Adria Airways to acquire fifteen Sukhoi Superjets


Adria Airways has concluded a long-term lease arrangement with Russia's Sukhoi Civil Aircraft Company (SCAC) for fifteen of its flagship Superjet 100 aircraft. The first of the jets will be delivered as early as next year. A Letter of Intent was signed between the Russian Minister for Industry and Trade, Denis Manturov, and Adria's CEO, Holger Kowarsch. Both parties also inked a Memorandum of Understanding for the establishment of an SSJ100 Maintenance and Repair Organisation (MRO) at Ljubljana Airport. Discussions between the two sides began following 4K Invest's acquisition of the Slovenian carrier in 2016 and was reported last year. Sukhoi's parent company, United Aircraft Corporation, identified Adria as an ideal customer as early as 2015, due to its fleet structure, which is largely made up of Bombardier CRJ900 aircraft.

The fifteen jets will consist of a mix of new and already built airframes. The SCAC has historically been cautious of allowing customers to master the type’s MRO in-house, largely because its business plan calls for return-on-investment into the SSJ100 development to come from services on aftersales support. SCAC President, Alexander Rubtsov, and Adria Airways' Managing Director, Martin Vorderwulbecke, indicated that “the agreements signed opened a new chapter towards a strategic relationship between the two parties”. The two sides are yet to finalise the financial value of the deal.


Commenting on the order, Adria's CEO said, “It is our pleasure to partner with Sukhoi Civil Aircraft Company. They will completely support Adria's development strategy. During the past two years we have been analysing the SSJ100 and came to the conclusion that all the technical and operational characteristics of this aircraft would suit our strategic goals the best”. Mr Kowarsch added that the SSJ100 would additionally free up Adria's Bombardier and Airbus fleet for ACMI contracts. Mr Rubtsov, noted, “We realise that the SSJ100 after-sales support at the entry to the European market should be organised professionally. Together with Adria Airways we will create a joint maintenance and repair organisation for the SSJ100 at Ljubljana Airport. That service platform will secure the operational reliability of SSJ100 aircraft in Europe”.

As of next year, Adria will operate Russian-manufactured aircraft for the first time in its 57-year history. The Sukhoi Superjet has the capacity to seat between 87 and 108 passengers, depending on cabin layout and seat configuration. The SSJ100 has a single-engine option, the SaM146, manufactured by France's Safran in cooperation with Russia’s United Engines. The Russian manufacturer is already planning a new generation of the regional jet with extended capacity, new wings and new engines, which is expected to appear after 2025. The first European carrier outside of Russia to operate the SSJ100 on revenue flights was the Irish regional airline CityJet, while Brussels Airlines has wet-leased four of the aircraft, which it will return to its owner early next year.

Comments

  1. What the!?!?! :O

    ReplyDelete
  2. 4K - the box full of surprises

    ReplyDelete
  3. "The fifteen jets will consist of a mix of new and already built airframes."

    "while Brussels Airlines has wet-leased four of the aircraft, which it will return to its owner early next year."

    My guess is Adria is getting these four.

    ReplyDelete
    Replies
    1. Interjet of Mexico who is by far the biggest user of SSJs are getting rid of most of theirs too.
      So I would imagine Adria will be getting some of these too.

      Delete
    2. If Adria is getting these planes early 2019 my guess is that they will also arrive with crew. I doubt they will manage to train crew/pilots for Sukhois so soon.

      Delete
    3. Yes, the lease rates that 4K will be paying the Russians must be really cheap.
      Unfortunately with that comes much lower availability rates that western made aircraft.

      Delete
    4. @ Anon 09:15

      not quite, they decided not to sell them:

      Interjet has taken back comments it just said about the SSJ and has instead decided to keep the aircraft in operation.

      https://samchui.com/2018/09/13/sukhoi-superjet-more-orders-departing-customers/#.W_0h9-hKhPZ

      Delete
  4. LOL, this is too funny:)

    I have a collegue in JP's management - yes, they actually are in talks with both Montenegran and Crroatian governments.

    And so we're back to the conspiracy no. 1: it's not Lufthansa, it's the Russian government.

    ReplyDelete
    Replies
    1. One more reason why LH is not behind 4K is the fact LH introduced flights from TIV to MUC and FRA starting from next summer season.

      Delete
    2. Aren't those flights like once per week? And from other airport. I'm not saying that LH is behind, but c'mon, how can you get that from two weekly flights from different airport?

      Delete
    3. @Anonymous27 November 2018 at 09:03

      And I know Santa Claus personally, he assures me his sleighs will be on time.
      I asked for Tesla Model 3 long range.

