Adria to bid farewell to Paris, London, Istanbul and Warsaw
Adria Airways’ Board of Directors has approved a restructuring plan for the debt stricken Slovenian national airline which will see the suspension of four destinations, a fleet reduction and a slash in jobs. Speaking to the national broadcaster RTV SLO, Adria Airways' Executive Director Robert Vuga said that the airline is likely to suspend flights to Paris, London, Istanbul and Warsaw. Vuga says that these routes are not profitable. The airline will decrease its fleet, although it hasn’t disclosed any further details to the public yet. Adria’s employees will also be reduced with the airline preparing redundancy packages and social programs. Adria currently employs only 450 people.As of this moment, Adria Airways operates 14 weekly flights to Istanbul, 5 weekly to London Gatwick, 10 weekly to Paris and 3 weekly flights to Warsaw, which are code-shared by LOT Polish Airlines. Lufthasa is likely to take the airline's slots at these airports. Adria Airways is expecting to receive 50 million Euros in state aid and will borrow a further 40 million Euros from the banks. Both of these are under the condition that the airline carries out the restructuring plan it just approved.
So with these high profile routes out, where does Adria actually fly to? If you can't make Paris and London work, what chance have you got at making anything else work!?
ReplyDeleteWhere can we find the loads of Adria's direct flights from Pristina to Western Europe destinations?
ReplyDeleteLufthasa is likely to take the airline's slots at these airports.
ReplyDeleteThis is the key why they selected the 4 destinations. But as you probably know most of the Adria destinations are not profitable!
The question is which destination is profitable? (apart Brussel)
IST was unexpected.
ReplyDelete@ Anonymous 2, if Istanbul was expected, what were they thinking with 14 weekly flights!?
ReplyDeleteAnother issue has anticipated my curiosity. When and how do they think to pay back these 90 million euros loan if they cut major routes and if they go with the fleet reduction. I'm not a professional in this industry, a traveler and a pure lover of civil aviation only and as a such I always thought that more airplanes in the fleet, good network and good loads accompanied with cost control are the key indicators for success in this business. It seems that either managements of many airlines in the region are doing wrong or my believes were wrong. I'm quite surprised with the latest business moves of managements within OK, MA, A3 and now we see JP. JA is no longer worth to mention, while JU and OU do not have real managements, both are under government control.
ReplyDeleteOK for instance has announced opening base in BTS and starting operations to several destinations out of it. The first impression I got was a surprise, the second an insane move and the third how long they would be there. BTS is a low coster's hub and at a short distance from VIE, so setting up base there and starting operations could be the act of a loonatic. And what happened within less than a month? First they cut the frequencies and then announced hub closure.
MA has increased frequencies from BEG adding two early morning departures per week at the beginning of July and operated three or four flights only, than closed them and further slashed frequencies on the existing afternoon departure as of the end of August to five weekly departures.
A3 has announced opening base in LCA and starting operations out of it. Within less than a month since the start, they slashed frequencies and announced closing the hub.
Now we see JP closing LGW, CDG, double daily to IST. Do serious carriers work this way, do all of the mentioned here have serious managements, did they conduct any market research before taking new steps, new route launch and finally can any be considered as a serious airline at all if making such sudden moves in short time?
JP CEOs know that when they will close LGW, CDG, loads on Balkan routes will drop - a lot, so while you cancel LGW, CDG you may continue with SJJ TGD TIA PRN SKP...
ReplyDeleteI do not understand why they do not reduce frequency and make logical connections for good price, this would for sure bring PAX as they are not bussines ones, so the price is #1 for them not the day so much.
CDG would be ok 5 days per week as LGW (which I do not udnerstand why it is not profitable), I understand CDG, but not LGW =S
for sure WAW, you have good conenctn via VIE and you arrive just 1 hour later and have like 14 flights per week available.
IST - night flights are just for turskih drivers while ones per day are just idiotic - they are served the same time as TK - are not we in star alliance ??? So the ones in the day can be dropped for sure.
I do not see VIE-FRA mentoned - while it has very bad loads too.
There is stil the old timetable in the system - how long will they wait with it =S
@ EXYU
ReplyDeleteWhen was this talk with Vuga?
I am interested in the article.
Thanks!
FRA will never get dropped. It serves as LH feeder
ReplyDeleteIf the airline is so bankrupt that they have to close these routes for their slots and aircraft value, there'll be a lot more than the 4 routes listed. And completely agree with Peter that the airline wouldn't operate a staggering 14 IST weekly flights if they weren't in some way profitable.
ReplyDeleteKeep in mind too that if JP throws away any of their major routes, LJU suffers. Incredibly. And so does the whole Slovene economy. It's not like there is much competition to/from the country. And they owe the airport money don't they?
Also, how could the airline have taken *back* two high-capacity 320s when they (quote) 'right-sized' to 319s? Were they sold dud planes, or the economics just don't stack up?
@ Sky
The problem with feeder networks is that you need to ensure your feeder routes connect with your main haul routes and you provide either something unique or impressive coverage. In this case, JP almost completely overlaps its 'Balkan' network with OU, using inefficient CR2s (higher costs than Q400s, much lower capacity).
JP ordering some Q400s and selling their CR2s might be a good way forward for the airline...
