Adria Airways is facing fresh financial problems according to reports by Slovenian media, just eight months after the airline was purchased by the German-run 4K Invest. According to documentation obtained by the "Siol" portal, the Slovenian carrier has recorded a three million euro loss during the first three quarters of the year. While the loss is somewhat smaller to that of the same period in 2015, it is unclear how the new management will deliver on its promise to swing Adria back to profit within the first year of its takeover. Furthermore, the portal states that Adria has sold its 55-year-old brand name and is now renting it instead, however, this has not been verified. In addition, the company has almost no assets left, after most were sold in the previous years in an attempt to cover losses. The carrier recently sold a Bombardier CRJ200 aircraft, which was the last remaining jet it still owned.
Adria has refused to comment on any of the latest revelations. However, the Slovenian Civil Aviation Agency said in a statement, "According to the latest data, Adria Airways' financial position is sustainable and its operations are under no threat in the short-term. In September, Adria presented us with a set of measures (some of which have already been implemented and have proven effective) in order to boost its capital". It is the second time in months that Adria's financial performance has come under scrutiny. In July, CEO Arno Schuster was forced to defend the company's results. "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 at the time.
Since transforming Adria from a joint stock company into a limited liability company late last month, the airline's share capital has declined from 7.6 million euros to just one million euros. 4K Invest took over the Slovenian carrier with a pledge to make it profitable by the end of the year and plans to grow in a number of markets including Estonia through its cooperation with the Estonian airline Nordica. "We look quite positively into this year, expecting good results. Adria's strategy seems like a good fit for a regional carrier. Adria Airways will make good connections available for business customers and offer attractive ticket prices for tourists. It will continue to serve the markets of Slovenia, Albania, Kosovo and Macedonia, connecting these countries with the world through the Star Alliance network. It intends also to grow in Estonia, a new market it entered in November 2015", Mr Schuster said in March. However, the Slovenian airline will end its cooperation with Nordica today. No reason has been given for the abrupt severing of ties between the two.