Adria to be sold by the end of 2014 as losses reduce
The Prime Minister of Slovenia, Alenka Bratušek, has said the country’s national carrier will be sold by the end of 2014. Speaking to the German business daily “Handelsblatt”, Ms. Bratušek said talks with potential investors are already under way. “We're making good progress with the sales negotiations. There will be no delays", Ms. Bratušek said. Slovenia, which scraped together funds to bail out its banks in late 2013, has compiled a list of fifteen state run companies to be privatised as soon as possible. Investors have bought two of the state run companies with another thirteen remaining, amongst which is not only Adria but also Ljubljana Airport. It marks the second attempt by the government to sell its national carrier after failing to do so in 2012. Ljubljana Airport has previously stated it expects to be sold during the summer of 2014.
Meanwhile, despite plans to break even in 2013, Adria recorded a loss of 3.1 million euros. The result is still a significant improvement on the year before when losses amassed eleven million euros. In a statement, the airline said, “The negative result is a consequence of one-off negative effects which in most cases relate to past operations. In particular, these are the negative impact of the sale of part of the company's assets at below book value, a penalty for the return of a leased asset and additional provisions relating to potential liabilities”. During 2013, Adria reduced its debt by 8.9 million euros.
Adria believes it has performed well in 2013 which should make it more appealing to potential investors. “By the end of 2013 the company successfully carried out a large number of operational restructuring measures which contributed to extremely positive trends in operations and signals the company's long term survival and successful growth”, the Slovenian airline concluded. During 2013 Adria carried 1.026.839 passengers, positioning itself as the third busiest carrier in the former Yugoslavia.