Final days for Adria sale

September 10 sale deadline looming
Just over ten days are left until the tender for the sale of 74.9% of Adria Airways comes to a close. Non binding bids are to be submitted by September 10. There has been no information as to whether any company has bought the tender documentation or made an offer. If interest is low, tender procedures could be extended. The Republic of Slovenia and four banks own a 99.9% stake in the airline. Adria’s strengths are its well developed regional network, vast local market share and its mini hub in Priština. On the other hand, its weaknesses include high debt and a relatively small market.

In the past, it has been rumoured that the likes of Lufthansa, Turkish Airlines and Qatar Airways were interested in the Slovenian carrier. However, since then Qatar Airways has ruled out interest in Adria. The Slovenian airline has strong ties with the German national carrier, although Lufthansa’s recent airline spree in Europe has proved as a headache. Its subsidiaries Austrian Airlines, Swiss International Airlines and Brussels Airlines have posted big losses. Lufthansa recently sold British Midland Airlines, closed Lufthansa Italia and withdrew from Jade Cargo. The amount of shares the Slovenian government has put up for sale indicates that Adria’s potential new owners will be from the European Union. EU regulation 2407/92 requires that, in order to obtain and retain an operating license, an EU air carrier must be majority owned and effectively controlled by EU nationals. Companies and nationals from non EU countries can hold up to a maximum of 49.9% of shares in a European Union airline.

Several months ago, Adria Airways CEO, Klemen Boštjančič, indicated that Adria would move to strengthen regional cooperation with the national carriers of the former Yugoslavia if the airline’s privatisation process failed. Furthermore, he indicated the airline would have to make changes to its fleet and attain an additional loan from the banks as early as next month.


  1. JU520 BEGLAX09:20

    Heavy losses of Swiss? Swiss is the most profitable horse in the LH barn. It has posted profits since quite some years now and it is expected to be profitable in 2012. First 6 months of a year are not to compare as they usually are slower due to low rev months Jan-Feb

    One big problem the nationalistic movements in the 90s have brought, 7 small size and low productive markets where the global economy is not to be keen on it for big investments.
    If the small size countries are not able to have profitable airline industries, they will have to reconsider or let them go bankrupt

    1. Anonymous09:28

      They have a loss in 2012 if I’m not mistaken? It’s beyond me how Lufthansa manages to get around EU’s anti monopoly regulations.

  2. Anonymous15:57

    No one will buy this now.


Post a Comment

EX-YU Aviation News does not tolerate insults, excessive swearing, racist, homophobic or any other chauvinist remarks or provocative posts with the intention of creating further arguments. A full list of comment guidelines can be found here. Thank you for your cooperation.