Thursday, June 11, 2015

Slovenia poised to announce Adria tender

Potential investors from across the world contacted for Adria sale

Slovenia is expected to commence tender procedures for the sale of its national carrier, Adria Airways, soon, according to the country’s official news agency STA. The airline’s financial advisor, KPMG, is in the process of collecting statements of interest for a 91.58% stake in the company. The Slovenian Sovereign Holding (SDH), which is coordinating Adria’s sale, declined to put a firm timeframe on the privatisation process. “As part of the sales procedure, the financial advisor has contacted the widest possible range of potential investors from around the world. The sale of each company varies and we will not comment on a timeframe”, the SDH said in a statement.

The Union of Slovenian Pilots has expressed interest in purchasing a stake in Adria and has discussed the move at a general meeting last month. The pilots are seeking assistance in form of a loan from Slovenia’s union-owned bank, Delavska hranilica, which last year acquired a 57% stake in Maribor Edvard Rusjan Airport. Earlier this year, the Slovenian President, Borut Pahor, urged Qatar Airways to buy a stake in Adria. European Union laws allow foreign investors to own no more than 49% of its carriers. The country’s former President, Danilo Turk, initially proposed for the Qatari carrier to invest in Adria back in 2009. A year later, Qatar Airways CEO, Akbar Al Baker, ruled out a possible acquisition following talks with Adria’s management, noting that Qatar will instead focus on organic growth.

The CEO of Adria Airways, Mark Anžur, previously said it would be best to offer the carrier to small airlines or financial investors, as big European players have "problems of their own". Mr. Anžur added, “One problem is that a company from outside of the European Union can only take a 49% stake. Our choices are limited, so in my opinion we can realistically expect interest from Europe. We would like someone with a strong capital base, someone who would allow us to focus on growth and give us more freedom with our own finances. Of course, we can survive without a partner as well”. During Adria’s last privatisation attempt in 2012, when a 74.87% was offered, a total of ten parties submitted non-binding bids. Up until now, there has been no official word on who made those bids. Several national carriers from across Europe are seeking foreign investors including Croatia Airlines, Montenegro Airlines, TAP Portugal, Air Malta, TAROM and LOT Polish Airlines. Adria ended 2014 with a profit of 900.000 euros, its best result in seven years. It handled 1.1 million passengers, up 8% on the year before, with numbers continuing to improve during the first quarter of 2015.

53 comments:

  1. Good luck they will need it.

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  2. What I see as major problem for all ex-Yu airlines is that they are being sold at a time when many European carriers are getting privatized and they have much better chances. You can't say "but JU got sold" because we all know it was acquired on political grounds and not some business sense. Actually it wasn't even acquired as such. Etihad didn't give any money. It gave a returnable loan.

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    1. They will not get even the returnable loan. EU is evil for small countries.

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    2. Oh really? What about Latvia? Estonia? Malta? Bulgaria? As far as I know, EU was such an "evil" for them, that their air traffic and airline companies boomed, especially in Latvia. So, it might be something else somwhere else, as corruption, incompetence, global crisis, not EU stuff, don't you agree?

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    3. You don't have company in Bulgaria older than this century. Air Baltic is state owned too and without profit.

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    4. Etihad also got to unload Jat's debts to the taxpayers, get a sweetheart deal from BEG and continuous support from Serbia's government.

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    5. JAT debt was always taxpayers, never Etihads. Its not a sweetheart deal with BEG, it is part of financing from the government as per agreement. Support from the majority owner should surpise only those who never owned a business.

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    6. Air Serbia is Jat by another name. If the government wanted to sell the company debt free it should have sold it so as to get a part of the debt back.
      Instead it gave it to Etihad, passed the debt to the tax payers and on top of all that continues to finance the now private company.
      That is a very Balkan way of running a business...

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    7. The taxpayers were going to pay that debt either way. There was no option where that debt was not going to go fully to the taxpayers.

