Slovenian regulator ends Adria audit


The Civil Aviation Agency of Slovenia has completed its audit of Adria Airways' business after obligating the carrier to submit proof of its liquidity. The regulator found that the Slovenian airline successfully proved its future financial stability, ending speculation that its Air Operator's Certificate (AOC) could be revoked. Adria's owner, 4K Invest, injected four million euros into the carrier late last year and promised a further ten million euros in funding during the first quarter of 2019. The agency launched an investigation into the airline's operations after it was determined that it met one of the conditions for declaring insolvency based on its 2017 financial report.

In a statement, the carrier said, "The Agency found that Adria Airways, with its implemented and planned business and financial measures, proved it is able to settle all of its obligations over a long period of time and that, in the long-run, is solvent based on all legal criteria. Furthermore, it fulfilled all necessary requirements set for holders of an operating license". It added, "At the same time, in several separate procedures, the Agency confirmed that Adria Airways meets all technical requirements which ensure appropriate aviation safety levels". The airline's CEO, Holger Kowarsch, said, "I did not expect for any other decision to be made by the Agency, as Adria Airways has always been in compliance with the requirements of the operating license holder".

Mr Kowarsch noted the airline would continue implementing its restructuring program. "I regret that there have been so many false and misleading reports in recent months about the company's business condition. However, at the same time, I am looking forward to continuing with the implementation of our strategic plan and building on the long-term development of the Slovenian airline. We will further adjust our network of flights, add frequencies and also keep all connections to major European hubs". The company recently said it was "positive about the future". "Sustainable growth remains Adria Airways’ long-term goal", it noted. "This year's winter season focuses more on the stability of operations in the segment of scheduled transport and the strengthening of relations with other airlines".

Comments

  1. I don't know what JP did wrong? Too many aircraft and too low load factors? Salaries above industry avarage...wrong pricing? I have no clue, does anybody know the reasons for all these problems they keep having.

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    1. Its more damage created by rumors spread on them and exaggerating operational irregularities airlines have these days as end of the world by some people for reasons they only know. Media is having their part of fun by exaggerating these rumors and writing some funny stories.

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    2. Finance reported last week that they owe over 1 million euros to suppliers.

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    3. They owe 1 million to just one supplier (Slovenia Control). They owe many millions to Fraport, Petrol, passengers.

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    4. That does not sound good.

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    5. No, it doesn't. Everything hinges on the supposed 10 million capital injection they will be making in February.

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    6. Adria isn't in problems because of the media. Trust me.

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    7. When will 4k give the remaining 10 million to Adria? Is it certain in Feb.?

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    8. Sometime until March. And the question is, if the 4 million they injected was real money or fictitious money from the merger with one of their companies. The media said they did pay some of money to the contractors, but no one know how much, since JP is a private business.

      Anyhow, the only way they can go bankrupt is if one of the contractors pulls the plug.

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  2. It was farfetched to think that the agency which is made up of former Adria employees would revoke Adria's license.

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    1. Exactly. Agency director used to be Adria's COO from 2012 to 2013 and assistant director of flight operations from 2006-2012.

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    2. Slovenian CAA has never revoked an AOC based on solvency. So don't expect it to do it with JP.

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    3. Did they revoke VLM's AOC? Or Did they go bust first?

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    4. Of couree not. They went bust together with their Slovenian AOC.

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  3. Well done Adria. Prove the haters wrong yet again.

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    1. Haters... They still owe more than 1 million EUR to Sloveniacontrol alone and last time they paid the fees in full was JUNE last year.

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    2. @9:00 What do you and me have to burn if they are able to manage their finances together and keep the airline running serving the interests of our country?

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    3. Interests of the country? Politicians travelling to BRU yes, but GoOpti is making a lot of money shuttling pax to TSF, VCE, BLQ and BGY where ordinary people have cheaper options to fly.

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    4. National airline is economically, meaning at the same time politically, very expensive but also very needed toy! I am one of those who strongly believe that national carrier in countries in our region is very economically and politically vital issue,

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  4. Can I ask will they really get Sukhois? For an airline that is supposed to take delivery of them in 3 months they don't seem to be training crew for them, the equipment is not in the system for any of their flights etc.

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    1. Don't worry, they have recent history of successful introduction of new type to service. Look at how successful the Saab story is.... Oh, wait :)

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    2. I still don't understand why they need 15 SSJs. Will they replace entire Bombarider fleet?

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    3. There are no plans to replace CRJs. All CRJ leases have been extended. So it's a good question why they need all those planes.

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    4. If they do get them, might be a good idea to refresh the livery and brand.

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    5. Yes, when they are struggling to make ends meet, that's just what they need, million to spend on a brand refresh.

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    6. Well Alitalia changed its barely year old uniforms during bankruptcy so stranger things have happened :D

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  5. I'm happy they are keeping their license. What I'm not happy about is the state of the airline with purchased Saabs nonoperational because they are sh*t planes, still a lot of cancelations and delays, and the elephant in the room which is this Sukhoi business.

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    1. I did not see any cancellations or delays other than weather related in the past month from them.

