are travel obsessed see the hordes flying , all the year long,from Venice, Treviso etc. to destinations around Europe (e.g. to Spain). Much more now than few years ago.

    Adria it's still state owned and taxpayers paid (where there is national interest in Priština with Slovenian taxpayers money?) making projects for 2020 2015 please give me a break.

    Other countries of exYu admiring Adria. Are you normal?
    It's easy to be state owned and be part of Schengen. Tooo easy.


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    Replies
    1. Source?

      Adria has the same discount as all other scheduled carriers in LJU. That is 35% discount on all published prices. The only difference with other carriers is that Adria pays their bills with a 3-6 month delay.

      As for the fuel I will give you that, it would be much better if one of the big companies offered fuel at LJU alongside with Petrol.

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    2. So we have to pay Adria for flying from Lodz and Tirana, while at the same time they are not developing Lj. Interesting. I just can't understand how this Anzur guy could be an example for some people here. :D
      Btw, they seem always to forget Italy. Why opening for instance Spain and not Italy (Rome or Milano or Sicily in spring and summer)?

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    3. During the festivities in Ljubljana you could have only heard Italian.

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    4. Definitely. LJU fuel one of the more expensive in Europe. JP fuels their aircrafts abroad as good as possible

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    5. So how come Iran Air lands in Ljubljana to refuel, they have some discounts?

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    6. You are incorrect that nobody is coming to LJU.
      LX will start ZRH-LJU route on March 29 (check column on the right).

      LJU doesn't have a big catchment area and is additionally losing a lot of passengers flying from TRS and especially VCE (all long haul flights are 200-300 EUR cheaper from VCE than LJU (same date and same airline (LH, TK, AF)). Besides, EK and QR are flying from VCE and ZAG only ). Therefore ZAG is increasingly becoming very competitive to LJU for long haul flights.

      By the way, IMHO all airlines can always refuel their planes either at destinations where they fly or at the home base. Thus the competition for JP is still not perfect, but it is also not fair at all to say it is non-existent.

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    7. Iran Air fuels in LJU and BEG since LHR CDG or FRA dont sell them fuel

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    8. Why they don't sell them the fuel? Embargo?
      And why LJU can, is allowed to sell the fuel?
      Are they not all in the same NATO ship?

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  5. ASL and ADR have small domestic markets and have to rely on foreign passangers. On the other hand, CTN has easy access to PUY, RJK, SPU, DBV ideal for tourists and ZAG but still is not a very successful company. That is a sign of utter incompetence. For a company that has such a potential market anything but a continous profit is a joke let alone having to go through a restructuring programe. This is why after any article about ASL here there is a stream of heatful comments most likely written in CRO.

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    Replies
    1. Croatia Airlines Fail

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    2. If you're not sure the comments are written by Croats, don't say that! Do you really think that there are no Serbs, Bosnians or Slovenes who also write negative things about Air Serbia? Should I like Croatia Airlines just because I'm Croat? Of course not!

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    3. It has been said many times before that mainly transfer passengers experience discomfort. The AirSerbia staff has horrible attitude towards the passengers and does not respect their rights. Waiting three hours and a half for a bus at airport and not providing any kind of refreshments is not only unacceptable but also illegal.

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    4. Why would anyone need a bus in BEG if he/she is a transfer passanger? BEG has always had air bridges. ASL does't have buses at BEG going to Belgrade and even when JAT had buses they were mostly used by airport and JAT employees because passangers preffered their own cars or taxis instead.

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    5. Bus to the hotel because we missed the connecting flight due to delay.

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    6. @ 4:10 PM

      I had four transfer legs with ASL via BEG and there were no delays or any problems whatsoever. ASL staff were also OK, though their assistance was not required anyway. I know a few other guys who flew transfers via BEG and did not have any problems.

      Certainly a number of passengers did experience problems and had good reasons to be frustrated, however you present things as if problems and frustrations are 100% guaranteed for anyone who dares to try his luck with ASL. Such presentation is very biased and manipulative, to say the least.

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    7. Based on what I was told by AirSerbia staff and the ignorance of their supervisor officer Mrs. Milena Dunjic, I think it's very likely you will experience problems if you miss connecting flight. If there are no delays their service is definitely better than JP's and OU's. I do believe you would change your mind if what happened to me would happen to you.

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    8. I definitely would. The point, however, is that it did not happen to me. And in the same way my single experience does not represent a 100% forecast on what will happen to a transfer passenger flying ASL, your single experience does not represent it either. You can make your own judgment on ASL of course but it does not mean all other transfer passengers are doomed in advance. If we put it that way, then nobody would fly any airline anywhere.