      There were three realistic options:

      Shut the company down and have the taxpayers pay the debt

      Continue running the company and accruing more debt, which will eventually lead to the first option

      Enter in a strategic partnership with a foreign airline, which no foreign airline would do unless Jat is debt free because no successful airline is stupid to accept such a deal when there are a dozen airlines MUCH better than Jat wanting a partner.

      If Serbia was a normal country, there would also be a fourth option where Jat could have been cleared of debt and a professional management team could have been brought in and a new fleet could have been invested in and all of this could have been done without Etihad or any other airline, but unfortunately that isn't a realistic option and there is no point in me even considering it.

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    8. Stop talking nonsense even in USA they have bloody protection from goverment and older jets.

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    9. Gospodine Aleksandre .
      1 Da nije bilo EY JAT bio u jos gorem stanj nego sto je bio do 2013 .
      2 BEG nebi imao danas toliko transfernih putnika kao sto ima danas .
      3 I dalje bi leteli 733 i nebi imali tako dobru uslugu,catering i WI-FI.
      4 Dali bi se znalo za JAT kao za ASL sada ?
      Nebi imali ovaku mapu destinacija kao trenutno.
      5 Dali bi toliko mladih Pilota i novih Pilota dobilo sansu kao u ASL ne i ostali zaposleni koji trose taj novac u Srbiji.
      6 I na kraju najbolje dali bi krajem ove ili pocetkom sledece godine poceli letoviui za SAD.
      INN-NS

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    10. Napadas ljude da ne znaju aerodromske kodove a ti prvi ne znas razliku izmedju JAT-a i Jat-a. Eto koliko znas o vazduhoplovstvu INN-NS.

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  3. I wonder which potential investors they contacted around the world

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  4. ОТ: Pictures from Ohrid (first Wizz Air flight from London) http://www.ohridnews.com/vesti/84790

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    1. There already is a topic about it http://www.exyuaviation.com/p/wizz-air-launches-ohrid-flights.html

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  5. OT:
    LJU May 128.411 pax +19%
    SKP 118k pax +7%

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    Replies
    1. Do you have numbers for BEG?
      Thank you.

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  6. Adria has much bigger problems then it seems on the surface. Their major issue is liquidity or lack there of. But I have to hand it it to them. They have great PR and it all looks shiny and great on the surface.

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    1. The PR part is a lot like Air Serbia. It all looks amazing on the outside but inside its "raspad sistema" as they say.

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    2. Agreed on the PR; they talk a good game but discontent amongst the cabin crews and pilots would suggest everything isn't as rosy as the management would like everyone to believe.

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    3. Could you guys name a single airline somewhere in the world, where one wouldn't find some fishy stuff under the shiny surface? All carriers try to look rosy and amazing while at the same time they cover some ugly stuff beneath. It is a tough industry that started relying on lies (a.k.a. PR) ages ago.

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  7. Is Adria still enforcing that Sky shop nonsense where you have to pay for food?

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    Replies
    1. They are on foreground of industry.

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  8. OT: we had OT from Ohrid and SKP/LJU airports today, so:

    In exactly 2 weeks Belgrade airport will get 4 new customs controls at first floor of Terminal 1, at least that was announced. Would be great to get some pictures of the progress or news from the airport on this.

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    1. Potpuno odsustvo bilo kakvih vesti o ANT. Kao da je uvedena neka blokada. Osim statistike i sporedne vesti o nagradi ANT za najbolje državno preduzeće u 2014, već duže vremena nema ni jedne novine ili časopisa sa vestima o prodaji, koncesiji, proširenju, udruživanju sa drugim manjim aerodromima. Totalni mrak, mora da je stanje potpuno katastrofalno kad nemaju ni jednu vest o važnim stvarima.

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    2. Ne postoji nikakav ANT, već i samo BEG.

