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| Adria Airways prepares for sale |
Slovenia has approved plans to inject capital into Adria Airways, while at the same time selling a 91.58% stake in the company, the government said in a statement. The capital hike will take place on Tuesday, January 19. "The sale of Adria Airways along with the capital injection by the Republic of Slovenia will result in fewer costs for the state than a potential bankruptcy or an establishment of a new airline", the cabinet said yesterday. The government added that a private investor would also participate in the capital injection and subsequently buy the company in order to meet European Union state aid rules. "The recapitalisation by the state and subsequent privatisation will ensure the survival and development of the Slovenian flag carrier and is expected to bring other positive effects, such as added tourism revenue", the government noted.
According to local media, the state will inject some three million euros into Adria, while the German investment fund 4K Invest, which specialises in acquiring medium and large-sized companies with a poor operating performance, will provide another two to five million euros and buy the Slovenian carrier for one euro. Adria Airways 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. In 2014, the European Commission concluded that the aid was compatible with its 2004 guidelines on state aid for the rescue and restructuring of companies in difficulty. Last year, Adria said it was seeking eight million euros in fresh capital.
4K Invest is believed to have drafted an agreement with the Slovenian government during the week concerning Adria's acquisition. The capital raised next Tuesday will be used for restructuring, which will likely result in a new business model for the Slovenian carrier. Under the leadership of CEO Mark Anžur, in 2014 Adria developed a six-year business strategy which has seen the carrier transition from a full fare into a hybrid-model airline. Furthermore, the strategy has seen aggressive expansion, with the company launching new bases in Lodz and Tirana and strengthening its market position in Pristina. Adria has already announced the launch of three new routes for this summer season, but also suspended services to Istanbul on January 1. Late last year Mr Anžur said, "We are developing our own strategic plan, which can be supported or not by the new owner". Adria reported its first net profit in seven years in 2014 but is believed to have swung back to losses in 2015. It is expected the new German owner will have a more productive partnership with Adria's hub airport in Ljubljana, operated by Germany's Fraport. Changes in the airline's ownership structure will not impact on its commercial and operational alliance with Estonia's Nordic Aviation Group, which is expected to last until the end of the year.
Good luck, Adria, it will be interesting to see what new owners will bring!
ReplyDeleteThey made the right decision not to bankruot a brand. Good luck to them in the future.
ReplyDeleteSo we can conclude that this last business strategy was a failure. It's being bailed out again a few years after already being bailed out.
ReplyDeleteTrue dat.
DeleteDoes anyone know what the EU guidelines are for state aid?
ReplyDeleteWell, one thing about them is that they are selective.
DeleteAgain
ReplyDeleteIn Adria case state aid is ok as the private investor participate as well. If only state would give aid this will be than the problem. State aid could be given just after 10 years since the previous one
ReplyDeleteIn Adria case state aid is ok as the private investor participate as well. If only state would give aid this will be than the problem. State aid could be given just after 10 years since the previous one
ReplyDeleteTAP Portugal cancel ZAG service :(
ReplyDeleteSource?
DeleteOh no what a pity. TP was my favorite visitor in ZAG
Deletesource is TAP Portugal, service is being cancelled from 24 March.
DeleteThat was put here yesterday. And it is not canceled butnoved to TAP express new brend thad will be opened till than
DeleteIt is not moved to TAP Express. All the changes concerning routes, frequencies and even new aircraft types are already in Amadeus system.
DeletePlus the government will write off Adria's debts.
ReplyDeleteI am not sure about this...for single € they are obliged to take Adria's burdon as well
DeleteAm I the only one that thinks an investment fund buying Adria is not the best thing.
ReplyDeleteSince nobody (not even investment funds) wants to buy it for more than 1€, there are two other options Slovenian government could do:
Delete1. Regularly "invest" taxpayers' (most of which are not flying with JP) money into JP and hope that European Commision does not declare this state aid, which it probably would.
2. Bankrupt the company.
Hopefully they are not gonna end up as estonian air :/
ReplyDeleteOr Balkan Air which was also bought by an investment firm.
Delete....but they will not
DeleteI hope Adria weathers this crisis and wish them all the best.
ReplyDeleteLove the photo :) one of the best uniforms in the skies.
ReplyDeleteAdria is a big hole for money. For me is stupid sell company after so manny financial suport. And now another suport and then selling for 1€. And what if Adria bankroupt? Too much monney wasted (sorry for my english).
ReplyDeleteBetter to waste 3 millions and be done with it than to put tens of millions every couple of years.
DeleteDefinetly agreed with you, but there is no garantee that Adria wont bankroupt in few years. But I wish them all the best.
DeleteUniforme su im toliko debilne i neprakticne. Ali uskoro im dolazi kraj.
ReplyDeleteDream about it...must you troll. Remember what a bull shit used to be JAT. Adria is the oldest air company in the ex Yu with good brand and km-s after all. And pls not be so arrogant and try to see that it has a buyer. Whatever will happen it won't be a problem for the state anymore.
ReplyDeleteStill the most classy uniforms byw
DeleteDoes anyone here understand a bit of economy logic??
DeleteUniforma je i dalje glupa i neprakticna ko god ih je video uzivo ce ti to potvrditi. Kupac je tu da sredi malo kompaniju i da je onda preproda posto nemaju previse asseta u metalu.
DeleteTechnically speaking, Air Serbia is the oldest airline in ex-YU, it was founded back in 1927 as AeroPut.
DeleteFrom what I can see, JP was established back in 1968.
Znaci jedino ADR i ASL ce biti privatizovani EX YU .
ReplyDeleteBice zanimljivo videti dalji tok desavanja u ovim prostorima.
