Adria recapitalisation deadline looms


Adria Airways has said it will put a greater focus on reliability and maintaining business stability this coming summer season following a challenging 2018. The carrier noted that after successfully optimising its network this winter season, which resulted in the suspension of a number of routes, it has achieved "greater operational stability", adding, "This trend will continue into the summer season, with the focus being on reliability and punctuality of our operations". Last summer, Adria faced a significant number of disruptions to its schedule due to a lack of aircraft and crew. According to the Slovenian National Statistical Office, the airline started the year off on a softer note, handling some 69.300 passengers during the first month of the year, down by 4% compared to 2018. This was primarily the result of it operating fewer flights.

Adria Airways' CEO, Holger Kowarsch, said, "The responsibility before the new season is big. The very challenging conditions in the aviation industry are unlikely to diminish, and we must not allow for a repeat of last summer. We continue to invest all of our efforts into greater operational excellence, reliability and maintaining business stability. Our passengers will have a more flexible and comfortable travel experience with further improvements to our product on existing routes, and thus increasing the value for our passengers", The Slovenian carrier's part-owner, 4K Invest, previously vowed it would recapitalise the company with ten million euros during the first quarter of this year, although it is yet to do so with several days to go until the end of March.

Earlier this year the Civil Aviation Agency of Slovenia completed its audit of Adria Airways' business after obligating the carrier to submit proof of its liquidity. The regulator found that the Slovenian airline successfully proved its future financial stability. 4K Invest injected four million euros into the company late last year. The agency launched an investigation into the airline's operations after it was determined that it met one of the conditions for declaring insolvency based on its 2017 financial report. Mr Kowarsch recently noted, "I am looking forward to continuing with the implementation of our strategic plan and building on the long-term development of the Slovenian airline. We will further adjust our network of flights, add frequencies and also keep all connections to major European hubs". The company added it was "positive about the future".




Comments

  1. No Sukhois and still leasing out A319s and CRJs? Go figure.

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    Replies
    1. SMFH.
      Looks like that JP as a scheduled carrier will soon stop and only an ACMI provider will survive.

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    2. ACMI has been a very successful business for them and I see it as the only way to survive right now.

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    3. Not as successful as the Saab 2000 story, especially in PAD.

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  2. It is 27th of March. 4k said they would give Adria €10 million in first quarter. Where is it?

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    Replies
    1. Typical 4K's empty talk. And no money will appear.

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    2. 4K is realy scum. Sukhoi, or the banks financing the Superjets, were supposed to pay 10 mio €, but Russians said no, and sent the pilots in the middle of the training back home. Maybe the other Russians will give the money

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  3. I hope things will get better for them in the future.

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  4. And on top of that the Sukhois arw not coming.

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    Replies
    1. It is unlikely, but there is nothing officially confirmed. Just gossip.

      http://www.sierra5.net/novice-novo/novice/item/3267-posla-adrie-s-suhojem-za-enkrat-ne-bo?fbclid=IwAR2HEJ5xqFMv7hXNytQyJ3IW1fUejOMFMcIDoAvFTaRPjJ81N4DGVtdGF3E

      Delete
    2. This has been known for some time - Sukhois have been cancelled. 4K was basically blackmailing Sukhoi - they wanted free jets, free training and 10 million euros cash (the 'recapitalisation').

      They will go bankrupt in very short time.

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    3. Oh, well, at lease we now know for a fact something we suspected all along that Nemjee, whose contribution here I usually value, was expressing wishful thinking a few months/years back when he was stating that CityJet and Brussels Airlines were very happy with SSJ100s.

      The mere fact that SSJ100 owners were taking negotiations with Adria Airways seriously demonstrates how well the aircraft has been received by the market. You can't blame Adria Airways for offering to showcase the aircraft to the European market, but at a cost.

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    4. No one is blackmailing. Sukhoi is desperately giving SJJ's for free (to anione who wants them) and paying on the top to open the MRO. Desperados.

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    5. The link you provided does not actually confirm anything. It's just rumours that have been circulating for months.

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    6. Why doesn't someone just ask Adria what's going on with the Sukhois?

