Growing interest in Adria Airways reboot


There is growing interest in reestablishing Adria Airways, a week ahead of the auction of the bankrupt carrier’s remaining assets. A group of Russian investors has expressed interest in the company and wants to use the airline’s Air Operators Certificate (AOC) and brand name to resume services from the Slovenian capital to several European destinations using a fleet of Sukhoi Superjet 100 aircraft. One of the investors said, "We are planning to win and to introduce the SSJ in Europe. We have all the support in Russia for such a development. Individuals are welcome to join as investors based on their EU passport or company registered in EU by Europeans". Others to have expressed interest in Adria include Slovenian businessmen Joc Pečečnik, Izet Rastoder and Ivo Boscarol, who have all outlined their separate plans to utilise the defunct airline’s assets in different ways. Initially, five non-binding bids were submitted to Adria’s receiver, however, different subjects have now expressed interest in the company since it will be auctioned.

Adria Airways’ business will be auctioned off as a whole next Thursday at 11.00 CET. The assets include the AOC, as well as various manuals, including those for operations, training, maintenance, security, weather, passenger handling and cargo handling. The carrier’s AOC has been suspended until September 30, 2020, however, it will be reinstated once the buyer fulfils certain obligations set out by the Slovenian Civil Aviation Agency, among which is the possession of operational aircraft. The party that acquires Adria’s assets will also have to take on a number of obligations. Among them is the amendment of any discrepancies that arose following the revocation of the airline’s AOC and the launch of bankruptcy procedures. A Slovenian AOC would give its holder rights to maintain commercial services from Slovenia and other European Union-member states.

Meanwhile, the operator of Adria Airways’ former hub, Fraport, reported today that Ljubljana Jože Pučnik Airport handled 1.721.355 passengers in 2019, representing a decrease of 5% . The number of aircraft movements declined 11.3% to 31.489. In December alone, the airport welcomed 85.513 travellers through its doors, down 21.6%. Ljubljana Airport anticipates a strong 2020 summer season despite the loss of its busiest customer. Fraport Slovenia, which is in the process of building a new terminal at the airport, has said passenger numbers are beginning to improve following an initial steep decline in figures. "Traffic is picking up just as forecast”, it noted.

MonthPAXChange (%)
JAN103.525 3.1
FEB105.470 6.3
MAR133.641 3.0
APR157.992 0.1
MAY170.307 1.8
JUN188.622 6.7
JUL207.292 4.2
AUG211.431 4.5
SEP172.387Decrease 10.1
OCT99.231Decrease 38.5
NOV85.787Decrease 27.0
DEC85.513Decrease 21.6




Comments

  1. Adria never dies.

    ReplyDelete
    Replies
    1. https://www.rtvslo.si/gospodarstvo/za-nakup-propadle-adrie-airways-se-zanimajo-ruski-vlagatelji/511858

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  2. In the end Adria will have fly Sukhois after all :D

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    Replies
    1. https://1.bp.blogspot.com/-Q0pBK2exDug/XKOyEH8vCRI/AAAAAAAArBw/sRo9--ZBfVkM7GAokJSYeN4hRmQ7ZkwwQCLcBGAs/s1600/adria%2Bsukhoi.png

      :)

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    2. Looks nice.

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    3. Even if they somehow relaunch the airline under the same name I doubt they would keep the livery.

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    4. How to bankrupt a start-up airline 101

      Step 1: Operate aircraft that everybody outside Russia has stopped operating.
      Step 2: Wait.

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    5. Like 737MAX?

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    6. 737 MAX orders: 4912
      SSJ orders: 302

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    7. 737 MAX flying: 0

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  3. Sounds like another money laundering scheme involving the Adria name.

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    Replies
    1. My thoughts too. Especially since the "group of investors" aren't addressed by name and surname.

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    2. @Anon 09:15

      + 1000

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  4. It's interesting that they are not putting up the flight school on the auction.

