Commercial

Adria Airway Declares Bankruptcy

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Adria Airways has been operating a limited schedule over the past week due to financial troubles. The carrier is looking for prospective investors because it “remains dedicated in reaching positive solution for all” But the scenario looks rather grim. Huge debts, the unwillingness of the local government to cooperate with the present owners and a looming deadline for the continuation of the certificate of its air operator (AOC) have led to a challenging scenario for Adria.

The Slovenian airline announced in the early morning hours of September 30, 2019 that it will now boost today’s amount of flights from Ljubljana (LJU). Once again, Adria will operate return flights to Munich (MUC), Vienna (VIE), Brussels (BRU), Zurich (ZRH) and Tirana (TIA), while flights to Frankfurt (FRA) are the only flights that Adria has operated since the temporary suspension. These were the only ones that Adria has been operating since the temporary suspension. However, all flights were cancelled after the government’s recent announcement.

The recent news, announced by Slovenian Economic Development Minister Zdravko Počivalšek, has further complicated the scenario. Počivalšek said the airline’s bankruptcy is the only “possible scenario” out of the situation. Subsidised routes or a fresh Slovenian flag carrier were described as the alternatives in the event of Adria’s bankruptcy to substitute the capacity fall.

Adria Airways owes at least $98 million (€ 90 million) to multiple parties, including airplane lessors, who, according to 24ur, have already started withdrawing planes from the fleet of the airline. Latest reports have shown that the airline has access to ten out o18 aircraft. Thirty million dollars (28 million euros) would allow the airline to continue its normal operation as a reorganisation process is finished. If the state refuses to provide the necessary money, the last resort for Adria Airways is a personal investor.

And the clock is ticking Slovenia’s Civil Aviation Agency (CAA) decided on September 25 not to terminate Adria’s AOC. But if Adria Airways wants to continue flying, the airline must provide the CAA with restructuring plan by October 2, 2019, 23:59 (GMT+2).

 

Cover Image © Aleksander Markin

 

Ben Williams
Ben Williams is a New Zealand based Writer for Travel Radar Media, focusing on regional news and stories within Australasia.

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