4K Invest to inject further €4 million into Adria
Adria Airways' owner 4K Invest will recapitalise the company with an additional four million euros, on top of the ten million it has already committed to investing into the airline during the first quarter of 2019. The funds will be used for "further business development of the Slovenian airline". In a statement, the company said, "The decision was adopted taking into account the firm commitments and strong beliefs of the owner in the successful future of the Slovenian airline, which is becoming one of the strongest regional air carriers, operating scheduled and ACMI services in Central and South East Europe". Last month, the Slovenian Civil Aviation Agency warned Adria it needed to provide proof of its liquidity by the end of the year or face penalties.
Adria's CEO, Holger Kowarsch, said, "We work hard to position Adria Airways as a stable business for further growth. We already achieved substantial development and we will continue to expand the potentials of this company and build it into an even stronger airline in the future", Previously, Mr Kowarsch noted that 4K Invest has long-term plans for the Slovenian carrier. "Our plans for Adria are long-term and we want the company to grow and develop in the future. We see huge potential in the company, with our priority being to stabilise our operations and restore the trust of our passengers. There is a lot of hard work ahead of us, but we are confident that we will succeed", the CEO said.
Initially, 4K intended to recapitalise the Slovenian carrier with at least ten million euros by the end of the year, however, this has been pushed back until the first quarter of 2019. The airline's owner has not said when the latest four million euro recapitalisation payment will be made. Adria has faced significant operational issues over the past few months, which the airline blames on crew shortages and technical problems with some of its aircraft. The situation has somewhat dissipated with the suspension of three routes, which were planned to operate throughout the winter. However, Adria has previously said that sporadic flight cancellations may persist until December.
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