      Delete
  5. Worst decision ever, even if Superjet PAID them to take them. Ask Cityjet.

    ReplyDelete
    Replies
    1. +1
      The support and timely supply of parts by Sukhoi is abysmal.

      Delete
  6. " Mr Kowarsch added that the SSJ100 would additionally free up Adria's Bombardier and Airbus fleet for ACMI contracts. "

    So, western build Bombardier and Airbuses will be leased to Austrian, Swiss and Lufthansa, while Russian airplanes will fly Slovenians... Great.

    ReplyDelete
    Replies
    1. hahaha, exactly!

      Delete
    2. ASL could really use some during the Summer season, leasing ACMI capacity from JP would be ideal.

      Delete
  7. That's the end in sight.

    ReplyDelete
    Replies
    1. lol. How is this related to end at all.
      Just think before you reimpose your Adria's end in sight propaganda next time otherwise you are making fun of yourself.

      Delete
    2. @09:24

      Well, some of us look at the facts, mainly the fact that 4K hasn't invest one euro in Adria. Not a single euro.

      - JP has a mountain of debts and no liquidity.
      - The supposed 4 million capital injection that was announced last week was actually state subsidy.
      - The owe tens of millions euros to their suppliers.
      - They will cancel the lease contracts for 4 Saabs, because they cannot find the crew.
      - They are decieving the Russians - the intent being to produce good publicity in order to sell the company to a naive buyer.
      - They are not making profit.
      - They will change JP to an almost pure ACMI company, beginning in January.

      Delete
    3. I think that an airline burdened with long term leases of SSJs would be LESS attractive to be sold to potential buyers, not more.
      This publicity of taking aircraft that other airlines are getting rid off is the BAD kind of publicity.

      Just my2cents

      Delete
  8. Well this was unexpected.

    ReplyDelete
    Replies
    1. Not that unexpected. I remember reading here precisely a year ago that they were in talks for 12 Superjets. Although I thought it was fake news back then :D

      Delete
  9. With economic sanctions against Russia, it will be easy to find spare parts :-(((

    ReplyDelete
    Replies
    1. what a nonsense..
      They set up own MRO.
      And sanction has no connections with spares for civil aircrafts.
      All titan supply for Boeing comes from Russia

      Delete
    2. So why the Mexicans and the Belgians complain about parts shortages?
      Is it another conspiracy against dear leader Vladimir?

      Delete
  10. Ain't gonna happen... Zavaravanje protivnika

    ReplyDelete
    Replies
    1. Yup, the Slovene government just gave them 4 million euros, which will get them through this year. This is a last ditch attempt to sell the company.

      Delete
    2. How foolish. Slovene government made a contract with them to fly their staff. Not a donation.

      Delete
    3. ^ Yes it just so happens that they will get over 4 million euros for it. Interestingly, the exact amount 4k announced it was recapitalizing Adria with.

      Delete
  11. Replacing the CRJ with amother current-generation, heavier aircraft which burns more fuel per seat. Short sighted management at its best.

    ReplyDelete
    Replies
    1. Oh, don't be so negative. They've done "extensive research" and found that it "matched the requirements perfectly" :D

      Delete
    2. The lease rates offered by Sukhoi must be excellent for JP.

      Delete
    3. Quote from SSJ Wikipedia site page:

      "Interjet claims its capital cost for 10 Superjets is equivalent to the pre-delivery payment for one Airbus A320."

      In other words, Sukhoi is giving the aircraft away for free.

      Delete
  12. This is interesting piece of information

    "The SCAC has historically been cautious of allowing customers to master the type’s MRO in-house, largely because its business plan calls for return-on-investment into the SSJ100 development to come from services on aftersales support."

    My guess is they were begging Adria to take these planes and gave them a great deal.

    ReplyDelete
  13. OU should strike a good deal with JP to lease five of these as the A319 is too big in winter. OU could increase frequencies on most of its routes and so become more competitive.

    ReplyDelete
    Replies
    1. OU could do a lot of things but they are hopeless!!

      Delete
  14. We will see if this is only for Adria or will they be used for Montenegro Airlines and Croatia Airlines ;)

    ReplyDelete
  15. The stress is on one word: INTENT. Letter of INTENT. That doesn't mean anything, it's just a dead letter on paper...

    ReplyDelete
    Replies
    1. Mrtvo slovo na papiru, jel ?

      Delete
  16. Why are you all sarcastic about the Ruski jets??? They have proved to be safe and reliable following the last accident in Indonesia back in 2012. Since then, not even 1 fatal incident!
    And for your information, SU also deploys them to LJU and other cities in the region so save your breath and stay with your 25-30 year old jets!

