Adria expected to grow under 4K Invest

Wednesday, January 27, 2016

The Slovenian Infrastructure Minister, Peter Gašperšič, hopes for a successful closure of the privatisation of Adria Airways to the German turnaround fund 4K Invest. "I hope and expect that Adria will emerge from this process stronger", he said, adding that he is hopeful the airline will "continue to operate in Slovenia, as well as in the region, where it can be competitive". Mr Gašperšič notes that governments across Europe are withdrawing from the aviation sector and focusing on creating a favourable environment for airport operators and carriers. Adria was sold to Germany's 4K Invest last week at a price of 100.000 euros, as well as an additional one million euro cash injection. The transaction is expected to be completed by the end of April. The Slovenian Sovereign Holding, which is managing the sale, recently said, "In addition to paying-up capital, [4K Invest] will provide for the viability and the development of the Slovenian national airliner, and enable other long-term positive impacts. Adria Airways will get a buyer who will restructure it, maintain the Slovenian airline and provide for its future development, enabling thus long-term positive impacts to the budget, the Slovenian economy, the development of the industry and of all the stakeholders of the company”. It added, "The money from the capital increase will be used to return Adria Airways to growth. Under its new ownership, the airline will maintain its hybrid business model, its Star Alliance membership and stay focused on the Slovenian, Albanian, Kosovo and Macedonian markets. The airline is expected to add more modern aircraft in order to grow its international network, according to the buyer".