Solving Adria’s financial woes

Adria wants stronger ties with Lufthansa as finances crumble
Slovenian banks have endorsed the financial restructuring plan of the state owned Adria Airways, which will receive a short term bridging loan to the tune of between 3 and 4 million Euros, Radio Slovenija reported this week. The money will be used to pay foreign suppliers and help Adria through the slow winter season, according to the airline’s chairman Maks Tajnikar. “If Adria hadn’t been granted this short term loan, it would have lacked short term operating support, which in turn would have increased our debt to suppliers”, Tanjikar said. Adria owes suppliers, most of which are foreign companies, approximately 30 million Euros.

Adria’s restructuring plan will be tough on employees which have already received a 20% pay cut. Furthermore, the plan entails selling some of the airline’s assets and restructuring previous bank loans. Banks, whose support Adria so desperately needs, have given their support to the restructuring plan, however they are demanding for Adria to be privatised by the end of the year.

Tajnikar has said that negotiations with potential foreign investors were under way, adding that Adria was counting on tighter ties with Star Alliance partner Lufthansa. Adria's debt stands at 130 million Euros, of which 80 million are outstanding bank loans, according to the daily “Dnevnik”. By the end of March this year it will be decided whether Adria’s operating certificate will be extended. In the unlikely event that it is revoked, the carrier would in effect close its doors on its 50th anniversary.


  1. Anonymous14:35

    Adria has transported in 2010:

    1.170.235 pax
    *979.729 scheduled
    *190.506 charter

    1.850 tonnes of freight

    average LF in 2010 66,54

  2. Anonymous15:43

    Drove past LJU last night, saw one of Adria's new A319 grounded and parked next to the busted A320 stored @ LJU.

  3. Anonymous19:45

    Telling that Adria is of strategic interest for Slovenia is pure bullsheet. Adria is just bringing debts no income. Management is totally uncompetent. Making money on the direct Pristina - Germany routes is not in the interst of Slovenia .. I think. Lufthansa alone can easily take over all the profitable routes of Adria Airways.

  4. Anonymous19:48

    Anonymous said... January 8, 2011 3:43 PM

    It's old A320 S5-AAA

  5. Anonymous22:39

    Bookkeeper Tufek can not lead airline company any more!

  6. Dassal22:57

    To first anonymous_ In last ten years JP's best LF was in 2007 64,3% and they had 1,1 mil pax in 2008 which means that 2010 was best one in all those years...Very strange that they have such problems now! Will keep my eye on that and will advice...

  7. Anonymous10:43

    Well you can have 100% LF with tickets cost 1€
    Here is the the thing, tickets are a bit cheaper now (I think around 10%) LF is bigger becuase number of flts is down by 10% so by the same number of pax, LF had to increase.
    Pleas note that this is LF is with charters, you may find other numbers which will be just for scheduled pax, but wont be so much different.

    And yes, S5-AAA and Myair are parked together.
    One A319 was in PRN, the other flying around or beeing at the gate.

  8. frequentflyer11:05

    If this is true (and it seems as doubtful as all the SAS/Lufthansa merger stories that have been going around for years), then it gives LH *yet* another surrounding airline. The two airlines share close cooperation (moreso than OU), JP running LHs trial flights into PRN a perfect example.

    Talk about creating a monopoly through consolidation!


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