Adria Airways, which has experienced a number of operational issues over the past few months related to staffing and equipment, expects to post a financial loss in 2018 for a second consecutive year. The carrier's CEO, Holger Kowarsch, said, "It won't be a positive result. Adria Airways is a privately owned company, so I will not reveal our forecast, however, the business surely won't be positive this year. With these oil prices, it is impossible. On a different note, revenues will considerably increase compared to last year". The Slovenian carrier, which has been cancelling or combining a select number of flights on an almost daily basis over the past month, has been forced to pay out hundreds of thousands of euros in compensation to affected customers and several million euros to wet-lease aircraft from other airlines. It comes after the carrier reported a loss of 5.4 million euros in 2017.
Mr Kowarsch told Slovenia's "Delo" that the route cause of the operational difficulties is a lack of crew affecting airlines across Europe. The company has also been forced to deny media reports that it is on the brink of bankruptcy. It noted, "We fully understand and accept discussions over flight irregularities but not that such are connected to our financial state. We wish to clarify that our financial status doesn’t influence and is not the reason for flight delays or cancellations as stated by some media. There has been an increase of 150% in the number of delayed flights in the European Union in 2018 compared to last year. Only in August, 56% of all flights were delayed. Adria Airways’ delays are way below the EU average, but this cannot be counted as an excuse since each irregularity damages the carrier. This year, Adria Airways significantly increased the number of aircraft in its fleet but the number of crew did not grow proportionally. Each unplanned absence of crew members due to sick leave or an unfit-to-fly condition could, together with unpredictable weather or technical issues, influence flight operations. In order to avoid flight cancellations, we decided to combine flights on numerous ocassions. Even though this was unpleasant for passengers, we believe that combining flights is a better solution than cancelling them". Mr Kowarsch noted that Adria currently has an insufficient number of standby crew but believes the issue will be resolved by November.
Commenting on the airline's future plans, the CEO noted, "We will have a similar number of flights this winter. We are considering additional flights for the coming summer season, and have started discussions with the airport. The problem is that Ljubljana Airport is operating at full capacity during peak hours. However, I am delighted with Fraport's decision to build a new terminal, which will also allow us to introduce additional flights. The terminal will be completed by the end of 2020, which is a bit of a long time for us. For the coming summer, we are looking at some northern destinations and thinking about Rome or Madrid. These airports are the main gateways to South America, but we are studying whether the routes are financially viable".
Comments
Even Ščurić has backed down quite a bit from his Lufthansa conspiracy in an interview.
https://www.exyuaviation.com/2018/10/ljubljana-airport-unveils-2019-growth.html
It's a fact they cannot survive another pilot strike.
Also I'm not over the moon with information that one of 4Ks subsidiaries is issuing Adria with loans. Basically 4K is filling its coffers while Adria is struggling.
In one of the interview CEO clearly says they weren't making money last year with oil prices 30 USD/barrel lower than now and that they can't make profit at this level. So they made loss last year, which will increase this year (+all the wet leasing drama), and if oil doesn't go down the loss will continue.
I know it's hard to understand in Exyu, but airline cannot survive with continuous losses unless they have a rich uncle, which Adria at the moment doesn't.
On top of that no one knows where the money they took out of Darwin disappeared and it is under investigation under Swiss authorities. In a month millions disappeared.
I wonder if something like that can happen with Adria as well...
JU has already upgraded BEG-SOF to A319 on some days next year.
I hope silly FB wakes up and operates to ZAG or SKP. There is clearly demand to connect Balkan capitals.
Which means, they are sucking the money from Adria to their tax heaven bank accounts via fictitious loans.
And which basically proves, that there is no LH behind 4K.
They might just want a pay rise to be extra happy! 😀
ttps://www.rsi.ch/news/ticino-e-grigioni-e-insubria/Darwin-l%E2%80%99inchiesta-decolla-10990190.html
The Swiss are launching an investigation into fraudulent bankurptcy of Darwin, where about 9 mil euros disappeared. Part of that money was used to keep JP machine rolling in the past year in hope of selling it. They will go bankrupt before the end of this year.
