Wednesday, December 16, 2015

Adria eyes entry into Hungarian market

"New opportunities opening" as Adria considers new market

Adria Airways is hoping to enter the Hungarian market and develop into a bigger regional player, according to the Slovenian government. The Minister for Transport, Peter Gašperšič, is confident the carrier will grow under the European Union’s new aviation strategy, noting that “new opportunities are opening up” for the airline. According to the minister, Hungary will grant carriers concessions for several routes, adding that, “Adria could easily win deals there". The news comes after the European Commissioner for Mobility and Transport, Slovenia’s Violeta Bulc, urged all parties within the Slovenian aviation sector last week to develop into regional players. Mr Gašperšič is confident the country's aviation industry can thrive. Ljubljana Airport is already in private ownership and is successfully developing business plans, with cargo volumes and passenger numbers growing. Furthermore, Maribor Airport has been investing heavily and is "planning activities that are headed in the right direction", he said.

Adria's potential entry into Hungary would open up yet another new market. The airline recently began full commercial and operational cooperation with Nordic Aviation Group from Estonia, which the carrier expects will result in a “long-term alliance in the regional carrier sector and a search for synergies, which is the key to the success and survival of all regional airlines in Europe”. While details of the agreement have never been disclosed, Estonian media speculate Adria received three million euros from the Estonian government as part of the deal, although Nordic Aviation has refused to comment on the matter. Besides Ljubljana, Adria has opened bases in Pristina and Lodz over the past few years and is expected to base an aircraft in Tirana in 2016, with the opening of its fifth route from the Albanian capital. Earlier this year, Adria's CEO, Mark Anžur, said, "The question is, what are the chances for further expansion out of Ljubljana. We should not rush from there. Strategically, we want to be a European carrier and not only a Slovenian carrier. We are embracing internationalisation. There are many reasons for this. One of them being that the Slovenian market is very limited". While the carrier looks to develop its operations, the Slovenian government has reiterated that Adria's sale is a top priority. The state has received several bids for a 91.6% share in the airline.

The Hungarian aviation market has seen a shake-up since the demise of Malev Hungarian Airlines in 2012. This month, Budapest Airport handled its ten-millionth passenger for 2015, making it the busiest year in the airport's history. It has recorded passenger growth of 22% over the past five years. During the past twelve months alone, Budapest Airport added three new airlines to its portfolio (Air China, Air Transat and Iberia) and inaugurated eighteen new routes. The airport is served by 44 airlines connecting the Hungarian capital with 100 destinations this year. Furthermore, Debrecen Airport in eastern Hungary is continuing to expand its business with Wizz Air opening a base there this year. Furthermore, Lufthansa has announced it will launch flights from Munich to Debrecen next summer season.

78 comments:

  1. You cannot be serious.

    ReplyDelete
  2. Adria Airways se polako pretvara u low cost kompaniju.

    ReplyDelete
    Replies
    1. Low cost? Kakve su im cijene? O cemu pricamo?

      Delete
    2. Lowcost ne znaci i low fare.

      Delete
  3. Interesting strategy from Adria

    ReplyDelete
  4. So they ARE considering Maribor (MBX) for next summer season... At least one good news.

    Haplek

    ReplyDelete
  5. This was said by a politician so I will take it with pinch of salt. ex-Yu politicians are known for grand announcements.

    ReplyDelete
  6. Forgot Violeta Bulc was the EU Commissioner. Estonia deal now makes much more sense ;)

    ReplyDelete
    Replies
    1. And then some people on here said that politics and EU policies don't mix. ;)

      Delete
  7. I think that their strategy is totally correct. Slovenia has a very small market , and making business anbd conecting neighboring countries, Adria can become successful regional airline! The only problem that I can see is their fleet type, instead of jets they should be using more turbo props such as AT72 or Q400, that way they can improve profitability as well.

    ReplyDelete
    Replies
    1. Does Q400 burn less fuel than CRJ700 or CRJ900? Not sure about that. And CRJs are way more flexible. They can use CRJ900 for longer (medium haul) flights (SVO and such) which would be way too much for Q400 or ATR72.

      Haplek

      Delete
    2. Q400 burns less fuel and it's cheaper but not as flexible as CRJ900.

      Delete
    3. Does Q400 burn less fuel than CRJ700 or CRJ900?

