Slovenia devises business plan for new flag carrier


The Slovenian state-owned Bank Assets Management Company (BAMC) has drafted a business plan for the country’s potential new national airline. Under the proposal, the carrier would reportedly operate a fleet of five Bombardier aircraft and count some 200 employees. Based on the Assets Management Company’s calculations, the airline is estimated to record a twenty million euro loss in its first year of operations. “BAMC, as a specialist in restructuring companies in difficulty, was called upon by the Ministry for Economic Development and Technology to examine Adria Airways' financial situation. We have done so and informed the ministry of our findings. We cannot comment further at this time”, the Assets Management Company said in a statement.

The government is expected to decide on whether to go ahead and form a new national carrier by the end of the month. BAMC’s calculations will play a crucial role in its decision. The Ministry for Economic Development and Technology noted it is yet to receive the BAMC’s findings. "Once the calculations are delivered to us, the ministry will examine them and make a final decision", it said. Minister Zdravko Počivalšek noted last week, “The key to our final decision will be our financial calculations, and if it all adds up, we will set up the company with a partner. Talks with a potential partner have come a long way. At this point, I cannot name them, but it is a regional airline. If we start up a new carrier, we will of course be counting on former Adria employees, which is why we need to make a decision on this matter as soon as possible”.

Adria Airways' receiver invited interested parties to bid for assets of the collapsed airline last month. The bankruptcy administrator is offering the entirety or part of Adria Airways for sale. Those taking part in the process must submit their offers no later than November 10, and bidders will be informed of the outcome within fifteen days of the deadline. Some of Adria’s assets include the brand, land property rights and the head office building, aircraft parts, select permits and two apartments. The airline had no aircraft in its ownership and leased its entire fleet. It is believed the government or the potential strategic partner the state has been in talks with could bid for the bankrupt airline in an attempt to resurrect the national carrier.




Comments

  1. Where would they fly to with these 5 planes?

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    1. Maybe LH group would vacate their newly launched routes.

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    2. That's a sound business plan. Base everything on the hope established competition in form of the biggest airline in Europe will go away.

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    3. They already said they presented their plans to LH and would coordinate everything with them.

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    4. Yes and they said the aim would be to get the new company into Star Alliance as soon as possible.

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    5. So, LH could buy OU, but they would rather help with establishing new carrier in Slovenia? Doesn't make sense!

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    6. They are not helping. Slovenian government said they would coordinate their plans based on LH's own plans and interests. LH doesn't lose a dime and is not investing anything into it.

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    7. Apart from losing a lot of passengers and reputation when the new airline (assuming it would have codeshares with LH) goes inevitably bust again.

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    8. With the airline consolidation we see today and the global players becoming stronger and stronger, small airlines have less and less chance to survive as often larger airline groups or airlines can fight routes with below profitability prices, where competitors dont have long enough breath to withstand. We saw this with IST. TK started serving LJU, JP gave up, now double daily TK in LJU. Same with SVO and SU. And CDG and AMS JP probably burned a whole lot cash. Only chance is that larger regional operators start feeding global players hubs with smaller aircrafts like we see it in the US. But again u need to hve a certain size to do this. 5 CRJs no chance. Except maybe Air Dolomiti has a branch in Slovenia and ooerates flights fm there, but than management, marketing, commercial dept will be in Italy and there wont be 200 jobs in SLO needed.
      Politicians who often habe not much clue fm business dream here something which will turn out again in a nightmare for the taxpayers. Again SLO needs first public infrastructure in their country to be developed, health care infrastructure as well as other things such as better road infrastructure or improve hotel standards in many locations. That will bring more jobs and even more visitors as Slovenia will become more competitive compared with HR A IT. The flights will be covered by foreign airlines which are even offering better possibilities such as attractive one way fares, better products and a global network of offices selling their destinations.
      LH LX will not disappear anymore and as long they re here, I wont fly another airline to SLO anymore.

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  2. Waste of money.

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  3. Seems like they will really go ahead with this

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    1. We will know at the end of the month.

