Thursday, July 13, 2017

Adria expands fleet and posts strong results


Adria Airways will expand its fleet with the addition of a Bombardier CRJ900 aircraft, which is expected to arrive in Ljubljana on July 18. In a statement to EX-YU Aviation News, the Slovenian carrier said, "We can confirm the lease and delivery of one Bombardier CRJ900 in the upcoming days which will be registered in Slovenia, leased from a subsidiary of our existing leasor Regional One (and previously operated by Air Nostrum)". As EX-YU Aviation News learns, the aircraft will be registered S5-AFA. It was manufactured in 2006. Adria is currently negotiating the acquisition of twelve Sukhoi Superjet 100 aircraft, with their delivery expected next year, if the deal is finalised successfully.

Following the arrival of its latest jet, Adria will boast a fleet of thirteen aircraft, including seven CRJ900s, three CRJ700s and three Airbus A319s. One of its CRJ900s is currently being wet-leased to Star Alliance partner Swiss International Air Lines, where it will be deployed until September 30. Furthermore, earlier this month, Adria based its third CRJ700 in Ljubljana as it was previously stationed in Lodz, from which it suspended operations on July 1. Later this year, the lease for one of its CRJ700 jets will expire, while leasing arrangements for the six CRJ900s will end in 2018, 2020 and 2022. Leases for the three Airbus A319s run until 2021 and 2024. Adria currently boasts the youngest fleet out of all the national airlines in the former Yugoslavia.

On top of its fleet expansion, the Slovenian carrier posted improved operating results for the first half of the year. According to the "Uporabna stran" portal, Adria handled 531.447 passengers over the past six months, representing an increase of 10%. This was accompanied by an increase in the number of aircraft movements, rising from 9.117 last year to 9.645 in 2017, up 5.8%. The improved figures come as a result of higher demand for both scheduled and charter flights this summer. Despite the closure of its Polish base in Lodz, the Slovenian carrier has added frequencies to a number of routes out of Ljubljana including Podgorica, Sarajevo, Skopje, Pristina and Amsterdam. Earlier this year, Adria's CEO, Arno Schuster, said, "In general, we will focus on two areas of our business - regular and charter flights. We will generate enough revenue in the high season to secure liquidity throughout the year. This is the plan we are pursuing". He added, "We expect a successful year. We are always exploring possibilities for new destinations and new markets but we are currently more focused on improving existing frequencies".

144 comments:

  1. So soon JP and OU will have the same number of aircraft?

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    1. You can change prospective: compare number of aircrafts and total amount of passengers. You can add JU. :) It is very interesting to compare OU JP and JU. :)

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    2. They should all join forces and do more to compete against their one and only rival - low cost airlines.

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    3. Wizz Air has done more for this region then all of them together.

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    4. @Anon 10:41AM
      You mean like JAT back in Yugoslavia days?

      @Anon 10:56AM
      Wizz has done more for HUNGARY!

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  2. It's odd that they are getting a new plane if they plan to get Sukhois.

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    1. They will most likely keep these for their leasing business

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    2. Why? If they get them it is highly unlikely all will arrive straight away. This is actually an indication they might add some new routes.

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    3. Maybe we finally see those Tehran flights

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    4. A CRJ900 can't make it to Tehran ;)

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    5. No, but it can free up an Airbus to do the long rotation here and back.

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    6. Actually, I am pretty sure Sukhoi is in a position to deliever 15 aircraft at the same time to Adria. Plenty of them stored (tells plenty about quality of the aircraft) and production capabilities are FAR from full.

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    7. Brussels Airlines said last week they were pleased with the quality and performance of the aircraft. If it good for them, I'm sure it would be good for Adria,

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    8. Of course, Brussels Airlines is not actually operating the aircraft. Important fact people forget to mention.

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    9. Operating or not, it was the CEO of Brussels Airlines who said it.
      http://atwonline.com/leasing/brussels-ceo-wet-leased-ssj100s-live-expectations

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    10. SSJs will come to Adria for next summer season. Croatia Airlines is also in advanced talks.

