For the past week, Adria Airways has operated a very limited number of flights, as financial trouble has severely impacted the airline’s ability to fly to its best ability and schedule. The carrier is on the lookout for potential investors, as it “remains dedicated in reaching positive solution for all”. But the situation is looking quite grim – massive debts, local government’s unwillingness to cooperate with the current owners and a looming deadline regarding the continuation of its air operator’s certificate (AOC) have resulted in a difficult situation for Adria to navigate out of.
In the early morning hours of September 30, 2019, the Slovenian airline announced that it will now increase the number of flights from Ljubljana (LJU) today. Adria will once again operate return-flights to Munich (MUC), Vienna (VIE), Brussels (BRU), Zurich (ZRH) and Tirana (TIA), while flights to Frankfurt (FRA), which were the only ones operated by Adria since the temporary suspension, will continue. However, after the latest announcement by the government, all flights have been canceled.
The latest news, announced by Zdravko Počivalšek, the Slovenian Minister of Economic Development, has complicated the situation even further. Počivalšek said that the only “possible scenario” out of the situation is a bankruptcy of the airline. Subsidized routes or a new Slovenian flag carrier were outlined as the options to replace the drop in capacity in case of Adria’s bankruptcy.
Adria Airways owes at least $98 million (€90 million) to various parties, including aircraft lessors, who already began to withdraw aircraft from the airline’s fleet, according to 24ur. Latest reports have indicated that out of 18 aircraft, the airline has access to ten. $30 million (€28 million) would allow the airline to continue operating normally as a restructuring process would be completed. If the government refuses to provide the cash needed, a private investor is the last resort for Adria Airways.
And the clock is ticking – on September 25, Slovenia’s Civil Aviation Agency (CAA) decided not to terminate Adria’s AOC. But the airline has to provide a restructuring plan by October 2, 2019, 23:59 (GMT+2) to the CAA if Adria Airways wants to continue flying.
