Adria Airways to focus on profitability after difficult 2018


Adria Airways will put an emphasis on returning to profitability in 2019 following a difficult year, which is expected to result in the carrier's worst financial performance in fifty years. According to local media reports, Adria will further grow its lucrative ACMI business with plans to wet-lease additional aircraft to Austrian Airlines, Brussels Airlines, Luxair and Lufthansa next summer. Furthermore, it will continue growing its operations outside of Ljubljana, due to the limited opportunities on the Slovenian market. The carrier recently opened a base in Paderborn in Germany and has previously expressed interest in doing so in Bern. The airline has already discontinued unprofitable routes from the Slovenian capital and will work on further reducing risks in 2019.

Adria's CEO, Holger Kowarsch, recently said, "We will work hard to position Adria Airways as a stable business for further growth. We already achieved substantial development and we will continue to expand the potentials of this company and build it into an even stronger airline in the future". The carrier will be recapitalised with four million euros from its owner by the end of the year and will receive an additional ten million euros during the first quarter of 2019. "We see huge potential in the company, with our priority being to stabilise our operations and restore the trust of our passengers. There is a lot of hard work ahead of us, but we are confident that we will succeed", Mr Kowarsch added.

The Slovenian carrier recently signed a Letter of Intent for the acquisition of fifteen Sukhoi Superjet 100 aircraft, which are to be delivered from next year onwards. This is on top of the three Bombardier CRJ900 aircraft the airline signed up for in June, to be provided by lessor Regional One next year. Asked whether the order is still valid following the carrier's shift to Russian-made aircraft, the Slovenian carrier simply noted, "The order of the CRJ900 is still an option for us". At the time, the carrier said it would consider adding more of the seventy-seat CRJ700 aircraft to its fleet next year as well.

Comments

  1. "which is expected to result in the carrier's worst financial performance in fifty years."

    wow

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    Replies
    1. I can only imagine the figure.

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    2. Probably over 15 million euro loss.

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  2. Don't see how risks will be reduced with 15 SSJs coming.

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    Replies
    1. Yes, even if they get them for free the much lower availability of these aircraft compared with every other plane will cause huge delays and cancellations on its flight schedule.

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    2. Who are you to know about much lower availability?

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    3. Who do you expect him to be? Its just a known fact

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  3. So fewer flights from Ljubljana, big losses, focus on different markets. Smells like 2016.

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  4. I still don't understand why they need 15 SSJs. Will they replace entire Bombarider fleet?

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    Replies
    1. SSJs is kids story

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    2. You are saying they won't come?

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    3. With which money they will come?

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    4. They will make a financing deal with Sukhoi. They will probably get loans. I doubt the planes were too expensive to begin with.

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    5. Of course they have to take them. How on earth will they get the money next year? The Russians are desperate and are willing to do anything to keep the aircraft flying. Probably even pay someone to do it.

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    6. The plane is no longer called Sukhoi. Inform yourselves before posting silly, billy comments.

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    7. What is it called?

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    8. It is called Sukhoi Superjet 100 which is totally different :)) Anon 9:51 is probably some SSJ100 promoter :)

      http://www.scac.ru/ru/products/

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    9. @Anon 09:51
      It should be called a"useless flying turd" which is far more accurate than whatever it is its official name.

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    10. It's not like CRJ is a huge success either. Bombardier is a loss making business that's bailed out every year by thte Canadian government.

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  5. So no new routes next year?

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    1. Apparently according to Slovenian media, fleet in Ljubljana will be decreased to 8 aircraft.

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    2. What will they do with the other planes?

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    3. Which media or do you have the full airticle?

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    4. Siol.net
      https://siol.net/posel-danes/novice/nemski-racunovodski-triki-za-resitev-adrie-pred-stecajem-484060

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    5. Siol.net always makes posts twice as horrible as they really are! Dont always belive what siol publishes, I stooped reading them because of that

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    6. @0929

      Well, it's hard to argue with facts. If you have to save your skin by first selling and then buying back your brand name (your accountant is David Copperfield), then it's over.

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    7. Can someone explain to me about the brand name. I don't understand Slovenian and google translate is not great. I understand they sold the brand name but I don't understand how buying it back will save them financially.

