Slovenian PM slams Adria Airways
The Slovenian Prime Minister, Marjan Šarec, who assumed office last September, has criticised Adria Airways' owners and questioned the airline's sustainability. Mr Šarec said Adria was an example of a Slovenian brand tarnished by foreign investors. Furthermore, he noted the previous government failed to sell the company to Lufthansa and turned to the turnaround fund 4K Invest instead. The German national carrier has never officially expressed any interest in the Slovenian airline and continues to cooperate with Adria through a wide-ranging codeshare partnership, as well as aircraft leasing. "Today I wonder how long our Adria will continue flying", the Prime Minister said. The Slovenian government sold its 100% stake in the carrier in 2016. It recently adopted plans to subsidise airlines for the launch of new routes or frequencies to Ljubljana Airport from select markets in an attempt to improve the country's air connectivity by 2021.
Adria Airways has not responded to the Prime Minister's criticism. Its CEO, Holger Kowarsch, previously said the airline's financial loss in 2018 would be "significant" but added that the company would be placed on "firm foundations". "Slovenia needs its airline, because it is very important for Slovenian society, tourism and economy that a national carrier operates from Ljubljana Airport", Mr Kowarsch said earlier this year. At the time, he added that the company would not file for bankruptcy, "contrary to what many wished for". According to the Slovenian national statistical office, Adria Airways handled 212.400 passengers during the first quarter, down 7% year-on-year.
In 2015, three Germen investment companies, Intro Aviation, 4K Invest and Callisto, submitted bids for Adria Airways. 4K Invest eventually acquired a 96.09% stake in Adria through its affiliate AA International Aviation Holding for 100.000 euros and an additional one million euro capital injection. It later purchased the remaining shares for just under 45.000 euros. The arrangement also involved the Slovenian government injecting an additional 3.1 million euros into the carrier. The company recently noted it is upbeat over its prospects for 2019 and expects to return to profitability by year's end. "We continue to invest all of our efforts into greater operational excellence, reliability and maintaining business stability", it said.
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