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    11. There is a rumour that CityJet will takeover Adria.

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    12. ^Do you have any more info. That would be interesting. City jet was mentioned several times as a potential buyer during the privatization process. Also that would mean 4K would exit quickly.

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    13. Interesting article on Adria and Sukhois
      https://www.linkedin.com/pulse/sukhoi-looking-sell-12-x-ssj100s-adria-airways-owned-4k-chlumecky

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    14. @AnonymousJuly 13, 2017 at 9:42 AM:
      Not at this time, however it would make sense. Apparently, CityJet is looking to buy 2 companies. 4K have said it themselves they're not in it for the long run.

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    15. @ Anonymous 9.11

      Maybe Teheran, Central Asia and Caucasus could work, if they offered good connections to their European network.

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    16. What a fool that Chlumecky is, don't even bother reading.

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  3. Good to see that the pilot strike from earlier this year didn't affect their numbers too much.

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    1. There were only a few cancelled flights. They wetleased planes to get people to their destination so no major disruption.

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    2. There were more than a "few" cancelled flights.

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  4. This is all nice but what about their finances. Seems every ex-Yu airline forgets to report on that.

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    1. Yes and nobody really said here that the cost of Adria's flight tickets rose. At least I think so. On the other hand also the number of passengers rose which can only mean good.
      Best wishes for Adria!

      Haplek

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    2. Well if the number of passengers rose then it means they sold the lower classes.

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    3. They are not losing as much money as they did before which is a good thing. Maybe these guys manage to turn the airline around. That's why they were brought in after all.

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    4. I don't think anybody managed to turn anything around- its just that oil prices are low now, so even the worst run company manages to break even.

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    5. How come ASL then doesn't even manage that and has to cut flights and aircraft?

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    6. *Air Serbia: Revenue 375 Mio
      Nr of aircraft 21

      Nr of Employees: 1900

      *Adria Airways: Revenue 305 Mio
      Nr of aircraft: 12

      Employees: 375
      * Source: Wikipedia

      In summary,
      Adria makes almost the same revenue with less aircraft and 6 times less workforce

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    7. Keep in mind that the employee numbers you listed for JU include subsiduaries - Air Serbia Catering, Air Serbia Technical and Air Serbia Ground Handling Services.

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    8. If so than Air Serbia has 2514 employees

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  5. For how long are they leasing the additional CRJ900?

    Otherwise convratulations to Adria! Well done!

    Haplek

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    1. They are adding it to Slovenian registry so probably a few years.

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    2. Exactly, thanks... 😊
      Haplek

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  6. I'm glad they are focusing on Ljubljana and didn't give up like the former management who said there is no market in Slovenia and started unsuccessful ventures in Poland and Albania.

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    1. At least he was honest.

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    2. If there was no market their passenger numbers would not have grown.

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    3. It is no doubt that the market is relatively small but it is a matter of have you completely exploited that market.

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    4. Plus Slovenia is becoming a more popular tourist destination and the number of visitors is rising a lot so new opportunities are opening up.

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    5. Adria did the well thing whith transfer passenegers. Just look on their timetables and you can see why they add some flights.

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  7. I'm very interested to see how their winter schedule will look like. They will have to do something with all those planes.

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    1. They can always do ACMIs.

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    2. They will probably have more frequencies on several routes, like this summer.

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  8. So several leases are expiring next year, which completely fits in with the Sukhoi story.

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    1. But getting an additional CRJ900 now does not fit into that story.

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  9. I'm glad they are getting their act together. I think competition at LJU will become bigger and bigger now. The management there is trying to attract new airlines so Adria will have to deal with this too. So making themselves more competitive and offering new services is a positive development.

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  10. Anyone know what happened to their Lodz staff? Did they get layed off or did they transfer some of them to Ljubljana?

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    1. Their contracts expired, no one transfered to Ljubljana

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    2. What's good is that there are other jobs around for CRJ type rated pilots in north-east Europe. CityJet is expanding on behalf of SAS (VNO base will be next after recently launched TLL base). Maybe Nordica is hiring too?

