Adria in discussions over new strategic partner


Adria Airways has said it needs a strategic partner in order to maintain scheduled services but emphasised that its owner, 4K Invest, will stay on. Speaking at a press conference in Ljubljana today, the airline's CEO, Holger Kowarsch said, "Adria has had some challenges over the past weeks and months. Over the last six months Adria cancelled 2.6% of all flights, which is too much and I apologise for that, but it is not as bad as it seems at times. I don't want to suggest that there will be no more cancellations in the future. We will do anything in our control to minimise it but there are some things we cannot influence". He added that the carrier is in talks with a potential new strategic partner. "Adria needs a strategic partner. We had several talks over the past years. I can tell you that at the moment we are in discussions with various partners. I cannot disclose with whom at the moment, but I can promise you that I will give more information as soon as I am able to. That does not mean that 4K will leave Adria. 4K believes in Adria and we believe we have a strong future. We will be part of the Adria story together with a strategic partner by our side. But we cannot survive on scheduled flights on our own".

Over the past weeks the airline has struggled to maintain its schedule with flights still being cancelled or merged with others, while discontent over unpaid compensation claims among passengers continues. International media have also picked up on the ongoing issues at the airline, warning of an "imminent collapse". Adria has noted its operations would stabilise from July. However, the airline has confirmed that the numerous issues have produced a loss during the first quarter of the year, although it did not specify the amount. During the press conference, Adria's Customer Relations Supervisor outlined a range of reasons for the operational problems at the carrier, including adverse weather, air traffic congestion in Europe and a lack of staff. "All of the more than 500 employees at Adria will do our best to make the customers as satisfied as possible. We will do our best and I think we will improve in the future".

Adria's CEO noted that the ACMI business remains an important pillar of the company's strategy, due to the Slovenian market's limited size and potential. "Adria is a regional carrier. We are connecting the Balkans to the West and West to the Balkans. Slovenia is not the biggest country so opportunities for Adria Airways to grow out of Ljubljana are a little bit limited. This country is too small to grow, and Adria needs to grow. To give you an example, last year we handled 1.2 million passengers, and only 400.000 of those were in and out of Ljubljana, the rest were transfers", Mr Kowarsch noted. The CEO added that the airline will employ a new media strategy and be more engaged with the press. The company previously blamed much of its issue on media reporting. "We will change our behaviour. I promise we will be more open. Already, for next week we plan to reveal some more information", the CEO concluded.

Comments

  1. My guess is they will reveal new strategic partner.

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    Replies
    1. Apparently some Eastern European company, not SAS like some were suggesting.

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    2. Would it have to be a Star Alliance member? Could it be LOT?

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    3. If it is LOT, that would be the best case scenario.

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    4. I think there is a big chance it could be LOT.

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    5. Why would LOT buy Adria instead of Croatia airlines with much more potential? Just curious.

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    6. Air Serbia should buy Adria.

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    7. So that we would subsidize JP's operations apart from JU's?
      LOL, no thanks!

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    8. No, so that Slo taxpayers can subsidize JU ;)

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    9. LH Lufthansa should buy Adria.

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  2. The only thing that can end this nightmare is for them to announce bankruptcy or for 4K to completely pull out.

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  3. I think they will just announce that the end is here.... unfortunately

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    Replies
    1. They said they will announce "future business plans".

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    2. Bankruptcy is a valid business plan.

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  4. Today's cancelled flights:
    Ljubljana-Paris
    Ljubljana-Skopje
    Ljubljana-Prague

    Merged
    Ljubljana-Sarajevo-Skopje

    And lots of delays.

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    Replies
    1. It's the media's fault. The PR company will fix this.

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    2. I'm not surprised. They have taken on a lot of charters this year and they simply don't have the fleet for it. Not to mention that these charters are all delayed by hours.

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    3. @9.12
      They have actually now hired a professional PR firm which is supposed to spin all of this mess. Meanwhile, their social media accounts and online helplines have been dead since the start of June.

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    4. i cannot imagine they can squeeze SKP&SJJ pax in one CRJ in the summer season. I guess a lot of peeps are beeing rebooked on OS or even OU

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    5. They can if they had low LF to begin with.

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    6. its rarely the case in summer season

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    7. In the last few days they always canceled CRJ to/from Sarajevo and replaced it with A319 doing a stop on SKP-LJU flight. I seems they merge two CRJ flights into one A319 triangle flight. In addition yesterday S5AAX experienced engine problems in SJJ, disembarked all pax (from SKP and SJJ to LJU) back to terminal and continued only after 3+ hours to LJU.

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    8. It seems a lot of the planes have technical problems. Is AAX the one that was grounded for a long time?

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    9. That's the one.

