Adria Airways fighting for survival


Adria Airways is battling to stay afloat after two of its aircraft were repossessed yesterday, with the Slovenian government stating that helping the national carrier would amount to “throwing money away”. In a statement, the 58-year-old airline said, “Adria Airways is facing challenging business conditions, so the management of the company is intensively looking for solutions that would enable it to operate with greater stability. We strive to carry out all of our scheduled flight operations. Passengers are advised to keep track of current travel information through the Adria Airways website”. The head of the Slovenian Aviation Agency, Rok Marlot, warned that other aircraft could also be repossessed by creditors. “It is difficult to predict what might happen, given that Adria does not own any aircraft. We are monitoring the situation on an hourly basis". Unofficial reports suggest that a third Bombardier CRJ900 jet has been repossessed from the airline. Registered S5-AAL, the aircraft was grounded in Ljubljana since April due to a lack of engines, but has since been repaired and was ferried to Maastricht yesterday.

The Slovenian Prime Minister, Marjan Šarec, said, “The state is unable to help the company since it is privately owned. Furthermore, its balance sheets are so bad that any state aid would amount to throwing money away”. In a more conciliatory tone, the Ministry for Infrastructure noted, “We are very sorry to witness the unfolding situation at Adria Airways but we have no means to assist the company as it has been privately owned since 2016. Minister [for Infrastructure] Alenka Bratušek repeatedly warned that the airline’s sale to the German capital fund was a mistake and that the then government of Slovenia should have found a strategic partner within the aviation industry that would have ensured the long-term existence and development of the carrier”.

The Ministry noted that maintaining Slovenia’s connectivity to key European destinations is its main priority. "Our key concern at the moment is to ensure the maximum security and safety of air operations in the country. In the event that Adria Airways ceases operations, it is our responsibility to ensure Slovenia's connectivity with the outside world, so we have prepared a legislative proposal that will, if necessary, enable subsidies for some airlines". However the ministry warned, “This is a complicated and time-consuming process, which must be approved by the European Commission”. 




Comments

  1. The third aircraft (S5-AAL) was returned to its owner due to the latter having (apparently) some financial difficulties.

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  2. Another rather bad morning for them, lots of delays. Is anyone crazy enough to buy tickets with them?

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    Replies
    1. Of course no one is. It was one thing to accumulate debts, but this is truly the end, as now their income is collapsing.

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  3. I have to wonder what those executives were doing just a few days ago smiling and posing for photos to promote the new Liverpool route for next year when their company is falling apart. Where are the priorities?

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    1. The priorities were (and will be to the last second) exactly where they were the moment a shady German "investment" fund stepped in: get as much money out of Adria, by any means. Slovenes may not be buying any more tickets with Adria, but they can get some money out of UK customers..

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    2. That and the fake PR.

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  4. I'm so sorry for Adria and their employees, hope things will get better!

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  5. What happened to the Estonian wunderkind that said Adria should have 50 planes?

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    Replies
    1. Seems like things have fallen apart the moment he took over.

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    2. It started long before him.

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  6. And some commenting here just days ago were claiming it's all fake news.

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  7. Seems like Luxair wet lease is over. Aircraft has urgently returned to LJU.

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    1. What are you talking about?! S5-AAY is flying today SCN-BIQ.

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    2. No urgent return, they just swap with S5-AAY which is flying now for Luxair.

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    3. What are you on about? S5-AAY is flying today SCN-BIQ.

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    4. Ok I apologise I didn't realise.

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  8. The Slovenian Prime Minister, Marjan Šarec, said, “Its balance sheets are so bad that any state aid would amount to throwing money away”.

    Ouch

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  9. I'm still hoping for a miracle.

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    Replies
    1. I don't think outta possible. No one will buy them.

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  10. The government decision possibly means they are going to start up a new airline to replace the current JP when it goes belly-up.

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  11. Bravo to the Slovenian government for refusing to throw tax payers money away on a national carrier.

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    1. Not very smart since the Slovenian market is too small for any considerable LCC presence.

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    2. Actually it is extremely smart. Slovenia is an EU member and part of the Open Skies. The JP gap will be quickly filled. Just like the gap of a national airline closing was quickly filled in Hungary, Lithuania, Latvia, Cyprus, Slovakia . Just like it would quickly by filled if OU, Bulgaria air, Tarom, CSA closed tomorrow.
      We are no longer living in the 80's.

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    3. All those markets are much larger with more passengers and potential.

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    4. @Anonymous 21 September 2019 at 10:01:

      Wanna bet? There will be NO 20 euro return tickets for Slovenian cheapskates, I promise you.

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    5. Malév was the same. It went bust and very quickly filled by others.
      The stronger wins...just like in nature.

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    6. @Anonymous 10:01 Latvia? I'm sorry having to inform you but air Baltic is still pretty much up and running!

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  12. The government could and should have been better prepared. Why haven't they still adopted the law to subsidise routes?

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    1. Which routes should they subsidize?

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    2. There was an interesting discussion on national TV news show last night between a former CEO and SB president on subsidizing LH/Star alliance hub routes. The presenter proposed and argument those are the profitable routes and why subsidize them, to which no one really had a great argument.
      I think subsidizing wouldn't make sense as the busy routes bring in tourists and being used by government and local business have enough demand already. Maybe only in short term timeline to make sure key routes wouldn't continue to operate.

