The Civil Aviation Agency of Slovenia has begun a review of Adria Airways' business after obligating the carrier to submit proof of its liquidity by January 1, 2019. The airline submitted necessary documentation on December 31 of last year, after its owner, 4K Invest, injected four million euros into the carrier and promised a further ten million euros in funding during the first quarter of 2019. In a statement, the Agency said, "This extensive material will be thoroughly reviewed and the evaluation is expected to be completed within a month". If the regulator finds that Adria is unable to prove its future liquidity and financial stability, it could face penalties, which may include the revocation of its Air Operator's Certificate (AOC), although such extreme measures are hihgly unlikely.
Following a review of the airline's 2017 financial report, the Agency established that Adria met one of the conditions for declaring insolvency. "By the end of 2017, insolvency was not disclosed, as a result of which the Agency issued a decision ordering the airline to regulate its finances", the head of the Civil Aviation Agency, Rok Marolt, said. Adria recently noted that its finances are in good shape. "All supervisions conducted by the Civil Aviation Agency are determined by official regulations and the agency is obliged to carry out regular assessments of the carrier's financial state in relation to fulfilling conditions for maintaining its operating licence. Adria Airways regularly informs the Agency about its financial performance and the Agency regularly issues resolutions and findings which we follow", the airline said. It added, "The Agency’s resolution that Adria Airways must provide evidence it has received funds either through recapitalisation or any other way by the end of 2018 is not of an extraordinary nature and does not mean that Adria Airways is in any worse shape than before or is being threatened with the grounding of its fleet, as implied by some media. These are regular measures which Adria Airways needs to constantly perform and fulfil".
Adria Airways' CEO, Holger Kowarsch, previously said the airline's financial loss in 2018 would be "significant" but added that the company would be restructured and placed on "firm foundations". "Slovenia needs its airline, because it is very important for Slovenian society, tourism and economy that a national carrier operates from Ljubljana Airport", Mr Kowarsch said. He added that the company would not file for bankruptcy, "contrary to what many wish for". 4K Invest has said that the upcoming ten million euros it will use to recapitalise the airline willl "make a significant contribution to the continued successful development of the Slovenian airline".
Photo courtesy of Nik Korošec
Photo courtesy of Nik Korošec
Comments
https://airwaysmag.com/airlines/brussels-airlines-terminates-cityjet-superjet-contract/
Senegal did the same thing and it did wonders for Air Senegal. They are about to receive two brand new A339!!
Wake up ADRIA cancel Russian junks immediately keep Adria Airways safe.
The same happens with a country like Slovakia.
Also, I read an article, that the Slovenes have a very driving mentality. So I will not be surprised if people drive all the way to Venice, which also makes sense being one of Italy´s biggest airports and wealthy of course.
You have direct flights to America, Emirates, Delta and a significant number of easyJet and Volotea destinations.
And of course, Treviso, which is another story. Around 4 Ryanair destinations.
But I would stick to the Slovenian habit and car mentality, which is also quite extensive in many parts of the Balkans.
Brac, Dubrovnik, Hamburg, Kiev, Bucharest, Dusseldorf and Geneva are not scheduled for next summer. Only Sofia stays.
And yes, Slovens love to drive, they even use goopti a lot. To Zagreb as well.
It's also clear that the SSJ news bombardment was a PR stunt by 4K to give the CAA and the contractors the impression of 'something happening in Adria'. They only signed a letter of intent, nothing else.
And also, just given the fact that Dnevnik newspaper has taken such interest in JP in the last couple of days is telling. They are a mainstream, establishment media, used by political parties to further their agenda. Their articles contained statements by people who are close to the current government - they basically said it doesn't matter if JP goes down.
Plus the last capital injection was again fictitious. So the writing is pretty much on the wall - either bankruptcy or all of this was a sham and a mysterious buyer will pop up from nowhere.
And no Mr Kowarsch: Slovenia does not need an own airline, it needs good air travel connections and this can be done by any european carrier, the sooner, the better.
Sure it is Vladimir Vladirovich, sure it is!
The Saab is barely used on the route but rather CR9. I won't be surprised if they add more frequencies once they take hold of the Ruski jets in spring.
I also see the return of BWK.
Super - they are not getting SSJ's.