      Of course it does. Significantly less.

      Delete
    4. Especially the CRJ 700, its def a guzzler. No idea why planes such as CRJ 200 and 700 were ever produced

      Delete
    5. @ Anom 2:37PM

      These planes were designed in the 1990's before anyone had any idea low cost carriers would come and transform the aviation industry.

      During this period of very low fuel prices the thought was that the CRJ 200 and the Embraer 145 family of aircraft would completely takeover the regional turbo prop market. The planes made sense at that time and I can still recall some of the hype.

      Maybe in 10 years time we will be asking the same question about other aircraft type.... The A380 come to mind.

      Delete
    6. Q400, buddy, WN (Southwest) - the mother of all no-frills airlines, started operating in 1971. So, saying in 1990 no one had any idea about the 'low-cost' model is incorrect.

      Also, aircraft manufacturers are looking at trends 30 years now. You can't say that no consideration has been given to these issues when the A380 was conceptualized, designed and built. If the longhaul 'low-cost' model does take off, eventually, A380 will be ideal for many operators.

      So, while no one can predict the future, these things were considered and a calculated risk was taken. As the term impliesy, some risk taking leads to failures. Wrt CRJ200 or CRJ700, well, risk analysis concluded that jets were the way forward for X airlines, Y would turn to props, and that Z number of passengers would be prepared to pay more to get to their final destination faster and in more comfort. These studies are done jointly with airlines, who have an interest for the right airplanes to be built that fit their business model. A380 clearly has not worked as expected, but it's far from being dead in the water.

      Delete
    7. Hey Visit Kosovo,

      Even though southwest was around for years by the 1990's it was still a unique concept in terms of air travel and not a worldwide phenomenon. Low cost carries came in force at the turn of the century and made flying a lot more affordable and increased point to point travel between many secondary cities making the 50 seat regional jet market almost irrelevant.

      Also, many of the smaller cities which were going to be key for the 50 seat jet market are actually now seeing larger regional aircraft like the Embraer 175 family. Flying has now become so cheap that demand has in many cases overtaken the 50 seat aircraft market so more capacity is needed where these jets were going to be used.

      The A380 is at a major pivot point at the moment. If Emirates turns out to be the only customer for the A380neo than they will need to commit to a lot more planes for Airbus to stay with the A380.

      Even the higher capacity low cost carrier market you mentioned seem to be looking for smaller more fuel efficient aircraft they can use to increase point to point travel again bypassing the traditional hubs. (Changing from high capacity 777's to the 787 for example)

      If this changes in the future... ???

      Delete
    8. Q400, it will certainly be interesting to see what happens with the A380. A fascinating story in the history of the aviation, in my opinion.

      Btw, at least as far as Europe is concerned, the pivotal moment in the development of the no-frills model was the EU deregulation. I would be interested to know if any of the aircraft manufacturers included this factor in their studies when planning new models.

      Delete
  8. Sledeca meta je Hrvatska, tesko ce se OU odbraniti od ovog ocigledno politicki motivisanog projekta.

    ReplyDelete
    Replies
    1. Pa što da se to i dogodi, neka ugase OU ako nisu sposobni, nije da nisu imali prilika da postanu respektabilna kompanija! Ako se OU ugasi, druge će kompanije preuzeti njihove linije, uostalom, zašto ne i Air Serbia ili Adria?

      Delete
    2. Welcome Adria to Croatia! But I don't thing so. Their expansion is motivated by Lufthansa and LH has partner in Croatia.

      Delete
    3. @Purger: you think, you don't "thing"

      Delete
    4. Izgleda je LH pronasla novog favorita u regionu. OU je sada u ulozi nevoljenog deteta - vrlo zanimljiva situacija na zapadu ex-yu prostora. Da li je ovo samo nesposobnost uprave ili je prica nesto sira vreme ce pokazati.

      Delete
    5. Da je, pronašla ga je. I to Austrian. JP ipak u cijeloj priči ima mrvice kojima se održava na životu, za sada neuspješno. No, ako želite reči da je JP daleko više mažena i pažena od OU onda je to apsolutno istina.