    ReplyDelete
    Replies
    1. Yes, they do deploy it, but their engines break down at 3k-4k hours of work, instead of planned 7k. That's why 2 weeks ago, one of flight was canceled and the SSJ100 stood at LJU airport for days. Sadly I don't trust russian jets and never will. So sadly if Adria does take these planes in, they'll lose a customer. And we all know, every customer counts nowadays. And I don't think I'm the only one who's not going to fly with them if this comes true.
      But that's just me and my opinions.

      Delete
    2. Reliable? Are you serious? The thing is grounded every time a small fault appears, ask SN, CityJey or InterJet.

      Also, no fatal incident in 6 years for an aircraft type that only has around 120 aircraft flying around is nothing to be proud of. Not to mention Russian test pilots managed to crashland one on a test flight in Iceland in 2013.

      Delete
    3. Airliners.net had a very informative thread about InterJet's experience with the Superjet.
      They could only manage to fly it once or twice a day.
      While their A320 fleet was flying 7 or 8 times a day!!!
      That is a HUGE waste of an expensive resource for any company.

      Delete
    4. It crashed in Indonesia, not Iceland

      Delete
    5. The Indonesia crash was a demo flight. There was a belly landing in Iceland during test flight as well.

      Delete
    6. It's the same as saying Lada Niva is a s*itty car. Please, save your breath...not everything Russian is bad!!
      Besides JP needs to grow agressively in order to catch up and compete with OU and JU.
      JP already has discovered golden destinations such as SVO, DUS, BRU, SOF and so on!
      Now it can even further increase frequencies and capacity and the Sukhoi is the perfect jet! Cheap and reliable!

      Delete
    7. The Lada Niva IS a s*itty car, it starts rusting while it still is at the car dealer waiting to be sold to some pure soul.

      Delete
    8. If the SSj is known for something is how UNreliable it is.
      You guys need to ask the comrade commissioner to give you a different script to write.

      Delete
    9. As if a bunch of aviation enthusiasts know about the safety of Sukhoi, give us a break.

      Delete
    10. I would love to fly with the SJJ- this would be an extra argument to again book a flight with Adria, the arguments against being they are unreliable and cancel flights left and right.
      If this truly materializes (which i do not believe) i would definitely book Adria again.
      Feedbacks ive heard from people who've already flown with the SJJ is that is spacy, comfortable and not loud.

      Delete
    11. It has very good chances to be reliable with an MRO for this particular aircraft type at Adria's homebase! Don't forget that!

      Delete
  17. Don't think this is smart idea. Russian aircrafts aren't popular in Europe with reason. People don't like flying with them. I don't think they aren't good, but they just aren't popular in Europe. Giving the fact that Adria already has problems with its image and reliability, acquiring Russian metal won't help either.

    ReplyDelete
    Replies
    1. Agree. Not a good decision for their image and for an airline that has never operated Russian made planes, even during communist times.

      Delete
    2. Plenty of positive reports by Brussel airlines clients- comfort on top level

      Delete
  18. Just a theory here but Cityjet had 15 SSJs on order, and they have announced that following dismal maintenance and reliability records, they will be returning their aircraft. As the press release states that the planes bound for Adria are a mix of second hand and new-builds, could it mean they are inheriting the Cityjet aircraft? Throw in a cosy CRJ maintenance deal for Cityjet and suddenly it looks like a "good deal". What do you think?

    ReplyDelete
  19. Very poor decision due to extremely low reliability and unstable political situation (high risk of sanctions and lack of spare parts...). Everybody in western world is trying to get rid of the aircraft. The worst possible scenario (but highly probable) is that Adria will get those Mexican acfts:

    https://www.flightglobal.com/news/articles/interjet-to-phase-out-some-superjets-in-fleet-restru-451910/

    https://www.aviation24.be/airlines/cityjet/brussels-airlines-cancels-many-flights-operated-by-cityjet-with-sukhoi-superjet-100-aircraft/

    ReplyDelete
  20. But why Sukhoi? Why not some of Bombardiers newer planes?

    ReplyDelete
    Replies
    1. Su is a world class airplane manufacturer, why not if the price is right?

      Delete
    2. Why Sukhoi? This is the reason:

      Su-100 - $28 million, 95 seats @31 inch, Range 3000km, fuel 13000l

      E-190 - $46 million listed price (but real price is way down @30-32 million tops), 100 seats @31/32 inch, 4500km range, Fuel 12900l

      CS100 - $32-35 million (listed price $65 million), 108 in two class configuration,, Range: 5700km, fuel; 17600l

      CRJ 900, $28 million ($46 million listed price), 90 @31 inch. fuel- 8000l, 2800km range.