      Btw, have you tried sending them an e-mail with formal complaint over the treatment you received from that person? It may not bring you any compensation but there are good chances someone would hold that person accountable and told her the next such complaint will end her career in ASL. That way you can help them improve their service which will also help other passengers and at some point might even motivate you to consider ASL again. Think positive :)

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    9. I emailed them yesterday. Let's see how they respond.

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    10. They will not respond because no one will read it. Claims, complaints... are handled by a single 55 year old guy.

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    11. Sure, just as all operations are coordinated by a single 60 year old guy who is partially disabled. You haters should really find some other way to vent off your accumulated anger.

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    12. We could say the same for you groupies. Especially since you just proved you know nothing about JU's internal structure as this guy is the laughing stock for anyone who steps a foot in there.

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    13. I had an e-mail correspondence with their claims department and: a) it was a female staff; b) she replied to all my e-mails.

      So I don't have to prove jack to you or any other unfortunate Jat child who lost his easy money and is now angry with ASL for that.

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  6. OT: What is JAT's all time record for passenger numbers and fleet size since WWII?

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    Replies
    1. In 1985 the company carried five million passengers annually and served 80 destinations on five continents 19 domestic, 45 medium haul and 16 long haul routes.

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    2. Thanks! Do you know how many a/c were in the fleet by any chance?

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    3. That is not true actually. JAT"s record was achieved in 1987 - 4.531.000 passengers carried (2.255.000 on domestic flights). It carried more than 4 million passengers again only once, in 1988, although it was 1% less than in 1987. In 1989 3.749.000 PAX and it all went donwhill from there.

      In 1985 it had 3.530.464 PAX and 31 aircraft.

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    4. Do you mind sharing the numbers for 1989 and 1990? Would be interesting to see how fast they were falling.

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    5. Not a problem, this is how the decade and the early 1990s went

      1980 - 3.387.266
      1981 - 3.555.174
      1982 - 3.387.495
      1983 - 3.225.775
      1984 - 3.314.819
      1985 - 3.530.464
      1986 - 3.862.373
      1987 - 4.531.000
      1988 - 4.485.210
      1989 - 3.749.245
      1990 - 3.828.000 (last stable year)
      1991 - 1.190.000
      1992 - 230.631
      1993 - 287.000
      1993 - 291.000

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    6. JAT's passenger figures were good, but if you look at an old OAG or even some of JAT's old timetables, you will notice that JAT had a monopoly on most of the international routes.

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    7. Absolute lie !!!
      UK- both JU and BA
      France - both JU and AF
      Scandinavia - both JU and SK
      Holland - both JU and KL
      Russia - both JU and SU
      Austria - both JU and OS
      Germany - both JU and LH
      Czechoslovakia - both JU and OK
      Poland - both JU and LO
      Switzerland - both JU and SR
      Canada - both JU and AC
      China - both JU and AC
      USA - both JU and PA
      Australia - both JU and QF
      Iraq - both JU and IA
      Libya - both JU and LN
      Kuwait - both JU and KU
      Jordan - both JU and RJ
      Algeria - both JU and AH

      Code share of AZ, IB and SN on JU flights
      to/from Italy, Spain, Belgium

      No further comment needed

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    8. It's CA for China, not AC, sorry

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    9. @ 1:34

      4 X ATR42

      9 X DC-9-30

      11 X B-737-300

      7 X B-727-200

      5 X DC-10-30

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    10. Speaking of destinations, picture in the link was Air Serbia planned network expansion around July/August 2013. Please note that Australia was planned as a destination. What happened with Australia plans?!?

      https://scontent-a-ord.xx.fbcdn.net/hphotos-prn2/v/t1.0-9/s720x720/547429_487082401383560_1680638397_n.jpg?oh=dc25aa27608f299006e89a08c0f6ab12&oe=55215441

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    11. Australia was never announced as a destination (except for BA no other European airline even flies to Australia. Would be funny to think that Air Serbia would)

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    12. Did you look at the picture?

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    13. Thanks for the numbers!

      Well, I am sure they meant as a destination they will serve via their code-share with Etihad.

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    14. Nemjee, I thought the same but then realized other codeshare destinations like Oslo, Chisnau or Kuwait are not listed, so Australia was probably initially planned as a destination. Not nonstop of course, but with a stop in AUH perhaps?