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    8. @0941

      Well, they first 'sold' the brand name to one of their own companies (they deny that it's their company, but they lie). No money actually changed hands because they made a deal, that the buyer will pay for the brand name, in a sense, by not charging JP for using the name. But on the accounting sheets they wrote in income of 7 million, which is why they didn't go bankrupt last year.

      Now, they will merge JP with the buyer of the brand name (they said previously, that they have no connection with this company) and thus, magically, JP will get back the brand name which is 'worth' 7 million euros.

      This money does not exist, this is done solely to appease the CAA. But the suppliers (fuel providers, airports etc) want real cash, which JP doesn't have. And herein lies the problem and the reason, why JP will go bankrupt. When? It could be tomorrow, no one knows. The only thing that has to happen is for one of the suppliers to demand the back payments, if they judge that JP is not in a good financial situation (which it isn't).

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    9. Ah ok I get it now. Thank you for the explanation. it's sad it has come to this.

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  6. I read a report in the media last week about the financial mismanagement at Adria by 4K and the tricks they are using to show a more positive balance sheet. The things they are doing is crazy. Selling and buying the brand name, offshore accounts, creating and bankrupting companies etc. Really murky business.

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    1. And Montenegrin governments wants to sell them Montenegro Airlines. Crazy.

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    2. Croatian government too.

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  7. What the hell is going on here??? This all seems very fishy.

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  8. This is worrying.

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  9. They said how Darwin was stable as well. I really hope it doesn't have the same outcome.

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  10. Holger Kowarsch: Slovenia needs its national airline.

    Also Holger Kowarsch a month later: We will continue growing its operations outside of Ljubljana, due to the limited opportunities on the Slovenian market.

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  11. Well, let's see how many pilots they end up with next year. If they keep pushing this AMCI business, a lot of people will walk out simply because it won't make any sense working for a Slovenian salary and being based abroad.

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    Replies
    1. True. And Adria already has a pilot shortage at the moment.

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    2. Many of them will stay until the bitter end. The resignation rate with respect to the company stability is almost zero.

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  12. This is why you don't sell strategically important companies to unknown investment funds with no experience in aviation business.

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    Replies
    1. It was either 4K or liquidate the company.

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    2. I remember other funds being interested as well.

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  13. This is not looking good

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  14. What is happening with those Saabs they purchased. Are half of them still grounded?

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    1. Planes that are not in PAD or Swiss are stored in Sweden. They cannot find crews.

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    2. Thank you. Shame.

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    3. I just saw their SAAB getting ready for boarding last night at ZRH. I must say it looks pretty good in JP's livery.

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    4. In Sweden? 2 are parked in LJU.

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    5. Yes. Sweden. But only one plane is there, not all that don't fly.

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    6. I'd recommend all JP Saab livery fans to look at it closely. The ultra expensive color, painted on Darwin fleet by EY for EYR project was never replaced after the F7 grounding. When registered to S5 register for JP, they "painted" the tail with a regular color. The outcome is fuselage in the old EY color, while tail is patched with different type of color. To me plane looks like very unprofessional commercial for "Hansaplast".

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  15. I just don't understand where they are getting the money for all of these aircraft acquisitions - CRJs, Saabs, SSJs...

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    1. SSJ's would be free. CRJ's are leased and the only thing the are paying regulary. Saabs are used as a money laundering scheme.

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    2. It's just a question of contractors pulling the plug. We have no public info about the amount of money they owe to the fuel providers, airports, nav services etc. Word is, the reason they are still in business, is the good will of suppliers. They supposedly owe tens of millions of dollars.

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    3. Interesting. I really hope they survive somehow. There was a list circulating on the net about airlines that might disappear in 2019. Unfortunately, Adria was one of them.

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  16. Have they actually made that recapitalization payment of 4 million?

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    Replies
    1. No. They also moved the supposed 10 million injection to 2019. it's a scam.

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    2. No, but they won a public bid and government will give 4m for subsidies :)))

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    3. @09:43

      This is not true. The BRU subsidy is paid per issued ticket not in bulk. They are screwed.

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    4. What is not true? They won a bid, way of a payment is second aspect. They will get 4m over some time if they keep airline running, It's lika a cash flow injection. So it seems like a some agreement between government and JP.

      Of course, because they didn't get money upfront suddenly they will cut flights from LJU because it is "not good economical environment". And only few weeks ago they were talking about "national airline"....before bid is closed.

