Adria Airways Collapse Looking More Likely By The Day
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Adria Airways Collapse Looking More Likely By The Day
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Adria... another proof that socialism works... until you run out of other people's money.
As far as I understand Adria was always making loss. I read an interview with one of the employees (don't remember his role) from the early days... same story. They were burning money, flew to Belgrade, got new credit* and the show went on.
One would think things would have changed with the transition to capitalism and entering the EU. But no, the finance minister from the times when Adria was still state owned and received state aid was famous for saying:
"We don't have Adria to make profits, but to fly"
"Aid to Adria is not state aid, it's aid of the owner who happens to be a state".
I always wondered who was behind 4K invest who bought Adria. The web page seems fake. "Our team" looks like stock photos. No names, no titles, no impressum. Very non-german. It's represented by a lawyer. Strange to say the least.
Then there's Darwin. Adria acquired it in June and it was bankrupted in December same year. What was the plan here? I seem to remember Adria was transferring money from Darwin by means such as license fees to pay for Adria brand. Once bankrupt, Adria wanted to merge Darwin's fleet into their own, which is not how bankruptcy works. Not sure if Hanlon's razor or something else.
Anyway, the nerve from now privately owned company to ask for another state aid (assumption / not sure what else they'd talk about to the PM) is something else. I mean, I'm sure the Germans, akhem, the EU wouldn't mind. I'm not sure anyone is ready to compete on Adria's routes, but what's more Adria's home airport is owned by Fraport, so essentially state aid would in part transfer tax payer's money directly to Germans. Win, right? But if it's easy to sell supporting "national" airline, it's a different story to explain why people should suddenly support something which is not even theirs.
In any case, I wish the crews all the best.
* Credit was fun in Yugoslavia. Due to inflation you had to pay off a fraction of what you borrowed (e.g., there was no concept such as EURIBOR in the credit contracts). There were people "paying off" their mortgage with a single monthly salary, as the salaries were inflation adjusted but credits not. Fun times! Another fun was paying with cheques which had to travel to Belgrade and back, and due to inflation you end up paying much less by the time the cheque reached your bank. No wonder people still long for those days!
As far as I understand Adria was always making loss. I read an interview with one of the employees (don't remember his role) from the early days... same story. They were burning money, flew to Belgrade, got new credit* and the show went on.
One would think things would have changed with the transition to capitalism and entering the EU. But no, the finance minister from the times when Adria was still state owned and received state aid was famous for saying:
"We don't have Adria to make profits, but to fly"
"Aid to Adria is not state aid, it's aid of the owner who happens to be a state".
I always wondered who was behind 4K invest who bought Adria. The web page seems fake. "Our team" looks like stock photos. No names, no titles, no impressum. Very non-german. It's represented by a lawyer. Strange to say the least.
Then there's Darwin. Adria acquired it in June and it was bankrupted in December same year. What was the plan here? I seem to remember Adria was transferring money from Darwin by means such as license fees to pay for Adria brand. Once bankrupt, Adria wanted to merge Darwin's fleet into their own, which is not how bankruptcy works. Not sure if Hanlon's razor or something else.
Anyway, the nerve from now privately owned company to ask for another state aid (assumption / not sure what else they'd talk about to the PM) is something else. I mean, I'm sure the Germans, akhem, the EU wouldn't mind. I'm not sure anyone is ready to compete on Adria's routes, but what's more Adria's home airport is owned by Fraport, so essentially state aid would in part transfer tax payer's money directly to Germans. Win, right? But if it's easy to sell supporting "national" airline, it's a different story to explain why people should suddenly support something which is not even theirs.
In any case, I wish the crews all the best.
* Credit was fun in Yugoslavia. Due to inflation you had to pay off a fraction of what you borrowed (e.g., there was no concept such as EURIBOR in the credit contracts). There were people "paying off" their mortgage with a single monthly salary, as the salaries were inflation adjusted but credits not. Fun times! Another fun was paying with cheques which had to travel to Belgrade and back, and due to inflation you end up paying much less by the time the cheque reached your bank. No wonder people still long for those days!
I always wondered who was behind 4K invest who bought Adria. The web page seems fake. "Our team" looks like stock photos. No names, no titles, no impressum.
Information about the Service Provider:
Name: 4K Invest International
Legal Form: Private Limited Company
Address: Sendlinger Str. 10, 80331 Munich, Germany
Phone: +49 89 189 426 0
Facs.: +49 89 189 426 499
E-Mail: [email protected]
Represented by: Wolfgang Kotzur
Company No.: 08696381, Companies House of England and Wales
Name: 4K Invest International
Legal Form: Private Limited Company
Address: Sendlinger Str. 10, 80331 Munich, Germany
Phone: +49 89 189 426 0
Facs.: +49 89 189 426 499
E-Mail: [email protected]
Represented by: Wolfgang Kotzur
Company No.: 08696381, Companies House of England and Wales
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Now lookup the representative and you’ll find a law firm where he really works. Not to mention “their team”.
Are you seriously suggesting this looks like a normal business operations? Like, say, Berkshire Hathaway? Sure. Sell that BS to somebody else.
Are you seriously suggesting this looks like a normal business operations? Like, say, Berkshire Hathaway? Sure. Sell that BS to somebody else.
All I was trying to say was, there is an imprint.
Not more...
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Highlights from todays press conference with Holger Kowarsch and his senior team:
- Apologies for not engaging with press
- Growth opportunities limited. Carried 1.2m pax, only 400K were local, rest transfer.
- Slovenia is too small to sustain the airline, exploring new revenue opportunities.
- Cannot survive with scheduled services only.
- Doing a lot more ACMI with Lufthansa as lower risk, but it’s not enough.
- We need a strategic partner, we’ve been looking since 2016, we can’t survive without one.
- Talks are ongoing with potential (undisclosed) partners.
- Does 4K have enough money to fund Adria? Please ask 4K that question. 4K believes in Adria.
- Adria suffering for the last few months with cancellations, delays, we’re sorry.
- YTD 2.4% flights cancelled. No mention of how many were delayed, merged.
- Cancellations will continue. 25% of flights will be delayed or cancelled (just like all European airlines apparently)
- ATC restrictions and weather blamed for cancellations.
- Sukhoi didn’t cancel the order, we cancelled it.
- Staff will be paid tomorrow
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Also some unofficial reports saying Adria has negative capital already. If that is the case, the management is potentially committing felony as they should have announced insolvency and started the procedures to protect creditors.
Perhaos more importantly, if they are insolvent, they should have been stripped of the operaring license, as sufficient funding is one of the requirements.
Perhaos more importantly, if they are insolvent, they should have been stripped of the operaring license, as sufficient funding is one of the requirements.
