Another bailout loan for Adria
Slovenia’s national carrier Adria Airways, which has requested 50 million Euros in state aid to help its fledgling finances, will also take out another 40 million Euro loan from the banks, the Slovenian “Dnevnik” reports. This is despite the fact that Adria already owes millions in unpaid loans to banks and has managed to accumulate debt of up to 100 million Euros. It is believed that the airline can only continue operations with the government aid and another loan from the banks. The airline is currently in talks with Nova Ljubljanska banka (NLB bank) to negotiate the terms for the large loan. NLB owns a 6% stake in the Slovenian national carrier.Meanwhile, the Slovenian Government decided on Thursday it would consult MPs on the possibility of state aid to the indebted Slovenian flag carrier. It proposed the issue be discussed at the Economy, Transport and Finance committees within the Slovenian Parliament. The Minister for Transport, Patrick Vlačič, said the government is expected to make a decision whether to grant Adria the needed cash during next week.
Adria handled 409.265 passengers in the first 5 months of the year, which is a moderate increase compared to the same period last year. A total of 1.170.235 passengers flew with Adria in 2010.
Will Adria ever be able to pay this back?????
ReplyDeleteNo no no, unless they renewal there fleet, get rid of the smaller CRJ's and add a single turbo prop type such as the Q400 to the fleet.
This had to be at least the beginning of the end of Adria I believe.
If they do get this loan, does that mean they will have to repay like 200,000,000 Euros??
ReplyDeleteOh God... again!?
ReplyDeleteWhat do you think about the merger of JP, OU, JA, YM, IN and JU into one brand called EX-YU Airlines? :))))
This is unbelievable! Another 40 million, makes with the old debts and requested help 190 millions......
ReplyDeleteThe only thing that would help is get rid of loss making "hub" in LJU and concentrate on O/D traffic to Slovenia with a couple of Q400 and one 319!
I agree with Q400, raplace CRJ200 with q400 is the best solution.
ReplyDeleteReasons:
Plane cost = same;
Fuel cost = same;
Salaries = same;
Maintaines = same (maybe Q400 little more);
MTOW = same (same other cost, airport tax, route charge);
Q400 = 70-78 pax,
CRJ200 = 50 pax.
so with same costs for 50 and for 70 pax, they can offer cheaper tickets, and they will have more Profit. Also they can use q400 on some Crj900 route like PRN or SKP, and get more Profit.
If they will get all this new money than for sure because some of bigger players decide to take over it just if all loans are covered and the company +-0 profit runing.... and everything will be paid by slovenian worker through the funds and state shareholders.....
ReplyDeleteDoslo je vreme BANKROTA... PRVO JAT, pa ADRIA, i na kraju CROATIA AIRLINES....
ReplyDeleteno way! no one will go down! all of them will be sold without credits to lufhansa for 1 eur! and here we go lufthansa will have balkan SAS!!!
ReplyDeleteTotally agree with last anonymous. The only way to avoid Lufthansa Balkans is to start negotiations with other large players (Air France+KLM or BA+Iberia) for their takeover for the same amount = 1 EUR.
ReplyDeleteWell the article is wrong =)
ReplyDelete40M€ from banks would not be loan but it would be transfered to share in the Adria
and the 50M€ again, would not be loan but new capital invested by the state owner PDP.
So by this, Adria would almost 0 with loans.
And to all of you "smart" people
"Plane cost = same;"
And how will you sell the CRJ200 ???
Even if you sell it for some money, where will you get NEW money for NEW planes??
I do not believe that LH is interested in Adria. First of all LH is now headed by Mr Franz who is busy to restructure BMidland, AUA, close LH Italia and others parts of the LH group like LSG catering. Secondly Slovenia is such a small market and no place sink 9-digit € amounts....LH/LX and OS easily hoover all the Balkan traffic over their hubs in FRA/MUC/ZRH and VIE. No one really needs JP.....sorry guys, but Slovenia is not the belly button of Europe.
ReplyDeleteClose Adria no additional throwing of money! Is it Slovenia still operating as in old Yugoslavia? = Taking debts that will never pay and this is still business for selected individuals (smaller group than ibefore9? Seems like this.
ReplyDelete