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  5. They should have auctioned off the company from the very beginning :D not sell it to 4K. At least it would be more transparent.

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  6. The minute I saw that they were selling the AOC I knew the Russians would be interested.

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  7. Would be nice to have an airline based in Slovenia.

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  8. Hope for the best

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  9. Really disappointing about LJU's numbers. It was going to be a record year until Adria collapsed.

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    Replies
    1. Actually, numbers aren't too bad given that Adria had 50% share of LJU passengers.

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    2. This is true. Ljubljana has held up quite well. Maybe numbers recover even before September 2020.

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  10. Will the auction be televised?

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    Replies
    1. Televisa presenta :)

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    2. Only if Vucic joins the auction. :)

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    3. It literally is a soap opera.

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    4. Rather Delta than Vucic.

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  11. So it's my understanding that they are selling all these license as one package not separately?

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    Replies
    1. @9.11 do you honestly think they would be able to sell each manual separately at a starting price of 45,000? Of course it's the whole business... well what remains of it.

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  12. Meanwhile the UK has bailed out Flybe. Interesting that the Slovenian government saw no incentive in saving its own 58 year old airline.

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    Replies
    1. Everyone has save their companies - Italy, Croatia, UK...

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    2. Obviously the Slovenian government saw no interest in keeping Adria around.

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    3. You have to understand that in Slovenia we had very bad experiences with saving companies in the last decades. Therefore, it is a political suicide practically to suggest any public money going into saving companies. The government had to stay away from much bigger and "strategically important" companies in the last years (e.g. Cimos, Mercator...), though there is always a lot of talk about and they help with the process, they never invest directly.

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    4. It would be a misuse of public funds. The government was right in letting a privately owned business collapse due to its incapable and corrupt management.

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    5. Was the government also right when it sold the company to an unknown investment fund with no aviation experience?

      Also, did other countries (Croatia, Italy, Germany, UK) have no "bad experiences" with saving public companies or is it that the Slovenes are much smarter than everyone else?

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    6. I don't speculate about what is right or wrong, or who is smart and who isn't, just explaining why the government didn't choose to save Adria, this is what the political climate is in Slovenia.

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    7. Point taken.

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    8. Everybody saved their airlines? Really? So the list of bankrupt airlines in 2019 is: 1. Adria Airways. The end. Really? I must be reading different news then...

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  13. Let's see if Adria fetches anything more than 45,000 EUR.

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  14. I find it funny that all of this has been valued at 45.000 while Adria was sold to 4K invest with planes and still in operation for just 100.000!!! Shows what criminal activity occurred with 4k.

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    Replies
    1. Not only was it sold for 100,000 but the government was obligated to give them money. So it was basically given away for free to be destroyed.

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    2. At the time Slovenian Sovereign Holding which finalized the sale said:

      “4K Invest, which is one of the leading business turnaround specialists in Europe..., will provide for the viability and development of the Slovenian national airline and enable other long-term positive impacts,”

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    3. With what planes?

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    4. When it was sold Adria had planes under lease. So it was an operational airline sold for 100,000 euros. A city apartment costs more than that.

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    5. Leasing contracts are liabilities, not assets. Liabilities decrease your net worth.

      If CRJ lease contracts were worth anything, you wouldn't still see them parked in LJU, MUC, MST, etc months after Adria has gone bankrupt.

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    6. Also don't forget that 4K had to pay off Adria's debts too.

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    7. Adria was more or less debt free when it was sold, thanks to last 3m EUR injection by government prior to sale.

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  15. Is there any prospect of some serious company participating in this auction?

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    Replies
    1. Doubt it. What would any European company have to gain from buying Adria's AOC?

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  16. When Adria went bankrupt there was also talks of Russian interest so I'm not surprised.

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  17. Let's say Adria is relaunched, which routes could be started from LJU?

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    Replies
    1. The main ones have already been taken over by LH group.

