State aware of "Adria's liquidity issues"

Fresh concerns over Adria's finances as airline rebuffs claims

The Slovenian Ministry of Finance has said it is aware of ongoing liquidity issues at Adria Airways, with local media reporting the airline is facing its biggest challenge since 2011, when it successfully negotiated a cash injection with stakeholders, banks and business partners in order to continue operating. At the time, the airline said that "the funds represent the basis for a serious and fundamental restructuring of the company". However, similar problems have arisen once again, as the state looks to sell a majority stake in the carrier. In a statement, the Ministry said, "The Ministry is aware of the liquidity problems at Adria Airways. The company cannot be granted state aid to tackle its liquidity issues for another ten years since it has already received restructuring aid".

Adria Airways benefitted from three public capital injections in 2007, 2009 and 2010, amounting to around 15.2 million euros. Furthermore, in 2011 it received fifty million euros worth of state aid. Last year, the European Commission concluded that the aid was compatible with its 2004 guidelines on state aid for the rescue and restructuring of companies in difficulty. In 2014, Adria posted its first net profit in seven years, amounting to 921.123 euros. During the 2014/15 winter season, the carrier took out a bridging loan in order to stay afloat and concluded a sale and leaseback arrangement for two of its Bombardier CRJ900 aircraft in order to boost liquidity. However, auditor KPMG has warned that profitability was achieved thanks to the sale and leasebacks. Furthermore, the auditor highlighted that the Slovenian carrier generated a loss of 5.3 million euros during the first four months of this year. Adria's management board has already voted to replace KPMG with Deloitte as its auditor for the review of this year's results.

Adria has rebuffed claims it is facing financial problems. While it admits that the carrier is "in need of fresh funds as winter remains a problem due to weaker performance", it added it has "no problems with liquidity". However, Adria has called on the state to do more to create a better business environment within the Slovenian aviation industry. The carrier says that relevant ministries should deal with high handling and landing fees as well as high fuel prices in the country. "The business environment has become an excessive burden on the industry and the development of air transport in Slovenia, because it is uncompetitive", Adria says, adding that it holds regular meetings with relevant stakeholders in order to resolve these issues. The Slovenian carrier is in the midst of a privatisation process with the government offering a 91.58% share in the airline. A public call for the expression of interest was published in July, while a call for binding offers is expected by the end of the month.

Comments

  1. Anonymous09:08

    As I said before, Adria is shiny on the outside but scratch the surface and the years of corruption and bad managment unravel

    ReplyDelete
    Replies
    1. Anonymous15:13

      Who said that before? Was that you Anonymous or another Anonymous? Hmmmm.....

      Delete
    2. Anonymous17:16

      Oh that anonymous.

      Delete
  2. OT: Why don't you cover pilot shortage crisis in MGX? Two TGD-BEG flights were cancelled as no pilots were available.

    ReplyDelete
    Replies
    1. Anonymous10:39

      give us more details, is it kind of ind. action or something else .

      Delete
    2. Anonymous11:35

      Ma zašto reagujete, vidite da je tu da bi promovisao neki link...

      Delete
  3. Anonymous09:29

    Pretty big loss for such a short time.

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    Replies
    1. Anonymous10:45

      every single airline in ex yu region is faced with loss. this is result both, of economic situation and influence of politicians in management.

      Delete
    2. Anonymous11:12

      Including Air Serbia???? - No way, sir!

      Delete
    3. Anonymous11:14

      Air Serbia is the worse...

      Delete
    4. Anonymous11:55

      ASL can use kreativne financije. They have a lot of money. On the other hand the others do that too. With much less money.

      Delete
    5. Anonymous12:37

      Da, ASL ima "kreativno" knjigovodstvo, cudi me da se toga drugi nisu setili?
      Kada KPMG radi reviziju Adriji onda su ok a kada rade ASL onda su "kreativni" jel?

      Delete
    6. Anonymous13:04

      Neverovatno je koliko smesnih ljudi ovde ima KPMG kao sto se vidi gore je rekao da se radi o kreativnom Knjigovostvu a na na vasu stetu ASL ima pravi profit.
      INN-NS

      Delete
    7. Anonymous13:58

      koliko dana je preostalo do 17. septembra ?

      Delete
    8. Anonymous14:06

      Vi INN-NS hejteri ste sto puta naporniji nego sam INN-NS. On je klinac, koje je vaše opravdanje?

      Delete
    9. Anonymous14:13

      Ja sam rekao da se zaseda tad a nigde nisam rekao da ce biti objava o A330 nego samo da je Vucic u Americi ;)
      INN-NS

      Delete
    10. Anonymous14:51

      a sta reci za CTN i njihovu vestacku profitabilnost. sampion je naravno MGX koji nikome nista ne placa od osnivanja, dok je o ASL je vec dovoljno receno ...

      Delete
    11. Anonymous16:05

      Yes, Montenegro Airlines are world champions in "cooking the books" - for which, mind you, not 1 single person has been arrested.

      As for debts, they owe the Montenegro Airports authority God only knows how many millaions and won't start paying this off until 2017 and then over 100 or so months !!!