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    5. @10:15
      ''What is not true?''

      That the BRU deal is the capital injection Kowarsch was talking about. As said before, the BRU deal is paid per issued ticket (the agreed price was around 450 euros per ticket, which is actually quite cheap, considering that JP's tickets to BRU go for 600 euros or more).

      The capital injection Kowarsch was talking aboout is the buyback of the brand name.

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    6. @10:25
      Ok, you are right, its not a capital investment mentioned in article, it is just cash injection from government.

      BTW, just checked, middle of January, return flight to BRU - cheapest hand luggage fare is 255€, fare with checked in luggage is 300€. Yeah, 450€ is quite cheap :)

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    7. @10:57

      Read the document before you post nonsense. Yes, 450 is a normal price, as they get that price even if they buy the ticket three days before departure.

      Well, if you call this 'cash injection by the government', then an airline gets a cash injection whenever a public servent flies.

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    8. @11:53
      And because most of the trips by government officials to Brussels are totally unexpected they usually buy tickets only couple of days before?

      Yeah right...talking about nonsense. Get over it, this is for transferring money from government to airline. Like many other creative ways we saw in this region...

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    9. BTW, if you go now and buy tickets for January in Flexible fare you can change your travel dates for free and it costs 350€. And we are talking public prices, not some special deal for government.

      Yeah, 450€ "special deal" is real bargain...

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    10. yes, but per tender Adria must secure a place on the flight or provide substitution. therefore it cannot sell all tickets until 3 day prior to departure or arrange transfer flight on other airline on such a tight schedule (for example: instead of LJU-BRU-LJU on Adria the route will be LJU-MUC on adria and MUC-BRU on LH), and that ain't cheap.

      As for advance knowledge of dates: the larger EU and international eent they are known quite in advance, but lower level meetings (that is not large conferences) on an agency-agency level or directorate level are sometimes known only one or two weeks in advance.

      So i would be so simplistic ... and you also compare prices for january and february which are dead season. Try finding a spot in let's say end of may/june, before the holidays.

      As some other commentator has stated, I have flown on these dates for well above 500 eur return, because there was no other option os a 5 day notice.

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    11. BTW, it means 450 eur per return ticket, not one way ticket, what you are looking. That is a good price. But you are too dumb to understand that. You are posting prices for one way ticket.

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    12. @14:11
      You are one rude and absolutely ignorant and probably some other things. All prices are of course return ticket, it is so easy to go to web and check. But not, you are too lazy & without enough intelligence to do this before you post here and make absolute fool out of yourself.

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    13. Ond day meeting in BRU (Wen, 15.1.2018):
      Dep: LJ (7:00) - 278 EUR
      Ret: Bru (20:15) - 264 EUR
      Total: 542 EUR
      Sorce: adria homep

      Who is now ignorant? You are talking about inteligence not realizing that you are checking prices for one way ticket.

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    14. I was checking prices for stays of 3-4 days...
      If you change date of your return flight, prices for first flight (15.1.) will change from 278€ all the way to 105€...so Adria is tuning prices in that way.
      At the end, maybe nobody is dumb, but you were the first calling out names...

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    15. The guy above was kindly trying to explain you the deal between Adria and the government, but you were constantly pushing your own agenda. And yes Adria is tuning the prices as well as other airline companies. Single day return tickets are always more expensive. Airlines are targeting professionals and business people who are going for a single day meeting with an early morning departure and late evening return. Do you really expect that thise group of people have a time to spend in Brussel or Zurich or Munich 3 - 4 days for a single meeting? For what? And dont start again with Balkan mentality and other "shit" you posted. 450 Eur is a good price for a return ticket. Cheers...

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    16. Ni res!!!!

      Z naročilom je predviden nakup skupno 9.794 vozovnic, polovico v vsakem od dveh let, in sicer 8.974 povratnih vozovnic med tednom, 457 povratnih vozovnic med koncem tedna, 218 enosmernih vozovnic med tednom in 145 enosmernih vozovnic

      Niso samo dvosmerne vozovnice. Poleg tega sem zmeraj mislil, da če kupuješ na veliko, da dobiš popust! Tehle 450 € ni ravno nek popust.
      In pa poslednje. So tehle 4,5 milijona plačali takoj? Kaj pa če JP med trajanjem pogodbe propade?

