Next up : Adria Airways?
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.
What a terrible season. Seems we have been living a bubble in commercial aviation. Lots of flash but little substance.
Join Date: May 2010
Location: UK
Age: 79
Posts: 1,086
Likes: 0
Received 0 Likes
on
0 Posts
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.
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.
Join Date: Feb 2001
Location: Europe
Posts: 1,110
Likes: 0
Received 0 Likes
on
0 Posts
Join Date: Oct 2004
Location: Germany
Posts: 63
Likes: 0
Received 0 Likes
on
0 Posts
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.
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.
*
Join Date: Feb 2001
Location: Europe
Posts: 1,110
Likes: 0
Received 0 Likes
on
0 Posts
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.
Join Date: Oct 2007
Location: Europe
Posts: 285
Likes: 0
Received 0 Likes
on
0 Posts
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.
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.
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...
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...
Join Date: Apr 2003
Location: North of CDG
Posts: 1,043
Likes: 0
Received 0 Likes
on
0 Posts
Join Date: May 2017
Location: Europe
Posts: 1
Likes: 0
Received 0 Likes
on
0 Posts
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.
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).
