Adria halves its losses
Adria Airways has confirmed it will end the year with a 7.5 million euro loss, which has been halved compared to last year when it amounted to 15.3 million. The airline’s CEO, Klemen Boštjančič, says the improved financial performance comes as a result of wide ranging cost cutting measures introduced last year, which saw the suspension of several high profile routes, a new fleet plan and the sale of Adria’s subsidiary Adria Airways Tehnika. The airline plans to make a profit in 2013 for the first time in five year. Adria’s worst financial result in recent times was recorded in 2010 when the carrier produced a loss of 59.7 million euros.
The Slovenian carrier has seen passenger numbers tumble over the year, however, things have begun looking up. In November, the airline managed to boost its figures for the first time, thanks in part to a charter flight deal with British car maker Land Rover. While numbers on scheduled passenger flights continue to decline, Adria’s charter business helped the airline increase its figures last month. Meanwhile, Adria has postponed its plans to operate flights from Venice to Priština, where it is currently the fourth busiest airline. The service was to launch today but will now run from next week instead. However, it will go ahead and inaugurate flights from Ljubljana to Paris at the start of the 2013 summer season and will resume seasonal flights to London.
Next year will also see important developments for Adria. It will be finally determined whether the airline will be privatised. Since non binding bids were submitted for the purchase of 74% of the company in September, there has been no word on the fate of the privatisation process. Furthermore, the European Commission will deliver its verdict whether a number of public support measures in favour of the Slovenian national carrier are in line with European Union state aid rules. These measures include four capital injections between 2007 and 2011 amounting to around 85.5 million euros. If the Commission finds that Adria was in breach of these rules, it will be ordered to pay back the entire sum.
I’m just hoping that the commission doesn’t rule against Adria because it would be a huge pity to see an airline with so much history disappear and would be a huge blow to our economy which is already in the dumps as it is. Nice to see the losses are down but it has come at an expense. Closing down your signature routes. Thankfully CDG is resuming.
ReplyDeleteYes what is going on with the privatization? It has been 4 months and still nothing!
ReplyDeleteThe Venice cancellation wasn't Adria's fault... I think that the tour operator cancelled the route. They were also supposed to start flights from Pristina to Basel a few months ago but it also got cancelled.
ReplyDeleteBelgrade November growth has been 3%. Total passengers handled were 220.938, up from 215.113.
ReplyDeletepax in 2011: 2.906.949
pax in 2012: 3.139.050
So far in 2012 BEG recorded a 8% growth.
Belgrade has already surpassed its 2011 number by 14.417 passengers.
I guess this year Belgrade will welcome a total of 3.300.000 passengers if December keeps the slow growth as was the case with October and November.
DeleteThis is kind of impressive:
Delete2007: 2.512.890
2008: 2.650.048
2009: 2.384.077
2010: 2.698.730
2011: 3.124.633
2012: 3.300.000 (?)
Well, it is obvious that total for 2012. will be around 3.370.000.
DeleteWell let's hope we manage to reach 3.400.000, I mean it is not that hard if we need only 30,000 after that.
Delete20.548 eu admitted loss x day
ReplyDeletereality even more
857 eu loss every hour every day
Please stop
the killer!
Don't feed the parassite!
Priština Venice was a few months token so called
business.
Absurdity of all is that Adria is making less loss if it's just paying the workers without let them do nothing at all!
If this is economy?
No goverrnment helps anymore for Priština airline ok?!
Paris will not work again it's just a summer destination other ash over osh
at our taxpayers money again.
OK. Now write the same comment again, but this time in proper English so that we can understand you.
DeleteThinking the same here =D as i cant understand a single point hehe.
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DeleteSlovenčki pametni I have to dissapoint you. You know, for Kosvo people - they do not have problem to pay 200+ € for a ticket while you smartasses cant pay even 99
ReplyDeleteSo before beeing smart, look at the tickets and I can tell you flights are overall (whle year) cc 75-80% full.
So who is finaning who is who =) ?
And btw I am Slovene so .... just hate my fellow citizens who are too smart =)
Btw Adria is flying to VCE, just with a delay of one week.
VCE-PRN 21DEC 28DEC 4JAN
BSL-PRN 21DEC 22DEC 2x 23DEC 29DEC 5JAN 6JAN 2x
VRN-PRN 22DEC 23DEC 25DEC 29DEC 3JAN 5JAN 6JAN
and so on.. all planes are A32s
By the plan, Adria should be making profit (well zero) next year in the years where big airlines are ceasing ops. Sure if in next years there will be 1M€ profit, that would need 80 year to pay back the 'debt' to goverment though it could get money back wile selling adria too. But take the last part very popular scientific =P
Anyway, airline / company is providing work to cc 400 employes and other 400 @ LJU APT + company pays taxes - think what is best for the goverment =) to pay and get the money back twice thru future years or to have money but... getting cc 600-700 people on the streat for which they will need to provide social care...
Good point, but slovene and croats still wanna keep spining their old propaganda how they had the cash and subsidised poor yugo states.
ReplyDeleteYes, they still think so, but they cant see Belle Air having 6 A32s rotating all day long, full pf pax out of TIA and PRN while we cant even fill CRJ2. But when looking at prices, they are not so much lower, than they have lower wages than people in Slovenia.
DeleteBut here is is cheaper to drive to other side of the Europe to take LCC flts to XY city =)
Adria has AGAIN prices @99€...
Though I went off topic now
Yes, stupid excuses while Adria schedule model used to be to trasport people to southern Europe while serving most of Europe western capital cities just becuase flts were full of transfer pax.
But not much Slovense on board.
So again... When borderes at south opened to other companies and nowadays to LCC, transfer pax left and Adria is sticked with Slovense and foreign pax
And now they fly to most dest with CRJs while in 2000 they could easily fly daily with A320 to all western cities =) and flts were full at that times. So who is financing who again?
Not poiting at you :p but for other smartasses from Slovenia which will need to take in account that Adria made losses because of poor Slovenian market, not because of Kosovo etc =) that markets just help to a bigger income as without them I doubt flts to ZRH, FRA, CPH, AMS would be half full as today.
Without transfer flights, Adria could remove half of the fleet and remain flying to Star Alliance hubs and serve with one A320 LCC dest 2-3 per week... though what about conencting slovenia with the world for "business" pax?
Do not look 1 meter ahead of you...
And think about what if this was your company... would you say the same? "Do not give another cent to it" and whoever is the owner, beeing goverment, or private one...
I see nothing wrong with throwing money into infrastructural companies. There just has to be tight control over the expenditure. I seriously doubt that Germany would EVEER alow LH to colapse...
ReplyDeleteSlovenia and Macedonia topics are always the most boring, no matter what happens.
ReplyDeleteyes, at least regarding Slovenia and Macedonia topics, comments are usually reffered to aviation!so we can laugh when there are topics about "centre of the universe"-croatia and serbia, how comments are nationalistic and how are people bashing one each other :D And relax, if you find an article boring, just don't make a comment
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