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    3. I also don't think there is sense in subsuding these routes. With JP gone others will come naturally to replace them on profitable routes.

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  13. Could this be the reason why Croatia Airlines is even prolonging the 30% discount sale for their flights for two more days, hoping few passengers would rather book with them instead of Adria?

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    1. I wish they were a bit more proactive in using this situation at JP to their advantage

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    2. In my opinion, Croatia Airlines should consider basing an aircraft in Ljubljana, in the event Adria goes bankrupt. I believe CTN will have the extra aircraft once the summer season is over.

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    3. And who will pay for catering, crew base, light maintenance... in a market that's rather small and limited? OU can get some extra passengers on its flights from ZAG.

      OU is no financial position to go on an adventure like the one you are proposing.

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    4. They could easily operate out of Ljubljana but it's OU we are talking about here, the airline with no idea's, vision, plans, initiative.

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    5. Wouldn't it be just easier for OU to offer a bus service from Ljubljana to Zagreb airport? It could be their own. Much cheaper than to offer flights from LJU.

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    6. Oh... and knowing OU, I am sure that if they launched LJU flights it would be only to Star Alliance hubs. I doubt they would expand to places like AMS, BRU and so on.

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  14. always sad to read stories like that..you can say it is free market and lets competition do the job, but small airlines from the smaller countries cant compete in any way with the big fishes and needs to have possibilities to be protected in the certain way..'oh yes, but it is EU, rules are same for everyone'..do you really think that JP and LH has same business enviroment in the term of financing ..just this month aigle azur, xl airways and possible thomas cook have seized operations..who will stay on the market ? only LH/BA/AFKL ?

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    1. Bravo, you just summed up what the CEO said at yesterday's emergency meeting. JP can't negotiate the same way LH, Ryanair or any of the other big players can.

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    2. How is this different from any other industry? Either you innovate to capture market share, or you stagnate and slowly die.

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    3. It's easy to moan. Adria has been flying for 20 years longer than Ryanair.

      Seems to be they should be the one with upper hand, but like in any business, it takes a good innovative idea with a lot to become one of the best in business.

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    4. O’Leary (like it or not) several years ago said that Europe will be left with four airlines ( Ryan, Lufthansa, AF/KLM and British). Every day we seem to be closer and closer

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  15. Can't they sell the flight school and get some capital from that?

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    1. they need money 'yesterday'..all that selling procedures takes time

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    2. Capital for what? From day one, this was a money funneling operation.

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    3. Floght school's account has been blocked for more than a week.

      What capital?

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  16. Were the two aircraft that have been repossessed operating for LH?

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  17. Their schedule today is an absolute mess. Everything is either delayed or cancelled.

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  18. Seems like Adria and Thomas Cook will disappear in the same week.

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  19. It's interesting that only their PRN flights seem to be unaffected by all of this.

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    Replies
    1. And I mean flights from PRN to other European destinations not LJU.

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  20. Today they seem to operate in all of their usual glory.

    BRU 06.55/ 08.26
    VIE 07.10/ 08.19
    AMS 08.00/ 12.05
    TIA 12.00/ next info 13.00
    PRN 12.00/ next info 13.00
    ZRH cancelled

    Let's see what else happens today but to me this is bad, daily collapse of traffic. I don't know what's causing delays in the morning.

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    Replies
    1. Lack of planes?

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    2. They have only six flights?

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    3. A few here and there departed on time like FRA and MUC.

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  21. Don't worry Adria is unsinkable ship - it will survive all winds!

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    Replies
    1. That's what was said about Titanic.

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    2. But that was in a time with no quantitative easing ...
      Todays credit lines for bigger companies are never ending ...
      Unfortunately !

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  22. With news about repossessed planes, government deciding not to help, consumer confidence dropping and flight schedule in disarray, how long can Adria continue to operate before having to officially cease all flights? Can they continue for at least one more week?

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    1. In the end this whole affair drags on and on ...
      never ending story.
      Best would be to only mention them again when they are done ...
      which could be never.
      Boring.

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    2. Never? Passengers are not crazy to buy Adria tickets any more, they risk losing their money. With passengers going to other airlines or airports money will stop coming to Adria. They also have to pay penalties for long delayed flights as per EU regulation. Banks will not give them commercial loans under the circumstances. 4K doesn't have money for them. Lufthansa does not want to save them. If more planes get repossessed their schedule will fall apart. It's a matter of days.

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    3. But only in the real world ...
      which the Balkans are not.
      People are dumb like sheeps and will stay with their sinking ships till the last minute.

      The Germans know this too good and profit as usual ...
      And why shouldnt they ?!

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    4. LH group and others must stop selling ticket for code sharing flights with Adria.

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  23. Time for Wizz to take over flights out of LJU, under favorable conditions.

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    Replies
    1. WIZZ is for the winter period out of LJU. i suppose that the prices for WIZZ in LJU are to high

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  24. Second day in row they cancel ZRH flights. What's up with that?

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    Replies
    1. You don't follow the news? They are days (at most) away from bankruptcy.

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  25. maybe JP should shrink and really do some years basic routes to overcome this bad misleading management situation that has passed through some years.

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    Replies
    1. Just for existing they need money they don't possess, let alone run any kind of business.

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  26. Government's motive is clear from their statements. Previous Government did a mistake, we will prove that by not providing JP the assistance and subsidise other airlines

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