Annual report 2009 - Adria Airways

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Introduction1. Ke y Ac h i e v e -m e n t s o f t h eBu s i n e s s Ye a r1.1. Key Achievementsof the Business Yearin Figures• DevelopmentIndicators for AdriaAirways d.d. from2007-20091. 2. Important Events in2009• The First Quarter• The Second Quarter• The Third Quarter• The Fourth Quarter1. 3. Letter from theManagementBoard1. 4. Report by thePresident of theSupervisory BoardItem Unit 2009 2008 2007Revenue and resultsTotal revenue in EUR 164,174,820 207,242,233 181,998,193Revenue – passenger transport in EUR 139,636,782 171,694,491 137,226,061Operating profit in EUR -12,205,669 1,217,161 4,173,510Net profit/loss in EUR -13,991,691 -3,240,977 425,272Balance sheet and cash flowAssets in EUR 147,061,431 151,341,079 159,765,355Equity in EUR 27,880,447 30,970,698 40,304,957Equity/assets in % 19 20 25Cash flow from operating activities in EUR 6,120,385 18,514,681 16,890,914Physical dataNumber of passengers flown 1,143,542 1,302,172 1,136,431Load factors in % 63.3 65.6 67.1Number of flights 26,133 27,183 23,727Seat capacity offered 971 924 776Seat kilometres offered 1,886,328 2,055,981 1,767,966Passenger-kilometres 1,193,415 1,348,845 1,185,519Average distance in km 905 888 869Fuel consumption in tons 57,786 63,240 54,662Planes utilization rate in h/day 8.99 9.79 9.82EmployeesEmployees – as at 31 December 705 719 6791.1. Key Achievements ofthe Business Year in FiguresThe economic crisis and the slowdown of economicactivity turned out to be a serious riskfor the Slovenian economy and Adria Airways.The loss of revenue is primarily the result of theimpact of the crisis.The reason for a 21% decrease in revenue isabove all the lower prices of air tickets (theshift of demand from the high price class toeconomy class and consequently the decreaseof the nominal value of the used coupon)owing to the slack demand on a global scale,lower cabin efficiency and partly to the loweraverage daily use of aircraft.In 2009, the kerosene price again had a decisiveimpact on Adria’s financial result. The relativelyhigh oil price in combination with the poordemand and low revenue per passenger (dueto low air ticket prices and modified structureof passengers at the expense of the growth4
of the portion of passengers in the economyclass) has an impact on the negative financialresult also in this year, especially in the secondhalf of the year.The latest data of AEA show that the recessionin the aviation industry is not over yet as thenumber of passengers remains approximatelyat a 2% lower level in comparison to last yearwhen the number of passengers already startedto decline. The decrease in the average revenueper passenger and passenger kilometrethat amounted to over 15% in 2009 and willpresumably not return to the level of 2008 before2012 had an even greater impact on thebad results of air carriers around the world. Anadditional decline in revenue per passengeris attributable to the lower prices of businessclass tickets; the drop in prices for these wasconsiderably bigger than the fall in prices foreconomy class tickets, which are necessary inorder to ensure the cash flow.Despite the above-mentioned parametersthat had an impact on the financial result ofthe company, upon an analytical review ofthe balance sheet we cannot be dissatisfiedwith the operational result. Data show that thenumber of flights and number of passengersincreased in the 2006–2008 period and slightlydecreased in 2009. However, the companymanaged to keep the demand at the levelof 2007 and even enhanced it in spite of thepoor demand. Compared to 2007, when thecompany did not operate at a loss, the numberof flights increased by 10% but the incomewas lower due to the lower occupancy of theaircraft and the lower ticket prices.activities that initiate further development ofair transport and the company as a whole.Regardless of the difficult conditions of conductingbusiness, Adria also managed to realizeits growth strategy. For a number of years,we have been observing that the capacity ofthe A320 aircraft is inappropriate for Adria’s operation,at the same time the aircraft started tolose their competitiveness with age. When theprices of aircraft leasing decreased in the middleof 2009, we took advantage of the recessionin the air transport sector and concluded leasingcontracts for new, more competitive A319aircraft. Thus, two new aircraft will be added toour fleet in the next year.We are aware of the fact that thechanged market conditions and theprevailing negative business result callfor new approaches. Therefore, wehave already taken measures in thefields of adjusting capacities, reductionof costs as well as increase of incomeand investments to mitigate the