Friday, May 6, 2016

Adria Airways sees stronger first quarter


Adria Airways has posted improved numbers during the first quarter, with the Slovenian carrier handling 198.084 passengers over the three-month period, an increase 6.81% on 2015. The figure was achieved despite the cancellation of its Ljubljana - Istanbul service in January. Passenger numbers on charter services fell 33% to 12.205, the airline said. It attributes the weaker figures to the suspension of its charter flights to Egypt following last year's downing of a Russian passenger plane over the Sinai province, in an apparent terrorist attack. On the financial front, the carrier said that low fuel prices and a stronger dollar had a positive impact on its performance, although no further data has been released. Adria's management has also refused to comment on its 2015 annual results, which are yet to be published. It is believed the airline recorded a net loss of some five million euros. Adria's 2014 annual results were made public in September 2015.

In March, Adria was acquired AA International Aviation Holding, an affiliate of the German turnaround fund 4K Invest. The holding acquired a 96.1% stake in Adria from state-run shareholders in line with an agreement which also envisaged a capital injection of 4.1 million euros. The new German owner recently published a takeover bid to acquire all of the outstanding shares at fifteen cents apiece. This values the 3.9% stake at less than 45.000 euros. Jan Palmer, who advises 4K Invest and urged the Estonian government to ink a commercial alliance with Adria over Nordica's operations late last year, says, "Adria has a very long history but it must become cost-effective now. Dare I say that Estonian Air was operating much more efficiently in its last months of operations than Adria is today. The investors [4K Invest] want to make changes at Adria and move forward quickly". Mr Palmer is also an advisor to Nordica.

The new management at the Slovenian carrier has made a number of changes over the past two months. In addition to suspending flights from Ljubljana to Stockholm and planned services to Cologne, it has also discontinued flights from Tirana to Brussels and Paris. On the other hand, the airline will launch flights from Lodz and Rzeszow in Poland to Paris next month, as well as from Olsztyn to Munich. It recently leased a Bombardier CRJ900ER aircraft and will operate a number of flights on behalf of Austrian Airlines and Air Serbia this summer season. Adria has also continued its cooperation with Nordica, which uses its Air Operators Certificate (AOC). According to an agreement between the two sides, the cooperation is set to last until the end of 2017, however, Nordica has said the deal is likely to be extended and deepened.

56 comments:

  1. Wonder why they didn't release any financial reports.

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  2. I guess Estonian passengers by Nordica are included in Q1 pax figures, making it impossible for further comparison, until the company publishes detailed reports (most probably never).

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    1. I agree completely. If these numbers include Nordica, then their passenger numbers without it probably decreased considerably.

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    2. These numbers are without Nordica.

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  3. Another change is that Adria is no longer charging for water on board!

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    1. But they still charge for everything else.

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    2. How much did they charge for water?

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    3. It's a hybrid airline. I don't know what people expect.

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    4. Ha, the ticket price is not hybrid at all

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    5. Water is a basic need of human body and also a universal human right. I do not expect anyone to charge it to people. Because when airlines do that, they may as well charge for (recycled) air in the cabin.

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    6. An info please,how much does a bottle 0.5L of water costs in Slovenia?Here in Greece it'between 0.15€ and 0.50€ in airports it's fixed price 0.50€

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    7. €0.20 - €0.40 depending on the brand

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  4. It's always good if numbers went up. Does anyone know the load factor?

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  5. I think a very interesting winter is coming up for Adria. Let's wait and see.

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    1. I agree. Unfortunately, I think they will cut a few more routes from LJU.

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  6. Love how EU transparency works.

    1. Jan Palmer hired as advisor to Estonian government over Estonian Air future
    2. Jan Palmer hired as advisor by 4K Invest, perspective owners of Adria
    3. Jan Palmer advises Estonian government to pick Adria over Next Jet as Nordica partner

    Isn't this some sort of conflict of interest?

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    Replies
    1. Aviatica is already working on this case.

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    2. haha, if it was Dane Kondic, than Aviatica would be on that case. this way, naaah

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  7. That can't be true. There is less flying (compared to last year), load factors aren't great, yet the results have improved. Must be the Estonian pax, as someone pointed out. I guess it's just a hype to quickly resell the company.

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    1. It is interesting that numbers at LJU have been doing well. So that means that foreign airline have been performing better than last if Adria is not doing well?

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  8. I wouldnt be surprised if in not so far future Adria stops flying from Ljubljana at all.
    We dont have to forget that Adria is a 100 percent private company now with zero obligations to anything Slovenian.

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    1. I don't think we will have such an extreme situation but I do doubt we will be seeing many new routes from Ljubljana any time soon.

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    2. At least it's good that Fraport is proactive in attracting foreign airlines to LJU.