      Delete
    3. Anon at 09:23 wrote
      "Su is a world class airplane manufacturer"

      LOL dude, not even the Kremlin trolls write such fantasies!

      Delete
    4. Sukhoi is also partly Italian.

      Primary users> Aeroflot
      Interjet
      Yamal Airlines
      Gazpromavia

      I think JU can also replace the ATRs with the Ruski Sukhoi Super JET.

      Delete
    5. Anonymous at 10:20
      Please stop lying, Sukhoi is a purely Russian company owned by the state.
      Lets keep this discussion factual.

      Delete
    6. do you know anything about this plane?
      Its 80% from western producers like Safran, Boeing etc.

      Delete
    7. Nope, only a small percentage of its systems comes from western producers.

      Delete
    8. Anon 12h09 sorry pal you're totally wrong!

      Delete
  21. Very smart move..
    Plane is really efficient.
    All European airlines will use it soon including Lufthansa

    ReplyDelete
    Replies
    1. Yes. European airlines are lining up.

      Delete
    2. Yep, really efficient. No winglets and low-bypass engines. Russian always knew how to make things efficient.

      Delete
  22. It will look nice in Adria's livery.

    ReplyDelete
  23. I see more and more that German managements prefers cheap over quality. Here is another example of. What a f.... fool. Unbelievable.... sramota za celo Slovenijo..... I will enter Slovenia via ZAG and KLU to avoid them

    ReplyDelete
  24. Anti-Russian hysteria is in full swing today. So typical.

    ReplyDelete
    Replies
    1. No hysteria. Just proven facts from the operators in the free world (i. e. not Russian para-government companies).

      Ask Interjet, CityJet or Brussels Airlines about its reliability.

      Delete
    2. I don't think it's anti-Russian. It's just that even people with a non professional knowledge of civil aviation know that this deal is a bad one in any arena other than the very short term, which means that all the employees, passengers and stakeholders (though perhaps not the shareholders or current management team) stand to lose a lot once the debacle unravels over time. Inefficient aircraft with a lack of proper maintenance support cost a lot of money, regardless of what you initially pay for them. We've already seen volitility in the oil price market this year and we're due another economic downturn in the next few, so it should be about positioning the airline in the best strength to cope with the storm, something this fleet decision will not do. The CEO and investment team will be long gone by then.

      I only hope that this is some kind of bluff to play Embraer and Bombardier/Airbus for some cheaper deals.

      Delete
    3. I'm professional and must say for your information that 15
      A-320 are grounded by unprofessional Interjet..

      Delete
    4. Comparing the A320's reliability to the SSJ is really funny!
      And especially for InterJet who has such a dismal experience with the Superjet...
      This thread is very illuminating f just how bad the SSj has been for the Mexicans:

      https://www.airliners.net/forum/viewtopic.php?t=1403411

      Delete
  25. oh my...
    didn't this piece of * crash during its presentation?

    ReplyDelete
    Replies
    1. So did Airbus A320....

      Delete
    2. @09:35

      Yes - the first FBW airplane in the world. Sukhoi crashed because of the crew. Which is quite scary.

      Delete
    3. Everybody knows it was an American EGPWS that was giving crew false information and distracting them into crashing into the mountain in Indonesia. Bloody Americans :D

      Delete
    4. Well, everybody does know what was the plane type that last crashed in Indonesia...

      Or russophobia made people forget it was 737 MAX? And that the tragedy may have very well been caused by a technical failure?

      Delete
    5. Yeah professional pilots (btw they were Russians, you are free to Google it) flying at low altitude in the middle of mountain ranges doing dangerous manoeuvres down there. The cause of accident was human error, both by ATC as well as from pilot. The TAWS announced warnings and even a gear not down warning sounded in the cockpit, all ignored and turned off by the pilots who were busy chatting about useless stuff in an unknown area (for them) furthermore the pilots requested alt 6000ft well below min safe alt which was acknowledged by ATC. All of these were human mistakes that would have happened in other planes of all countries.

      Delete
  26. What is wrong with a Russia made plane? Other than really bias thinking!

    ReplyDelete
    Replies
    1. It has been written extensively.
      So please, stop playing dumb.

      Delete
  27. Never would have thought in a million years this would happen. Wow indeed.

    ReplyDelete
  28. Does the superjet have a bigger range than the CRJ900?

    ReplyDelete
    Replies
    1. Yes. Both the standard and longer range SSJ100 have a bigger range than the CRJ900.

      Delete
    2. Yes. CRJ900 LR = 2,876 km, SSJ100 LR = 4,578 km. In theory it could even fly LJU-DBX.

      Delete
    3. Not only in theory.
      48 seats, all in biz has range 6500 km.
      It's amazing plane.