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    15. Could be, who knows what they initially thought. Seems like that idea will be implemented through Alitalia. I read somewhere that they might launch Rome-Abu Dhabi-Australia flights.
      They are yet another airline to start operating for EY out of AUH.

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    16. Thanks admin!

      Delete
  7. OT:

    Good job EY!

    '“After keeping passengers on the plane for more than 13 hours last night, flight EY23 to Düsseldorf has just diverted to Vienna with a passenger receiving CPR from the crew,”

    The man died. They also kept people for 11 hours in a plane before it took off to San Francisco.

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    Replies
    1. Horrible weather in AUH. Have any JU flight affected?

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    2. It is funny how Serbians see UAE as heaven, a place where they can party, go tanning, swimming,etc., while in fact it is a place full of foreign workers which are treated as slaves ( Indians, Philiphino). Europeans are of course treated better, but at the same time arab man see our women ( by our I mean eastern european) as opportunities for one night stands and I dont wont to elaborate more since the comment will be deleted. I had a personal experience in Dubai which for myself was GREAT, but what I saw around me was not. In immigration they treat foreign workers from Indian or Pakistan as dogs ( same in Riyadh). EX YU PLEASE keep this comment, I am not trying to hate on arabs, i have a lot of good arab friends and most of them are nice people but at the same time I just want to put this up here and see what other people have to say.

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    3. Agree absolutely !

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  8. OT: A320 to OTP, does anyone have the loads?

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  9. 7 daily rotations operated by 737-300, congratulations JU!

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    Replies
    1. Fleet shortage, ALO and APC not flying. Any info?

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    2. I wouldn't be surprised if YU-APC went for a C check.

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    3. That's really a shame, same things continue from the Jat era, all while they presented those 737 as a plague at the Hyatt conference, almost 2 years later they still can't live without them.

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    4. @ 4:07

      If the prospect of ending up in a 733 instead of A319 frightens you that much, simply don't fly ASL. You pick another carrier, they give you something better than a 733, ASL complete their daily schedule the way they can, et voila. Everyone happy.

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    5. No one is frightened to fly them but how come the very aircraft previously presented by EY management as a plague form today the backbone of the fleet.

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    6. EY management never labeled 733s a plague.

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    7. evo npr, moj let za Bec 12.1. je najavljen da ce biti obavljen 733 i nemam apsolutno nista protiv. Cak sta vise, svakako je bolje nego AT7 koji je takodje odlican avion za ovu rutu... Samo se nesto bunite i nije vam po volji i zaboga to je po nekima jaaaako strasno ako nije 319. Leteo sam po svim kontinentima i raznim aviokompanijama i dozivljavao sve i svasta. Doziveo otkazivanja i maltretiranja i od strane "najuglednijih" kompanija pa nista. Nije ASL ni najbolja a ni najgora pa bih svima porucio da chill out...razmazenih putnika ce uvek biti a i totalnih imbecila koji misle da ako putuju avionom da moraju i noge da im ljube.

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    8. Hehe, tako je druže, ima jedna narodna al ne smem zbog dece ;)

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  10. From Transaction Framework Agreement:

    ...either Terminal 1 or Terminal 2 of Belgrade Airport as the Parties may agree, is allocated to AS for its exclusive use by no later than 1 January 2014.

    It is 4 January 2015. More than a year later. Is this agreement just a joke?

    More from the Agreement:
    The RoS shall fund a portion of the costs of refurbishment of Terminal 1 or Terminal 2, as the case might be, to a standard acceptable to AS within 2 years of 1 August 2013

    2 years will arrive in just over 6 months and nothing so far. What Terminal standards are acceptable to Air Serbia anyway?

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    Replies
    1. Could you at least put an OT. Why didn't you write about this yesterday?

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    2. For the same reason many of yesterdays comments had nothing to to with the topic and had no OT in front. Go and check.

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    3. Saša & Raša should be asked for answers

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    4. I know who Sasha is, but who is Rasha?

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  11. Only question is when Wizzair (Ryanair) will overtake flights from broken Adria.

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    Replies
    1. Wizz Air has already launched some flights and that's the most important. From there everything is easy.

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    2. which flights they can overtake from Adria?

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  12. LIS and MAD for over Atlantic flights, what is with north Africa Lybia,Algir, Spain: BCN, canarian islands? azorean islands? both with better cooperation with touroperators? what is with airlinks in summer DBV,SPU? you have more than.... potential! maybe with semi-low cost offer to LJU or MBX.

    ReplyDelete

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