Adria unveils fleet, network and corporate plans

Adria Airways will be focusing on growth in the coming period with plans to further expand its fleet. The Slovenian carrier is looking to add at least three new aircraft next year and will not limit its operations at to its existing bases. The airline's CEO, Holger Kowarsch, spoke to EX-YU Aviation News, touching upon a range of issues including the company's financial performance for last year, the carrier's existing hybrid business model and owner 4K Invest's strategy for the airline.

You can read the full interview below:

Adria launched seven new routes this summer. How satisfied are you with their performance and will these routes be maintained over the winter (with exception to coastal operations)?

We have high expectations for the new routes. However, as the routes were just launched at the beginning of the season, they still need some time to mature, but are progressing quite well. This confirms that we perfectly observed the needs of the market as our chosen destinations are seeing a lot of interest. With the new routes we connected both business and leisure destinations by offering passengers with even more choices.

What are some other markets Adria is currently exploring?

Slovenia is a limited market and thus we are looking for business opportunities in a wider international environment. Since our network just got bigger with seven new routes, most of our attention is focused on the optimising these new destinations.

Generally, our focus is on growth and, in line with the trends in the aviation industry, we are intensively checking the possibilities for the expansion of ACMI services.

You recently noted that Adria should grow its fleet. Is Adria focused on further adding Bombardier jets to its fleet or is it considering other types as well?

Adria faces growth in practically all segments of its business. Yes, we are increasing our fleet of aircraft. We have already added three new aircraft this year, and now operations are carried out with fifteen aircraft. We have great expectations towards the upcoming arrival of six Saab 2000 aircraft, and we will no doubt continue to increase the fleet next year. In 2019, I expect at least three new aircraft Bombardier regional jets. This is due to the capacity of these regional jets, so at the moment we are not planning on adding any other type of aircraft.

The entry into service of Saab aircraft has been delayed for some time. Do you know when these aircraft could be added to the fleet and explain the reason for their delay?

It's true, the Saab 2000 aircraft were planned to be in our fleet earlier. I am convinced that the process will be completed quickly, as there is no basis for any more delays. I am optimistic that the Saabs will be flying for Adria soon and I do not expect any more complications.

Saab 2000s to join Adria fleet "soon"

Adria was one of the first airlines in the region to introduce a hybrid business model. Are you satisfied with its outcome and will Adria retain this model?

For the current time being we have a well-balanced hybrid business model between Scheduled operation, ACMI and charter. All three pillars are essential for our business. Our business model evolves with the market demand and we have proven to be fast in adapting to changing requirements. So we rely on our strength to be agile and we will adapt whenever needed in the future.

Adria has recently put a lot of focus into Ljubljana. Are there any plans to expand from the airline's second base in Pristina, or open new bases in Europe? In relation to that question, Paderborn Airport confirmed several months ago that it was in talks with Adria over becoming a base although there has been little news on this matter since. Is this linked to the arrival of the Saabs?

In Ljubljana we are faced with the optimization of our current destinations. Today, we can say that Ljubljana is one of the strongest hubs in the region and we have managed to connect Central and Western Europe with the Balkan region; we have created numerous efficient connections and this is something that our passengers appreciate.

In the long term, we are focused on growth, so we do not limit ourselves to existing bases. We are exploring the market outside of Slovenia and looking for potential partners to achieve our goals.

Adria is yet to publish its financial results for 2017. Although I understand you cannot comment on the specifics at this point, can we expect for the financial results to be positive?

In 2017 there were many changes in the airline industry, which subsequently affected Adria as we were also forced to make changes. We strongly focused on further improvement of our operations, while at the same time we set a clear vision of growth in all segments of our business.

We are satisfied with the previous business year. Despite a very demanding environment, we managed to increase the number of passengers by almost 10%. Financial indications are also encouraging, and this gives us confidence that we have built a good foundation. More than in the past, we are focused on the future and further growth, and in line with the trends in the airline industry, we are already making more decisive steps, especially in the segment where we see our competitive advantage.

Adria a long-term investment for 4K

What are 4K Invest's plans for its involvement in Adria? Does it plan to turn the company into a stable and sustainable business and then sell it, or is it a long-term investment?

The investment in Adria Airways is long-term and we always aim for a sustainable and stable business. I am proud of what we have achieved in the first two years and also convinced that this positive trend will continue.

Do you see opportunities to cooperate more closely with other airlines in the former Yugoslavia?

I strongly believe in synergies among partners and thus we continuously seek for opportunities. We are always open for closer cooperation, new markets, greater efficiency and faster growth – without jeopardizing sustainability. The success of such cooperation depends on more complex factors, so our decisions and future directions are and will be cautious.

What are some of Adria's short-term goals for the coming period?

Sustainable growth is our primary goal; with our valuable experience and knowledge in aviation this goal will continue to be achieved. The company has a tradition of being well trusted and respected in its long serving markets which is of great value to the company, along with our employees, who with full dedication, fulfil our goals and are investing in our development and innovations..