Estonia's national carrier Nordica will terminate its partnership with Adria Airways on November 19. The airline has been utilising its Slovenian counterpart's Air Operator's Certificate, commercial platform, ticketing system, staff and flight codes since it was set up by the government a year ago following the demise of Estonian Air. Nordica's cooperation agreement with Adria was signed for a term of one year with the option of being renewed for another year. The Slovenian carrier recently said it was looking to strengthen and deepen its alliance with Nordica. The relationship was expected to last until at least the end of 2017. Instead, the Estonian airline has opted to ink a similar deal with LOT Polish Airlines.
Commenting on its decision, Nordica's CEO, Jaan Tamm, said, "The set up and launch of Nordica as a company was completed this fall and we decided not to make use of extending our agreement. I would like to thank the management of Adria Airways for the good cooperation. It was largely due to them that we became fully operational in such a short time". He added, "All scheduled flights will take place and there are no changes to flight schedules. Our cooperation with Adria Airways in its current format will continue for the next two weeks and all air tickets will remain valid". Nordica tickets can be purchased through Adria's website. The Slovenian carrier initially provided necessary staff and cabin crew to its Estonian counterpart. Later on, Estonian personnel were trained in Ljubljana.
It has never been disclosed how much of a financial incentive Adria received for its partnership with Nordica, which was negotiated by the carrier while it was still in state hands. In its 2015 financial report, the airline's new owners, 4K Invest, hailed the tie-up stating that "good foundations have been laid in 2015 with new opportunities in the Estonian market". The deal was almost certain to be extended until the end of 2017 and it is unclear why there has been an abrupt ending to the cooperation. Jan Palmer, who advises 4K Invest, urged the Estonian government to ink a commercial alliance with Adria. Mr Palmer is also an advisor to Nordica.
Good if it means they will focus more on their operations in Slovenia.
ReplyDeleteI wonder what happened.
ReplyDeleteMe too and the question is who terminated the agreement. Adria or Nordica.
DeleteObviously Nordica it says so in the text.
Delete"We decided not to make use of extending our agreement" - Nordica CEO.
DeleteI think JP stood no chance the moment Lot approached Nordica. There is no good enough reason for them to chose JP over LO.
DeleteI thought that eventually Adria would get a stake in Nordica.
ReplyDeleteWith what money? They are barely having enough to pay the salaries.
DeleteWhat a fantastic livery
ReplyDeleteIt's a shameless plagiarism of PLUNA, the former Uruguayan flag carrier, corporate identity.
Deletehttp://www.armandobronca.com/wp-content/uploads/2008/05/pluna-pajaritos.JPG
This means that JP is now on life support and will be lucky to see out the winter.... they are basically dead
ReplyDeleteOT - given all of the recent discussion regarding OU's LHR flights, I'm currently sitting on JU's BEG-LHR waiting to take off and it is 100% full! 128/128 seats.... and, I noticed the CEO sitting in economy class - even busines class is full!
ReplyDeleteThat's nothing surprising, LHR always had great loads, even back when Jat used to operate the route.
DeleteI frequently fly to LHR and never had a seat next to me vacant. Saying that, my trips to AMS and ZRH were equally full.
DeleteInterestingly, BA used to be my preferred choice while it still flew to BEG, always full... on a few occasions the flights were so oversold that I had A321s and even 757s.
In sharp contrast to this, went to VIE two weeks ago, abysmal load on JU AT7.
CTN also have 100% full LHR flight. So, one can see that this move have no business logic.
DeleteAnon 11:04
DeleteI fly to VIE at least twice a month with JU and their loads have never been under 80% on my flights. That being said both JU and Austrian overcharge quite heavily on this rout, especially Austrian.
KIDS....
DeleteHow can JU make this route work, given the fact that Serbs need a visa for the UK, while OU can't ? It doesn't make sense at all ....
