Sunday, October 25, 2015

Adria seeking €8 million capital injection

Adria in need of fresh funds as liquidity issues arise

Adria Airways says it is seeking an eight million euro capital injection, a move that is likely to have a strong impact on the carrier's ongoing privatisation process. The Slovenian Sovereign Holding (SSH), which is overseeing the sale of a 91.58% share in the airline, says the capital injection is required in order for Adria to boost its liquidity. "This is in the interest of existing shareholders as well as potential buyers", the SSH notes. It adds that "a closed circle of investors" have been invited to participate in the capital hike. In return, they could be offered shares in the airline, meaning Adria could be privatised via a capital injection, a strategy which has been used in the ongoing sale of the Slovenian tissue maker Paloma.

The SSH revealed in early October it had received several bids for Adria. According to the business daily "Finance", prospective buyers are demanding a write-off of Adria's debt, both financial and operating liabilities. Earlier this week, the Slovenian government said there would be "no hold up" in the airline's sales procedures, while the carrier’s CEO, Mark Anžur, believes the process will be completed in “several months”. Local media report that Adria is facing its biggest financial challenge since 2011, when it successfully negotiated a cash injection with stakeholders, banks and business partners in order to continue operating. The airline recently admitted it is "in need of fresh funds as winter remains a problem due to weaker performance", but added it has "no problems with liquidity".

The Slovenian Ministry of Finance has said it is aware of ongoing liquidity issues at the airline. "The Ministry of Finance is aware of the liquidity problems at Adria Airways. The company cannot be granted state aid to tackle its liquidity issues for another ten years since it has already received restructuring aid", it said in a statement. Adria benefitted from three public capital injections in 2007, 2009 and 2010, amounting to around 15.2 million euros. Furthermore, in 2011 it received fifty million euros worth of state aid. So far this year, the carrier has seen its revenue decline as it plans to sell its remaining assets in order to boost liquidity. It is in the final stages of selling shares in its flight school and Amadeus Slovenia. 

43 comments:

  1. I don't understand whether they are offering the full 91% to one buyer or whether they will break it up. That makes much more sense because then non-EU buyers could participate. Maybe they will offer a number of shares for these 8m to some investment firm (they said they were interested) and the rest to some non EU buyer.

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    Replies
    1. 8 million is a really low price for shares. Then again I wonder what their debt is if potential buyers are asking for it to be written off.

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    2. If you take Adria's assets, substract the amount of debt Adria has, you will see that even 8 million is too much.

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  2. Well this is the cherry on the cake of Mark Anzur's 5 year strategy. The company is still not liquid without state help.

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    1. The entire program is aimed at adding routes and increasing passenger numbers. At the same time their revenue per passenger is getting worse and worse.

      Delete
  3. Voziti Slovence i goste kosta, voziti okolo Albance i Poljake na racun slovenackog budzeta priceless.

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    1. And how do you know that Tirana, Priština and Lodž services are paid from Slovenian budget? Could you pleas elaborate on that?

      Looking forward to your answer.
      Kind regards

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    2. Adria never maid any profit in SFRJ nor in Slovenia.

      Delete
  4. I know it's completely OT, but what is happening to BEG.aero flight information? MANY flights are missing from the live feed, including LH, EY, YM...

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    Replies
    1. It says they are having technical problems on the website.

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    2. Beg.aero sajt je godinama smesan! Plus poslednja verzija je u velikij meri nazadna u odnosu na pretposlednju. U svakom slucaju smesan sajt za jedan aerodrom (postoje maksimalno 3 pozicije za kod ser brojeve, pretraga ne radi kako treba, dizajn katastrofalan, nepreglednost, lose optimizovan za mobilne uredjaje...)

      Delete
    3. +1
      Visited site after some time and found it user unfriendly

      Delete
    4. Koliko neozbiljan treba da budes, da prvog dana zimskog reda letenja, nemas na oficijalnom sajtu aerodroma sezonski red letenja za taj period?

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    5. Ne neozbiljan si kad to nemaš mesec dana pre zimskog reda letenja. Ako to nemas prvog dana zimskog reda letenja onda si katastrofa.

