Monday, May 30, 2011

Air India wants Adria

The Slovenian Government wants Air India to take over Adria
The indebted Slovenian national carrier, Adria Airways, could soon be saved by Air India. The “Večer” daily reports that the Slovenian and Indian governments have been negotiating about a potential takeover of Adria Airways by India’s national carrier for several months and a final agreement could be reached in mid June when the Slovenian Prime Minister, Borut Pahor, visits the subcontinent. Air India, which itself is swimming in debt would purchase a certain amount of shares which would be increased over the next 5 years. Similar talks of a potential Adria takeover between the government and Qatar Airways, Turkish Airlines and Lufthansa have all ended unsuccessfully.

Adria Airways now owes up to 80 million Euros to banks and a further 20 million to suppliers. In May the government granted state guarantees for a short term 6.1 million Euro loan for Adria. Further assistance by the government will be provided as the carrier carries out its restructuring process.

Air India is government owned and is the largest airline in the country. It will become a Star Alliance member this summer. Its only interest in the region was shown several years ago when it wanted to set up a joint venture airline with Jat Airways with its base in Belgrade. Ultimately, the plans between the two never materialised.

14 comments:

  1. :) in svizec zavije cokolado....

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  2. it surely seems intersting even though i doubt this will happen.
    *unrelated, 2nd A320 for Adria airways, is in retro colours (to celebrate Adria's 50th birthday :)

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  3. Oh cool....so Bollywood can shoot the movies in Slovenian Alps instead of Switzerland....;-)

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  4. Adria is crap. Leaving on government supported (indirectly) loans -to avoid EU regulations-. blakk

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  5. Adria is still my fav ex-yu airline by far

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  6. first step for negotiations would be to start up direct flight mumbai to ljubljana and after codeshares they could see if it is working out or not! everything is only fairytale!!!!

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  7. Hold on a second...I thought that a carrier from a non-EU country couldn't be the owner of a national carrier of a EU country?! At least this is what many people say here about the Turkish ownership in B&H Airlines.

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  8. Who comes up with these incredulous 'hope' stories?? Better than Spanish soap operas...

    Clutching at straws, unless they want to see *two* airlines sink simultaneously. AI is facing enormous problems of their own including high debt and strained integration with former rival Indian Airlines, i'd suggest readers of our forum to have a quick look at this article before making up their minds.

    http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/cash-strapped-air-india-cuts-flights-employees-worry-over-salaries/articleshow/8643503.cms

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  9. @ anonymous about ownership, a non-EU airline can’t be a majority shareholder but they can hold up to 49%.

    BTW Air India is a dump of an airline.

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  10. The whole Air India takeover story was denied by Adria management: http://www.finance.si/313630/Adrii-grozi-insolventnost---in-to-%BEe-poleti
    And Adria is my favourite ex-yu airline too.

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  11. To be the favorite airline of ex-yu is easy. Not difficult to be the bhe less worse among badly worse :)

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  12. Actually I love Adria. Among other *alliance regional airlines and subsidiaries in the region I only prefer Air Dolomiti over Adria. And Sky Team members in the region are just a joke.

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  13. I agree with many here. Air India is a disaster and a proof that government should be out of running airline business. Their safety records and pilot trainings are very bad. I truly hope that their takeover of Adria never realizes. I think Slovenians are not that stupid to go from bad to worse.

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