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Adria Airways Files for Bankruptcy

On Monday, September 30, 2019, Slovenia’s national airline, Adria Airways, filed for bankruptcy. This comes after the carrier, based in the Slovenian capital of Ljubljana, had canceled most flights from September 25th. It is the seventh European airline to cease operations in 2019.

Adria Airways the Latest European Airline to Fail

Adria Airways has become the fourth European airline to cease operations in September, following the collapses of Aigle Azur, XL Airways France, and Thomas Cook earlier in the month. Germania, Flybmi and WOW air complete the list of European airline fatalities of 2019. The airline has ‘filed a motion for bankruptcy proceedings of the company at the Kranj District Court’. The court has a three day period within which it shall decide on the opening of bankruptcy proceedings. All scheduled flights have been canceled.

Thomas Cook Group entered compulsory liquidation on September 23.
Video: The Telegraph

What Happened?

Last Tuesday, Adria temporarily suspended almost all of their flights (all but a couple of flights to Frankfurt) through September 25. For quite a while the airline has been struggling financially. Things got so bad last week that they started to have aircraft repossessed as they couldn’t afford to pay for them any longer. The airline kept extending the ‘temporary’ suspension, first to September 27 and then through the weekend to September 30. The airline had intended to resume flights today. But when another of their planes was repossessed this morning, the company again canceled all flights. A few hours later, Adria Airways announced that it had filed for bankruptcy.

Four European airlines, including XL Airways France (pictured), Aigle Azur, Thomas Cook and Adria Airways have ceased operations in the month of September.
XL Airways France was one of four European Airlines to cease operations in September.
Image: Eric Salard on Flickr

What Will Slovenia Do Now?

The government of Slovenia had refused to bail out Adria Airways as long as it remains under its current ownership. The Prime Minister of Slovenia, Marjan Šarec, posted a lengthy statement on Facebook in which he said:

“The state will not give financial assistance to the company under its present owner under any circumstances, because they would throw money away, and the law forbids it. In the long past, a lot of money was thrown into the company by the state and eventually sold. I dare say that if everyone who managed the company on behalf of the country did their job well, we would not have any problems today.”

He went on to say that the government is now ‘preparing for the next period’. The plan is to either set up a new airline or provide connectivity through other carriers. Slovenia is set to preside over the EU Council in 2021, so whichever option the government chooses, it will have to act fast to ensure connectivity to/from Slovenia is up to the task.

Featured Image Source: Eric Salard on Flickr.

Editors Comment

Heres’ an excellent LinkedIn-comment to this article:

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