      Kot rečejo Hrvati: pojeo vuk magare

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    17. Im done, no need to explain, Ive done my part, Athos_cro is a troll.... like some others...

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  17. Holger and Co are a joke. A small fleet but 4 different aircraft producers, unbelievable.... never seen such thing before. They must have burned massive cash in 2018 if they hve to inject another 14 mio. This wont end good, that is already obvious now.

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    Replies
    1. They never burned any cash. They never had any.

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    2. They burnt a lot of supplier's cash.

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    3. 4K have proven themselves as a bunch of complete amateurs.

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    4. JU520 BEGLAX:
      you are really getting boring with this barking around Adria. How old are you? I would assume between 17 - 24 yo, exyou diaspora and living somewhere around Maribor. Right? :) Have you ever even sat on a airplane? I remember your response about Russian planes... it was like "EWWWWW, I will never fly again with Adria again... they are not safe... I will chose Graz or Zg instead... ewwww...." OMG, how old are you? 16?

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  18. "The order of the CRJ900 is still an option for us".

    So in other words, these 3 CRJs won't be coming.

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    Replies
    1. With 15 SSJs, they really don'e need even more planes. They will have a fleet of almost 40 aircraft.

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    2. You think other aircraft would be staying if SSJ becomes reality? The only reason why they are considering this is because they cannot pay leases for real aircraft, so they would like to replace them with free aircraft (or more or less free).

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  19. You are free to critisize the airline as you wish, but JP went through very difficult times but still not lost its regional Star Alliance role:

    https://www.adria.si/en/about-us/star-alliance/

    It is still considered an important feeder for the bigger Star Alliance airlines such as LH, SQ, UA, TP, etc.
    For instance, LJU is also an important mini hub included in the Star Allianz routemap.

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    Replies
    1. What non sense...an important star alliance feeder? Yeah right... :-) Adria had difficult times since the break up of YU, thats soon 3 decades ago. A carrier like Adria is not needed on the European matket and since its not needed, its just a matter of time until it will disappear.

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    2. Star Alliance... What would happen if they lost the status? They have a monopoly on all flights to hubs (MUC,FRA,VIE,ZRH), it's not like people would take another airline to go to the hubs.

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    3. JP feeds LH and SQ bringing passengers from:

      Sarajevo, Moscow, Pristine, Podgorica, Sofija, Tirana, Prague and sometimes Brač before being cancelled.

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    4. LH has 4 daily from Moscow to FRA and 3 daily to MUC. Add couple of flights of OS and LX to VIE,GVA and ZRH.

      From PRG they have 5 daily to FRA and 4 daily to MUC. Again, more flights with OS and LX.

      3 daily from SOF to FRA and MUC and 4 daily to VIE (OS).

      They really need JP to feed their network, yes.

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    5. JP doesnt connect its flights to muc, fra, zrh, vie, bru from svo, prg; it only connects them from skp, prn, tia, sjj, tgd, and sof. Other than tia and sof, LH is not connected to these cities and rely on jp and somewhat ou.

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  20. Who knows whose behind these Germans.

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    Replies
    1. It is a pubic secret. Iranians.

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  21. So what happens if Adria does go bust? Can all their routes be taken over by competitors?

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  22. They are on its last legs.... the Suchoi pressrelease was just a red herring to simulate a life signal. 2019 wont finish for them and it probl will end all with a big blow incl criminal investigation by Slo government

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    Replies
    1. Criminal investigation by SLO government... Good one :)

      It's still the Balkans, no accountability required for any management position.

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    2. That's actually not really true. I agree that too many investigation have failed, but nonetheless there are quite a few ex Slovenian CEO's of former major companies in prison or at least being prosecuted.

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    3. Has anyone taken responsibility for ordering 2 brand new A319s under horrible leases that still stand over Adria's head after years and years of losses? No.

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  23. I hope more foreign carriers see this as an opportunity to launch flights to LJU.

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    Replies
    1. Agreed. LJU needs more foreign and stable carriers.

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  24. Adria is in need of quite a substantial amount of money this winter. Let's see what happens.

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  25. Adria Flying Circus

    I am so sorry for all the people working under this 4K clowns

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  26. I hope 4K sells Adria to someone ASAP.

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  27. Which routes from six they ended this year will return in summer 2019?