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  5. Adrias inflight mag used to be an award winning one with terrific photographs and interesting articles. Adria was famous for those prints and now the fools at JP topmgt have given up on it. A good example of missmanagement how to cut on a tool which made yr company visible and identifical
    More fool u can t be

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    Replies
    1. Adria will not cancel his In-Flight Magazine (in print version), wait until december and you will see what Adria prepares for his passengers.

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    2. btw. what is the source of cancelation of In-Flight Magazine?

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    3. Magazine is going. Anzur said so. The latest addition is for a three month period and has never been smaller. They will make the magazine digital only.

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    4. Magazine content will be loaded into in-flight entertainment tablets, no?

      Delete
  6. U ZADNJI ČAS DOZVOLJEN CODE-SHARE AIR BERLINA I ETIHADA ALI NAGLAŠENO DA JE TO ZADNJI PUT

    Njemački regulatori samo dva dana prije zimskog reda letenja dozvolili su code-share Etihada i Air Berlina. Ovo je već treći puta da su code-share dozvoljeni, ali da isto nije prošlo glatko. Ova dozvola je bila za očekivano no isto je vrlo indikativno tj. odugovlačenje do zadnjeg časa i oštre poruke jasno su pokazivale da je strpljenje njemačkih regulatora došlo do kraja. Očito je Lufthansin napad na MEB3, a posebno na Etihad (koji se okomio na Lufthansu ekspanzijom na Air Berlin, Etihad, Darwin i Air Serbiju) vrlo širok i koordiniran na svim poljima:

    - uvođenje jakog low costa Eurowings koji osim Colognea ima baze i u najvećim Air Berlinovim bazama: Dusseldorf, Hamburg, Vienna, u drugoj fazi Berlin (i to ne na Schonefeld što bi bio napad na easyJet i Ryanair nego na Tegel što je prvenstveno napad na Air Berlin), Stuttgart, te najave baziranja i izvan Njemačke vrlo vjerojatno Zurich, Geneva, Milano, Rim i Zagreb

    - uvođenje low cost long-haul letova prvenstveno iz Berlina (gdje i njemački regulatori traže najveća smanjenja code-share Etihada i Air Berlina)

    - vrlo nagla ekspanzija u regiji i to u kratko vrijeme (2015-2016): Swissa na prostoru exYU, pokretanje Brusselsovih letova za Zagreb, najava Aegenove ekspanzije u regiji, vračanje LOT-a u regiju (Beograd, Zagreb), Adrijino povečanje letova, Lufthansino povečanja kapaciteta i frekvencija u regiji kako vlastitim linijama tako i kroz code-share na OU linijama (prvenstveno Hrvatskoj gdje se konstantno povećavaju frekvencije iz MUC za Pulu, Rijeku, Zadar, Split, Dubrovnik, ali i veličina zrakoplova za Zagreb), najava novih letova Croatie od 2016. prvenstveno za Istočnu Europu

    - isto tako dolazak velikog broja regionalnih aviona tijekom 2016: 17 Embraera 195 u Austrijan, CS100 i 300 u Swiss (čak 30 komada što je daleko više nego samo zamjena za 16 RJ 100) i Embraera ili CRJ u Croatiu (2 dodatna aviona), po jedan CRJ700 i CRJ900 u Adriju, svakako su najava dalje ekspanzije u širu regiju

    - najava Njemačkih regulatora za smanjenje code-share letova sa 65 na tek 36 što je vidljivo da je Lufthansina kuhinja

    - istrage europskih (i lokalnih) regulatora protiv Air Serbie, Alitalije, Etihad Regionala (Darwin), te Air Berlina, od kojih neke još uvijek traju, a za neke od tih istraga zna se da je inicijativa došla iz Lufthanse

    - pregovaranje (a to je vrlo indikativno) oko kupovine Croatia Airlinesa, a ne bih se začudio da se tajno vrše pregovori i sa Adrijom koja se prodaje u isto vrijeme (jedino pitanje je ima li Lufthansa volje i novaca za kupovinu jedne ili obije od ovih kompanija i stvaranje baze Eurowingsa + CityLinea u ZAG i/ili LJU kao udarac na Air Serbiju i Alitaliju)

    U svakom slučaju njemački regulatori su naglasili da je ovo zadnji puta i da više neće dozvoliti ovako velik code-share Etihada i Air Berlina, te su dali rok ovim dvijem kompanijama do 15.1.2016. da sami smanje broj code-share linija. Upitno je čak 29 code-share linija među kojima su posebno problematične linije iz Berlina i Stuttgarta za Abu Dhabi. Regulatori upozoravaju kompanije da sami prebace code-share na interline i da na vrijeme spriječe probleme koje bi potencijalni putnici mogli imati jer će u protivnom regulatori sami ukinuti code-share linije na štetu prijevoznika (kompanzacije putnicima).

