Adria assessment complete

Adria’s future to be decided in March
An independent auditor has completed its assessment of Adria Airways’ financial performance. Its findings will be presented to the Ministry of Transport which will then decide whether to extend Adria Airways’ operating license. If it decides against prolonging the license, the Slovenian carrier will be grounded. The ministry has until mid March to make their decision.

Meanwhile, changes are set to be made at the top of the embattled state carrier. The CEO, Tadej Tufek, is expected to resign. It is believed the management changes were discussed at yesterday’s management board meeting. Recently, the airline received 4 million Euros in bailout funds by Slovenian banks. However, recent information has come to light that Slovenia’s largest bank (and Adria share owner) NLB, has backed out of the credit arrangement. The bank gave Adria a 6 million Euro loan in early 2010 which is yet to be payed off.

In light of the airline’s worsening financial performance, Adria is now planning, besides cutting its workforce and salaries, on cutting destinations. In 2010, Adria handled 1.170.235 passengers, an increase of 2.3% compared to 2009. Adria recently launched a promotional ticket sale, symbolically slashing prices up to 50% for its 50th birthday anniversary, to be celebrated in March.

Comments

  1. This comment has been removed by the author.

    ReplyDelete
  2. A little bit off topic.....,

    This is where I think something untoward is happening at Croatia Airlines. Here is an airline, Adria, with a larger fleet but carries far less passengers then OU but still we find OU in a similar position as Adria. Why????

    Either money is been stolen directly from the airline or the Croatia government is using money from OU to pay for its own government projects....., Why OU is in so much debt I don't understand!

    There needs to be an audit done asap of OU financial position and this should be done by a credible company preferably based in a foreign country.

    Also, what is this aircraft type in this photo? I don’t recognise this type in Adria fleet.

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  3. AirKoryoTU-20413:01

    @Q400

    I second that! Add Jat into an audit and I guarantee the Government/Management is doing shifty things.

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  4. Anonymous13:30

    Adria Airways is my favourite ex-yu airline by far :(

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  5. LOOL @ Q400

    "larger fleet" you mean by number.

    Adria has
    7 CRJ2 342 seats
    4 CRJ9 344 seats
    2 A319 270 seats
    total 956 seats

    Croatia has
    3 A320 492 seats
    4 A319 528 seats
    6 DH84 456 seats
    total 1476 seats

    so which fleet is bigger ???

    That is why JP has higher LF than OU ;) (similler pax #, less seats, simmiler # of flts).
    Why Adria has such a loss, becuase prices are high becuase of CRJ2 hwich are costy, much more than CRJ9 or A319 per seat.

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  6. Actually the number of planes is the same o.O

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  7. Sky,

    This is true now but Adria had a larger fleet then OU for a long time and I assume Adria workforce is on a higher average salary then that of OU plus Croatia carried over 1900000 pax last year. That’s 700 000 more then Adria.

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  8. AirKoryoTU-20402:37

    @Q400
    Croatia Airlines carried more passengers than Adria because its aircraft carry more passengers!

    Adria has 2 A319's Croatia has 4 and 3 A320's. Croatia's 6 Q400's are bigger than most of their CRJ's.

    So it only makes sense that OU would carry more passengers. Also not to mention Croatia is a much bigger market than Slovenija.

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  9. Anonymous09:37

    So travelers have to wait in to book a ticket for travel in may 2011? or to not book the decision in march that tells me stay away from Jp for now. To bad Adria has always been my first choice flying to SKP or TIA ,Very good airline safe reputation, but this report will not help it.

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  10. Anonymous15:04

    O the photo is A319 (or better engine)

    ReplyDelete

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