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    7. https://i.ytimg.com/vi/Ohus8Ud7POg/maxresdefault.jpg

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    8. ^ haha good one :D

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    9. @11.07
      They have been asked. They just refused to answer.

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  5. I hope everything well for LJU airport but I think the best thing would be if Adria really came to an end. Those cancelled flights, routes, problems with providing aircraft (as for example, when Adria combined flights to AMS and Paris or Brussels, if my memory is right) and so on reflect a very bad image of LJU airport just because Adria is its main airline. Time to move on from Adria and ger some legacy carriers do Adria's job properly.

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  6. Adria is very stable in the past months with very good operational performance. I heard only good things about them from their ACMI customers and their own operations are also better than major european carriers.

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  7. Regulator should have shut them down in January.

    ReplyDelete
    Replies
    1. Years ago rather than January. But CAA will never revoke Adria's AOC.

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  8. Hopefully things do get better like the CEO promised.

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    Replies
    1. I'm so sorry but CEO doesn't have a slight idea what's he's talking :-)

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  9. Recapitqlisation won't happen either and the company will go bankrupt.

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    Replies
    1. It would be so sad to see Adria closing completely. I keep my fingers crossed for Adria.

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    2. Maybe it will go bust but not so soon as you think. Contract with lufthansa group are signedbfor 1 year. Mone for operation ic coming in regularly, so for next year more or less safe.

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  10. So what happens if 4K does not give the 10 million?

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    Replies
    1. They go bust.

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    2. If Adria goes belly up what happens with LJU? How will they be affected?

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    3. Traffic will fall sharply until replacements are found.

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

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    5. well, if as speculated that at some point Adria goes bust, somebody will certainly jump in and fill the gaps

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    6. @10.13 Fraport should have realised long ago they can't depend mostly on Adria and that they should bring new airlines.

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    7. Could not agree more. I don't know what strategy Fraport has, but If they want to make their investment profitable they should start attracting new airlines. Being dependent just on one customer in business is risky.

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    8. JP going bust would be great news for ZAG.

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  11. Con job by 4k from the very start.

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  12. I'm not happy about is the state of the airline with purchased Saabs nonoperational because they are sh*t planes, a lot of cancelations and delays whixh hqppened and the elephant in the room which is this Sukhoi business.

    ReplyDelete
    Replies
    1. 4K Invest has NEVER managed or run an airline before Adria. The aviation industry is quite a difficult business and different from many others. Hiring former Etihad Regional executives obviously didn't do the trick.

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  13. Hope things will get better for them in the future!

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    Replies
    1. I have been saying the same for years but always the same story with JP. I had some hope last year with the new routes and planes but in the end nothing.

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    2. Every other year restructuring, route cancellations, near-bankruptcy...

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    3. Until Adria finds a serious pertner not much will change.

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  14. Fewer flights from Ljubljana, big losses, focus on different markets... and CEO is talking about a rosy future.

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  15. Hoping JP a better 2019. I am sure they will succeed.

    The LJU-SOF route is now 1 year old. The first flight was inaugrated on the 25th March 2018. LF was quite high if you can see in the video (starts after minute 08:01) and the Slovene president Mr. Pahor onboard.

    https://www.youtube.com/watch?v=5z6zewE_MKc

    Flights are even bookable for winter 2019. Last year, on most Sundays the CR9 was almost always sent. Similar to JU's success on the route, I think it will become daily after it matures a bit more.

    ReplyDelete
    Replies
    1. Seems Sofia was their only success last year.

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  16. Time for the state to step in.

    ReplyDelete
    Replies
    1. And do what exactly? Renationalize them.

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    2. Yes because government did a great job when they were managing them.

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    3. Time for the state to step in and find a way to inject 10M Euro to Adria, like they did last year. 10M Euro can be given to Adria for maintaining direct flights to FRA and MUC for example.

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    4. Yes, that wouldn't raise eyebrows in the EU... Adria barely escaped EU commission ruling to pay millions back in unlawful state aid a few years ago.

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    5. The Slovenian government should have done a better job when selecting Adria's future partner.