      Delete
    4. Yes Oleg, it such an amazing plane that the Russian government is forcing the country's airlines to buy it.
      because every non Russian airline who tried it either got rid of it or is in the process of doing so.
      Armenians, Belgians and Mexicans got to know full well how "amazing" it is...

      Delete
    5. what about Mionarch, Air Berlin, Primera, Cobalt etc
      Had they use SSJ?)

      Delete
    6. Non of these airlines Oleg blamed their demise on the type of aircraft they were flying.
      You are getting desperate, right?

      Delete
  29. Congrats Adria. 15 aircraft is huge. Those Sukhois will look nice in Adria's livery.

    ReplyDelete
  30. I recall clearly challenging Nemjee in this forum about his claims that CityJet / Brussels Airlines were 'very happy' with SSJ100.

    Time, the sponsor of truth, slowly but surely helped reveal the truth about SSJ100 and the satisfaction, of lack of it, of its operators.

    ReplyDelete
    Replies
    1. Most complaints are actually related to lengthy maintenance and lack of spare parts. From passenger and performance point of view, the jet actually performs quite well.

      If Adria will indeed establish a MRO at Ljubljana, this could solve the issue not only for Adria but other EU operators as well. Interestingly, Adria was also the first company to establish MRO for CRJ aircraft back in 2002.

      Delete
    2. Anonymous at 09:56
      The SSJ's problems is the same like all other Russian civilian airliner in history.
      1) Prone to break down a LOT more often than western aircraft.
      2) Very slow and erratic supply of spare parts by the various Russian companies that produce them.
      Establishing an MRO facility doesn't solve these issues.

      Delete
  31. Russians are very keen on having SSJ flying in EU, I bet they offered extremely good deal. SSJ is very good aircraft with despatch realibilty on par with other aircraft in same category.

    ReplyDelete
    Replies
    1. Very good dispatch reliability? Which locked box do you live in? Every non-Russian airline is publicly dissing the aircraft for its reliability.

      You need 99+% dispatch reliability today. Anything else is just a joke.

      Delete
  32. hahahhahahahahahahahaha is this a joke?

    ReplyDelete
  33. Lol! If this is true, I would refuse to fly on one as I don't personally believe they are safe!

    ReplyDelete
    Replies
    1. Well luckily the statistics don't support your personal beliefs...

      SSJ only had one major accident and even that was due to pilot error. That's with over 150 aircraft in operation and 10 years of service.

      Delete
    2. 150 aircraft produced or in operation? Ordinarily with newly produced aircraft this should be the same, but with SSJ you will find a lot of them are stored. Despite being such an amazing aircraft that a lot of people here think it is.

      Delete
  34. There are rumors that AA might lease these aircraft for free.

    Remember, Interjet said the capital cost of *10 aircraft* was about equal with the pre-delivery payment for *one A320*. Plus, they got $40M from Sukhoi in contractual penalties (for cases when the planes were AOG, due to lack of parts, subsequently they had to cannibalise 4 planes out of 22 for parts). The airline probably *made money* out of just leasing these planes, lol.

    If AA really gets the birds for free and they actually establish a SSJ maintenance centre here, to help with downtimes (preferably with heavily discounted or free maintenance for them), plus they negotiate good contractual penalties in case of AOG, then this could be a win for them.

    "the airline would benefit from a support package from large banks and export-encouragement agencies based in the countries involved in the SSJ100 industrial effort." <- I think having a Star Alliance member as a customer (especially if they'll be satisfied) is what Sukhoi is trying to achieve. Even if with a loss (the Russian state banks will cover any loss anyways).

    ReplyDelete
    Replies


    1. So? If the Russians will not pay for the fuel and missing passengers, this doesn't help JP one bit.

      Delete
    2. Anon @ 10:04

      The Slovenian government will take care of that. 😂

      https://www.exyuaviation.com/2018/11/adria-granted-subsidies-for-brussels.html

      Delete
    3. Paying anything more than peanuts or even nothing for SSJ would be over-paying. That's why JP wants them, because they can't afford any other aircraft.

      Delete
    4. @anon 10:14: the ch-artice is not precise. Read the tender documentation. there is no subsidy per se, but rather buying tickets for 2 years at approx. 450 eur per ticket (approximately 9800 return and one way tickets for two years' duration). Payment for tickets after they are issued for each individual user (so ticket per ticket, no upfront payment). So this could hardly be called capital injection, state aid or anything less.

      This is a subsidy only in such, that adria has to secure a seat on the flight, so obviously there is a price premium for such and the tickets can be bought 3 days in advance of the flight at the latest. I light of that I would hardly call this kind of arrangement and the average price of 450 eur for overpriced (i.e. camouflaged state aid).