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  11. Great news Adria! Congratulations.

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  12. OT - dva Dreamlinera danas u Hrvatskoj, jedan u ZAG, drugi upravo sletio u DBV. Go Croatia!

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    1. The one in ZAG is DeerJet?

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    2. No, UAE government. The same one that was in BEG a few weeks ago.

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    3. Anon 10:17
      It's not the same one, in BEG there was a B787-8 and in ZAG i B787-9

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    4. It is. You are being silly and sad at the same time. The UAE 787-9 landed in Belgrade.

      Here is video proof.
      https://youtu.be/jyvQzSbchCg

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    5. Such an old-fashioned livery.

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  13. They are going back to the strategy that worked for them during the 1990s and early 2000s.

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    1. Had it worked they wouldn't have had the financial disaster in the later 2000s.

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    2. They are returning back to basics. Making LJU a transfer spot for Balkans and Eastern Europe.

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    3. @9.55
      Actually those two are not linked. The success they had back then was ended when the rest of ex-Yu started opening up, visa requirements cancelled and LCC started serving the region.

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  14. 4K seems to be doing a good job with Adria.

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    1. We don't know how they are doing because we don't have the financial results. That is the only factor you can measure success.

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    2. Their finances must have improved if they are able to lease and constantly expand and replace aircraft, as they have been doing.

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    3. Let's hope it works out for them, they seem to be planning increases in the winter schedule.

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  15. What was the LF? What's their busiest route?

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    1. Probably Frankfurt where they have 3 daily flights.

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  16. What's the point of getting new planes in this kind of financial situation.

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    1. Why is everyone so cynical around here? Seems all you people want is for all the national airlines to go bankrupt ASAP.

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    2. You can understand that people don't like JP, when taxpayers were putting millions of their money into the airline every year, while they continued to sell tickets for 500+ EUR.

      I don't think people care much nowadays, when JP is private entity.

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  17. Lep te hebo jedan lizuju Swissu dok uzimaju drugi od Regional One. Kakvi majstori.

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    1. Exactly! Makes absolutely no sense.

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    2. Pa ako Svisu lizuju za 5 banki a od Ridznala dobivaju za 3 banke, onda su itekako majstori

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  18. Good work for Adria. Happy to see them expand again after so many years of cost cutting.

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    1. They have been expanding for 6 months now thank god. It also had a positive impact on LJU.

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  19. I wish they focused on developing Pritisna as a secondary hub before it gets too much competition and Wizz eventually opens a base.

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    1. Didn't they add flights from Pristina to Stuttgart this summer?

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    2. That's just seasonal and once pert week.

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  20. It's always good to see an airline expanding its fleet. Let's hope for new destinations.

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  21. Maybe they wet lease some CRJs to Croatia Airlines this winter.

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    1. Why would they. Croatia Airlines has an Airbus stored during the winter which they can use (and probably will) this winter.

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    2. JP west leased on Monday their CRJ 900 to OU on Lisbon route.

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  22. Go Adria!!! They seem to have some sort of strategy and I really hope it works for them.

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    1. They have a very good fleet in general. What they need is a route network and strategy to match it. Unfortunately I think their new strategy "to create Ljubljana into a hub for Balkan transfers" is time long gone.

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    2. I agree. This ship has sailed.

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  23. Don't get it how Adria and Croatia Airlines can all find the funds to lease planes, and let's not kid ourselves they are far from being in a great financial situation, yet Air Serbia can't.

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    1. Bad management.

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    2. They got an A330-200 last year.

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    3. Just compare number of employees in each of the ex-yu airlines, and you will find out why (among many other things, of course)

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    4. why don't they just get rid of the excess workforce?

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    5. Watch and learn JU... Adria is leasing new planes and growing while JU can't get its act together and lease a single additional A319 as a replacement for the archaic and passenger-unfriendly B733.

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    6. Not that. They can't replace the Atr's which are in a much dire need of replacement than the Boeing's.

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  24. Still think they should have merged with Croatia Airlines :D Now that would be a nice fleet of Airbuses, CRJs and Dash planes.

