Adria Airways cancels Sukhoi jet deal


Adria Airways has cancelled plans to add fifteen Sukhoi Superjet 100 aircraft to its fleet, the first of which were to be delivered this month. In a statement, the Slovenian carrier said, "Over the last few months, Adria Airways has been intensively preparing for the arrival of the jets. While the aircraft type per se still seems very attractive, Adria Airways has not been able to finalise the contractual clauses with the Russian side. There were growing concerns on Adria´s behalf regarding SCAC´s [Sukhoi Civil Aviation Company] commitment to a fair and stable long-term partnership, as well as a lack of common vision of further strategic development of the company". Adria signed a Memorandum of Understanding with SCAC concerning the long-term lease of fifteen SSJ100s last November. Deliveries were to be completed by 2021.

The Russian manufacturer has not commented on Adria's decision. Several weeks ago, the Russian Minister for Industry and Trade, Denis Manturov, said the contract with Adria was complex as it entailed the delivery of both new and formerly utilised SSJ100s, but noted that deliveries would begin in the near future. Sukhoi had already allocated the first of two aircraft for Adria, which were previously operated by CityJet. Furthermore, the Slovenian carrier sent its crew to train for the new jets and registered its own maintenance, repair and overhaul business, named Adria Airways Super MRO aircraft maintenance, which was to be an SSJ100 aircraft Maintenance and Repair Organisation.

Commenting on the decision, Adria's CEO, Holger Kowarsch, said, "We are naturally disappointed that the collaboration with Sukhoi did not reach a successful conclusion, but the partnership was only viable if given objectives set by the strategic business plan were attainable. Unfortunately, in this case, we did not think this was possible". The company added it would continue to focus on its existing business, consisting of four pillars: scheduled flights, charter and cargo flights, as well as its ACMI business. "The structure of the fleet will remain unchanged and Adria will continue to focus on operational reliability and stability with its fleet of existing aircraft types and their proven track record", it concluded.




Comments

  1. Surprise surprise

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  2. Did not expect this at all

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  3. Somehow I don't think this is Sukhoi's fault as Adria seems to make it out.

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  4. hahahahahahahaha. this company is more then a circus. those 4K people obviously have absolutely no idea how and what to do with company

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  5. Soap opera continues.

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  6. This news would be more appropriate if it was published on april 1st!

    What a joke of day would have been! Wow

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  7. As expected about Russians. Good decision Adria. I was always doubtful on Russian capabilities to deliver it. Adria was optimistic about them.

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    1. This has more to do with Adria's capabilities than Sukhois.

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    2. Oh again. When will these few people against Adria stop their propaganda

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    3. You think this is normal behavior for an airline? If it were it would be happening on a wider scale.

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    4. I'd blame it on Russians, if this was Adria's first time with fleet machinations. and since it's not, I'd go to blame Adria

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    5. Blame Sukhoi for not wanting to provide the training for free, aircraft almost for free while putting down another 10 mio EUR in cash.

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  8. And what do they do now? They have wetleased so many aircraft... No growth on the horizon.

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    1. They mentioned wetleasing is one of their pillars. There is growth there, may be more profitable than serving small and low paying market of LJU. Why shouldnt they grow there?

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  9. There was considerable rumours that Adria was seeking payment in order to fly the Superjet, which became the stumbling block for negotiations. It's not entirely uncommon... Boeing financed Monarch airlines (a 737 max customer) when they were in financial difficulties as it was great PR to see an Airbus operator switch to Boeing. The same could be applied to Adria/Sukhoi - more capital for Western exposure. As history proves; neither deal had a happy ending.

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    1. You're right.. It becomes a mistery now where they are planning to find those 10M...

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  10. Sukhoi was not prepared to inject 10 mio EUR in JP, so it will be interesting to see how the soap opera at JP continues.

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  11. Such a lack of vision from Adria's leadership. I'm glad they are not getting Sukhois because I think the aircraft is not good but you can't just order planes one day, even get your crew to do training and then cancel it the other.

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  12. The ACMI side of its business model and the non arrival of the Sukhois will surely now see Adria struggle to honour its timetable? How many of its "fleet of existing aircraft types" are still at its disposal?

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    1. The schedule has been so reduced this summer that they should be able to maintain the schedule with the planes they have.

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    2. I was observing their departures and they were performing very well on their schedule in the past months.

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    3. Just on Monday I happened to have a flight from MUC and next to my gate there was supposed to be an Adria flight to LJU which was cancelled

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    4. There were cancellations yesterday (PRG) as well plus heavy delay of about 7hrs at PRN-LJU. It seems that troubles began at Sunday with summer timetable. 4 CRJs left LJU fleet on Sunday as well (to LH, OE), additional CRJ still in maintenance and A320 grounded in Switzerland after technical failure yesterday. Call center unreachable today, at least in normal time. :-(

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    5. Any chance to get the remaining Saabs flying?