      Delete
    5. @10:55

      That's true, but it was a similar thing with the brand name sale. JP sold its brand name to one of 4K's companies for 6 millions euros, but the money never changed hands (and JP is now merging with the company that bought the brand name). But 4K clocked those 6 mils as income. They will do the same here.

      Delete
    6. no, that is apples and oranges. under accounting prinicples that cannot be even charged in the books in such a way as you describe it because of different accounting rules for these items. Brand name lightens your assets balance sheet but is charged on the income balance sheet. The trick is that under some circumstances the whole amount can be credited to the balance sheet in its fullest at the moment of transaction, even though the payment is not yet made or is made in installments.

      WIth the airplane tickets this is a service that cannot be charged the same way, as there is contractally no service provided at the conclusion of the frame agreement. The frame agreement only specifies the approximate number of tickets that will (or maybe won't) actually be purchased. The contractual service (which is the thing that goues into the books) is only each individual ticket order/purchase and issuing an invoice for that. As per tender the invoice is issued per individual ticket.

      So you see, the difference in the accounting standards make your assumption invalid, as those two cases are different.

      Delete
    7. @11:18

      Thank you for explaining this. So they will still have to come up with the supposed capital injection?

      Since you seem to be the only (really) knowledgeable person here, what's your estimate of the situtaion in Adria? Is it all smoke and mirrors? How close to the bankruptcy are they?

      Delete
    8. average ticket 300EUR (return)
      4 500 000
      15 000 tickets
      CRJ9 90seat
      They leased 166 flights
      248 working days in 2018 (including August, then they usually have a holiday)
      !?!?!?!

      Let's say it's average on the flight 30%LF of this bureaucratic sh*t people.
      So they least tickets for 500 flights (return)?!
      500 flight : 248 working days = 2,02 YEARS

      :0

      Delete
    9. The above explanation is absolutely correct. We can not talk about subsidy but monopoly. And when I am traveling to Brussels for 1 day trip , I always have to pay about 550 EUR return fare, so the negotiated price is high, but aligned with market, fortunately.

      Delete
    10. @anon 11:25

      firstly, I have no insider information, so my comments are just as an outside observer.

      But my 2 cents are that yes, the liquidity problem still needs to be addressed. It could be done as a one time large capital injection (they first mentioned 10mio EUR), or a smaller capital injection to cover the liquidity and other measures that would in the course of a year provide positive cash flow from operations, which in itself provides liquidity.

      As for the requirements of the Slovenian CAA it could be a combination of several items - a lower capital injection to cover short term liquidity (e.g. the "new" 4 million capital injection), and evidence for some short-medium term liduidity gains - for example cancelling CRJ lease for 100k EUR per month and replacing with SSJ100 lease for 20k EUR per month (figures are just for the sake of this argument, not actual figures) which show that this business operation is sustainable.

      This is only for the immediate requirements of not losing the AOC, as generally the CAA's don't require all outstanding debt to be paid in order to provide evidence that the company can be a sustainable business and continue operations.

      But this does not mean that all suppliers are gonna be happy with only partial payment or similar. So there is a possibility that a supplier will put pressure on adria to settle the outstanding liabilities, and then additional capital would be needed, as with such a poor balance sheet, no bank in their right mind would give adria a larger sum loan (which also would have to be repaid, thus only prolonging the suffering).

      So it is really a matter of choice of the owners of adria, as adria on itself at the current cituation (from data and information publicly available) does not have sufficient luqidity and also is not very far away from insolvency, as there are basically no major assets left to sell (apart from the HQ building as far as I hear).

      So If this SSJ100 deal is going to be very cheap lease it could possibly work (monthly lease of SSJ significantly lower than the current leases for aircraft), but only if they rationalize the fleet - with 4 types of aircraft maitaining sufficient type rated crew would be very costly and an organizational nightmare (ssj100, crj, a319, saab).

      But as other have mentioned (i'm no expert on the SSJ), the availability of spare parts for the SSJ was not very stellar, so the MRO organization would almost certain have to have a large(r) stockpile of spare parts for very quick maintenance turnaround of aircraft, because I don't think Adria can sustain another year of massive cancellation of flights and payment of passenger compensation, because there will be the problem of liquidity again in 2-seconds-flat.

      Delete
    11. @13:41

      Nicely written!

      A practical problem regarding the SSJ is the crew training and the required bureaucracy - it takes time to write the company manuals and procedures, the CAA has to approve everything, pilots need to complete the type ratings etc. And as far as I understand, the money problems JP has need to be resolved immediately (ie we're talking days or weeks, not months) - which could only be done by 4K directly investing into the company. And 4K hasn't invested a dime in Adria.