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    6. lot of airlines within EU are surviving this or similar way...AZ is the best example

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    7. 10M this year. 10M next year. 10M every year.

      For the privilege of paying 800 EUR for ticket LJU-BRU-LJU while the entire Balkan flies through LJU for less. Slovenia really needs Adria. Really.

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  17. Good luck Adria.

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    Replies
    1. They will certainly need it.

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  18. No money, no new planes, no new routes. Great work Kowarsch & co.

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    Replies
    1. Really unfortunate. I don't know what to think about Adria anymore. Is there a light at the end of the tunnel?

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    2. Ljubljana expansion in 2018 was a huge debacle - both financially and operationally.

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    3. There is a light. But most probably an old pushback tug parked in front of their aircraft to prevent them from flying without paying all the debts first.

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  19. It's nice that they are promising a stable season. Considering how much they cut the schedule it would be an embarrassment if the season was not stable.

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  20. Why so much hate towards Adria in the comments here?

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    Replies
    1. No one is hating. What is not true with any of the comments?

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    2. Just a regular dose of Adria bashing.

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  21. Well done Adria. Prove the haters wrong yet again.

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    Replies
    1. LOL are you serious or trolling?

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  22. The January passenger decline is nothing compared to how much numbers will fall in summer.

    ReplyDelete
    Replies
    1. Well considering they will have 8 routes less, it is to be expected.

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    2. Unfortunately, from so much optimism this time last year with new routes to so many suspensions.

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    3. Slowly the end is coming. Since the summer schedule is reduced so much, imagine just the winter 19/20 schedule.

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    4. Can't really blame them if they decided to focus on profitable markets.

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  23. So what now for JP?

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    Replies
    1. Unfortunately I don't see a solution. The only thing they can do is lease out more and more planes.

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    2. This could go down one of two ways - either they will go bankrupt or 4K is setting up to hand over the company to someone.

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    3. Didn't Slovenia give Adria money to "support" some routes recently? I believe it was Brussels?
      They could do this with other routes ;)

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  24. Balkan business model.

    ReplyDelete
    Replies
    1. more like german

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    2. The Germans have outdone the Balkans. Impressive.

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  25. Wasn't the sole purpose of 4K buying Adria to make into a better company so they could sell it?

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    Replies
    1. That is what was supposed to happen but it didn't turn out that way.

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    2. Who would have thought that the Germans would turn this into such a mess.

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    3. It was a mess before the Germans came too.

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

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    5. Well at least we can now safely say that 4K will not be acquiring Montenegro Airlines and Croatia Airlines?

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    6. They have already confirmed that
      https://www.exyuaviation.com/2019/02/4k-invest-gives-up-on-montenegro.html

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  26. Bravo Slovenija?

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  27. "We continue to invest all of our efforts into greater operational excellence, reliability and maintaining business stability."

    hmmmm

    ReplyDelete
  28. Are employees at Adria getting their pay checks regularly? This is a good indication of the state of the company.

    ReplyDelete
    Replies
    1. Kind of, but in Adria a week or two delay has been normal for decades.

      So in Balkan terms, yes. But otherwise, no.

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  29. They are making the same mistakes they made with Darwin Airline.

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    Replies
    1. Especially since it's the same management team.

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  30. Does the sale of 49% share to that German guy from Malta have anything to do with recapitalization?

    ReplyDelete
    Replies
    1. Yes, the first one (4 mio EUR). The 10 mio EUR was supposed to come from Sukhoi (or "European" banks from just west of Ural).

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  31. I'm glad to read this from the CEO. Adria is slowly weathering the crisis and things are going back to normal. Wish them all the best.

    ReplyDelete
    Replies
    1. Agree! Hope it will turn out fine!

      Delete
  32. The only concern is with the JP current number of fleet. If we make a quick comparison with other regional airlines, we see that the route network or number of destinations quite high compared to JP:

    Airline - Fleet/ No of destinations

    JP - 20 / 23
    JU - 19 / 49
    OU - 12 / 27

    -------------------

    Non ex-Yu:

    RO: 25 / 52
    FB: 10 / 26
    A3: 61 / 153

    JP must work on this. Most airlines listed above literally have twice as much number of desinations compared to fleet. Very good examples: OU and A3. JU has 1 extra plane for 1 exclusive route so, tricky one there.