      U Elaboratu za CTN resornom ministru, predsjedniku RH i direktorima CTN-a sam prezentirao i tu analizu kojom sam rekao:

      - OU nema ni izbliza status u regiji kao JP

      - LH u regiji prvo podržava svog pulena OS (što je i logično), a potom svog pulena LX, potom JP, a tek onda OU.

      - upravo zato sam smatrao da bi prelazak u SkyTeam, još bolje u oneworld bio daleko bolja opcija. Ni jedan od tih alijanci nema feedera u regiji (SkyTeam nešto malo ima preko TAROM-a i ČSA, nešto više preko Alitalije, no to je još uvijek malo, dok oneworld apsolutno nema partnera u široj regiji).

      Delete
    6. cenjeni kolega, vi pricate o proslom vremenu i potpuno ste u pravu. trenutno je u toku nova podela karata u regionu i tu OU ne stoji bas sjajno sto ste delimicno i vi prepoznali.

      Delete
    7. Ali s obzirom da se karte dijele i u drugoj rundi, moguće je da će OU izvući asa iz rukava :)

      Delete
    8. Isto tako je moguce da nece. :)

      Delete
    9. This comment has been removed by the author.

      Delete
    10. Tu nema srece...treba nesto pokazati i ne samo cekati da nesto padne sa neba

      Delete
  9. Go Adria, nice to see someone trying something new!

    ReplyDelete
  10. Adria (or Nordic Aviation) new one weekly Tallinn - Salzburg

    ReplyDelete
  11. OT Qatar Airways adds 15 minutes' free inflight wifi
    http://www.businesstraveller.com/news/102383/qatar-airways-adds-15-minutes-free-inflight-wifi

    ReplyDelete
    Replies
    1. - Bleeding money intelligently, an airline with brains

      That's the way it's done. Kudos to Qatar once again. QR will be the first to offer free Wi-Fi to passengers, setting them once more ahead of the game. A clear underdog at first, with stellar service and diligent pricing they've been able to capture an ever-increasing fraction of the Belgrade market, set to increase even more with the introduction of direct flights next year. At the end their investment will pay off, unlike with other airlines which are impatient to get some cash-back on their wireless investment. Wi-Fi should be free for all passengers for at least 15-30 minutes on the flight to Abu Dhabi in order to make it competitive, especially given the absence of IFE and the crappy content/near-dilettante level of the Elevate in-flight magazine.

      Delete
    2. What do you mean by the first to offer free wifi? Norwegian offers free wifi.

      Delete
    3. Emirates also offers free wifi

      Delete
    4. I think he meant from BEG to the Middle East.

      Delete
    5. Wi-Fly's price is way too expensive.
      Instead of offering it for free they should lower the fees.

      Delete
    6. When I asked an Air Serbia employees about this they told me they can't change the pricing because it is set by Panasonic itself.

      Delete
    7. From BEG to the Middle East. Instead of lowering by making it free you can make people use it and actually want to prolong it, for what they'll pay the fee whatsoever the finish the work they were on.

      Delete
  12. Another Munich route for Adria :D

    ReplyDelete
  13. Makes sense really, but it'll only work if they come in with totally new destinations or the low-cost model. BUD is great that t has so many low-cost options, but at the moment it's all just point to point. If they could undercut some of the flag carrier, and also connect on to the *A network at the same time, I don't see why it couldn't work.

    ReplyDelete
    Replies
    1. flights to SJJ, SKP, ZAG, SPU, TGD, CLJ, TSR, TIA, PRN

      + connection to LH/LX/OS/SN flights that already exist

      + connection to all other Star Alliance members

      + few routes for Star Alliance which does not exist in this moment

      + interline for other airlines for feeding their routes especially out of Europe and they can not make it wrong!

      Delete
  14. OT: Od 01.06.2016 FlyDubai dva puta nedeljno za Podgoricu.
    http://www.aviatica.rs/flydubai-planira ... u-i-dubai/

    ReplyDelete
  15. Wizz Air is opening its Debrecen base today. I wouldn't be surprised if wee see Adria operating some Lufthansa leftovers from there.