INN-NS
Croatia Airlines-u je nužna privatizacija, jer ne mogu se samostalno nešto puno ekspandirati, a evo primjerice aeorodrom u Zagrebu samo što nije gotov, u Splitu se isto počinje graditi koliko vidimo, a i Duborovnik radi neke ekspanzije - dakle Croatia Airlines ima savršenu priliku da se uzleti visoko i ponovno krene ozbiljno konkurirati Air Serbiji.
DeleteDosadašnja vlast, nažalost nije se pokazala uspješno što se tiče privatizacije OU, no kako su se sad vratili "domoljubi" kojima nije problem prodati sve hrvatsko za 1 kn, vrlo vjerojatno će se Croatia privatizirati, što je super, ali vjerojatno će ih kupiti neka trash kompanija kao npr Grauda ili još gore neka xy kineska kompanija koji ne znaju što će s novcima.
Sve u svemu nadam se da će OU izvući najbolje od velike eskpanzije najvećih hrvatskih aerodroma, ali nekako mi je najizglednije da će strane kompanije požderati OU.
Kao sto svi znamo tesko ce naci kupca .
DeleteA trenutni rukovodioci su bez vizije kao i ostali iz ex yu .
A nece zbog precelike konkurencije LCC i normalnih kompanija.
INN-NS
Mislite li da će Emirates u skoroj budućnosti otvoriti linije za Zagreb i Beograd?
ReplyDeleteŠto mislite o opciji Zagreb - Dubai via Beograd, za početak?
1.verujem da ce EK uskoro poceti leteti i za zag i za beg
Delete2. ne verujem da ce se leteti dxb-beg-zag vv
3. mislim da ce ici nonstop i dxb-beg i dxb-zag, a onda iz beg i zag nastavljati dalje za gradove u italiji, spaniji, francuskoj, nemackoj, za koje ek jos ne leti
4. razlog za to : i beg i zag su uglavnom za transferne putnike sa dal.istoka i australije kojima ne bi odgovaralo jos jedno dodatno sletanje negde, zatim beg i zag su preblizu za punjenje na tom segmentu i vec postoji let asl, i napokon stuttgart, marseilles, torino, valencia su npr. ogromna trzista sa kojih bi ek mogao imati p2p putnike (turiste) kojima 1 stop ne bi bio problematican, a mogao bi se puniti i segment npr. beograd-torino ili zagreb-valencia i sl.
Pa EK koliko znam leti za Rim i Madrid i za sve veće Europske gradove preko kojih rade daljnje transfere. Ne vidim baš tu previše smisla da iz Zagreba i Beograda rade p2p putnike.
DeleteŠto se tiče Zagreb-Dubai via Beograd, zašto ne bi bilo isplativo, kad je ionako postojala linija Zagreb-Doha via Budimpešta, a zračna udaljenost između Zagreba i Budimpešte je evkivalentna onoj Zagreb-Beograd.
Koliko isto znam Emirates drži svakodnevnu liniju sa Budimpeštom, koja čak ni nema svoju nacionalnu aviokompaniju za p2p putnike.
Mora se prvo ispitati isplativnost pokretanja Emiratesa za Zagreb i Beograd. Makar mislim da bi se mogli posrećiti i bez previše p2p putnika (osim one za Dubrovnik, Split, Tirana, Pristina, Skopje, Sarajevo, Pula, Zadar), a još k tome u blizini Zagreba je Ljubljana, Trst, Graz, Banja Luka, a u blizini Beograda; Novi Sad, Osijek, Tuzla... Mislim da ne bi bilo loše za početak uspostaviti redovnu liniju sa airbus a330, barem za one dane kada flydubai ne leti za Zagreb i Beograd.
Its pointless to talk about EK coming to BEG, especially since this has been the talk for over 18 years. Also you have to take into consideration that both ZAG and BEG are 3 or 4 weekly with B737. I think even Sofia is daily and Bucharest is either daily or 10 weekly. My numbers could be very wrong, but anyhow you get the idea.Even Sarajevo is 5 weekly from summer. Fly DUbai has a weird strategy in both ZAG and especially BEG.
DeleteI meant to say 8 years
DeleteFly Dubai is daily in Sarajevo in summer
DeleteIn 2 or 3 years EK will fly to BEG. They will never fly to ZAG because its deep into Star Alliance realm, but thats why theyre going to get Singapore Airlines and perhaps some other east asian member.
Deleteot: Mural na Beogradskom Terminalu 1 izgleda odlično posle renoviranja, jedina svetla tačka na terminalu koji me sve više asocira na Černobilj. Novi prelaz na T1 je trebao da bude još jedna svetla tačka, ali čak i kad je gužva na T2 prelazima ovaj na T1 uglavnom koristi samo posada Air Serbia.
ReplyDeleteOT: Official Arkia start with flight from Tel-Aviv from June x2 July x3 August x3 September x2 Oktober x2 with E190. Alos Thomas Cook x1 via Tivat with A320
ReplyDelete*Wizz Air statistic for 2015 from SKP - 794.946pax
info for Arkia and Thomas Cook is for OHD.
Deletein 2011 it received fifty million euros worth of state aid ?!!!!!!!!!!!!!
ReplyDeleteand now again putting taxpayers money millions (of EURO) int this hole
then sell it for 1 Euro
can't get it how this is economically viable
capitalistic miracles.
But money wa and is taken from tax payers and all is LOST (for taxpayers)!!!!!!!!!!!
Adroa and added tourism revenue???
ReplyDeletenot working during the best times can't work now.
What are they smoking? Can e try it too?
This so called private investor is taking money from the same source as the Republic to Slovenia.
ReplyDeleteIt's just an escamotage.
It will come out sooner or late. Pleeeease sooner.
Do not troll...give us facts.
ReplyDeleteDoes anyone know what will happen to their flight school?
ReplyDelete