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  4. Thank you taxpayers!

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    1. This is the best username seen on this portal ever! :))
      And most apropriate, considering topic :))

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    2. I don't understand the nickname, could you explain?

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    3. Hahaha, you have not lived in Yugoslavia.

      Gogole it :-)

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    4. Lol just did

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  5. Adria is dead, long live the new Adria!

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  6. Wouldn't it have been easier just to save Adria?

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    1. Not with the amount of debt they had.

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    2. Not with 4K as an owner

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    3. apparently 4k was willing to exit the company.

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    4. Yeah and at god knows what price. They were crooks.

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    5. the price was 1 euro; check if you don't believe me.

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  7. The worst idea ever... I hope they still have any brain left and will abandon this idea. But you never know with the Slovenian communist party...

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    1. Why is it so bad?

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    2. It seems that no one learned nothing from Adria story. Whoever thinks new Adria would magically be profitable is in my opinion very naive.
      "but, but, pilots and crew without jobs, no tourists who bring money, etc...". If LCC would base aircrafts in LJU they could easily use SLO crew. Tourists will still bring money, business trips will still run. Just with lower costs for the state and taxpayers - and taxpayers could actually afford to fly the LCC. Adria on the other hand...

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    3. Adria pilots don't want to fly for LCCs. They are too good for that. Chuck Yeager every single one of them. They need the government titty to milk.

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    4. how would you know? Do you know any of them personally? Do you know how many of them left Slovenia already? Do you know how many of them went to work for LCC? It is easy to shit arround when you are not accountable for your words, is it?

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    5. I know couple of them. Roughly. Roughly. No.

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    6. Anonymous 8 November 2019 at 12:43:

      You're just trash talking. Shame on you.

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  8. Still wondering who the regional partner airline could be. Any hints?

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    1. My money is on Nordica.

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    2. It could be CityJet. They have already been linked to Adria in the past.

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    3. I honestly don't understand why would anyone buy ex Adria over Croatia airlines?

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    4. Montenegro.. came in as a surprise, but I guess that they are so desperate..

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    5. Yeah sure.

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    6. Wait and see..

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    7. It makes absolutely no sense for numerous reasons.

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    8. 100% sure that genious Kukemuke boy is behind this "regional airline partner", so it should be the company he has ties with, in one of those misty Nordic countries.

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  9. I hope they conclude that this venture its too expensive.

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  10. Several months too late.

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  11. And apparently they are still sticking with the name Air Slovenia.

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    1. How stupid. They shouldn't base their name on a geographic location especially since they are in the EU and could establish bases elsewhere or apply for PSOs elsewhere. Germanwings was renamed Eurowings for a reason.

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    2. Air Slovenia is just a working name and it always was! It's just that this saga around JP and aviation in Slovenia has shown how little Slovenian journalist know about aviation. There isn't a TV report without at least two errors. Just yesterday Rosvita Pesek called EasyJet "Irish" company, CRJ "Canada Air" and so on.

      My favourite mistake was from September, when POP TV reported, that JP was still selling tickets to Paris, despite that it was only flying to Frankfurt. Needless to say that they were selling connecting LH flight and it was clearly visible in the TV segment (0:45 in the video)

      https://www.24ur.com/novice/gospodarstvo/nov-udarec-za-adrio-trzni-inspektorat-oglobil-druzbo-zaradi-zavajanja-potrosnikov.html

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    3. Totally agree about Slovenian journalists and it's really hard to watch/read anything about aviation in slo media. It's clear that not a single journalist in Slovenia has at least basic knowledge about aviation industry in general. Yesterday in Odmevi there was just one of the beautiful examples of this - almost fell from chair after "Canada air" and "Irish Easyjet". The worst of all is that you can't call it a mistake or a typo - clearly person saying such nonsense doesn't have the slightest idea about specific topic and has probably never heard certain names/phrases in aviation. For more examples just google articles in slo media about 737 MAX - totally unreadable. Very dissapointed!
      Thanks someone for Ex-Yu aviation :)

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  12. If they manage to create a small profitable airline then I'm all for it.