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    6. Yesterday additional one was activated: S5-AFE.

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    7. Good to hear. So 4 are active now in total?

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    8. Yes. 2xLJU, 2xLUG and 2 stored.

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    9. Oh I didn't realise two are in Lugano. Now I remember they are flying for Swiss. Thank you.

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    10. Yes, but they need just one Saab for 4 daily flights for Swiss.

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  13. 4K tried to scam them and it didn't work - simple.

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    1. I think so too. Of all the stuff you could read about 4K, they obviously tried to get those Sukhoi Jets more or less for free. 4K obviously thought, Sukhoi would do anything to get their product on the European market. But the russians - what a surprise - are also at least a little bit interested in making some money.

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  14. It's a sad day for Slovene aviation. Those were the PERFECT aircraft for JP.
    It was about to become popular in Europe and I was hoping other Eastern European states followed the example. JP could've been the inspiration for this great, Russian project.
    Shame shame :(

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    1. And because of "great Russian project" there have 20 build planes on ground don't know what to do with them, all 4 western companies decide do give planes back just in few months of operation (Adria not even so long), no other western companies even conciser to take them even with huge discount, have less than 300 orders in 11 years or selling (150 of those is by state run Aeroflot). Give me at least one argument to call this fiasco as "great project".

      And don't give me this western plot story. It is bullshit. If so, at list companies from Asia, especially India, China, Pakistan, Philippines, Malaysia, Indonesia, and those meter that it is sickly cheap.

      So, if something is sickly cheap and it was not sold, than something is very wrong with product.

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    2. It was about to become popular in Europe two years ago when they Cityjet started flying them... And all of those super popular aircraft are stored now.

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    3. Anon 09:40 - good argument.

      But don't you think that the reputation of Sukhoi has improved? I mean, why is Russia necessarily a dirty word lately? You see, I am no russofile but I think when something is good, it is good.
      Give me 1 good reason why the problematic states where close US allies? Mexico? Belgium? Ireland? Coincidence? Nope.
      Sadly, today the Super Jet got involved in politics and guess who's behind them? The "good", old Uncle Sam.

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    4. SSJ is a technical disaster, it has nothing to do with politics. Low bypass engines, poor aerodynamics (low wingspan + no winglets really isn't that efficient these days), undeveloped procedures in case of minor technical issues, lack of proper worldwide AOG support, lack of spare part stock, ...

      But yes, you can blame it on USA, it's always nice to have somebody to blame.

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    5. Russia is not a dirty word.
      But SSJ100 turned out to be a bad project, is it so hard to accept this?
      Maybe SSJ 2.0 will be better, maybe MC-21 will be great, but this one is not good one. Accept it, count "casualties" and move on.

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  15. It was reported yesterday, JP owes more than 50 million euros to the contractors (mostly to the leasing companies).

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    1. I like Adria and wish them all the best but it looks to me that they have until the end of the year. I don't think they will survive. Not like this at least.

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    2. Where was that reported?

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    3. Thats part of the fictious stories some of those Adria bashers keep spreading I believe.

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    4. @09:40

      https://siol.net/posel-danes/novice/adria-airways-nemci-pozrli-besedo-milijonov-ne-bo-494252

      "Po zadnjih podatkih je imela že za več kot 50 milijonov evrov obveznosti, med njimi predvsem lizingov, prek katerih najema floto."

      @1656

      Yes, sure.

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  16. This airline...

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  17. They could have been graceful at least and not attacked the other side because they didn't get what they wanted - money.

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  18. Knew this would never happen from the get go.

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  19. Does anyone have any idea about the 10M Euros requested by the CAA to be injected to the company? It was required to be completed by the end of March. Any news?

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    1. It won't be injected.

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    2. Adria says they don't need fresh capital, as they will not get the Sukhois. I wonder with what they will repay all the suppliers...

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  20. What a mess. So what now. Will Adria go for a different manufacturer?

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    1. They don't have money for any other manufacturer.

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    2. They don't have money to get the entire Saab fleet off the ground, let alone buy new aircraft.

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  21. Pity I was hoping to fly on the SSJ for the first time.

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  22. I really worry about Adria's future. All these rash decisions and moves are never a good indication of what is to come.

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  23. Now that came completely unexpected!!

    I only wonder if we should be counting weeks or days from now on... Unfortunately. Sad day(s) for Slovenian aviation indeed.

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  24. Good. They didn't need that Russian junk anyway.

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    1. Just as they don't need to exist.

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    2. Maybe your comment also doesn't need to exist .....hater.

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  25. They were probably asked to pay a bare minimum by Russians and they still were not able to do it. I would not be surprised they randomly go bust one day strangling thousands of passengers around the world, just how it happened with WOW. Mess.