    Etihad se ne slaže sa regulatorima i naglašava da su code-share rute koje su Etihadu otvorile nove destinacije glavni razlog zašto je Etihad investirao u Air Berlin. Etihad ističe da je code-share partnerstvo Air Berlina sa Etihadom Air Berlinu donjelo 252 milijuna EUR dodatnih prihoda od 2012. godine. Etihad nije objavio koliko je tih prihoda sam ostvario po toj osnovi. James Hogan, CEO Etihada, naglašava da bi ukidanje ovih code-share ozbiljno naštetilo Air Berlinu, te čak spominje da bi isto moglo potpuno uništiti Air Berlin.

    ReplyDelete
    Replies
    1. If your interesting comments wld just be in english Purger we could all participate on yr discussion

      Delete
    2. Svaki put ce se odobriti codeshare.
      I ni jedan Avion Eurowingsa nece biti baziran u ZAG niti postoje takvi planovi.
      INN-NS

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    3. u nadmetanju velikih nastradace mali: ADR, CTN i ASL

      Delete
    4. aha, what happened with free trade, fair and open market game etc. that goes only for non-DE/FR/UK/NL... companies that should be crashed formall the rest there are regulations...

      ...and not to get me wrong, I do support regulations ...but lets not be Hippocrates... that is pissing me off.

      Delete
    5. This is the death of any illusion of a free market in the EU. Since LH cannot compete on price, network or product, they're trying to protect their position through courts and agencies. It's the swansong of a seriously misguided carrier that would have crumbled years ago if not for German corporate contracts.

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    6. Yeah, that's democracy, freedom, equality and justice in action for you, you can do as you please as long as you don't bother the big ones, when you bother them they will ruin you in a democratic and legal way.

      Delete
    7. Samo vas Purger lozi AA i CTN idu pod led zabole Nemce za njih da bacaju pare. Avion dva Eurovingsa po aerodromu to je sve sto dobijaju.

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    8. Etihad should not have invested in airlines that are not fully supported by their home country.

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    9. Pa ni ne mislim da će biti više od avion-dva Eurowings po aerodromu. Mislim da je realno da A320 imaju:
      - 3 u Zagrebu
      - 2 u Splitu u sezoni, 1 izvan sezone
      - 1 u Dubrovniku u sezoni, 0 izvan sezone
      - 1 u Puli u sezoni, 0 izvan sezone

      CityJet baza
      - 3 u Zagrebu

      CityJet linije sa Embraer 195 (iz baze u ZAG i MUC):
      - ZAG-MUC 4x
      - ZAG-SPU 2x
      - ZAG-DBV 3x
      - ZAG-SJJ 1x
      - PUY-MUC 2x
      - ZAD-MUC 2x
      - RJK-MUC 2x
      - DBV-MUC 4x
      - SPU-MUC 4x
      - OSI-MUC 1x

      Linije Lufthanse:
      - FRA-ZAG 5x
      - FRA-SPU 2x
      - FRA-DBV 1x

      Linije Swissa
      - ZRH-ZAG 3x
      - ZRH-PUY 1x u sezonu
      - ZRH-SPU 1x
      - ZRH-DBV 1x

      Linije Austriana
      - VIE-ZAG 5x
      - VIE-PUY 1x
      - VIE-RJK 1x
      - VIE-ZAD 1x
      - VIE-SPU 2x
      - VIE-DBV 2x

      Croatia Airlines the end. Manje linija iz Zagreba, no više drugih prijevoznika.

      Eventualno bi zbog jeftine radne snage u Hrvatskoj mogli preuzeti i letove za FRA, te dio za VIE i ZRH te imati još dodatno baziran CityJet avionu u ZAG, SPU i DBV.