DeleteI think they are looking for any and all means of monetising whatever assets they have - prime LHR slots being a crown jewel which they can sell. This obviously means that they are in deep shit financially and have cash problems and debts to pay. Their prospects don't look good, especially since the govt can't fund them any more due to state aid issues.
This sale of slots only buys them time, but i fear the end is near. Only way to ensure that they survive, is if they can find someone to invest in them....
Very sad indeed... their mgt and Ministry have a lot to answer for. A perfect example of why govt's should not own airlines.
Last anonymous - agree 100% !!!
DeleteThis is a death sentance for JP.... they will be lucky to see through the winter...
ReplyDeleteIt could not have come at a worse time for them, especially during winter when they are not liquid.
ReplyDelete4K ima sansu da Adriju proda ASLu. Taman nekoliko RJ koji mu fale za sirenje balkanske mreze. Od Liona do Ankare
ReplyDeleteod Atine do Kijeva.
CRJs are wet leased, not owned. Much cheaper just to hire some crews and lease some RJs.
DeleteSamo za Beograd da, ovako se dobija i Ljubljana sa fiderskim linijama za LH mrezu. Ostale destinacije odakle lete se ukidaju mozda jedino Pristina uz let za BEG.
DeleteWhy would JU want to buy a moribund company to get a stagnant hub? Much easier to introduce additional flights to LJU if demand is strong to the east.
DeleteWith which money they would buy Adria from 4K? Air Serbia does not have money to pay staff and basic costs.
DeleteOh last anon poor you...HAHAHAH
DeleteKoga je briga za Ljubljanski aerodrom samo punjenje aviona LH.
DeleteJP has known this more before. I am sure. Such things are not happening over night.
ReplyDelete4K Invest:"good foundations have been laid in 2015 with new opportunities in the Estonian market". They really have absolutely no idea what they are doing. None whatsoever. New opportunities? Have they based an aircraft in Estonia or even started flying there?
ReplyDeleteWhy don´t they base this aircraft in INI or ZAG?
ReplyDeleteOr BEG, BNX, TGD, TIV?
DeleteINI - no chance with W6/FR.
DeleteTGD - same as INI, plus YM.
TIV - summer only, except Moscow. Consider also bilateral issues.
ZAG - OU.
BNX - a lot of airlines tried (including JP), nobody managed to make any visible success.
So far, Adria's loss is amounting to approx. 2 million EUR. These hotshot Germans thought they'll end up the year with a profit. Now, all of a sudden the biggest problem are pilot's salaries. It's going to be a repeat of Winter 2015 all over again.
ReplyDeleteHere is what will Nordica get with partnership with LOT:
ReplyDeletehttps://www.nordica.ee/en/information/new-strategic-partner-is-lot-polish-airlines/
Good deal if you ask me. New planes, access to long haul flights...
LOT might eventually become part owner of small airlines or even replace them all and become the airline of the Baltic states. Kind of regional dominance Air Serbia is positioned to deliver in ex yu zone.
DeleteWhat dominance? What region? Croats and Slovenes will never use BEG and JU to travel to the west
Delete@7:23
DeleteThat's really funny because thousands of them already do.
I believe you, croats and slovenians would rather go on foot that use serbian infrastructure...
DeleteInteresting that Adria are yet to make any statement ....
ReplyDeleteDragi letalceovi popljugali smo ga.
DeleteBolje ti je, da bar Google translate koristiš, ovo ti je jadno ispalo.
DeleteFunny how Estonia's and Slovenia's flag carriers are called Nordica and Adria respectively when neither of them have anything to do with Nordic states or the Adriatic sea
ReplyDeleteLife has been good to you
DeleteIn their press release they say LOT would be interested to implement similar model to cooperate with other carriers from CEE. I wouldnt be surprise if they start to cooperate with Adria or Croatia who could become their partner in the Balkans as Nordica in Scandinavia and Baltic States.
ReplyDeleteOvo je dobar potez da imaju saradnju sa LO tako ce dobiti bolju povezanost nego sada.
ReplyDeleteINN-NS