Adria granted ticket subsidy on Brussels route

NEWS FLASH


The Slovenian government will subsidies Adria Airways' flights between Ljubljana and Brussels to the tune of 4.5 million euros. According to the "Ch-aviation" portal, the airline won a tender organised by the Slovenian Ministry of Public Procurement for the transport of state employees from a dozen different public institutions who require frequent travel to the Belgian capital. Last month, Adria won a twelve-month contract worth 127.897 euros for the transport of postal items for the Post of Slovenia.

Comments

  1. Lol... So basically with the 4K cash injection they will get close to 10 million Euros? I actually wonder if this is even legal as it's not a new route nor an underserved market.

    Reminds me of the Lithuanian tender LO got to operate VNO-LCY. Would be interesting to see if Slovenia fixed the requirements the same way Lithuanians did.

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    1. I have been to Lithuania last month and was shocked to see how developed it is and especially their salaries! They are well educated people and have a very Nordic attitude.
      VNO and KUN are both very nice!
      Anyway, I hope Slovenia contacts Lithuania and asks for advice.

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    2. That LO tender to LON was a joke, the requirements on capacity (98+ pax planes) and frequency (2pw), as well as the airport served (LCY), basically ruled out anyone but LO.

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    3. Hungary did the same when they organised tender to give subsidies for routes from Budapest to ex-Yu cities (Pristina, Sarajevo, Skopje, Podgorica). Only airline that could fulfill the tender requirements in any way was Wizz Air.

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    4. In this tender the amount of money paid by taxpayers for a single ticket for flying bureaucrats to Brussels is exaggerated. With the agreement a certain amount of places is available for them on every flight. Not that much demand for Brussels by paying customers. Many times (I would say at least 40%) they fill these bureaucrats seats with "selected" no sense bureaucrats transfers and friends on no sense (touristic? visiting friends? "just to go") transfers to Brussels. It's the mentality of: we enjoy, it's paid, we get day of leaves later, international per diems cool! My experience is based on hearing these people talking in the Ljubljana airport waiting hall. Sadly is not far from the true.

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    5. Anonymous26 November 2018 at 11:36
      +1000
      Slovenia unfortunately has the Balkan mentality 100%.

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    6. Are you happily paying taxes in Slovenia?

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    7. Some one might even say SL must come out of EU just because they are paying Adria to fly bureaucrats to Brussels.

      How can a contract to fly compared to a subsidy. Some creativity even says it is cash injuction.

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  2. Now we know where 4Ks 4 million recapitalization will come from.

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  3. majko moja. pa ovi ucenjuju vladu

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  4. It's not a subsidy. It's a public tender for tickets between LJU-BRU open for everyone. The only problem is that there is no competition on the route, so the cost is much higher that in the case with several airlines competing and offering lower prices on such public tenders.

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    1. Of course it's a subsidy. The government is covering the cost of tickets. Even if Brussels Airlines had won it, it would be a subsidy for them.

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  5. First of all you may turn every tender in the for you favourable way (e.g. tickets should be on non-stop flights etc.). Secondly, for how many state employees for which duration? 4,5 million Euros? For heavens sake? This never ending subsidy and "bying of time" reminds of Cyprus Airways that went bust at the end! If you translate this sum to the size of Germany (factor x40), it would correspond with a state aid of 180.000.000 €! I think the people from 4K are very clever. Now the taxpayers are paying for the salaries of 400 Adria employees for exactly one year (estimated at 1000€ p.month roughly). I could even imagine, that's the way how the calculated the needed sum.....

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    Replies
    1. Just one remark.. The average gross salary in Adria was 3.666 EUR/month in 2017.

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  6. 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




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  7. c'mon guys, read the tender documentation and stop making a fool of yourself.

    the tender calls for approx 9800 tickets (+/- based on actual demand from the requiring agency/ministry, and are consisting of ca. 9400 return tickets work-day and weekends and ca. 360 one-way tickets) for the duration of 24 months.

    So that is on average 459 EUR per ticket for two years.

    The tickets can be ordered/issued 3 days before the departure date at the latest. Payment is of course per used/issued ticket. The airline has to guarantee a place for the holder of such ticket on the plane, or secure a substitute flight (depending on the rank of the individual holding the ticket, etc.).

    So there is no state up-front payment of any sort nor is this a capital injection, but only succesive payment of used airline tickets for 24 months for a predetermined price. So I really on't know where is your state aid idea coming from?

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