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    1. This is non-existent category.

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  13. Campaign in media has already started against this. That's why I have been reading articles in Slovenian press how it's never been better for Slovenian aviation and tourism now that Adria is gone.

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  14. Money could be better spent elsewhere.

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  15. This just reeks of corruption. 20 million of taxpayer money to transfer passengers from Tirana and Pristina to Western Europe. If the government goes ahead with this they'll just shoot themselves in the foot, no one in Slovenia is for this idea.

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  16. So if they decide by the end of the month to create a new airline, when could it realistically take off?

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    1. In the past they were mentioning February 2020 which I think is realistic.

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    2. Yes seems doable.

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  17. Well, this tiny airline could actually work and connect Slovenia well to the Balkans, while LH group would still perform strong in Germany, Switzerland ...

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    1. With that sort of model they will be loss making.

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    2. So the sole purpose of the Slovenian national airline would be to transfer Balkan passengers on to Lufthansa at cheap prices?

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    3. @9.33 im getting bored at your same kind of comment ... in the first place: Adria was never cheap (far from it!). maybe if they were they would have been successful

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  18. It will be much more than 20 million. Minister has already said that if they create a new airline they would also launch tender to subsidise new routes for which the new Slovenian airline could apply for.

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  19. Give it up Počivalšek.

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    1. He should have had this plan ready back in March. Not now.

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    2. He can't, he needs to employ his family somewhere!

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  20. According to some media, the plan has already been presented to ex-Adria pilots.

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    1. Didn't the majority already leave the country and find employment elsewhere?

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    2. The good ones yes.

      The not so good ones need a government-run company to get a job.

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    3. @Anonymous 8 November 2019 at 10:54:

      So I must be one of the incompetent ones for not applying anywhere (due to familiy issues)? Good to have experts like you to explain the situation.

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    4. In this profession, people should not expect to work 40 years for the same company from the same airport.

      It's just much too fluid and the market is too ruthless for that.

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    5. How about 5? And let me guess, pilots should not expect to earn more than an average salary for living like gypsies?

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  21. Not sure it's worth it.

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  22. This would be great. Slovenia needs its own airline. Hope it happens.

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  23. Good luck. This new airline will need it.

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  24. After Adria - Adria!

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    1. The craziness continues.

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    2. The saga lives on.

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    3. It should really be left to rest in peace.

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    4. Slovenia already has the airlines that operate with all the necessary permits and certificates. However, neither Amelia nor Solinair haven't jumped at the chance. It seems that something harmful for taxpayers pockets is going to happen again.

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    5. Both Amelia and Solinair only do ACMI business, and Solinair doesn't even have approval to carry passengers.

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    6. Amelia flies regular routes, thanks for the info about Solinair. What about Lipicanaer? I heard Freejet is also partially owned by Slovenians. Any info?

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    7. Where can I buy tickets for Amelia's flights? There's nothing on their website.

      Lipican Aer is too small to take on such a large project, they only operate 1 L410.

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  25. 20 million down the drain.

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    1. 20++ million down the drain.

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  26. 20million per year could be put into subsidies for Easyjet or Wizzair to base two or three aircrafts in LJU and we would get more reliable service, less chances of corruption and better prices. Direct flights to VIE, SKP, PRG, DUS/CGN, CPH, BCN/MAD, FCO, MAN, DUB, ATH and maybe some more rotations on existing ones (MUC/AMS definitely) that's all we need. Long haul flights are well covered with LH group (North America), AF, TK, Aeroflot and JU+EY.

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    Replies
    1. Wizz would probably do it for much less (see SKP with 5 mil / 3 years / new routes aircraft).

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  27. I'm glad Slovenia has recognized the importance of having its own national airline.

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  28. What were Adria's most profitable routes?

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    1. I don't think there were many. If I had to guess it was probably Zurich, Brussels, Frankfurt, Munich and Skopje.

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  29. They should spend some more time investigating 4K's running of the company and the corruption that was involved. More important than new airline.