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    10. @9.41 that makes sense now. thx

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    11. Anon 9.24
      They made the first social media post after many weeks yesterday. Some Star Alliance video. Ironically this was the only comment

      "The worst airline ever, doesn't deliver on a single promise."

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  5. Crew duty times have been significantly extended. Pilots are now working 50 hours a week which is in violation of the collective agreement.

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    1. Its not a problem, as long as they are getting warants for overtime hours. But much bigger problem is if they are breaching EASA requirements.

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    2. Still a good 10 under the legal limit.

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    3. The pilots are ungrateful. This is a German company

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  6. Being taken over by LOT

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    1. I find that hard to believe. But would be great.

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    2. But doesn't LOT already have a base in Budapest.

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    3. And then they take over OU and all problems solved :D

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    4. LOT has taken over all operation of Nordica few days ago. Some destinations will be canceled, some will be maintained, basically Nordica is absorbed by LOT.

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    5. LOT PREUZIMA NORDICINE LINIJE
      Nordica (100% u vlasništvu Estonije) od 1.7.2019. prekida sa svim letovima, a neke od linija će preuzeti LOT. Nordica je nastala 2017. godine, nakon bankrota Estoniana, a prve godine linije je oparirala Adria pod svojim AOC, nakon čega je operacije za Nordicu preuzeo LOT pod svojim AOC-em.

      Nordica nije u stanju poslovati profitabilno radi ogromne konkurencije koju ima u Tallinnu. Iz Tallinna leti 25 kompanija među kojima i one najveće, a najviše linija ima Air Baltic (12, dok 13. pokreće u prosincu), Ryanair (9), i SmartLynx (35 linija, 6 pokreće do kraja godine). Niz kompanija zbog stanja u Nordici povećava broj linija, među kojima i easyJet, Wizz Air, Finnair, Lufthansa, Onur Air, SmartLynx i Air Baltic. Air Baltic u Tallinu ima bazirana tri aviona (dva A220-300 i jedan Q400), te je najveći prijevoznik sa 25,9% udjela na aerodromu.

      Istime će 26.10. Nordica zatvoriti linije za Kijev (leti Wizz Air), Copenhagen (leti SAS i Air Baltic), Trondheim, Beč (leti Air Baltic), Vilnius (leti Air Baltic) i Varšavu (leti LOT). 1.7. LOT će od Nordice preuzeti Brussels i Stockholm. Na letovima za Varšavu će ostati samo LOT koji je letio paralelno sa Nordicom.

      Regional Jet, kompanija u vlasništvu Nordice (51%) i LOT-a (49%) od ožujka 2017. će nastaviti operirati kao ACMI i charter kompanija. U floti trenutno imaju sedam ATR 72-600, dva CRJ-700 i 10 CRJ-900. Od toga dva CRJ-700 i dva CRJ-900 lete za Nordicu, a pet CRJ-900 za LOT. Ostali avioni se iznajmljuju treći kompanijama, među kojima i SAS-u, flybe, Blue Islands, Air Serbiji i Adriji. Avione će i dalje iznajmljivati LOT-u, poglavito za letove iz Tallinna.

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    6. @Purger
      Hvala za ovaj update.

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    7. Nordica/Regional Jet has always flied under its own AOC. If I remenber correctly, only one plane, probably it was ES-ACB, was for a few months in 2017 on the Adria's AOC.

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  7. Any ideas what they might say or reveal?

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  8. One last push to try to persuade the contractors in not pulling the plug via another made up 'partnership' BS story, copy-paste of the Sukhoi, Lufthansa, Aeroflot, LOT 'deals' that were floating around in the past.

    Every second they manage to keep JP in business results in more money on the Cayman account.

    And the sad thing is - if someone steals a loaf of bread, they will be at least arrested. These guys have destroyed companies and workers in Finland, Estonia, Switzerland and now in Slovenia. And they will not even be indicted.

    Capitalism is completely different from our previous system. Not.

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    Replies
    1. Well in previous system many of them actually finished in jail.

      Remember Fikret Abdic for example?

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    2. A Todorić stariji? A Karađić zbog muljaze oko olimpijskog sela? Naravno. Svi su oni žrtve režima

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  9. or Enter Air, they just bought Germania Flug

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  10. if its LOT its (lot of) good :) fingers crossed

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    1. Could be. LOT just took over all of Nordica's flights.


      "The state-owned flag carrier of Estonia, Nordica, will cease its independent operations as an airline. Several services will be terminated and tickets will only be sold by LOT Polish Airlines, which holds a 49% stake in the airline. The airline’s wet-lease and government services will continue as before. Starting in July, LOT will operate the airline’s flights from Stockholm, Warsaw, and Brussels, and will discontinue five of its unprofitable routes by October. As LOT will manage ticket sales and other operational aspects, the Estonian regional carrier will only be responsible for operating the flights."