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  25. And so many people commenting here were predicting their bankruptcy just a few months ago.

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    1. Don't speak too soon.

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  26. What was their loss in 2016?

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    1. They haven't been published yet. And as a private company, I don't think they are required to make them public.

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    2. They have to, but will most likely be only in September or so.

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  27. With so many planes and not enough destinations to serve, now is the time to base one in Maribor.

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    1. Been there done that.

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    2. When VLM Airlines Slovenia turns Maribor into a mega hub, I'm sure Adria will reconsider its position :P

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    3. Why base one in Maribor? VLM is putting 20 A320s and 10 A330s next year to MBX.

      Just wait a bit :)

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    4. No no no no.... Not next year. By plan they did that in June. As we can see there are so many planes in MBX

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  28. Happy for Adria :)

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  29. What a great news. Adria will succeed. I am definitely sure and I think they could surprise us with some bigger plane :)

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    1. Bigger plane? For what exactly?

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    2. Didn't they wet lease an A340 once.

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    3. When did they do that?

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    4. During 2015 summer. They also leased B757
      http://www.exyuaviation.com/p/adria-wet-leases-b757.html

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  30. lets do : SKP - FRA :D

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    1. I do think they made a mistake of not opening a base in Skopje like they planned. Instead they went to Poland and we saw how successful that was.

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  31. It is great to see a lot of good news coming from Adria recently. I really do hope they finalize that Sukhoi deal. Would be an amazing achievement to order so many new planes.

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    1. Sukhoi order would be a positive development for you?

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    2. Ordering aircraft that virtually no-one else in the Western world wants, together with rumours that lease for those aircraft will be more or less free isn't good news.

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    3. So you're basing your arguments on what exactly, rumours? I wish to remind you that there are 134 units of the type built and operating. The air isn't any different in Mexico, Asia than in the West ;)

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    4. You do realize CityJet ordered 15 of the type? Lol

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    5. Take a good look and you see that more than 10 airplanes (10% of the fleet) are stored. Gets even worse if you count the aircraft that crashed in Indonesia.

      Good, two western operators and roughly 200 orders since 2005. E-Jet E2 hasn't even started flying yet and they've got 230+ orders.

      But back on topic, there is no operational reason for JP to switch to SSJ100. It has the same seating capacity as CRJ900/1000, roughly the same burn and brings no additional operational capability. But you have to train all cabin crew, all pilots, engineers for the new type, plus initially the dispatch rate might be lower due to inexperience on type.

      The only reason this would make sense if they could lease the aircraft at a laughable low rate, or even for free, which was speculated before. Throw in couple (all?) free training courses for the crews, and it starts to make sense. Especially when Sukhoi is desperate for more Western operators.

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    6. 16 out of 55 PW1100G A320neos are grounded, does that mean it's also unreliable as an aircraft? Was DC-10 also an unreliable aircraft because of its faulty cargo doors?

      SM posted on here that SN's CEO expressed his satisfaction with the SSJ.

      I think you need to give it a rest, the Russian airliner is great.

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    7. I guess they're the one to decide and not you?

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    8. Obviously the owners can do whatever they want.

      My point was just that the potential order of 12 SSJ100s presents completely different picture (financial-wise) than ordering 12 aircraft from Bombardier, Boeing, Airbus or Embraer.

      And again, this has nothing to do with SSJ100 coming from Russia. It has to do with its lease price, which would be most likely well below the market level for similar-sized aircraft.

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    9. All aircraft manufacturers do it. Look at Bonbardier and the price they gave Delta. Look at the price EK pays for the A380...

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    10. Of course they do it, but not for 10 aircraft, but much larger volumes.

      Delta ordered 75 aircraft (CS100) and EK operates 95 A380s with 45 more orders, which represents almost 3/4 of worldwide A380 fleet.

      Different game...

