Cost cutting measures to affect Adria destination networkAdria Airways will suspend flights to 9 destinations by the end of next month, Slovenian media reports, as the national carrier attempts to get back on its feet and avoid bankruptcy. As a result, the airline hopes to save up to 9 million Euros. Although the carrier will announce its network cuts later this month, rumoured for suspension are Podgorica, Belgrade, Moscow, Copenhagen, Istanbul, Paris, London and Warsaw. Adria claims that it is not the case that these lines aren’t popular with passengers, rather, they are frequented by tourists who find the lowest possible ticket prices leading the airline to make losses.
Last week, Adria failed to negotiate a deal with the banks, to which it owes millions, to convert their claims to the company into ownership stakes. “We are a little closer, but we are still far away from making an agreement”, Adria Airways CEO, Klemen Boštjančič, said. Adria owes 77 million Euros to 5 banks. Adria has also had major problems with signing a new collective agreement with its employees. Furthermore, if an agreement with the banks isn’t made, the government will withhold 50 million Euros in state aid.
Ljubljana Airport is not loosing time to find a replacement for Adria’s routes. Last week, RusLine from Moscow began 2 weekly flights to the Slovenian capital. According to the airport, the line will grow into daily flights next year. Ljubljana Airport is also looking for an airline to commence flights out of New York.