Adria facing bankruptcy without loan

Adria awaiting nine million euro loan

The CEO of Adria Airways, Klmen Boštjančič, warned yesterday that without a nine million euro loan the national carrier will not make it past the 2012/2013 winter season, Slovenian media report. The loan, which the airline was to be granted from NLB and Unicredit Bank by the end of September, still hasn’t been cleared. However, Boštjančič notes that the carrier’s restructuring program is performing better than expected. The prerequisite for the loan was for Adria to show it has made enough progress in its restructuring process, a requirement it has fulfilled according to the banks themselves. The airline has managed to cut its losses so far this year and plans to be in profit by the end of 2013. Bonštjnačič noted that the nine million euro loan will cover the losses the airline expects to have over the winter months. The CEO made the announcement yesterday during the presentation of the company’s 2012/2013 winter season timetable.

Regarding Adria’s destination network, Boštjančič notes that the Slovenian carrier will be returning to London next summer season and that the service to the British capital is operating as a seasonal route. Furthermore, the airline is considering returning to Paris next summer as well. It will do so either by operating its own flights or code sharing on Air France’s service. Air France itself will be halving its number of flights to the Slovenian capital as it pushes through its own cost cutting measures.

There was no word of the recent tender for the takeover of 74.87% of Adria Airways. Slovenia is said to have received more than ten non binding bids for the share package, however, no names have been revealed, more than a month after tender procedures were completed. Slovenian daily “Dnevnik” reported that financial investment firms make up the majority of those seeking shares in Adria. Klemen Boštjanćić said the airline will run better once it is privatised, “A strategic partner is needed because we are a small and vulnerable business. It will be much easier to operate once there is no state ownership”.