NEWS FLASH
Adria Airways' owner, 4K Invest, has delivered on its promise to recapitalise the airline with four million euros. In a statement, the company said, "The recapitalisation of Adria Airways in the amount of four million euros is completed. The payment is intended for further business development and growth of the Slovenian airline". It added, "A capital injection of at least ten million euros is planned for the first quarter of 2019". Initially, 4K intended to recapitalise the Slovenian carrier with at least ten million euros by the end of this year.
This is definitely good news, can´t wait to see what will happen with the Ruski Super Jets.
ReplyDeleteThey are NO longer called Sukhoi but rather Super Jet:
https://www.aerotime.aero/clement.charpentreau/22130-sukhoi-superjet-100-changes-hands-and-name
I think JP can also try negotiating with Irkut MC-21. It looks really cool and will be cheap and reliable too. "Магистральный самолёт 21 века". The name is also quite original!
Russian aircrafts are genuine: The Ilyushin, Tupolev machines were priceless...the Tu-154 was a true horse and not to mention the mighty Il-96!
Go JP!
Tu-154 was a very thirsty horse, yes.
DeleteAnd MC-21 has such a unique name that nobody is sure whether it is to be written MC or MS in Latin alphabet.
Buying and operating Russian passenger aircraft n this day and age is business suicide.
DeleteI flew the TU-154 so many times. The seats were really comfortable and the sound of the Soloviev engines!
DeleteBeing Russian, I think it must be MC but I think it's a better option for Adrija.
By July 2018, it had received 175 firm orders and recorded nearly 150 intentions. Orders from Egypt, Peru and Azerbaijan!
Slovenia can become the first European (non Russian) carrier to order them.
SU has already ordered 50!
It also has a brilliant range of 6,000-6,400 km (3,200 nmi)!!
Yeah, pity that engines which are used are faulty...
DeleteMC-21 is not EASA approved and unlikely before 2020
DeleteHas the payment been made in cash or something else (brand) as it has been speculated?
ReplyDeleteThe payment was made by merging JP with the company that bought its brand name. Both parties agreed that the brand is worth 4 million and voila, JP just made 4 million euros.
Deletei don't think so. the court register shows no merger/takeover of another company (ok, it takes a couple of days to see the court filing, but at this moment to such filing is visible). per statements (of i think adria temselves) the capital injection was in cash and credited into capital reserves in the balance sheet.
Delete@1130
DeleteI highly doubt it given the history of 4K and the fact they haven't injected one euro of their own money thus far (apart from the accounting magic).
Slovenian media reports that it was actually done in cash. It was injected as a capital reserve.
DeleteI read the article in Dnevnik, they used the word 'presumably in cash'.
DeleteSo wages won't be late this months.
ReplyDelete4K failed to increase per capita as initially agreed at company takeover. 10mios seems to be too much for this investment company and the pressure from stakeholders very high. In perspective, 4mio is not even covering 1 week of JP operation.
ReplyDeletehit_me_baby_one_more_time.mp3
ReplyDeleteI love your comments Petar :D
DeleteCash infusion before worst few months for airlines in Europe. Not good at all... But still I have 1% of hope that they will somehow survive.
ReplyDeleteWhile there is an element of risk in taking the Russian aircraft (more in relation to the after sales support from Sukhoi engineering and timely provision of spares), the aircraft reliability itself is excellent. However, as we can all see, there have been an ever growing list of airline failures in Europe as unless you're an LCC with a strong core market (eg. Ryan, Wizz, easyJet, Norwegian) or a flag carrier aligned to a strong O&D market (LH Group, IAG, AF-KL), then you're extremely vulnerable. The Slovenian outbound market is both weak, small and with significant competition from competing airports and an excellent road network. Therefore, they need to take risks in order to survive with the competitive realities they face. Simply 'playing it by the book' and paying over the odds (due to limited negotiating power) for more conventional aircraft types is probably going to land them in the grave. Think back to Ryanair ordering all those B737's after Sept 11th which everyone then thought was suicide, and turned out to be the best move they've made. It could have backfired of course. Let's see how this turns out!
ReplyDeleteThe only difference between Ryanair 2001 order and JP 2018 is that CAA didn't threaten to withdraw Ryanair's AOC weeks before the order and they didn't beg owners for fresh capital. Plus, the B737 was already a well established reliable aircraft with decades history in worldwide operation.
DeleteSmall details, I know.
@18:19: The analogy was not related to the type of aircraft (B737 v SSJ), but rather the overall risk to the two businesses. The point is: No risk, no reward. And Adria don't have many more dice left to throw. Like OU and JU, they are living on borrowed time as all three have unsustainable business models.
Delete@Anon 18:01
Delete"the aircraft reliability itself is excellent"
This is simply not true. Aircraft shows issues with reliability, therefore we can see multiple issue with customers caused by grounded plane. At the end, by some reports, it looks like cause of this is engine itself which shows some defects after short period (compared to declared values).
Bili ovi SU kakvi bili, neće biti više otkazanih letova kao što je sad... I da lete na na JATovim Convairovima iz 60.neće biti više otkazanih letova.
ReplyDelete