consequencesof the global financial andeconomic crisis. New strategic goalswill enable the company not only tosuccessfully manage the consequencesof the global crisis, but also primarily tosuccessfully conduct business in future.Data show that thenumber of flights andnumber of passengersincreased in the2006–2008 period andslightly decreased in2009.However, thecompany managedto keep the demandat the 2007 leveland even managedto enhance.However, 2009 was not only characterizedby the financial crisis it was also a year ofrealization of the long-anticipated merging ofthe administrative facilities of Adria Airways.After long years of waiting, the company builta new, energy-efficient commercial buildingat Brnik. The merging contributed to a betterinternal and external cohesion of the companyand hence provided for better organizationand rationalization of business focusing onAdria Airways / Annual Report 2009 / BUSINESS REPORT5
Page 4 and 5: RepAnnual ReportPart 12
Page 8 and 9: Development Indicators for Adria Ai
Page 10 and 11: 1. 3. Letter from the Management Bo
Page 13 and 14: 2.1. About the Company2. Ge n e ra
Page 15: Airbus A-320Length37.57 mHeight11.7
Page 18 and 19: 2.4. Company Historynovember2009Mov
Page 20 and 21: Members of the Supervisory Board, s
Page 22 and 23: Business Report20
Page 24 and 25: flights from the home airport;• p
Page 26 and 27: has 305 card holders. In 2009, 36 n
Page 28 and 29: The cargo transport of the AEA air
Page 30 and 31: Index of Increase in Passengers,Fli
Page 32 and 33: Plans and Goals for 2010In 2010, th
Page 35 and 36: The secretof flying liesnot in thee
Page 37 and 38: the prices with the goal to put the
Page 39 and 40: Strategic goals of development in t
Page 41 and 42: theoretical trainings for the aircr
Page 43 and 44: Adria Airways pays a lot of attenti
Page 45 and 46: In 2009, we continued to maintain a
Page 47 and 48: Risk Assessment - evaluation of the
Page 49 and 50: cations running via IP networks is
Page 51 and 52: majority of our partner travel agen
Page 53 and 54: The economic recession and financia
Page 55 and 56: of 2009 but were on average still a
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In the structure of liabilities the
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passenger coupon and maintain the v
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ility Repor2005 2006 2007 2008 2009
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Adria Airways is a company that ise
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The corporate communication departm
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The Adria Airways d.d. Company got
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Company Management:Tadej Tufek,M.Sc
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MOSCOW, RussiaAdria AirwaysDerbenev
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Ta b l e o f Co n t e n t s1. Gener
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2. St a t e m e n t o fResponsibili
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4.1. Balance Sheet 14. Fi n a n c i
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No. Item 2009 2008A/ Cash flows fro
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Statement ofChanges in Equityfor 20
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Adria Airways d.d. converts the pur
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Investment propertyAn investment pr
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amount and are part of the operatin
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and equipment as an excess of their
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6.1.2. Property, Plant and Equipmen
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Movements in Property, Plant and Eq
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6.1.4. Long-Term Financial Investme
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6.1.8. Short-Term Operating Receiva
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• € 2,691,263 from other revenu
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Classification of Long-Term Financi
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6.1.17. Financial InstrumentsFair V
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Compared to the previous year, the
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The majority of the financial expen
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Transactions with Major Shareholder
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Publisher: Adria Airways, Slovenski
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Annual report 2009 - Adria Airways

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