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    2. Why are these considered "the main ones"? Since Adria went bankrupt flying those routes and since almost 90% of passengers on these routes are/were transfers I wouldn't charachterise them and being main and important routes for Slovenia.

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    3. Main routes are covered only on paper. It is not even close to same schedule as before. That will change a bit with morning departure to FRA in S20, but ZRH,VIE,MUC, BRU are not covered at all.

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  18. Maybe the government bids :D

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    Replies
    1. Wouldn’t be surprised if the government together with a foreign investor bids for it to set up a new state flag carrier.

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    2. The government has said it has no plans to start a new airline.

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  19. Could a new Slovenian airline work ?

    ReplyDelete
    Replies
    1. What do you mean if airline can work? To be profitable? Please give me one example in our region of succesfull airline...

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    2. The remaining airlines in our region are national political projects, meaning they don't operate in the free economy and are being dictated what to do. It doesn't mean that no airline could work.

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    3. 10:43 are you serious. I give you more than one example: amelia(aero4m), elitavia, trade air, prince aviation...and many more who are doing good job.

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    4. and none of them regular airline. big difference. all of them are either charter/vip/acmi. not comparable in the business model.

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  20. Why are they having an auction if there were already non binding bids for Adria? And 5 of them, not just 1.

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  21. Do EU ownership rules still apply with the AOC. Can Russians buy the AOC or does it have to be in some partnership with an EU business?

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    Replies
    1. They can easily find a Russian with an EU passport to be the head of the company and then you bypass all ownership restrictions.

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    2. Exactly head of VLM Slovenia was a Chinese with a foreign passport.

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    3. And Solinair is owned by Turkish company with a help of a Bulgarian citizen to circumvent EU ownership rules.

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    4. Well have a look at what the article says ;)

      "We are planning to win and to introduce the SSJ in Europe. We have all the support in Russia for such a development. Individuals are welcome to join as investors based on their EU passport or company registered in EU by Europeans".

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    5. Oh missed that. Interesting. They seem to be hunting for an EU passport holder haha.

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  22. It would be great to have a local airline back in business.....

    ReplyDelete
    Replies
    1. Who says they would be flying in Slovenian?

      With EU AOC they can operate any route within EEA.

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    2. Well it says they want to reestablish flights from Ljubljana.

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  23. The Russian investors seem to be a Russian aviation consultancy firm.

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    Replies
    1. They don't sound very serious if only now they are looking for EU citizens as cover so they can buy AOC.

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    2. They looking for EU investor to balance the company- very reasonable and smart approach

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  24. If this gets off the ground it will be another VLM Slovenia with the same outcome.

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  25. Is the Adria brand up for sale as well or is it still owned by 4K or whoever. It would not be a bad idea for OU to buy it.

    ReplyDelete
    Replies
    1. Why should OU buy the brand name?

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    2. The brand is dead.

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    3. If relaunched correctly I think it could be successful. It would also give Croatia Airlines the opportunity to expand more in the region with a neutral name.

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    4. Wouldn't it make more sense for OU to rebrand as Adriatic Airways ;)

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    5. Adriatic Airways name is already taken.

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    6. ^ http://www.adriaticairways.com/

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    7. It was formerly known as Di Air Montenegro

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  26. Maybe Air Serbia bids :D

    ReplyDelete
    Replies
    1. I don't see what they would have to gain from it...

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  27. Where will auction be held?

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  28. This morning, before 12PM there were just 3 departures from Ljubljana! A long way to go for Fraport to get LJU back up and running.

    ReplyDelete
    Replies
    1. they will never reach same numbers without airline which is based in LJU.

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    2. True. That's why I hope a new airline is established or a LCC opens a base in Ljubljana.

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  29. Nothing good ever came from Russian investors in the aviation industry

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    Replies
    1. Thankfully good has come from German investors... oh wait

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    2. Well, do you perhaps know that aircraft manufacturer LET made in Czech Republic is saved by Russian investors? Before that, samo Amerian company bought it from Czechs and ran it to the edge of bankuptcy. Now, with Russians, they are still happily producing and exporting Turbolet410 and even considering about some bigger aircraft in the future...