      Pity that people focus on JU far more than is necessary, when this airline sets the benchmark for financial mismanagement

      Delete
    12. Anonymous18:03

      Anonymus 12.37, imaju i drugi kreativno, samo sto si ASL moze puno vise toga kreativno predstaviti jer ima brdo love. Niko nije rekao da drugi ne koriste iste metode. ;-)

      Delete
    13. Anonymous21:09

      Juce se prica ASL pred jesen nema love a danas se uzdize kao da je EK i gde su objave o gasenju linija.
      INN-NS

      Delete
  4. Anonymous11:48

    wow
    55.2 milion euro given to Adria for free and yet still have problems?
    Supporting this again and again?
    Do you have a single economist in Slovenia or are you living in the desert of Somaliland or are all the responsible connected in a cocain style cartel (puplus pushers and users of drugs)?
    I

    ReplyDelete
    Replies
    1. Anonymous11:52

      65.2 mil euros but all eaten
      waiting for more
      that's better than the cocain business

      Delete
    2. Anonymous11:55

      It's just a good side job
      cocaine business is still on.
      Eating money from EU subventions it's cool too.

      Delete
    3. Anonymous15:04

      In Slovenia we only have the corrupt kind of economists all the good ones went abroad.... And as Adria also the whole country likes to act as the great, perfect, role model.... But the fact is we are the worst in the Balkans regarding corruption, bad management etc.

      Delete
  5. Anonymous12:02

    Bas me interesuje koliko para prze u Lodzu, Pristini i Mariboru?

    ReplyDelete
    Replies
    1. Anonymous14:56

      MBX was a total loss, mainly due to diversions from SEN to LGW/STN due to wet runway with CRJ900. In the end, they figured it's better to send A319, but the whole operation and ticket selling was based on CRJ900, so much lower LF due to that.

      Plus, extra 2 sectors (LJU-MBX-LJU) for ferry flights for each SEN flight, with associated crew, fuel, handling, etc. costs.

      Delete
    2. Anonymous15:12

      Sorry, but not a single flight from MBX hasn't been diverted from SEN to STN.

      Delete
    3. This comment has been removed by the author.

      Delete
    4. @ anon at 2:56 pm
      Why are you making up stories? Not a single flight from MBX was diverted to STN or to LGW, like it was already explained.

      Delete
  6. Anonymous12:41

    They changed they business model to a hybrid/whatever model and it basically means you get less service for a higher price- and even in this way they did not reduce costs.
    Austrian was ini similar similar situation, but they were saved by Lufthansa in the last moment.
    I dont think Adria will be that lucky- because Adria is just too small for anybody to cover its loses and invest in it

    ReplyDelete
    Replies
    1. Anonymous13:38

      Taj ibridni model primenjuju u celom LH toru sa manjim clanovima, ali slabi su im izgledi.

      Delete
    2. Anonymous15:51

      less service??? its zero sevice now!

      Delete
  7. Service15:55

    1,5l liter water (sparkling or not) cost 19c in LIDL. You need maybe 10 bottles for a flight , which means 2€

    How low can u get Adria?

    ReplyDelete
    Replies
    1. Anonymous16:07

      if it is that bad, then why don't you bring your own water bottle or bottle of water from home ? No one is forcing you to buy their water ... same as on all LCC's ....

      Delete
    2. Anonymous16:42

      Probably in the "old" times" Adria catering was a lucrative business: overpaid and done mafia style
      ------ because I can't see that much money saving if you don't provide a single biscuit, sandwich and a glass of water or other drink.
      ------ providing "free" glass of water or soft drink would be better for the image of the company
      you can do savings
      facing CORRUPTION into Adria operations and (so called) business deals.

      Delete
    3. Anonymous16:57

      volim kad exYU ostavlja ovakve kao @4:07PM. kakvo kolosalno poznavanje materije. zatim se nadovezuju "strucnjaci",

      Delete
    4. Anonymous17:24

      @4:07PM

      Because, i'll remind you, you're forbidden to take any liquids on-board.

      Delete
    5. Anonymous18:39

      @5:24 It is not forbidden to take water on board, how ever the container should not be bigger than 100ml. U can take as much as 10 bottles(containers) of 100ml, or 1 liter in total.

      Delete
    6. Anonymous20:35

      Are you for real?

      Delete
    7. Anonymous20:41

      @6:39 PM was being sarcastic or probably joking...
      otheriwise I wonder if he's entered an airport/airplane in the last.... 10 years?

      Delete
    8. Anonymous20:59

      Yeah, i'm wondering the same.

      Delete
    9. Anonymous22:19

      @8:41
      https://www.tsa.gov/travel/security-screening/liquids-rule
      Right back at you

      Delete
  8. This comment has been removed by the author.

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  9. This comment has been removed by the author.

    ReplyDelete
  10. Anonymous20:28

    Može i njihov državni revizor da ih kontroliše. Ne mora da bude ni KPMG ni Deloite. Jedino ako im se ne dopada ono što piše u njhovim izveštajima

    ReplyDelete
  11. Anonymous00:03

    Anzur and the uncapable guys from the Komercijala shld step down. Get some aviation cracks fm Germany or the UK and JP has maybe a future again
    if not, JP will end like MA

    Flights MBX-Southend were big loss made by Komercijala
    Lets not publish JP internas, but people wouldnt believe what kind of fools are working there

    ReplyDelete
    Replies
    1. Anonymous09:32

      "if not, JP will end like MA"...without ever being MA.

      Delete
    2. Anonymous21:14

      and crew is demanding luxury hotel, better catering and similar shit like they are some kind of good standing company...

      Delete

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