@Sky: Offcourse they are not going to drop VIE-FRA flights even if they had 1 pax because Lufthansa gave JP this route just to stave off EU monopoly problems. And Lufthansa ordered them to drop these flights so they could get the slots. Someone find it very unusual that Lufthansa is starting flights to Gatwick in 2 months, just about the time JP will cancel it?
ReplyDeleteThis is what happens when you're a small regional airline and you join one of the alliances. Disaster. They are now nothing other than a Slovenia taxpayer-subsidised feeder airline for LH in FRA and MUC - nothing more.
ReplyDeleteon another note: how about JP dropping their ticket prices?
ReplyDeleteI'm also corious about the following?
ReplyDeletewhich Adria Airways destinations are profitable?
Anyone knows more?
How is Adria's Priština hub (yes, I know it's not Slovenia) doing?
Any load numbers?
Thank you.
Well to be fair, JP flys 7 times per night to IST (turkish drivers) and 3 times per day from which 2 overlaps with TK.
ReplyDeletePRN, in the summer full A319 in one way for sure - you know how it goes; July downwards, August upwards full.
Well I believe that smart newtwork with majority of CRJ9 (5 of them) and few CRJ2 (2,3max) would be around what JP would need to operate. Though with good marketing I believe there could be full A32s but there is no knowladge to make that happen.
DH84 sounds qul but when you look at JP network, you need to be able to sweep planes - destinations are from longest SVO to shortest SJJ.
I am hearing that PAX are not enjoing so much on DH4 on ZAG-CPH and similer. So for this CRJ9 is better.
And LH starting LGW is just coincidence as they will fly on different times than those JP has.
I have to add that Slovenians quite often fly from Zagreb. I have the impression that they utilize 99 eur OU flights a lot.
ReplyDeleteConcerning OU ZAG-CPH route the price is grate – nearly always cheaper than Norwegian + you get 23 kg and a meal. So it’s not a problem if you fly with DH8, although I’ve flown A319 always on this route.
During just ending july JP achieved
ReplyDelete37.8 PAX/flight at BEG,best ever. Some more interesting figures from BEG reffering to july 2011 : MMX 164.5 PAX/flight (13 flights),DTM 156.6 (13),LTN 153.1 (18) -all W6,
BCN 153.1 (13)-JK,STR 131.7 (13)-4U, SVO 131.7 (31)-SU, ZRH 120.4 (61)-LX. Not bad, what do you think ?
90 million euro loan from slovenian taxpayers for an airline which
ReplyDeleteDE FACTO is NATIONAL AIRLINE OF KOSOVO ! adria is nothing more then feeder for lufthansa on routes from prishtina .
with prishtina as DE FACTO main
base it should be subsidised by
government of kosovo not by slovenian taxpayers!
i fear next year adria will fly
prishtina-germany only !
we will never see back our money .
Priština is new Adria hub what this have to do with interests of Slovenia taxpayers?
ReplyDeleteAdria Airways need to pay loans for aircrafts that are already not in use anymore!
ReplyDeleteAdria Airways is flying to Banja Luka average load is 6 pax x flight.
Adria Airways has a monopolistic (and privileged)situation at the airport of Ljubljana. So no one can fly profitably there.
Price of gasoline at Ljubjana airport is too expensive because both Petrol and Adria and airport are all public so they play together. The fact that need to ship oil from the Port of Koper it's just an excuse.
Adria Airways can't mantain a route to such interesting destinations as Spain (Croatia can) or UK or even Italy.
Adria Airways is now using new- that are already old aircrafts, 20 years old, for charters and some regular flights.
Adria Airwyas is trying to convince people in Slovenia that it's indispensable for them. It's not. Other airlines can fly there if they give them better conditions
s.
No privilege for one airline. We are all in Eu.
A Better management and more competitive prices. More aircrafts that are saving fuel are needed. For them, current Canadair's are not the right solution.
Pilots are many and flying less compared to other similar airlines in Europe. But their pay is not low considering how litte hours are in the air.
Current administration is just interested in keeping old big monthly pays. Why tax payer need to pay for airline with no future with this people.
No interest for Slovenia taxpayers if new hub is Priština. Maybe Priština can become bigger than Ljubljana. Where is national interest for Adria there?
EU officers don't believe to management and promises of such airline.
Their debts are so big.
100 milion euro for suchsmall airline!
Just to pay debts.
What next who (from abroad)will come "in" with thiscrazysystem'
WHat are they doing all the time?
Is it someone putting money in own pocket?
Their Airtickets are too expensive
compared to everyone around. Rich or poor.
How they can start a new Adria if now that they have already the monopolistic situation can work well?
No to corruption. Hope in
Bruxelles someone knows slovenian language (and it's not bidding for corrupted officilas in Slovenia).
Make the real situation out.
We are not in Africa.
We are near.
Adria is not Swiss, Austrian ok!
Hasta!
How they can start a new Adria if now that they have already the monopolistic situation cant work well?
ReplyDeleteFlyingJack - OK did not close base at BTS. Reduced certain routes, but did not cancell the whole base. It is strugling on some routes, but some like CDG or LCA run very good with good loads.
ReplyDelete