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  11. I honestly don't know a single person who would buy a ticket on Adria any more.

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    1. On many routes out of LJU you simply have no alternative.

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    2. People are already voting with their wallets and flying from elsewhere, where they don't have to play the Adria lottery.

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    3. I just did 2 days ago: VIE -SKP
      I know they are in trouble but my gut feeling for them to go bust is after the summer- if i'm wrong, then its my bad- and the ticket price of eur 230 (luggage included and for such a short notice booking) vs 500 with OS and 300 with JU and OU is worth the risk to me.

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    4. :) would book too

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    5. I wouldn't maybe if the trip is in a week anything longer than that is too much of a risk right now. Literally everyone thinks that they will collapse soon and when they do its just such a hassle and waste of your money if you need to get last minute tickets with some other airline (and everyone would do which would made prices increase incredibly since there just wouldn't be too much airlines and flights left out of LJU, so you'd have to search from ZAG, RJK, PUY, VCE or TSF). So I'd just use other airlines out of LJU or fly from ZAG, RJK, PUY. Or VCE (if you are from western Slovenia).

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  12. Adria management: http://gph.is/1MLPDWK

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  13. Anybody willing to bet they announce the end of operation tonight at 23.59?

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    Replies
    1. Not many sadistic people around. :-)

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  14. I don't think there'll be any big info today. Maybe just that line maintenance will be done in Scandinavia and that they are sick of media shitstorm in the past two weeks.

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    Replies
    1. You can't do line maintenance in Scandinavia if you fly from LJU.

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    2. You are right anon 9.32. It's the media's fault that flights re cancelled, merged, that the company is millions euro in losses and that they are not paying compensation to anyone. 4K are just professional business managers whose fantastic Adria strategy which involved purchase of Sukhoi planes failed because of the media. I really wonder some time what 4K has done for some people to defend them.

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    3. How did you get that from my comment? I said that THEY are sick of media reporting, I'm not advocating them.

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  15. So Long, and Thanks for All the Fish

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  16. they're announcing bankruptcy?

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    Replies
    1. I don;t think so. The article says they will "address the numerous problems which have engulfed the carrier"

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    2. Numerous problems with one outcome.

      That's all folks

      The End

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    3. Bankruptcy would solve all those problems.

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  17. Hopefully they don't die yet. And right when the new LJU terminal is starting to be built... A takeover would be cool.

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  18. Does anyone have any idea what's going on?

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    Replies
    1. We'll find out soon enough!

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    2. Yes - they are financialy draining JP, the longer they keep the company afloat, the better.

      The reason why they are still in business is simply the fact, that all of the parties that are involved with Adria (its workers, contractors and management) want to see the company survive and thus do not want to call in bankruptcy: workers because of their jobs, contractors because JP owes them a lot of money and they are falling for the BS 4K is selling them and management, because they can keep funneling the money to their bank accounts via fictitious contracts.

      The reason they are currently in serious trouble and will go bankrupt in the matter of days, is the fact that the contractors started demanding payment or else they will cut services (and effectively endnig JPs existence) and they have also started court procedures against JP.

      Today the management will present another BS story about mistery buyer etc. and thus try to extend the life line for a couple of days.

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    3. Who apart from Petrol and CAA are Adria's biggest creditors?

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    4. Leasing companies, FRAPORT and Slovenia Control. Probably also hotels. And of course passengers requesting compensations. The queue is long.

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    5. You can add the cabin crew to that list

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  19. Where is the conference being held in Ljubljana?

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  20. Well I hope the media roasts Kowarsch & co. at the conference today. Of course if they even let the media to ask any questions.

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  21. Is there a live-stream of the press conference?

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    Replies
    1. I don't think so.

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    2. https://siol.net/posel-danes/novice/kako-naprej-adria-bo-predstavila-svoje-nacrte-za-prihodnost-501223

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  22. It's almost 11. Last guesses what they may say ?

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    Replies
    1. It's too hot but everything is otherwise fine.

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    2. It's just damage control. Nothing else.

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    3. Poor attempt of damage control, I must add.

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    4. Anonymous at 11:29
      +1000

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  23. There is live stream on Siol.

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    Replies
    1. Lol, what a comedy of the company. First two reasons for the delays and cancellations - airspace congestion and weather :D their internal fuckups is on the third place.

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    2. Only Adria's aircraft get slots have to avoid thunderstorms.