Regarding cancellations - they over expanded last summer season, which was a decision of the (now ex) CEO. They didn't have the crew for such expansion, thus the cancellations. But things calmed down in October/November 2018 and it looks like 2019 will be much better for them, since they are again focusing only on profitable markets.
Only one of the contractors need to say 'pay up the past debts or we cancel our service' and the game is over.
Some people only see the agenda they want to see...
LJU-AMS 6 weekly
LJU-BRU 13 weekly
LJU-CPH 5 weekly
LJU-DUS - no flights
LJU-FRA 3 daily
LJU-SVO Daily
LJU-MUC 2 daily
LJU-CDG Daily
LJU-TGD Daily
LJU-PRG 4 weekly
LJU-PRN Daily
LJU-SJJ Daily
LJU-SKP 2 Daily (peak season) otherwise 1
LJU-SOF 3 weekly
LJU-TIA 2 Daily (peak season) otherwise 1
LJU-VIE 2 Daily
LJU-ZRH 3 Daily
Seasonal routes:
LJU-BWK no flights yet
LJU-DBV no flights yet
LJU-MAN 1 weekly
LJU-TLV no flights yet
Unless there some sort of a background deal between 4K and an 'X' company (or the government, to buyback JP), yes, JP will go bankrupt. When? It's impossible to know. It could be today, it could be in a couple of months. The contractors usually give a lot of leeway before they start calling in the debts.
If what I heard about the last capital injection is true (that it was again an accounting trick), then then will go under very soon.
But they will be paying so that the ruling elite can continue wasting the little money their country has.
LJU-AMS same
LJU-BRU same
LJU-CPH - 2
LJU-DUS - 4
LJU-FRA same
LJU-HAM - 4
LJU-SVO same
LJU-MUC same
LJU-CDG - 3
LJU-TGD - 4
LJU-PRG - 1
LJU-PRN same
LJU-SJJ same
LJU-SKP - 5
LJU-SOF same
LJU-TIA same
LJU-VIE same
LJU-ZRH same
Has the contract been signed?
Right. Slovenian CAA will never revoke Adria's AOC, they will wait until the suppliers reposses one or more aircraft.
- The CAA Head of Operations Department is an active Adria pilot
- Half of the CAA employees are either former employees of Adria, or are trying to get employed by Adria...
So, nothing will happen, even they are insolvent or lack capital. In worst case they will get a warning...
And they think the same will happen now.
Banana CAA. A competent CAA would have pulled the AOC already.
If the route is heavily subsidised, the tickets should be cheaper, no?
The BRU route is not subsidised. Government signed a contract with JP, that they can buy tickets to BRU not later than three days before flight at an agreed cost. That's it. The money changes hand only when the tickets are needed.
U hve YM U2 TK JU AF AY W6 SU LO BA HV already in town. If JP disappears LX OS LH and more U2 W6 flights are to follow. With clean receipts and a win win situation for the airlines and for the nation. Think big and your horizon will widen :-)
LJU looks compact and more or less organized. :)
Yes, because we all know that the 4K lot is highly credible.
Here is the official news on the Sukhoi website:
https://www.superjetinternational.com/media-center/scac-and-adria-airways-loi-for-15-ssj100-and-mro-joint-ventur/
Things seem to be very serious in that case.
Additionally it seems that the Airbuses will go to LH Group plus Luxair (LG):
"....The delivery of the new SSJs delivered on long-term dry-lease agreements will allow Adria to deploy more of its Bombardier CRJ and Airbus aircraft on ACMI services on behalf of third parties. Adria's ACMI customers currently include Austrian Airlines (OS, Vienna), Lufthansa (LH, Frankfurt Int'l), Luxair (LG, Luxembourg), and Swiss (LX, Zurich), according to the ch-aviation fleets module....."
SCAC president Alexander Rubtsov added that Sukhoi had realised that the SSJ100 after-sales support in the European market would have to be "organized profoundly and professionally.
Seems that Russians are very happy.
Sounds more like politician than CEO. Replace country and city name in that quote with other country and it would sound just like political campaign promise in Croatia, Serbia or Montenegro. For example: "Croatia needs its airline, because it is very important for Croatian society, tourism and economy that a national carrier operates from Zagreb Airport".