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  30. I really don't see how successful a start up with Sukhois could be.

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    Replies
    1. well it's kind of moot, as the old guard would form an union in the very first second and the second second of doing business would be to go on strike and demand higher wages and then cry to the government again. so the type of aircraft is not really important as it would sit on ground anyways :D

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    2. Russian might be in a mood to throw significant amount of money in VR project "SSJ is great airplane"

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    3. Azimut have proved already that plane is great.
      Its Boeing's Maxes are grounded somehow)

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  31. @Anonymous 15 January 2020 at 12:57:

    You're a funny guy. Not!

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  32. The supposed Russian is Oleg Evjoki... a self styled consultant and is in reality a bedroom broker who has no experience within the airline industry and has never owned an aircraft or run an airline in his life. Basically pretends to big on defunct airlines and asks people to “invest”

    ReplyDelete
    Replies
    1. The guy you mentioned has more than 10000 followers on Linkedin mainly from aviation sector.
      All CEO's of major airline following his brilliant posts for more than 2 years already..

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    2. Complete nonsense. Oleg you are now posting pretending to be someone else. You have no experience or history of any ...I repeat, any airline or aircraft. Name me one airline or project you have worked on which has you documented? Your constant assertions of superiority are laughable .

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    3. Funny discussion- why the guy need to own airplane to set up interesting project?
      Are you OK?)

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    4. Im surprised that this is mentioned here, first rumor was on Linkedin regarding russian investors. Its clearly that Oleg guy, always top ideas but never realisation. He looks like troll.
      And a fact that he is followed by many people on linkedin is because he is the one sending requests around, he send it twice to me...

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    5. i do follow Oleg's posts on Linkedin. Always interesting ones.
      Tomas Cano who was CEO of 7 airlines just mentioned that Oleg is amazing professional.
      And I trust Tomas much more than anonymous lairs like you

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    6. Oleg...you are laughable, surround yourself with the same sycophantic people. I am yet to see a genuine industry professional comment in a positive fashion on your fantasist updates. I will await another failed attempt along with all the other nonsense you post without any proof you have invested equity yourself.

      Delete
  33. This comment has been removed by the author.

    ReplyDelete
    Replies
    1. What a load of rubbish, it will be the same outcome as all the other airlines that you have supposedly bid on....nothing at all. It’s all a complete fiction in the vain attempt to hope someone will invest. Let me ask how much equity are you putting in ???

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    2. Slovenia will have own airline with Russians or without.
      I have flown SSJ -very comfortable.
      All haters will be dissapointed

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    3. Jorgen :))
      Oleg, this is "malo morgen" :))

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    4. Comfortable doesn't mean profitable.

      Wizz Air's A320 or Ryanair's B737s aren't comfortable as well. But they are profit makers.

      Delete
  34. It would be great if JU bought it and expanded its network.

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  35. Some people in and outside of comunity are constantly trying to PR even on the graweyard of chaised airlines. An aviator having credible competence for the business would not opt for anyting out of that auction, because there is nothng credible to opt for. Anyone understanding EC 765 and EC1188 knows this AOC is just a non compliant prefix number.

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  36. Oh the glory of comments ! :)
    Ok - When Adria was alive, 4K tried to scam Russians for at least 10mio investment and "free planes".. even if this would have worked.. problems (structural) with SSJ are/were still alive.. look how many are taxiway ornaments on major airports in mother Russia. Not to mention engine economy which is not.. as advertised. And there is NO certified contractor for maintenance near by, no spare parts logistics.. yes a business opportunity, but far away. And then.. type rated pilots for SSJ..in abundance right ?! Don't get me wrong.. SSJ is a fine bird, but needs polishing up.
    With all this, Russians (not Suhoi, but some oligarchs that found a warm place to stay in Slovenia and Croatia) wanted to buy Adria and Flight school (in 4K's final hours) - but it turned out that they (parties involved) had even less idea about running the airline and flight school than 4K (if this is at all possible). 4K did not communicate with them, as they were already packing bags, wiping laptops and kissing "Legal" goodbye.

