The CEO of Adria Airways, Arno Schuster, has said the carrier is consolidating its business and faces no immediate risk of bankruptcy. The comments came after Slovenian media reported that the carrier could be insolvent by November. "Bankruptcy, which is being speculated by some, is not in sight. We did suspend some routes, such as Stockholm and Berlin, as well as Istanbul, but we have introduced new flights from various Polish cities, as well as from Pristina and Tirana", Mr Schuster said. Despite handling 381.300 passengers during the first five months of the year, which is down 8.8% on the same period in 2015, the carrier saw its revenue per passenger improve. Furthermore, Mr Schuster notes that Adria plans to boost frequencies on several routes out of Ljubljana this coming winter season, including Amsterdam, Paris, Sarajevo, Warsaw and Zurich, but will not launch any new destinations by year's end.
Over the week, Slovenian media reported that Adria has accumulated debt and that the airline is unable to pay for its current liabilities. According to media reports, the carrier has offered to renegotiate contracts with suppliers and is requesting hefty discounts in order for it to repay its existing liabilities. Main service suppliers include energy company Petrol, Ljubljana Airport, maintenance firm Adria Airways Tehnika and Air Traffic Control. One of Slovenia's most popular multi-media web portals, "Siol", claims that Adria's unions have been informed that salaries will have to be slashed in order for the airline to stay afloat.
The Slovenian carrier is in the midst of a restructuring process, following its recent acquisition by German turnaround fund 4K Invest, through its subsidiary AA International Aviation Holding. The new owners plan to swing the airline back into profitability. As a result, the number of employees will be reduced. There have been some layoffs and replacements already, although no large-scale redundancies are planned. The new owners have not given a timeframe as to when the carrier could turn profitable. Last year's financial results are expected to be published soon, with the airline tipped to post a 6.9 million euro net loss, revenues of 152.7 million euros and equity amounting to 3.3 million euros.