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    1. And everybody will act surprised, including the CAA which should have pulled the plug long time ago.

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    2. True. I hope at least Fraport is preparing on time.

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    3. Well, maybe not the world, but region yeah.

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  26. What is going on at Adria?

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    1. They are running out of money.

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  27. Unfortunate development.

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  28. I'm glad this is not happening. Such a ludicrous idea to get Russian planes the airline has never operated.

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    1. It was the only one they could afford. Well we thought they could afford.

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  29. Clock is ticking for Adria.

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  30. Adria cancels Sukhois, Air Serbia cancels neos... what's next? Croatia Airlines cancels its neo order too?

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    1. Perhaps Air Serbia takes some of those Sukhois... They announced new lines and flights and took only one ACMI plane

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  31. What should have been marriage out of interest just turned out into clinical deaths of 2 projects.

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  32. JP cancelled the order because SSJ is a political victim of the sanctions imposed on Russia by the West. Smaller states have to obey as usual.
    It is more than clear that the US spoke to Brussels and Brussels quickly contacted Ljubljana.
    Even though 4K is private, it is still under the same political umbrella.

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    1. Are you for real. Have a look at Adria's finances before starting conspiracy theories.

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    2. Somebody needs to take the tinfoil hat off their head...

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    3. I too smell something in this direction. There are lot of interests on Adria from people that spend big energy to keep spreading news and influencing its perception outside. You can find many in this forum too.

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  33. Too bad the Ruski jet won't be coming.

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  34. So no new planes, no new routes, fresh flight cancellations and delays. What a great start to the summer season Adria.

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    1. Where did you find fresh cancellations? I didnt see one cancellation from JP in last days, on other hand there were several cancellations from other airlines that fly into. One of them is the favorite low coster many of our friends love here, canceling their flights at randon whenever there are less seats booked.

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  35. Splendid. Adria will keep western manufactures planes.

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    1. We will see how long that will last.

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    2. Many parts of the Sukhoi are manufactured in the west.

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  36. Thank u, next

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  37. A sta su oni mislili da je razlog da se CityJet rijesava aviona ovog tipa?

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  38. Televisa presenta!

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    1. https://1.bp.blogspot.com/-fh8e6laIJaQ/Vg2a-XDcAUI/AAAAAAAAA1I/69-vScUddqw/s1600/hqdefault.jpg

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  39. " with its fleet of existing aircraft types and their proven track record"

    Oh please Adria. So in the last sentence you want to insinuate that you cancelled the order because Sukhois don't have a proven track record. Yet earlier you say how you analysed the plane and that it is perfect for your operations.

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    1. I think they are talking about the proven track record of the CRJs, not the Sukhois.

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  40. So can someone tell me how many planes will Adria be operating from Ljubljana this summer? Taking into account all the ACMI wet leases and the grounded Saabs. How many aircraft will be operational from LJU?

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    1. Could be as low as zero if suppliers decide to pull the plug.

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    2. Does Adria own any of the aircraft they operate?

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    3. No it does not. All are leased.

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    4. At the moment: 2 x A319, 1 x CRJ700, 5 x CRJ900, 2 x S2000

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  41. Does the present management come across the idea that this strange zig-zag course of the company is harming the reputation. Not only of Adria but also of Slovenia? Never saw such a bunch of unprofessionals like these 4K guys.....

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  42. I fear we may have just read Adria's second last press release.

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    1. +1. Adria is dead man walking.

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  43. They quoted "concerns about a lack of commitment from Sukhoi Civil Aircraft Company towards a fair and stable long-term partnership and lack of a common vision of the future development of Adria Airways".

    Translation: Sukhoi did not want to pay €10M to become a stakeholder in JP on top of giving the jets away for free.

    They also noted that the owners of Adria Airways will continue to support the further growth of the company. "Based on the fact, that financing the transition to a new aircraft type is no longer needed and also based on a positive-looking business plan a further capital increase is not planned."

    Translation: We're broke because the Russians didn't want to give us €10M. Let's ride it out as long as we can and maybe suck out some more money of of this high-revenue (but no profit) company before we liquidate it.

    Conclusion: Let's hope the CAA pulls the plug before they suck out more money out of the people and state. Why the people and state? Adria's largest creditors are Petrol d.d. (~30% state-owned, ~20% owned by Slovene nationals - mostly from denationalisation), Slovenia Control (100% state-owned), Fraport Slovenia (holds a government concession for Brnik until 2054, will receive government subsidies from routes).

    Source: https://www.delo.si/gospodarstvo/novice/adria-airways-je-odpovedala-narocilo-suhojev-167430.html

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    1. CAA will never pull the plug. Not in Slovenia.

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  44. probably the strangest airline in the business, at the moment

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  45. Dead man walking.

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  46. Leteći cirkus Montya Pythona

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