Adria halves its losses
Adria Airways has confirmed it will end the year with a 7.5 million euro loss, which has been halved compared to last year when it amounted to 15.3 million. The airline’s CEO, Klemen Boštjančič, says the improved financial performance comes as a result of wide ranging cost cutting measures introduced last year, which saw the suspension of several high profile routes, a new fleet plan and the sale of Adria’s subsidiary Adria Airways Tehnika. The airline plans to make a profit in 2013 for the first time in five year. Adria’s worst financial result in recent times was recorded in 2010 when the carrier produced a loss of 59.7 million euros.
The Slovenian carrier has seen passenger numbers tumble over the year, however, things have begun looking up. In November, the airline managed to boost its figures for the first time, thanks in part to a charter flight deal with British car maker Land Rover. While numbers on scheduled passenger flights continue to decline, Adria’s charter business helped the airline increase its figures last month. Meanwhile, Adria has postponed its plans to operate flights from Venice to Priština, where it is currently the fourth busiest airline. The service was to launch today but will now run from next week instead. However, it will go ahead and inaugurate flights from Ljubljana to Paris at the start of the 2013 summer season and will resume seasonal flights to London.
Next year will also see important developments for Adria. It will be finally determined whether the airline will be privatised. Since non binding bids were submitted for the purchase of 74% of the company in September, there has been no word on the fate of the privatisation process. Furthermore, the European Commission will deliver its verdict whether a number of public support measures in favour of the Slovenian national carrier are in line with European Union state aid rules. These measures include four capital injections between 2007 and 2011 amounting to around 85.5 million euros. If the Commission finds that Adria was in breach of these rules, it will be ordered to pay back the entire sum.