    ReplyDelete
  37. I allow myself to disagree with you.
    Firstly, in the region there are at least two MRO centers certified for servicing the SSJ100 - in Venice and Belgrade. In Venice there is a warehouse of spare parts. In addition, the Russian government subsidizes the formation of a spare parts warehouse for buyers of new aircraft. The amount of the subsidy is more than 1.5 million euros per plane.
    Secondly, Adria's cabin crew managed to get trained to work for the SSJ. Pilots, unfortunately, did not finish such training. SSJ control is largely unified with the control of the A320. Retraining takes only a couple of weeks. And there are also subsidies for training.
    Judging by the feedback from the pilots, they like to fly on this plane. Many of the former CityJet pilots wrote that I would be happy to fly this plane in any company.

    ReplyDelete
    Replies
    1. Sure. Belgrade is not EASA region. Venice does interior, cabin equipment as SSJ comes green body to Venice. Yes CityJet and others returned SSJ planes why ? Sure type rating takes few weeks but comes with a price tag. Never said pilot did not liked the bird, they did and I never said anything against avionics as they are good. Read again: structural problems and engine economy. Let us agree to disagree.

      Delete
    2. The only question after reading your lairs is who pay you for discreditation of SSJ :
      Boeing or Airbus?
      Engine economy is superior with Superjets- well known fact.
      Russians they pay 90% of what you call "price tag".
      You seems just Nobody who waste his time lying here about perfect modern plane

      Delete
    3. Yup, perfect :))
      Oleg, you will never get that commission for SSJ... :) :)

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    4. "SSJ control is largely unified with the control of the A320. Retraining takes only a couple of weeks. "

      You have no idea what you are talking about. The fact that Thales provides a alot of avionics for both A320 and SSJ, does not mean there is any recognisable commonality between the two types. There is no credit for A320 pilot when doing SSJ training. And it talso takes "couple of weeks" for ATR pilot to be qualified on the B747 or A380.

      "Judging by the feedback from the pilots, they like to fly on this plane. Many of the former CityJet pilots wrote that I would be happy to fly this plane in any company."

      What pilots think is irrelevant. What counts is that aircraft is safe (we all agree that SSJ is safe) and reliable/efficient, which is where SSJ's problems start. Grounding aircraft or any delays in Europe cost a boatload of money due to EU261 compensation.

      "Engine economy is superior with Superjets- well known fact."

      Does this economic analysis include the fact that you have to change engines very often? CFM56-7B, installed on the B737NG, has an on-wing record of almost 50.000 hours. On the other hand, the SaM 146 need overhaul as low as after 1.000-2.000 hours due to design issue that causes combustion chamber to crack.

      You mention the word subsidiy 3 times in your post. How come nobody in the world outside Russia wants this excellent aircraft, if on top of getting a super efficient and relable product, you get a lot of subsidies for it as well?

      But yes, I'm getting millions from both Airbus and Boeing to write bad things about SSJ here.

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    5. https://simpleflying.com/airbaltic-airbus-a220-engine-change/ -
      just read this- this is about real problems with engines

      And yes they pay you coins- you are cheap guy)

      Delete
    6. Funny that somebody would think this is a "flame war" between SSJ and Airbus.. only a vodka fueled brain could come up with this.. When in fact Cessna is sponsoring my SSJ ass kicking.. as Cessna 337 can pull and push at the same time, try that with SSJ.

      Delete
    7. See, you say A220 has real problem with engines, and I agree.

      Airbus/Bombardier isn't building warehouses for airlines and subsidising everything.... And airlines still buy the aircraft.

      Now why is that?

      Delete
  38. My name is Marco
    But you seems really crazy)

    ReplyDelete