The Slovenian government has said it is seeking to modify the country’s aviation legislation which would enable it to subsidise a select number of routes currently operated by Adria Airways, in case of the latter's demise. The Slovenian Deputy Prime Minister and Minister for Infrastructure, Alenka Bratušek, noted last Friday, “The proposed new law on aviation would allow some forms of subsidies on certain routes. But it would be four or five destinations, not all of Adria’s flights”. The Slovenian government previously said it had developed contingency plans in case Adria Airways discontinued flying and could "no longer connect Ljubljana with European capitals”. It added, “This is all the government can do at the moment".
Adria is yet to submit its 2018 financial report to the Slovenian Civil Aviation Agency, which is in breach of European Union regulations. According to EU rules, airlines are required to submit their audited balance sheets to the local civil aviation regulator within six months of the end of the business year, or within the deadline outlined by national legislation, which in Slovenia’s case is on August 31. The Slovenian regulator has since extended the deadline exclusively for the airline. Adria’s CEO, Holger Kowarsch, previously said the loss would be significant and in the double digits but added that the company would be placed on "firm foundations". No comments have been made so far on this year's financial performance.
During talks between Adria’s management and Slovenia’s Prime Minister in May this year, the carrier requested funds and assistance from the state for the upkeep of certain routes. Although the company denied such reports, a leaked transcript of the meeting showed that such an appeal was made. Ms Bratušek previously said the government had no means to directly aid Adria until 2021, as the company was a recipient of state funds in 2011. Under EU regulation, the government is barred from providing further financial assistance to the airline until a ten-year deadline has passed. Earlier this year Mr Kowarch said, "Slovenia needs its airline, because it is very important for Slovenian society, tourism and economy that a national carrier operates from Ljubljana Airport". At the time, he added that the company would not file for bankruptcy, "contrary to what many wished for".
Comments
Adria is such a leech and I hope someone sues the government and the EU blocks these subsidies.
I think they will have to have a public call for these subsidies, can JP wait that long?
Ljubljana-Sarajevo-Skopje-Ljubljana
:-)
4K needs JP for money laundry and their blowed up salaries
So I made my decision to significantly reduce travelling to Slovenia
https://www.vecer.com/adria-airways-piloti-in-vodstvo-se-se-pogajajo-za-zdaj-brez-uspeha-10062201
Where it clearly says, they are talking about subsidising routes in case of JP's bankruptcy.
Look at any decent airline, they publish the results within 3 months of the end of FY. And here we are 8 months later...
Just a plot to keep suppliers happy for couple more weeks. The moment they and the CAA see the report, it's game over.
It's still very Balkan out there.
Not that Adria cares or will actually publish the report.
LH Group prefers cheap regional feeders feeding their hubs. Cheaper staff, lower costs.
and back to topic why would the subsidy be for any kind of connectivity and business realtions. regarding slovenian business connections and tourists your listed countries are not even 2nd tier, but 4th tier. BEG and IST already connected by foreign airlines and routes doing passenger wise and financially very well as far as i know. ATH for income tourism of slovenia and for business connections totally irrelevant - shown by the failure of the aegean route ath-lju. FCO: slovenia does business with the northern part of italy, not the south, and also tourists are generally from the northern area (almost all italian drive to slovenia for tourism, even when adria did fly to FCO). CPH: gateway to scandinavia, for further flights. you can simply switch planes in MUC for example. Not that many direct connections between slovenia and denmark in order to say that it is of vital importance.
Let's not forget what is the vital importance of the country: routing politicians and state officials, business connection and incoming tourism (so you can justify the subsidy by future earning). outgoing tourism in not of state importance, as this basically says export of funds to another country, so subsidy cannot be justified.
a) they were the only one who applied.
b) the price for tickets can be deemed market price for that kind of arrangement,
c) and no one other filed any complaints towards the tender requirements, nor the decision.
According to my last information, the "subsidesed routes" story is at the level, that someone from ministry visted another slovenian operator once, they could eventualy operate two small aircrfats. Consider this is an acmi operator without and GDS (ticketing) system etc, ...
Again again and again ... Slovenia is shallow yield airline market which nobody reasionable would go for it, particulary in the current state in Europe. You can see it by (not) interest of the budget airlines in the last decade etc ...
https://www.dnevnik.si/1042897542/posel/novice/adria-naj-bi-nasla-partnerja-iz-dublina-
there seem to be some news regarding the continuation of this fairytale.
could someone with access provide some resume of the article?
https://www.exyuaviation.com/2019/08/cityjet-denies-adria-interest.html
I am sure that the number of passengers on TIA-BEG route by JU is bigger than on TIA-LJU route by JP and that is the point here.
Then that is the case of INI flights to BUD.
it's better then nothing. at least they have a plan, which is kind of a surprise for politicians. but i suspect they don't have LCC's particularly in mind for the subsidies. they want connections to major airports not some LCC bases in the middle of nowhere (e.g. Charleloi, Hahn, Beauvais). the government wants connectivity also for transfers to other destinations - i.e. flight to major hubs, not only o&d traffic.
like some other commentators have rightfully said regarding wizz and charleloi route: the load factor was good even in winter, but cheap-ass slovenian customers who fly lcc buy tickets only when they are dirt cheap, and with that kind of price, wizz cannot make that kind of mones/profit on this route, so it's better to shift the plane somewhere where they can earn more profit with this aircraft.