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    3. How about some facts?
      https://www.flightstats.com/v2/monthly-performance-reports/airlines

      JP is between LH cityline, Helevtic, Austrian and many other airlines that operate same airports in on time performance in May. It is much better than KLM, TAP, LOT and many other major carrier. It doesnt help to be criticising without talking facts.

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  24. So they said what Croatia Airlines is saying for years ... we are looking for someone to buy us.

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  25. Well that was an anti-climax. This type of press conference makes things worse IMO. It highlights how unstable the whole situation is. Sure they might have "only" cancelled 2.6% of flights but how many have been significantly altered? So many flights have been combined like some sort of bus service. It really echoes the final months of so many airlines that have failed in recent years.

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  26. Excuse me isn't 4K the strategic partner? Are they saying they are incompetent to run the airline on their own?

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    Replies
    1. It can't be clearer than this

      "We will be part of the Adria story together with a strategic partner by our side. But we cannot survive on scheduled flights on our own".

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  27. To me it all looks like an excuse to turn Adria purely into ACMI business very soon. This was their plan with Darwin as well.

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    Replies
    1. Yes and they already offered as an excuse the fact they only manages to have 400.000 o&d passengers in LJU last year.

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  28. "We will change our behaviour. I promise we will be more open. Already, for next week we plan to reveal some more information", the CEO concluded.

    LOL big time damage control.

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  29. Revealed new strategic partner... No.
    Revealed new maintenance provider... No.
    Blamed delays on ATC and weather.... Yes.

    Same old, same old. Damage control and telenovela continues.

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    Replies
    1. Why would anyone risk buying a JP ticket for September flights or later is beyond me.

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  30. First, they run into resource problems forcing them to cancel, reschedule and delay a significan portion of flights.

    Second, they announce an announcement. In meantime none buys any tickets because if a company is going to make a big strategic announcement that can include everything ranging from bankruptcy, none is going to buy a ticket even for tomorrows scheduled flights, because its uncertain these flights will happen at all.

    Finally, they announce an announcement which is a statement of commitment to improving the service and regularity....but without any promises. I wonder who is still buying their tickets...

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  31. If the Sukhoi Super Jet was added to their fleet they could've avoided this headache.
    At least the SSJ doesn't fall from the sky every 6 months, such as other failed projects.
    Adrija must reconsider its decision and add the Russian, modern aircraft.
    Cheaper and efficient.

    ReplyDelete
    Replies
    1. SMFH with the Putinbots...
      Just give it a rest, mother Russia made (another) failed product that not even Russian airlines want to take it.
      Just stop trying to flog that dead horse. It is over for it.

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    2. 4K has made many stupid decisions, not taking the Superjet wasn't one of them though.

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    3. bunch of twats...and they have the face to blame others for their failure. I hope they get absorbed by LOT and that all but operatives gets a boot in their arses. They deserve nothing better. Enroute delays are result of many factors, ATC staffing is one of them, but this is a problem which needs addressing in some bigger forum. It was opening many new routes sans airplanes and crews to serve them is main reason for big delays and flight cancelations of Adria. https://www.eurocontrol.int/news/delays-three-questions-and-many-answers

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    4. I wouldn't count on LOT. They have a lot of their own problems including fleet and problems at WAW. Most importantly, LJU is located exceptionally unfavorable to WAW and connections with PL are much weaker than in BUD.

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  32. All the news about Adria are nothing more than sadistic torture for those who love them, but also for those that hate them .

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  33. fuss about nothing

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    1. Zasto bi LOT kupovao raspadnutu kompaniju sa kojom nema nijedan avion isti?

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  34. Nobody needs to buy Adria in order to fly to/from Slovenia. The sale is in no way a sale of a "market", because Adria has no market for its own, and the assets it has are not really that attractive.

    In particular they don't match with LOT fleet. LOT is leasing this year many new aircraft, including E195, and starting October, when the problem with MAX is over, will massively increase capacity, including to ex-Yu, without needing to buy this asset.

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    Replies
    1. A problem sa max će se riješit kad se otvori berlinski aerodrom

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  35. Every second day we read about Adrias demise and in the end nothing will happen as usual .

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  36. 4K was interested in both Montenegro and Croatia, this site has number of articles on this topic last year. Nothing came out of it. However LOT had interest in both Nordica and Croatia but not Adria. From July 19, 2018:

    LOT spokesperson, Konrad Majszyk, said, "...After establishing a partnership with Nordica in Estonia, we are interested in further consolidation of the aviation market in Central and East Europe"

    https://www.exyuaviation.com/2018/07/lot-eyes-airline-consolidation-after.html

    Now that "partnership" with Nordica is completed, OU is next.

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  37. Ljudi, pa ovo mora da je Lufthansa..... NOT!!!

    mada ko zna možda i jeste

    ReplyDelete

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