- CAPA Analysis
- Schedule Analysis
- Route Maps
- Print Summary
- IATA Code
- ICAO Code
- Corporate Address
- ZGORNJI BRNIK 13H
- Main hub
- Ljubljana Joze Pucnik Airport
- Business model
- Star Alliance
- Joined Alliance
- Association Membership
- Codeshare Partners
LOT Polish Airlines
Adria Airways is the national airline of Slovenia and is based on the grounds of Ljubjana Airport in Zgornji Brnik, Cerklje na Goreniskem, Slovenia. The carrier operates scheduled services to various destinations across Europe and the Middle East, as well as charter services. The carrier has been a member of the Star Alliance since 2004.
Location of Adria Airways main hub (Ljubljana Joze Pucnik Airport)
175 total articles
9 total articles
Montenegro’s small aviation market has been witness to some interesting developments since the Jun-2013 entry of Ryanair. The Ireland-based carrier is now the sole LCC operating in Montenegro with a single route however it has expressed interest in opening up the market further. Other European LCCs will be watching Ryanair’s movements in the market.
The small Southeastern European nation of just under 14,000km2 has a population of only about 620,000. Montenegro’s 2012 GDP was USD4.231 billion, which has significantly increased since 2000 when it was USD1.707 billion, according to World Bank data. Air traffic to/from the country has increased from just under 700,000 passengers in 2005 to 1.345 million passengers in 2012.
Montenegro Airlines is the national carrier and sole scheduled operator. It currently provides around 41% of total seat capacity to/from Montenegro, according to CAPA and Innovata data. Fourteen foreign full-service carriers currently serve the country, accounting for around 58% of capacity while Ryanair, the only LCC in the market, currently contributes around 1% of seat capacity.
Management of Romania's TAROM believes it will not slip into a scenario like Hungary’s national carrier Malev, which ceased operations in Feb-2012, arguing that it has the “capability to adapt quickly”. But TAROM executives will find a hard time proving their case as the Romanian carrier has recorded losses for four consecutive years and is expected to remain in the red in 2012.
TAROM faces significant pressure from LCCs, namely from Wizz Air, which is absorbing an increasingly larger part of its market. In addition, the airline’s efforts to restructure and find a new business model are hindered by repeated delays of plans to sell 20% of the company. Eventually the Romanian carrier’s full ownership should end up in private hands.
But it is unlikely that a private investor will step forward to purchase a minority stake in state-owned TAROM in the current European financial environment. Europe’s economies are overall in bad shape, and there is an oversupply of small and medium airlines for sale whilst potential buyers are scarce.
National carriers in countries of the former Yugoslavia are struggling to survive in the current economic environment as operating costs rise and they face competition from large network carriers and expanding low-cost carriers. The former Yugoslavian nations of Bosnia and Herzegovina, Croatia, Montenegro, Serbia and Slovenia all have national airlines but are struggling to become profitable, while the national carriers of Kosovo and Macedonia have already failed and have not been revived.
Association of European Airlines (AEA) secretary general Ulrich Schulte Strathaus recently told Slovenian newspaper Dnevnik that national carriers in the former Yugoslavia need to unite into a single carrier in order to survive. Mr Strathaus stated, “the once single Yugoslav market is now fragmented and a regional solution is necessary. The region needs an airline that would cover local needs and connect with global hubs.”
The main airlines in the region are Bosnia and Herzegovina’s B&H Airlines, Croatia’s Croatia Airlines, Montenegro’s Montenegro Airlines, Serbia’s Jat Airways and Slovenia’s Adria Airways.
Slovenia’s Adria Airways this year plans to search for a strategic investor, hopeful it can attract interest from other airlines after completing a restructuring and recapitalisation in 2011. But the flag carrier, which has emerged as a significantly smaller and less ambitious entity, still faces significant challenges as it joins several Eastern European carriers in trying to sell stakes in adverse market conditions.
The Slovenian Government sold just under 30% of Adria Airways in Sep-2011 to a group of four banks as part of a debt for equity swap. The agreement also included a EUR50 million cash infusion from the Government, which has had to pump capital into the Ljubljana-based carrier multiple times over the last several years to cover continued losses. But the banks, which include two Slovenian and two international banks, are considered short-term investors and only agreed to the deal as it was seen as the only alternative to avoiding bankruptcy. The four banks are expected to sell their stakes at the first opportunity while the Government is also eager to further reduce its share, which now stands at just over 70%.
Airlines on Europe's southern and eastern periphery are becoming more precariously positioned, but are looking for for partners to help overcome the growing financial crisis. Cyprus Airways is the latest such carrier, and reported a widening in first half losses in the six months to 30-Jun-2011, as lower top-line revenue fell and higher fuel costs squeezed the airline in the period. Cyprus Airways is also turning to implementing a raft of measures aimed at stemming operating losses.
European airlines reported single-digit growth last year - a welcome improvement from 2009's depressed level - but 2010 was a lacklustre year overall. Full year data has been released by the Association of European Airlines (AEA), the European Low Fares Airline Association (ELFAA) and EUROCONTROL. As noted by EUROCONTROL, growth across the continent last year was driven mainly by LCCs.
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