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    1. It is not the government's job to investigate potential corruption at a 100% privately owned company.

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    2. Yes but where is the judiciary in the case of Adria?

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  30. 200 employees seems reasonable.

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    1. First year. I can bet in the second it will balloon to 600.

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    2. 200 employees with 5 aircraft is still insane.

      Well, if you want to run a business. If you want job-for-cousins-and-nephwes type of company, then it's not even remotely enough.

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  31. My assumption is this would be a 50%-50% venture but eventually the state would sell its stake.

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    1. Depends if partner is from the EU. If it isn't it can't own more than 49%.

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    2. Minister already said it is a European regional airline.

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    3. There are parts of Europe outside of the EU you know.

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  32. Unnecessary. Just spend a small amount of money on subsidies for routes or let the small market take its own course.

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    1. Parties in parliament have already said they don't support the idea of giving subsidies to foreign airlines.

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  33. Will this purely be a government decision or does parliament have to approve it too?

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    1. I think it is government decision only.

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    2. They should organise a referendum and ask tbe Slovenian public if they want their money spent on a new airline.

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    3. Yeah, perfect. Let's do referendum on everything. Perhaps referendums cost us as much taxpayers money as it would to establish new airline huh?

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  34. It's important for Slovenia to have a national airline so the aviation market can develop and for aviation professionals to stay in the country.

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    1. "so the aviation market can develop"

      LOL which planet do you live on? Government's pumping money into JP for decades has kept a lot of airlines out of the Slovenian market.

      Did LJU have flights with Lufthansa, British Airways, Swiss, Aeroflot, etc. 5 years ago?

      As far as professionals go - let's say I'm a coal miner. Is it the government's job to keep a lot of coal mines open, so we can keep the profession alive?

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  35. All of the people talking about subsidies - this is very strict in relation to EU law. It is not just a question of having no support in the parliament, as anon 10.12 said.

    Establishing a new carrier is an easier option, not saying it's the correct one - but it is much less bureaucratic than establishing a new company to operate flights. The competition laws in the EU prevent Slovenia to do what is happening in Skopje, and also Niš.

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    1. It is much less bureaucratic than giving subsidies - in terms of EU law. I mistyped it sorry.

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    2. lol greetings from (Al)Italia

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  36. Why is BAMC doing this? What does BAMC know about aviation? Shouldn't the BAMC have already settled all matters it was tasked with and been disbanded?

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    1. My thoughts too. How is BAMC qualified to draft business plans for airlines??

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    2. Slovenia is still far far in the Balkans, mentality wise. That's why.

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  37. Any such company in its first year would have s loss if it starts almost from scratch. Eh some would complain even if it were to make a profit of 20 million.

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    1. More so if they started with 5 unprofitable CRJs with 200 employees who go their knowing whatever loss they make, government will cover it.

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  38. First, all politicians who participated in the sale of Adria should resign. If we wanted to have a state-owned airline, then Adria would not have been sold in the first place. Politicians who create a system solely for their own needs, those who donated Adria to a private owner and have certainly benefited a lot from it, are again abusing their electorate to set up an airline that caters to political appetites and personal needs.

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  39. It seems that Slovenia left Yugoslavia in 1991, but Yugoslavia haven't left Slovenia since 1991. Bring it on planned economy, 5 year plans and pouring money into sinkholes. <3

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    1. +1
      sad but true...

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    2. Pardon my comment, but I lived in Yugoslavia, and I worked in Yugoslavia, and Yugoslavia in last two - three decades of its existence, DID NOT have planned economy, did not have 5 year plans, and no one poured money into unprofitable companies, especially not airlines, as a result of which Pan Adria and Transadria went bankrupted. Mentality wise, in aviation, I agree Slovenia is still in Yugoslavia, but not because Yugoslavia had "behind iron curtain" economy model, but because overall situation in aviation changed meanwhile, and even that was not the reason for demise of Adria, but simply crime and corruption, which I believe the attempt to set up new state owned operator is too, once again.

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    3. So no money was 'poured' into JAT in the 1970s & 1980s? Was JAT ever truly profitable?

