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Next up : Adria Airways?

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Next up : Adria Airways?

Old 23rd Sep 2019, 23:07
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Next up : Adria Airways?

Adria have suspended ops for 2 days whilst looking for a cash injection from investors.

Announcement on their website.

OTEA
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Old 23rd Sep 2019, 23:33
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https://www.exyuaviation.com/2019/09...tions.html?m=1
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Old 24th Sep 2019, 06:36
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Code share ZRH LUG

Codeshare flight with Swiss now “temporarily” cancelled, while they seek new investors.

What a terrible season. Seems we have been living a bubble in commercial aviation. Lots of flash but little substance.
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Old 24th Sep 2019, 11:14
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The problem endemic to the entire industry is too much capacity and not enough passengers. The lack of passengers is a cyclic event in step with economic difficulties and uncertainty, it comes around every 7 or 8 years and people hang on to their money.
Nothing new here, the weakest always go to the wall first.
The next big shock will come when interest rates rise from their current record lows and all of that cheap borrowing becomes unsustainable.
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Old 24th Sep 2019, 11:35
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Interest rates are not going anywhere anytime soon in my opinion. It would kill the world economy in a heartbeat and nobody wants that.

CP
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Old 24th Sep 2019, 11:51
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Originally Posted by The Ancient Geek
The problem endemic to the entire industry is too much capacity and not enough passengers.
There are enough passengers, 2019 so far was a considerable growth compared to 2018. However yields are not there
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Old 24th Sep 2019, 12:16
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Interest rates in the Eurozone will not rise for at least the next 20 years.Welcome to Japanification of the Euro.
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Old 24th Sep 2019, 16:18
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Originally Posted by CargoOne
There are enough passengers, 2019 so far was a considerable growth compared to 2018. However yields are not there
Just some facts from Adria's expansion this year.
Beginning of the year they failed on their Sukhoi Superjet project.
https://www.aerotelegraph.com/adria-airways-annulliert-superjet-bestellung (german)
Adria Airways unterzeichnete vor viereinhalb Monaten eine Absichtserklärung zur langfristigen Miete von 15 Superjet 100. Der Regionalflieger passe zu den strategischen Zielen der Fluggesellschaft, hieß es damals. Zusätzlich wollten Sukhoi und die slowenische Nationalairline in Ljubljana einen gemeinsamen Wartungs- und Reparaturbetrieb errichten. ... Weil man nun die neuen Flieger nicht finanzieren müsse, brauche es auch keine weitere Kapitalerhöhung. Ursprünglich war vorgesehen, dass die Aktionäre von Adria Airways im ersten Quartal nach den vier Millionen im Vorjahr nochmals zehn Millionen Euro einschießen.
( Adria signed a LOI for 15 Superjets and a MRO in Ljubljana, both cancelled, thatswhy the not need a USD 10 million increase in capital.)

Monday the Aviation Doctor had posted on Linkedin: Adria faild leasing.
https://www.linkedin.com/feed/update...9393366257664/
AeroCentury Corp. (NYSE American: ACY) (the “Company”), an independent aircraft leasing company, today reported the termination of several leases with one of its customers. After many months of working closely with Adria Airways in Slovenia as it worked to improve its financial condition, today the Company gave notice to Adria of the termination of its leases for two CRJ 900 aircraft with immediate effect, due to the accumulation of substantial payment defaults by the airline under its leases with the Company.






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Old 24th Sep 2019, 22:54
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There is no argument that small nations carriers are failing. Started with Malev, then Estonian, now Adria, also Croatian is not healthy at all, then long gone Lithuanian Airlines and Air Slovakia. JAT/ Jugoslavian/ Air Serbia is currently fuelled by Middle East money. Czech Airlines have surrendered to Travel Service etc. There no future for small scheduled carriers unless your owner is oil rich.
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Old 24th Sep 2019, 23:40
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Sad, but true. I remember the days when flying was something special: one would wear their best clothes, family and friends would get excited and/or envious waving from the observation terraces. Nowadays it's the usual suspects of blue/orange/magenta tails at most of the airports, but hey, most of us probably wouldn't even work in the industry if it weren't for the boom of the LCC-s and many people would've never tasted flying either.

The problem lies with greed, but greed on a massive scale backed up with law. Did state aid to the legacies really hurt the market of the LCC-s? Maybe. However when most of them started they did cater for a complete different breed of PAX.

But in the days of the big three posting net profits in the hundreds of millions, if not billions of EUR all this is irrelevant, IMHO.

Live and let live me says, but sadly that's not how this industry works.
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Old 25th Sep 2019, 08:12
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Sad but almost inevitable. Like others above, having lived and worked through 25+ years in aviation it feels like Groundhog Day. All over again.

Whenever I turn up at the airport and there are lines of sparkly new jets with unrecognisable logos, I think “uh oh, we must be getting near the end of this cycle”. A combination of cheap money, over-optimistic predictions, short memories and attempts to fill non-existent niches. Enthusiasm can only get you so far in this business.

It’s always been hard being an ambitious operator based in a small country. The internal market is likely saturated or not there at all, so most of the revenue will need to come from outside, where you come head-to-head with much larger outfits who can price you out of the market. Those who have succeeded appear to have grown slowly and organically in response to demand, rather than acquiring aircraft then trying to find something to do with them...
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Old 25th Sep 2019, 08:16
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CAA will hold press conference today at 14:30 CET. I susspect they will cancel Adria AOC....very sad day, thanks to incompenent crooked owners (4K)
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Old 25th Sep 2019, 13:45
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https://www.exyuaviation.com/2019/09/decision-day-over-adria-airways.html

Cheers
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Old 25th Sep 2019, 14:37
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Originally Posted by CargoOne
There is no argument that small nations carriers are failing. Started with Malev, then Estonian, now Adria, also Croatian is not healthy at all, then long gone Lithuanian Airlines and Air Slovakia. JAT/ Jugoslavian/ Air Serbia is currently fuelled by Middle East money. Czech Airlines have surrendered to Travel Service etc. There no future for small scheduled carriers unless your owner is oil rich.
Actually air serbia is fueled by budget money. There is no M of middle east money, even to say they take money from company now.

Reason why many companies failed is open sky agreement who fueled many low costers and gave big legacies new markets. Second reason is extremely poor management. Third and final is lack of situational awereness. They could all survive if they made partnerships, mergers etc. Especially in countries which rely on tourism a lot ( croatia, slovenia, montenegro).
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Old 30th Sep 2019, 12:47
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It seems the end has arrived according to latest reports from Reuters.
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Old 30th Sep 2019, 14:29
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Adria is officially insolvent and has lost the operating license.

RIP
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Old 30th Sep 2019, 15:53
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Rien ne va plus for ADRIA

Game over
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Old 1st Oct 2019, 20:23
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Swiss gives up Lugano

Swiss reportedly now giving up its concession for LUG, which had been flown by Adria. They recommend taking the train to/from ZRH now.
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