Adria in crisis

Good old days - Inex-Adria 1985
Adria Airways will postpone the scheduled construction of a new maintenance hangar because of the financial crisis, the flag carrier's chairman Tadej Tufek has told a daily. Tufek added that the carrier was preparing plans in the event of a major economic downturn. Adria is not facing difficulties with liquidity since it took out all its main loans in 2006 under favourable conditions, Tufek told Monday's edition of the daily Dnevnik. "Problems would only arise if we were to undertake unnecessary investments this year or the next", he added. This is why the carrier will be shelving plans for the construction of a third maintenance hangar, worth between 3 million and 4 million Euros, at Ljubljana Airport in 2009.

As for plans for next year, Tufek said that the best-case scenario would mean that passenger numbers would remain flat compared to this year. "The worst-case scenario involves a 15% fall in passenger numbers". He said Adria was well prepared to handle a potential fall in demand, because up to 20% of all its capacities were flexible. He also called on Ljubljana Jože Pučnik Airport to lower its prices for the carrier. Adria generates up to 80% of all passenger numbers at the airport and Tufek believes Ljubljana Airport "should adapt its prices for the main carrier. "Given the 80% share, we are only right to expect lower prices than that offered to our competitors", he told Dnevnik. He suggested that from an economic viewpoint Adria would find it best to move all its flights to Maribor, although that is not possible since it is building its hub in Ljubljana. Tufek explained that falling fuel prices have only been felt by Adria in the last month. Adria flew on expensive fuel throughout the main season, he stressed. "But the drop in fuel prices will surely offset some of the drop in revenue caused by falling demand next year". According to him, Adria has expanded at three times the speed of its regional rivals on average in the past three years. Its revenues have gone up over 50% to 210 million Euros and passenger numbers by 60% to 1.3 million.