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  9. Compensating numbers with Nordica is an indication that figures fell.

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  10. Do you people think 4K will eventually sell Adria?

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    1. That's their objective.

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  11. First lay offs at JP were already spoken out....maybe admin can check on figures, aparantely some folks also left on their own
    it will be quite some headaches and challenges for 4K to turn JP back to profits, but I have the feeling they will manage. JP has a good product, it would be a pity to see them disappear. A cup of water is for free again. Rest is still being charged. I had no problem to pay since sandwiches were always fresh and tasty. I fly JP twice a month so i hve been purchasing quite some stuff. Regarding 2 EUR for a Radenska? Have you thought how much cash you spend for drinks while clubbing? I think 2 EUR for 0.5L Radenska doesnt hurt anyone

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    1. I agree with you. I think the situation at Adria is fixable. Just give them a bit of time. The good thing is that the new owenrs have gone to work straight away.

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    2. 2€ for a .5 litre Radenska is extremely expensive no matter how you cut it.

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  12. Until they post number for their mainline operations you really can't make a conclusion on their results.

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  13. So they will probably include Austrian Airlines and Air Serbia passengers to their total count during their wetlease.

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  14. Seriously, Adria's reporting is bordering that of Montenegro Airlines.
    No information whether they included Nordica or not, their LF, they don't post their financial results...

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    1. +1 it has been that way for around 2-3 years now.

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  15. OT: TK already increasing frequencies to DBV as of 31may. Seems that Sales went on succesfully. 2 more weekly frequencies being added

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    1. wow very nice!

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    2. Would be great if you also wrote what was the increase? Is it daily now?

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    3. Total of 5 p/w

      http://www.exyuaviation.com/2016/05/turkish-airlines-boosts-dubrovnik.html

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  16. OT

    QR yoy April performance in BEG improved by 90%! I guess it was an extremely wise decision to remove the stop!

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    1. It was expected to certain extent since there is no more hassle with one stop in SOF. I am pretty sure they were planning to increase BEG to daily eventually, but now unlikely since QR is planning to actually decrease frequencies to a number of destinations due to shortage of aircraft.

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  17. OT: Zagreb airport in April

    202,282 pax (+2%)
    Less flights than last year (2015:3556, 2016:3284) meaning better LF!

    An increase in cargo (849 this year, 807 last year)

    A small growth, so far +5,3% in 2016, comparing to 2015

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    1. Edit:

      Less flights than last year (2015: 3556, 2016: 3284)

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    2. +2,5% is not good result but:
      - Easter last year was in April, this year in March
      - there was strike in Germany which effect flights to Frankfurt, Munchen, Berlin, Cologne and Stuttgart
      - Brussels attack that effect Zagreb much because of 3 daily flights

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  18. Zanimljivo je da je FR u pregovorima sa EI da im feed-aju transatlanske letove za SAD u DUB. Bice zanimljivo videti hoce li biti nesto od toga.
    INN-NS

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    1. I suggested few days back that DUB is a perfect airport for this as there is Customs & Immigration clearing. I'm surprised that Ryan doesn't go alone on transatlantic. They have ~95 routes from DUB, more than enough to feed transatlantic flights. If they plan to interline with other operators, wouldn't it be easier to connect with your own flights.


      my2cents

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    2. They announced that they will star flying transatlantic in 2010. Than they postponed starting long-haul. But 6 years later there are no orders for long-haul and no new date. So, I presume they don't have planes to fly long-haul in their 5 years plan.

      Strange, Ryanair can use their model also on long-haul and have more than enough feeding routes to fly long-haul from Dublin, Stansted, Barcelona and some others airports.

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    3. I know that Ryan doesn't do anything 'half baked', surely they could have got their hands on some good deal on airplane since 2010. The way it looks, they can't get delivery of 787 or 350 in the next 5 years, unless someone cancels orders or they pay a premium. Not sure about other planes (777, 330neo).
      By the time they can get planes, legacy carriers will have sorted the short-haul network and their LCC subsidiaries and will be too strong. And who knows, Southwest or Jetblue may beat them to it.
      They could buy Norwegian, which is struggling but has planes on order.

      my2cents

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  19. BEG: Tonight A332 TK flight to IST (extra rotation)
    Tmrw Saturday extra (3rd) LX rotation BEG-ZRH

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    1. Don't get happy it was a cargo aircraft,TC-JDP a332

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    2. Cargo aircraft,flight TK 6385,route MADRID-BELGRADE-ISTANBUL

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  20. Aha ok thank u

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  21. Since nobody has commented on that: Adria makes the majority of the flights in summer (as many companies) and this summer they have two aircraft flying for other companies (OS, JU).

    What are their plans for the winter? Lay off people, park the aircraft, get rid of the aircraft?

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