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    Replies
    1. S19 new JP routes launched last year:

      OTP-LJU is not listed
      HAM-LJU not listed
      GVA-LJU not listed
      DBV-LJU not listed
      BWK-LJU not listed

      SOF-LJU 3 weekly.

      So, out of the 6 only Sofia is bookable for summer 2019.

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    2. Thank you for that. I don't get that none of these worked. Didn't they do aome research beforehand?

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    3. https://www.stapotovanja.com/letalske-karte?QFrom=C&QTo=C&Culture=sl-SI&Method=Search&Page=Result&IsCalendarSearch=true&From=LJU&To=DUS&DepartureDate=15%2F07%2F19&ReturnDate=23%2F07%2F19&AdtCount=1&ChdCount=0&InfCount=0&YthCount=0&StuCount=0&flight_type=RoundTrip&CabinClass=Y

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    4. They most probably did but given the decision about the new Russian jets, maybe they will launch the timetable in the last moment.
      SOF apparently is working extremely well for them, they keep the same prices and sometimes increase them but fly bigger planes. More capacity = more money. Won't be surprised if they resend A319.
      OTP cancellation was a big surprise because they initially launched 4 flights pw and then down to 3 and finally cancelled. They have almost similar schedule as SOF.
      As for the Croatian coast, I think DBV will be relaunched, after all it´s a booming destination. Not sure about BWK, but with 1 sole flight per week it is tricky to make connections via LJU.

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    5. i wouldnt know what Slovenians would want to do in DBV. they should swap DBV with SPU

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    6. Why not Dubrovnik?

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    7. I am so shocked that out the pack exactly SOF made the cut?!?!?

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    8. Quite shocking indeed. I tried to search on the Internet and found no info on what type of traffic Lju-Sof-Lju is. The most likely reason could be is demand for Venice or Treviso area where Ryanair already operates even in winter.
      Could be business, leisure and transfer too.
      Ljubljana is becoming one of the pedestrian capitals of Europe and is becoming more and more popular amongst newly emerging markets.

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  28. And I thought Germans were known for their efficiency and sound business decisions.

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  29. One ordinary week in Adria Airways

    MONDAY: We are focusing on ACMI
    TUESDAY: We are taking more CRJ-900s
    WEDNESDAY: Our focus is on domestic SLO market
    THURSDAY: We are taking Sukhoi Superjets
    FRIDAY: We are always looking for more SAAB and CRJ pilots
    SATURDAY: We are opening new bases in Palanga, Kukes and Khartoum
    SUNDAY: We are closed today sorry c`ya!

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  30. someone saw the oportunity

    British Airways will run new routes from Heathrow to Ljubljana in Slovenia and Montpellier in the south of France next summer.

    Flights to Ljubljana will run Mondays and Fridays from July 15 to September 2.

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  31. The fleet of Suhoi 100 Superjet aircraft is a real opportunity for Adria Airways profit increase,this aircraft has very cheap maintenance costs only the Italian made brakes are expensive.

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  32. veoma ekonomican je novi Sukhoi 100 Superjet avion odlicna sansa za veliki profit Adria Airways,i veoma udoban u konfiguraciji sa 91 putnicka sjedista

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  33. Maybe you should put comment about Sukhoi also in Slovenian? :)) Paid in bulk or per post? :))

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  34. Sukhoi 100 Superjet Letalo je namenjeno kratkim in srednje dolgim letom, saj se s svojim doletom lahko meri z večjimi letali. Ta tip letala poganjajo motorji SAM146 proizvajalca Snecma. Letalo v floti Adrie Airways ima 96 sedežev, razdeljenih v dva razreda, ki se prilagajata glede na potrebe posameznega leta. Kabina s svojim notranjim oblikovanjem pripomore k večjemu udobju in sproščujočemu počutju skozi celoten čas leta.

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  35. Also i can put comment in Macedonian language for better understanding my father is Slovenian nationality and my mother is Macedonian nationality

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  36. https://airlinerwatch.com/sukhoi-superjet-underperforms-due-to-a-design-flaw-in-the-engines/

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  37. https://www.vedomosti.ru/business/articles/2018/11/21/787112-ssj100-malo-letaet

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  38. The engines of Sukhoi 100 superjet Sam 146.is the natural and environment friendly choice. The SaM146 has quickly set the engine standard in the growing regional aviation market.

    ReplyDelete

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