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  32. OT: Air Serbia let za Atinu u 00:30 LF 100%, 75% transfer putnici uglavnom Amerikanci, Španci, Australija... Stjuardese izuzetno ljubazne, udobna nova sedista, zaista za svaku pohvalu. Povratak u 16:35h iz Atine, LF 93% recimo, dosta transfer putnika, kao i turista iz Azije za Beograd. Koliko smem da primetim, jako puno transfernih putnika na BG aerodromu. Poprilicno svetski izgleda.

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    1. Wondering where the Spanish people came from on the BEG-ATH flight as well as the Asians on the ATH-BEG?

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    2. Thank you for your review!

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    3. If you think about it, their current A319 are carrying almost the same number of passengers like their old A320s.
      I think this June all these additional seats on popular routes like ATH, TIA, BEY, ZRH... will help boost BEG's numbers as well.

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  33. Awesome!!! Happy for Adria and even more for Ljubljana!!

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  34. 13 planes is not bad. Hope they expand a bit more.

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  35. Who knows maybe the SSJ story is just a strategy to get better conditions from other ac suppliers such as Bombardier, MRJ or Embraer. We all know that Al Baker for example play this game with Airbus and Boeing.
    Lets wait and see. At least we see some progress at JP since 4K took over

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  36. OT American Airlines ends codeshares with Etihad and Qatar
    https://www.businesstraveller.com/business-travel/2017/07/13/american-airlines-ends-codeshares-etihad-qatar-airways/

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    1. QR is so many light years ahead of AA in terms of service/quality.
      I wish them to somehow manage the US on its own (or find a suitable partner there, which would be a real challenge since most US carriers are just plain bad).

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    2. Easy if the government finances u. I cld also drive Ferrari if the government pays or gives free credits

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    3. These arguments are getting very, very old...especially since none of US3 would never have been near big as they are without state help. Pot calling the kettle black.

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    4. The biggest problem is that the US3 charge crazy fares while providing no decent service. Have you seen how expensive domestic flights are? For a two hour flight you are lucky to pay €250

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    5. 250 EUR for 2 hours is about what an airline should earn if...
      If for example flight crews would have contracts with reasonable conditions
      US Carriers as also Eurooean Carriers got subsidies, but compared to size never in those amounts like the 3 Gulf receive it. Also times and business culture were different. In addition, no airline in the US or Europe ever doubled its seize within 5 years

      But anonymous 1055: i support you that US Carriers service culture especially in coach class is a national joke

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    6. @ JU520 BEGLAX Agree 100% with wjat you said.

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    7. I am pretty sure Ryanair, Wizz Air snd maybe Norwegian doubled at some point

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  37. I don't understand why so many EX-YU people are cheering for Adria. Adria died when it was taken over by the German investment group which own 100% of the branding and lease is back to the now German airliner which has no ties what so ever to Slovenia or the rest of EX-YU. You might as well cheer for Qantas at this stage.

    Face it, Inex-Adria is long gone and Slovenia currently does not have a national airline just like Macedonia, it is sad and unfortunately but that is what happens when regional super powers collapse and get bought out by other intact regional super powers. Next all our airport will be bought out so, game over folks, we will no longer own our airlines or airports because we are incompetent people that is too busy fighting each other and not looking at the big picture.

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    1. The problem is that people, especially so in this part of the world, are in general very bad in running a company in a profitable/sensible way, if there is unlimited supply of funds.

      For example, why would you try to make an airline profitable, if you know the government will bail you out every couple of years with tens of millions of Euros? Isn't it better that everybody is happy, everybody gets a bit extra money, even through relatives with companies that act as service providers to the airline? Hire relatives from current employees so the fun continues?

      If a government-owned company can make at least a neutral financial result (i.e. no bailout required) for years and years, there is no need to sell it to a private owner. However, I don't see a point of having a national carrier if tickets are not free (or at least very cheap), while taxpayers still have to bail it out every year with millions of their tax money.

      I think most people would agree there is no logic in having government-owned supermarket chain, where the government has to put 100 millions of Euros in every year and then the consumer pays the same price as in Lidl, Hofer, Aldi or somewhere else?

      Why wouldn't the same logic apply to national airlines?

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