    ReplyDelete
  16. JP se malo cudno ali dobro snalazi, jos malo pa ce u svakoj EU drzavi imati po bazu jednu .
    Ali ovo nista nebi moglo da se desi bez podrske LH sto i nije toliko lose posto ce zaposleni ostati na radnom mestu.
    Ali isto se vidi kako LH,LX i OS mnogo vise saradjuju sa JP nego OU sto potvrdjuje da ce CTN imate sve vise problema u sopstvenoj Alijansi a pogotovo naci kupca.
    INN-NS

    ReplyDelete
    Replies
    1. Slažem se. Uz napomenu da sam potpuno siguran da je to stvar nesposobnosti uprave, jer OU ima daleko jače potencijale, no i daleko nesposobniji management. Već sam nemalo puta rekao da je indikativno da JP leti 100% letova za FRA, MUC, TXL, VIE, ZRH, BRU, dok OU leti oko 50% tih letova iz ZAG i drugih HR aerodroma, JP leti niz linija za LH iz trećih aerodroma, OU ni jednu jedinu! Mudrome dosta.

      Delete
    2. This comment has been removed by the author.

      Delete
    3. I ja mislim da uprava ne zna konkretno sta hoce ili bolje receno nemaju viziju nikakvu.
      Ja da se pitam dao bi CTN za bilo koj usvotu novca MT/DE zbog odlicnog napredka i mogucnost sezonskog stacioniranja 1 A332 i onda bi jos bolje napredovao turizam u HR ali cisto sumnjam da je bilo ko za to zaintresovan.
      INN-NS

      Delete
    4. Kaj god! Zašto bi Hrvatska pristala da OU postane charteraš? Koja bi bila svrha toga, cilj, razlog. Pa Hrvatska treba nacionalnog prijevoznika, ako si ga ne može priuštiti onda je bolje da ga pokopa i da ostavi ostalima da preuzmu tržište. A može si ga priuštititi, zašto bi ga onda svela na charteraša koje ima i ovako i onako. Pa daleko bolje da je ovakva kvakva je ako se ne može prodati.

      Znaš li ti INN koja je misija i vizija CTN-a. Ti govoriš o potpunoj izmjeni strategije. Misija i vizija su definirane od vlasnika. Koji bi razlog bio da je mijenja?

      Delete
    5. Znam koja je vizija ali se uprava ne trudi da bilo sta popravi.
      Ja nebi nista rekao da CTN otvara nove linije pa neka gubi koliko hoce nije moj problem ali ovako je samo feeder to mi je bezveze zbog toga sam mislio je bilo kome prodati da nije na drzavnom trosku.
      INN-NS

      Delete
    6. Bolje biti i feeder sa 30 linija i time povezivati Hrvatsku sa svijetom direktno ili preko FRA, MUC, VIE, ZRH, CDG, AMS, LHR, CPH, BRU, BCN, FCO... nego charteraš i time samo dovoziti turiste, ali izolirati državu, ne omogučiti gospodarstvenicima, dijaspori, građanima, strancima... vitalne linije i povezanost.

      Delete
  17. ot: Air Serbia codeshare to Miami and Chicago with airberlin is not available. When is it going to be offered for sale?

    ReplyDelete
    Replies
    1. When is the FAA's approval coming.
      Maybe they need to focus on that issue first.

      Delete
    2. They don't need FAA approval for airberlin codeshares, no reason to wait.

      Delete
  18. Ja stvarno ne mogu vjerovati da je ctn uprava tolko nesposobna. Bas sto Purger kaze, pa kolko samo turista dolazi, pa je Hr veca nego Slo... Mada smo za sad ipak nize platezne moci. Ali i ova Adria, buduci da i za njih vrijede EU pravila, skoro pa su mi sumnjivi kako uspijevaju plivati iznad vode.

    ReplyDelete
    Replies
    1. Zabole turiste da lete sa aviokompanijom kojoj strajkuje osoblje. Vidis samo kolike gubitke ima LH od strajkova.

      Delete
    2. Ne kuzim sta si htio reci. Ja sam htio reci da puno turista iz Europe dolazi u Hr i da bar jedan dio leti sa OU. Znaci ne ovisi samo o Hr putnicima nego ima i turiste. Treba samo posloziti poslovanje.

      Delete
    3. Aman za dva i po do tri meseca ne uspevate zaraditi za prevelike avione ostalih 9 meseci ti vas letnji putnici ubise i jos ih bole djoka da lete sa vama kad strajkujete. Dogovorite se sta hocete.