      To me this looks all show and no go.

      Delete
    12. @13:51

      fully agree with you. This is also what I meant - the 4 mio EUR that are now stated seem like it is a must before the end year at the very latest or it is Goodbye Irene it was nice knowing you.

      The additional 10 mio EUR supposedly for the first quarter of 2019 would be for this reorganization and some luquidity cushion.

      The problem is also you won't get SSJ100 trained pilots out of thin air, which means Adria crew retraining, which means pulling those crew from CRJ or A319 and put them into training...and then with the crew shortage who would fly the other aircraft in the mean time...and this process with the speed of the bureaucrats will be certanly a half year project.

      Delete
  35. Who here is doing who the favour? One party perhaps almost giving away an unpopular jet on advantageous terms, to an ailing airline whose financial issues would otherwise repel, not attract, a manufacturer and deal of this size. In what other circumstances would a deal such as this be inked with an airline in dire need of recapitalisation? Looks to me to be Adria's last throw of the dice.

    ReplyDelete
  36. Adria Tehnika must be fuming.

    ReplyDelete
  37. Time to start avoiding Adria.

    ReplyDelete
    Replies
    1. Time to start travelling in comfort.Never heard from anyone complaints on pleasure of flying with this plane.
      Only political nonsense..

      Delete
    2. @Anonymous 10:43
      Calm down Boris!

      Delete
  38. with this news Adria has become the best thing that happen to regional aviation in years!

    i could actually be sitting here, reading some boring news like "ryanair mulls increasing INI frequency from 3 to 4 weekly to gastarbeiterstadt"

    but here i am reading how desperate russians are pushing planes nobody wants to a bunch of german hustlers who are dancing on the brink of bankruptcy

    whatta time to be alive!

    ReplyDelete
  39. You are all missing one point, the Maintenance and Repair Organisation (MRO).
    It may happen to be a game changer for both Adria and Sukhoi. Slovenians have vast experience in aircraft maintenance business. They have similar facility for CRJ, with customers like Lufthansa, so they are kind of brand in this business. This fact may encourage other airlines in EU to take SSJ into consideration. I would speculate that with proper maintenance (by EU standards) SSJ may reach more than 2 flights a day...
    Of course, it will take a lot of "sweat, blood and tears" (and money), but it is plausible.

    ReplyDelete
    Replies
    1. Adria Airways and Adria Tehnika are seperate companies. The first is owned by the Germans, the latter by a Polish investment fund. Sukhoi or 4K would have to buy Adria Tehnika in order to do that.

      Delete
    2. The SSJ's problems is the same like all other Russian civilian airliner in history.
      1) Prone to break down a LOT more often than western aircraft.
      2) Very slow and erratic supply of spare parts by the various Russian companies that produce them.
      Establishing an MRO facility doesn't solve these issues.

      So no, 4K getting them even for free from the Russians wont make any other European airline buy this plane.
      In an airline market of very small profit margins where aircraft availability must by above 99,5% the SSJ is simply uncompetitive.

      Delete
    3. This comment has been removed by the author.

      Delete
    4. Reply to "Anonymous27 November 2018 at 11:07"
      Nevertheless.

      Delete
    5. I like the Sukhoi, given a chance I would fly with them again. Well done JP!

      Delete
    6. I almost feel Russians insisted on these 15 airplanes to start flying Sukhoi jets to Adria Tehnika for a repair. And since this is a great opportunity for Adria they took it. I might be wrong.

      Delete
  40. I think 4K is one of the funkiest and most innovative companies in the world. The JP project has become versatile in so many ways.
    Adria is transforming LJU into a mini hub, getting different aircraft and exploring new horizons.
    PAD base is now born.
    The important role of JP in TIA and PRN.

    I totally support their further fleet enhancment of regional jets: CRJ, Saab 2000 and now the all new Sukhoi 100.
    I also believe that the Russians will stand firm behind this order and their mechanics will be totally dedicated to this huge offer.
    Slovenia is starting to have warmer relations with Russia lately. Aeroflot new SVO-LJU daily flights, Sukhoi order and I am expecting visa-free regime very soon, similar to Serbija.

    One word, Молодец Словения и спасибо большой!

    ReplyDelete
    Replies
    1. Visa free regime for Russia?
      Have you heard that Slovenia is a part of Schengen agreement?
      Do you know what it means?

      Delete
    2. @11:49

      Do you work for 4K or Sukhoi?

      Delete
    3. Yes, visa free. Slovenia can enjoy both visa free to Europe and Russia just like Latin Americans. What's the problem?