I said that it is obvious that Adria modus operandi is collaborating with Lufthansa (most of aircraft is leased to Lufthansa, Eurowings, Austrian, Swiss + feeding routes from Priština, Tirana, Paderborn, in past Lodz + not a one Austrian, Swiss, Lufthansa and Eurowings flights from Ljubljana and those companies have hundreds of flights in region especially in Croatia + special task for Lufthansa group like VIE-MUC route several years ago to show that Lufthansa group "does not have monopol on that route") and by so many moves one can conclude 4K is cleaning and preparing company for Lufthansa.
4K is company is specialized in doing those jobs for others. In same cases they take companies, clean them (sack some workers, sell infrastructure, downsize, unification...) and than sell to someone else (in some cases they knew who they will sell it in advance, before they buy problem company) and in some cases they buy companies with task to put it out of work (competition take this share of business).
So, I said that if 4K would be successful in task of cleaning company and making it profitable they will most likely do that for Lufthansa, but for sure if the will not be successful they will put Adria out of work (Lufthansa will not want problematic company). Just like Darwin. They will not have problem with that and will not think a second to do so. So it is simple: be successful and sell it to Lufthansa with some "profit" (reword for that job) or not successful, will not loose money in future and Adria will be closed.
There is enough need for every nation to have a national carrier. And while I agree that every village doesn't need an airport, I disagree that every country doesn't. Airports and airlines help economy by opening doors for international business and tourism. If you don't have a national carrier, you are depended on others and can only hope that some other airline will want to connect the territories of your strategic efforts.
You are probably right though, Adria might collapse. But that's another discussion.
Aviation market is a liberalized and free market, where nations have agreed to leave regulators behind. There is no space for taxpayers money injectiins if other airlines can do it for free. If there is demand, airlines will fly. If not, not. All other is a waste of money and could be invested in infrastructure. Just look at Bus Stations, even in Slovenia: Kranj, Ljubljana. It looks there like 1949
Passengers: anybody buying tickets with JP directly without travel insurance or insured credit card is insane. Given all the media publicity they should now better by now.
Suppliers: they can easily stop supplying their goods or ground an aircraft and thus force Adria to either pay or go straight into liqudiation, which would hopefully result in some debts being paid off to suppliers.
Of course you are backtracking.
'LH behind 4K' implies there was a contact between Slovenian governments and LH prior to selling the company. And that LH is financially backing 4K.
In reality there was a LH audit in JP just around the time of 4K stepping in. All of the acmi crumbs jp is getting are the result of that audit. And JP has been LH feeder since ... forever. So LH is 'behind' 4K just as much as they were behind Adria before 4K came in.
So yes, you did tweal your argument quite a bit since the privatisation took place - your currwcu argument is such, that you are right whichever direction this goes.
Pointing at bus stations - yes, that's exactly what I mean. First we need to solve the current problems and update the infrastructure to be at least on the level of current time. Then we can start talking about alternatives.
- the company finances business almost exclusively with debts, and not capital. The share of debt in financing according to the latest data is already 95%.
- the company is increasingly being financed at the expense of suppliers and with advance payments, with a significant increase in short-term operating liabilities.
- Adria's uncovered loss on the last day of last year exceeds half of its share capital, which is one of the signs of long-term insolvency or insolvency.
- liquidity is very poor.
- Adria has not been able to do business in the past few years without the flow of funds from recapitalization or disposal of assets, and such a trend continues.
- this year, the company predicts a new loss, which will further aggravate the capital structure.
In ne branin tega krsitelja svojega lastnega kodeksa.
I call it bs excuse!! If you pay fair market salaries then you would attract pilots and other personel. But you are not, and the fact that their is a huge demand in the world means you are not keeping up with times and therefore directly responsible for the bad performance of your airline. Don't blame staffing....OU has same issues and people continue to leave. Air Serbia on the other hand is "lucky" as their crews can not just pick up and go work in Europe because of not being memeber of EU...otherwise the flood gates would be open too.
So please Adria management stop with poor excuses and fix the problem or close the shop.