      Delete
    4. CTN štrajka? Jeli????? Čestitam...

      CTN ima pune avione od 5 do 9 mjeseca, zavidno punjenje u 4 i 10 mjesecu, te oko Nove godine. Ostale mjesece situacija nije bajna, ali nije ni smak svijeta. Dakle govorimo o 11, 1, 2 i 3 mjesecu, 4, a ne 9 mjeseci kako to vi navodite. U isto to vrijeme i easyJet i Ryanair imaju prizemljeno 25% flote. CTN ima prizemljeno 20% flote u tih 4 mjeseca.

      Delete
  19. Isn't it nice? Slovenian government subsidising flights from Hungary, Poland, Kosovo, Albania,...

    Too bad we don't sink more money into this black hole named Adria, so they could offer non-profitable flights from some other countries as well.

    ReplyDelete
    Replies
    1. Maybe internationalization is the only way for Adria to make some money, since they weren't successful when they were flying only from/to Slovenia.

      I don't like idea of subsidising flights either.

      Delete
    2. No GOV SI doesn't subsidise Adria any longer becasue has no option to do it. Pls do not spread misinformation and troll arround

      Delete
    3. JP is at least proactive and looks for solutions and try to surrvive.

      Delete
    4. Of course moving focus out of LJU alone is a way to survive for Adria, but not with Slovenian taxpayers' money.

      Well, SDH is thinking of ways to inject another couple of million € (although alongside a phantom private investor), so I would call that government subsidising.

      Delete
    5. Well Adria is paying app 25 mil euro per year to budget with taxes so if they get 5 mil per year it is still worth keeping it. But of course everybody just says how they are geting money. And if Adria goes bankcrop belive me there will be flights from lju only to bru vie muc fra and maybe one per day

      Delete
  20. I think ASL and JP should start direct flights to Kabul and Baghdad in order to get ahead of the game. Someday the flood of economic migrants will have to come visit their homeland. OH I forgot to add Karachi to the list. It seems now stupid, but wait and see.

    ReplyDelete
    Replies
    1. Naravnoo svi oni su se naguzili u Beograd ko pravi montanjari. It is stupid now as it will be stupid in future.

      Delete
  21. Mislim, da je Adria pronasla neki poslovni model koji radi. Moze se zvati hibrid ili bilo sto. Uspijela je na bilo kakav nacin. Neka to bude lobiranje ili dobri kontakti sa LH (citaj *A) na koncu konca napravila je zadacu. Ne mogu si zamisliti da upozadini ne stoji neki stric.

    Najvise mi smeta jee tu svi nesro kukaju i cvile kako je to politicna odluka. Mozda je a i mozda nije. Tu na balaknu svi misle da jim nesto pritice zbog toga sto misle da su veci od drugih. Kapitalizam ne radi na tim floskulama...potrebno je nesto odraditi da te prihvate.

    ReplyDelete
    Replies
    1. Samo nemate profita na tim linijama samo se trosite. MBX ste odmah ugasili.

      Delete
    2. To me, this all just looks like a bad PR move from Adria. Opening bases all over the place, flying once a week to some strange routes.. and they basically have like 2 planes... (and r in debt)
      For how long this will function? probably until the bills start rolling.

      Delete
  22. Smart idea, some regional flights from Sarmellek, Pecs or even Gyor-Per could work with a small aircraft.

    ReplyDelete
  23. Has anyone seen the brilliant video made by OU? :D

    https://www.facebook.com/croatiaairlines/videos/1207606782586908/

    ReplyDelete
    Replies
    1. Excellent video, nice lady, obviously loves her job!

      Delete
  24. EasyJet announced Manchester-Tivat starting from March.

    ReplyDelete
    Replies
    1. http://www.exyuaviation.com/p/easyjet-launching-tivat-flights.html

      Delete
  25. JP adding LJU-CGN, cancelling LJU-IST route

    ReplyDelete

Before posting a comment be mindful of other participants and readers. EX-YU Aviation News does not tolerate insults, excessive swearing, racist, homophobic or any other chauvinist remarks or provocative posts with the intention of creating further arguments. Such comments will be deleted as soon as possible. The opinions expressed by those providing comments are theirs alone, and do not reflect the opinions of EX-YU Aviation News. Thank you for your cooperation.