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    2. Yes, because their ACMI business is considerably smaller than before. Which menas, less money. Which is bad.

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    3. How many planes will Adria wet lease through ACMI in S2019?

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    4. It was said by Kowarsch, I think in the region of 6-8 planes (Luxair, LH, Austrian, Brussels). Now, I'm not sure anymore, since things change on daily basis and one would think they would talk about it 24/7.

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    5. Seems reason why they didn't operate many Saab services in the past was that they have barely any pilots with valid S20 licenses.

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  6. This cat has nine lives.

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    1. How many of these does it have left?

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    2. If you count all the recapitalizations in the past 20 years, they are more like on life 15.

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  7. what are these long term plans Adria has? They keep mentioning them but I really don't know what they are?

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  8. I'm glad for JP, hope things will get better for them in the future!

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  9. Have any Adria pilots started Sukhoi type ratings?

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    1. It is possible that Sukhoi would offer dinner crew at the beginning.

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    2. Sukhoi has flight-crews that can send around the world?

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  10. Fewer flights from Ljubljana, big losses, focus on different markets... and Aviation agency is happy.

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    1. It might not be happy but they can't revoke someone's operating license just because you don't like their strategy.

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    2. Can't wait to see the next strategic shift to come from Adria.

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    3. I think a very interesting summer is coming up for Adria. Let's wait and see.

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  11. For the news like this I would be expecting to be published by CAA, not the one who's being investigated. I'm sure EASA or any other agency than Slovenian CAA might come to different conclutions. Well, let's wait now for the next twist.

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    1. You expect too much. Slovenian CAA can't even keep up with basic ICAO requirements, let alone anything else.

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    2. The latest unable to keep with ICAO standards was Croatia, who failed to implement Annex 17. But that's not important when sector has a double digit growth which blinds politics, industry and the most of its own people.
      Slovenian CAA is a birocratic mess byproduct of politics who run inadequate transport politics since the independance while the slovenian commissioner for transport in EU (VB) reintegrated the twitter for facebook like a little girl before new elections.
      JP is a financial mess since a decade so CAA might learn how to agequate monitor liquidity of the only airline registered in the country doing public pax transport in it.

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    3. This is true. Political wrangling is also the reason why we have an absolute mess at Maribor Airport at the moment.

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  12. Finally some good news to finally stop the ongoing scaremongering. JP will prosper and the dough secured by the investor.
    Get the Ruski jets and start expanding at once!
    Sorry for all you haters, look elsewhere today.

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    1. We are. Reading the news about 1 mio debt in ATC fees alone. But all is well!

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    2. And your point is?
      OU also had problems and got fixed by selling slots and engines. They are now okay.
      JU turned from boutique to lowcost. They are now okay.
      YM also made massive changes and now they are okay.

      JP will undergo structuring and modernise LJU as a regional hub and LH groupn synchronised feeder.

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    3. OU had something to sell...JP has no capital left.

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    4. Is JP a private company now?

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  13. Frequencies will be added? To where. As far as I have seen almost none of the new destinations launched in 2018 are coming back this summer.

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    1. They will probably do that when they sign firm deal for SSJs. Next month.

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    2. Ok let's see.

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  14. It's amazing Adria finds itself in the same situation as in 2011 when Aviation Agency also had to decide if they would revoke their license. You think they would have learned from their mistakes.

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    1. It makes you wonder what was the point of selling the company if it's in the same state as 8 years ago.

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    2. The point was to stop spending taxpayers money for bailing it out.

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    3. And they succeeded in that.

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    4. 10:01

      That's not true: the owe Slovenia Control more than a million (public company), they owe Petrol (state owned), Fraport (majority owned by the German state of Hesse), they owe A LOT of money to the passengers (Slovenes, Albanians, Germans etc) - point beeing, nothing in todays world is isolated.

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    5. The point should have been to find a sustainable partner beause far too many state companies directly rely on Adria, as service proviers. If Adia goes bust, their situation will worsen too.

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    6. +1 last anon.

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  15. How many pax did Adria have in 2018 at the end?

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    1. Last fwo months of the year at LJU would indicator that numbers are declining.

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    2. Yes it will be easy to monitor their performance based on LJU figures. Not sure how many 0ax they handled last year.

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  16. Slovenian CAA would never revoke Adria's AOC.

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  17. Hopefully things do get better like the CEO promised.

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  18. Is it the net salary, for the same work, of the various people (aircrew, administration, director(s) etc.) working at Adria lower or higher than few years ago?

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  19. Bravo Slovenija!

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  20. Must have been very straightforward if they managed to complete te audit in 20 days.

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    Replies
    1. They jut have to conclude if they have enough money to survive the year. It isn't rocket science.

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  21. wow so much hate towards Adria.

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    1. It's not "hate" at all.it's just pure frustration at how the company is being mismanaged. I'm sure we all want to see Adria prosper.

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  22. Any new routes this year?

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  23. Congratulations Adria.

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  24. I would not be supprised if 10mil will come from russians. In first quarter ssj will come, so if you ask me sukoi will put 10 mil into the Adria not 4K.

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  25. They cancelled LJU-SVO!!! :(

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