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  9. Niko ziv osim mozda BY ili DE nece investirati u ADR ili CTN zato sto niko nece da baca pare u Regionu gde je vecina Aviokompanija dobro stojeca. Ili neka mi neko navede moguceg kupca ove dve kompanije.
    INN-NS

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    Replies
    1. We'll see ;-)

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    2. Pa ajde mi navedite jednog moguce a da nije LH grupa.
      INN-NS

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    3. Qatar*
      Singapore*
      Hainan*
      Delta
      China Eastern*
      China Southern*
      ANA*
      Cathay Pacific
      Biritish*
      Air China*
      Asiana
      Korean
      Turkish*
      Travel Service*
      Aegean
      Saudia

      * kupovali u prošlih godinu dana ili najavili kupovanje

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    4. ok all of them could be legit, but Delta haha come on man.

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    5. Yeah, just by including Delta in the list really shoots the credibility down and makes it hard for me to take it as seriously.

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    6. Delta is buying airlines. In last 10 years they bought shares in 6 airlines Virgin America including. Some of those were not so big.

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    7. Purger said...* Virgin Atlantic not Virgin America

      Also there should be * in Aegean* as they bought Olympic and open company in Cyprus.

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    8. Aegean will not buy OU, they won't even consider it. It's not their business strategy. They are strictly concentrated on the Hellenic region.

      They did not open a company in Cyprus, they re-opened a base there and they are building a mini hub. Truth be told, Cyprus has far more potential than Croatia.

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    9. Travel Service je jedin koji bi mozda kupio CTN niko ne zeli da baca pare u tako jak region.
      INN-NS

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  10. ot Šta radi Meridiana 737 u Beogradu, let iz Bejruta?

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    Replies
    1. Najverovatnije charter za vojnike.
      INN-NS

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    2. Boeing 737 also from Minsk, nice.

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  11. I'm wondering how much longer can these small airlines in the Balkan region survive. The era of gov subsidies is over, competition is huge, LCC & Legacy Carriers are ready to fill the gap if they fail (Malev).

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  12. Adria: Their major issue is liquidity or lack there of.
    You are right.

    They can't buy aviation fuel. Just anywhere.
    They are using empty credit cards. Most airports don't want to give them fuel. Because they do not pay and you can't trust them will (in a reasonable time).

    If you are stranded in Zurich or Moscow:..Adria will not give you any help. No hotel info because even if it's their fault (and pax right, International laws) Adria have no money to pay hotel accomodation. So theyx don't inform pax about their rights so no need to pay-refund hotel, taxi bills.

    It's happening all the time.
    The pilot has a credit card tp pay his own emergency bills go figure.


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    1. Wow this sounds like the early 80's for JAT.I remeber we made a fueling stop in Shannon,while travelling back to Toronto. In the ex Yugo the dinar was dropping in value, credits were not being issued, etc. Shannon wouldn't give credit to JAT for fuel. We as passengers were asked to give hard currency, to pay for the fuel, so that the flight would continue. JAT never returned the money to the passengers.

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    2. Didn't they sell and lease back two CRJ900 to improve the liquidity?

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  13. OT

    I just noticed that OU is sending its A319 on the ZAG-DBV-ATH route. Have the loads improved or are they responding to increased competition? I though they used to send the Q400.

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    1. I think a Q400 is in maintenance

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    2. Are Aegean's loads OK or are they flying half empty planes to DBV

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    3. They haven't started flights yet 15 June

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    4. I am sure the flights will do just fine as Dubrovnik is extremely popular all throughout the Hellenic world.
      I remember some years ago, Dubrovnik Airline used to have regular charter flights to Larnaca; it was summer of 2007 or 2008.

      easyJet even considered introducing LCA-DBV flights some years ago.

      Dubrovnik is equally popular in Greece and many Greeks go there for holidays.

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    5. Oh and btw, one of those OU BEG-SPU billboards in Belgrade is placed right in front of Air Serbia's HQ.

      Don't know if it was on purpose or not but it's hilarious.

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  14. OT:http://slobodnadalmacija.hr/Hrvatska/tabid/66/articleType/ArticleView/articleId/288799/Default.aspx

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    1. and airside? taxiways, apron ...?

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