      Hoće li LH kupiti OU ovisi o cijeni, što time dobivaju, stanju u kompaniji (u kontakstu svakomjesečnih štrajkova teško bi bilo objaviti kupnju jedne ili dvije kompanija), zainteresiranosti konkurencije (to je i te kako dobra motivacija), strategije kompanije koja je samo djelomično poznata javnosti.

      Delete
  7. I think Adria could have been the regional player Air Serbia wants to be today. It could have taken over all of ex-Yu, the potential was there, 15 years ago, or even more. They will never ever have that chance again.

    ReplyDelete
  8. OT: evo kako izgleda go around Air Serbie u Splitu. RWY 23 nema ILS i na prvom prilazu su bili malo visoko:
    https://www.youtube.com/watch?v=brTh64_c7cc

    ReplyDelete
  9. Дечко ТзарOctober 25, 2015 at 7:54 PM

    OT: According to flightradar, all Air Serbia flights today were operated only by ATR and Airbus planes. If this continues in the coming days, it might confirm news that old Boeing 737s were planned for retirement with the start of winter season.

    ReplyDelete
    Replies
    1. Tomorrow there is B733 flight to Moscow, JU001.

      Delete
  10. Banjaluka Airport takes 7,000,000KM loan from the Development Bank of the Republic of Srpska.

    ReplyDelete
    Replies
    1. Da mi je znati za sta?

      Za Cargo "terminal"?

      Siguran sam da ce novac biti ulozen uzalud, jer je udarni karo aerodrom Sarajevo, a Tuzla je vec preuzela kompletan kargo saobracaj iz Sjeverne Bosne prema Turskoj.

      Zar nije pametnije uloziti 7 miliona KM u BITNIJE stvari, na primjer u bolnicu u Kasindolu koja izgleda kao u Zambiji?

      Delete
    2. It is proven the current BNX Managing Board is not capable of running an international airport so all four directors must be dismissed, and the sooner the better. They have ruined the company to the bone so they will trifle away that 7 million loan too.

      Delete
    3. Po izjavi direktora, sa 7 miliona, direktor će:

      - platiti izradu master plana i tehničke dokumentacije za gradjevinske objekte visoke i niske gradnje.

      - izgraditi kargo objekte odnosno kako on to izjavi, "kargo centar" . Osim svega ostalog, taj centar npr mora sadržavati i veliki poslovni objekat tipa hladnjače za bar 50 tona ohladjenog, dakle ne smrznutog nego svježeg mesa. Neću detaljisati oko toga šta još kargo centar sve mora sadržavati, ali mislim da je dovoljno reći da je to baš posebna priča u odnosu na putnički dio aerodroma, da ne kažem aerodrom za sebe.

      - izgraditi odnosno proširiti putnički terminal za opsluživanje "ozbiljnih vazduhoplova", kako to direktor iznosi u prilogu atv-a na ovu temu.

      Link: https://www.youtube.com/watch?v=iv8jdxfs054#t=80

      Izgubili su ustaljenu, i provjereno dobru, BH Airlinesovu liniju ka Cirihu, uprava nije našla zamjensku kompaniju.
      U prilogu atv-a, novinar prenosi da uprava na čelu s direktorom ne razmatra uvodjenje novih linija.

      Ali novinar navodi da će za tih 7 miliona nabaviti i novu opremu koja će zamijeniti staru i prikazuje GPU za startanje "ozbiljnih" vazduhoplova.
      Kad bi se sve to moglo napraviti sa 7 miliona, i ja bih uzeo kredit i izgradio privatni aerodrom za prihvat i otpremu "ozbiljnih" vazduhoplova, pa zgrtao pare.
      Koliko ja znam, jedan dio zaposlenih u tom aerodromskom operatoru smatra da je firma u potpunom haosu.

      Sve u svemu, meni direktorova priča po medijima sve više liči na predizborna obećanja bez pokrića.

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  11. Iran Air EP-IBB performing flight 720 FRA-IKA via BEG went tech last evening in Belgrade. Possibly photos indicate issues with the port side engine. A replacement aircraft EP-IBA A30B was dispatched and left Belgrade at 02:30 local time. The incidented aircraft left Belgrade the following morning after spending more than 12 hours in Belgrade. Photo credits to Nemjee

    https://pp.vk.me/c629325/v629325496/1ab0c/NwvgGt6y-Ns.jpg

    ReplyDelete

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