    ReplyDelete
    Replies
    1. Yes but keep in mind that Adria leases half of its fleet out.

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    2. 3 Saabs are stored so only 17
      2 Saabs lst Swiss
      1 CRJ Luxair
      1 CRJ Austria
      1 CRJ is in base Pristina
      1 A319 lst Lufthansa

      I am not sure this is correct, but anyway they have 12 aircraft to fly from the domestic hub

      Delete
    3. 01 crj Luxair
      02 crj Austrian
      02 crj Lufthansa
      01airbus pristina
      02 saabs Swiss

      Delete
    4. 8 lst
      3 stored

      9 operated for Adria on 23destiantion.

      This is good, better then OU.

      Delete
  33. Why doesen't 4k just sell Adria if they are having so many problems running it?

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    Replies
    1. It all comes the fact that Ljubljana is not a market with sufficient passengers to feed an airline. In additioan lot of people drive 5-6 hours and take flight even if it means saving 10 euros.

      Delete
    2. LJU-FRA-LJU first week of May, 270 EUR

      TSF-FRA-TSF first week of May, 40 EUR

      10 EUR, give or take.

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  34. All the very best with the reforms to Adria.

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

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  36. It seems very likely that ADRIA will become ACMI alone.

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    Replies
    1. Yes. Same thing was envisaged for Darwin aka Adria Switzerland
      https://centreforaviation.com/news/darwin-airline-files-for-insolvency-to-restructure-as-acmi-operator-and-maintenance-provider-743529

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    2. ACMI with couple of planes on feeding ops to FRA, MUC, ZRH, VIE and BRU seems more likely

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    3. .. not enough block hours...

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  37. This is also a very dangerous situation for Zagreb and OU because when Adria is gone Ljubljane will turn into a low cost heaven and suck in customers from Croatia en masse.

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    Replies
    1. Yes and then OU will go bust and Zagreb will have to turn into a LCC heaven and everyone will be happy. Except LJU of course.

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    2. OU is government owned. It will be there forever !
      Prestigious airline you know ...

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    3. Sure, same as Uljanik shipyard.

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  38. Slovenia will subsidize new routes from Ljubljana. We would finally see Ryanair flying to LJU. Check siol.net for more info.

    ReplyDelete
    Replies
    1. https://siol.net/posel-danes/novice/drzavni-milijon-za-letalske-prevoznike-da-bi-le-prisli-na-brnik-493561

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    2. I fear the airline they intend to subsidize will be Adria ...

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  39. From an outside the ex-yu citizen but inside the ex-yu businesman. ZAG and LJU residents have absolutely no clue, nor do they care about each other's airports. It's every man for himselferland@caaquebec.com while they still bicker about who owns the salt water off Savudria!! **I feel sLOVEnia** an award winning motto in my tourism field says it all!!Slovenia with Ljublana, Bled, Postojna, Koper to Portoroz coast, etc,,is beating incoming tourism records year over year, but as mentioned no idiot will pay 5 times more for a Frankfurt, Munich, or Vienna flight, when a 90 minutes drive to Trieste or Klagenfurt will do. There is massive opportunity for a Wizz, Easy, Ryan, or numerous others to expand at LJU.You keep forgetting though it is a country of 2 million, wanting all the same services of its Croatian Austrian Hungarian Italian neighbors. The math just doesn't warrant it, the local Slovenian family can not support business and pleasure routes for an Adria style or Croatia style airline. When Malevolent was Hungary, and JAT was Yugoslavia, and CAA was Chechislovakia, and Taro was Romania, and Lot was Poland, the top jobs went to government frieneeds and families forever!!! Hmmm old habits die hard!!!

    ReplyDelete
  40. Dont be so nervous - its not even the end of March and first Sukhois will arrive in April and by the end of the year the company could get rid of some uneconomicaly CRJs.

    ReplyDelete

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