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    4. Yes, no money was "poured" into JAT in 70's and 80's. The company was taking commercial loans from banks and was able to pay them off. The only part of services where passengers were charged less than market price were domestic flights. But international network was so strong to cover all losses made on domestic sectors. Plus, domestic flights were feeding international and in that way re-paying part of the losses. There was very strong cooperation with industrial sector and tourist agencies which were "helping" increasing LF's which was bigger and better than the ones of today's ex-yu airlines. Yields on international flights were excellent, business (Adriatic) class almost always full. The biggest attention and market segment was to most developed and richest markets - USA, UK, Germany, Scandinavia, Arab countries. Adriatic coast charters were significant segments of summer season operations, bringing in a lot of money. There was Air Yugoslavia, separate charter division, using JAT fleet for its operations. Marketing, not only within Yugoslavia, was STRONG. There was not a single "political" loss making international service with exception of one weekly Tirana. The US made fleet was absolutely matching the needs of operations. Long haul operations which were making the most of income had around 95 average LF. In the last decade of operations on-time performance drastically improved. Company started offering additional services as hotel accommodation and car rentals. In flight service was always if not excellent, at least very good, for the time frame we talk about. The only part which was disadvantage to bigger income was too many employees, but it has to do with the overall "social state" which exYu was, and even that was not making company loss-making, as the salaries in general were lower than in competition. So once again, Yugoslavia was NOT "behind iron curtain country" and JAT was self-sustaining airline operating successfully under 100% open market conditions.

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  40. Interesting photo - Adria's plane at the Maribor airport - two dead Slo aviation companies.

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  41. This is nuts !! And I bet they will make pilots to run the airline.. this is just another story of "great success" ! ...taxpayers go "Yes, take my money !!".. Počivalšek - there are real people with real problems in Slovenia - take care of them !! Chuck Yaeger can always slap on a "kaciga" and go sit in G2 Galeb promoting Yugoslavia.. oh god.. haven't you learned ?!

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    1. I see nothing wrong in promoting Yugoslavia

      http://www.lockonfiles.com/files/file/3225-dcs-yugoslavian-mig-29/

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    2. @An.14.34
      Period of about 30 years before its end, in Yugoslavia was the most prosperous period for entire territory of ex-country, all of its federal units and nations, and vast majority of its inhabitants. Furthermore, Yugoslavia had original and successful model of statal and social organisation and as such represented danger to today's "owners of the World", especially when some bigger and richer in resources countries started taking over the model. That's why it had to be destroyed. Misery we have today, in all ex-countries, and in all fields of life, is just a consequence. And of course there are always ways to improve and get better, and Yugoslavia as well was not ideal and needed some reforms and improvements, but generally speaking, it was country of happy people and there was generally nothing wrong with and about it. So please stop spitting on Yugoslavia because it was country much better than what we have today, from Triglav to Gevgelija.

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    3. Pozdrav iz Rijeke - Nobody was spitting on Yugoslavia. It was in the context - so aviation world know which pilot has the most credit for new airline. Codename Kaciga, owns a G2, was many times labeled for being to YU nostalgic. That is all. So dear Riječan, don't be trigger happy.. let us hold hands and sing kumbaya... :)

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  42. Well it is grate to got for Air Slovenia or Adria Airlines/Adriatic Airlines.... Will they try to get bigger planes? 100 seaterfrom EMB and 2 Airbus 321 for feeding Star Alliance with better prices?

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    1. Knowing the experts from the government and mr. pilots... they will get A380 just for short hops.. or perhaps "resume" talks for SSJ100 immobiliare version.

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    2. well I rethink, they should by adria tehnika back and by adria pilot school back and that should be the starter of Adria Airlines with 2 bigger planes for charter and feeders to LH Group/Star Alliance, and 2 or 3 airplanes for underserved routes and new destinations!

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    3. What would be the point in buying back Adria Tehnika or the flight school? There's enough competition on the market doing their job.

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  43. Air Slovenia? Hm. Sheet happens!

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