      Delete
    4. lol FAKE NEWS!

      Delete
    5. You mistook that for Serbia. Serbians can travel to Russia and EU (minus Ireland) visa free.

      Delete
    6. Serbians are so lucky for visa free in the entire European continent except UK & Ireland. After contacting Ljubljana, I hope Sukhoi contacts both Abu Dhabi and Belgrade soon so they can think about the future fleet of ASL.
      We are tired of seeing the same aircraft in the same airports: A320 boring, B737 boring, Dreamliner boring, ATR-72 boring yet different...

      Delete
    7. ahahahah such a love declaration, getting romantic in there

      Delete
    8. Slovenia cannot enjoy both visa free to Euroope and Russia as it is the part of Schengen agreement and cannnot independently bring any decision about visas.

      Neither Serbia nor Latin America are the members of Schengen agreement and they can reach the point to get free visa regime with Russia and EU.

      Basic things

      Delete
    9. Ummm, nope. Besides Schengen, theres the national visa programme....
      It`s still up to the individual country who gets in and under which terms.

      Delete
  41. A220 would make much more sense.

    ReplyDelete
    Replies
    1. It is much more expensive as well ;)

      Delete
    2. And it will probably be maintained (in EU) by Airbus.

      Delete
  42. Next step is to get the Chinese mid-range jet plus get some incentives from CHina for that. Build MRO in Europe as well and diversify revenue

    ReplyDelete
    Replies
    1. Well, this is a very rule of thumb..for Balkans :-) Sorry Slovenia.

      Delete
  43. Kupuju avione,a pred bankrotom. Kakva e ovo smejurija?

    ReplyDelete
    Replies
    1. They are not buying them, they are leasing them. And they probably got really low price considering Sukhoi has trouble getting customers.

      Delete
    2. how many aircrafts will they have ?? :D

      Delete
  44. OMG, it's just a letter of intent, it's not actually a contract yet. That's far away from any contract, so don't get too excited...

    ReplyDelete
  45. you right- huge risk for Sukhoi

    ReplyDelete
  46. The interesting part about Sukhoi SuperJet 100 is that it has a LR (long range) model too that has a max range of 4,578 km!!
    JP could also consider this model in the future and launch medium-range destinations that have no links to Ljubljana that can add as feeder routes:
    BEY, DKR, CAI, EVN, ALA and also important Russian cities: KUF, LED, SVX, UFA just like PRG is well connected to Russia too.
    In some way we might see one day something like: KUF-LJU-SKP or BEY-LJU-CDG, etc.

    ReplyDelete
  47. Adria & Adria tehnika will sucess with this project.Don,t think about SSJ as a mass production airlinerand compare it with Airbus or Boeing entry models - it simply impossible for now to produce a lot of them per month/year.Only the best airlines can afford them - like Adria and Aeroflot ;)

    ReplyDelete
  48. Aeroflot's new Achievement.

    On Nov 15 Aeroflot used 26 SSJ in operations with total time of 275 hours.

    Meaning 10.5 hours per plane on average- absolutely fantastic result for regional plane..

    And more than that the 5 most used planes were in the sky for more than 13 hours each.

    ReplyDelete
  49. I honestly think it would be a very smart deal for JP given very very low lease rates, an MRO at LJU, freeing up Airbusses and CRJ aircrafts for wet leases and the possibility to serve longer routes with the SSJ.

    ReplyDelete
  50. For such a small airline, this company has a lot of aircraft types. How is it possible to streamline operations with such a mixed fleet? In rhe future I see this complicated fleet being an issue to its productivity and cost base.

    ReplyDelete
    Replies
    1. With the SAABs: exactly three different types.....

      Delete
    2. Air Serbia: ATR, Boeing, Airbus

      Delete
  51. You right- they had to sell all this old shit and concentrate on 1 type of SSJ like Azimut did in Russia

    ReplyDelete
  52. Wtf. Purger where are you to explain what is going on??? I am sure now that Putin is behind 4k and whole Adria is actualy KGB coverup.

    ReplyDelete
  53. Pa to je apsolutno najbolji biznis koji moze Adria uraditi za sebe, u blizini na samo oko90-tak kilometara u Italiji na Aerodrom Ronchi, nalazi se skolsko-trenazni centar za njihove nove Sukhoi 100 Superjet avione dok za servis aviona je Adria tehnika-veoma pametno i ekonomski veoma isplativo.

    ReplyDelete

Post a Comment

EX-YU Aviation News does not tolerate insults, excessive swearing, racist, homophobic or any other chauvinist remarks or provocative posts with the intention of creating further arguments. A full list of comment guidelines can be found here. Thank you for your cooperation.