Adria Airways temporarily ceases operations
Adria Airways has suspended all operations as of this evening. The carrier says the move is temporary, and will last throughout Tuesday and Wednesday. It leaves 558 employees in limbo and several hundred stranded passengers. The Slovenian Civil Aviation Agency is expected to revoke the airline’s Air Operators’ Certificate in the coming day. In a statement, the airline said, "The decision to temporarily cease flight operations is a consequence of currently unsecured access to fresh cash which airline needs for further flight operations. Company is at this point intensively searching solutions in cooperation with potential investor. Goal of everyone involved is to make Adria Airways fly again and that ceasing of operations is indeed temporarily".
Adria Airways was privatised in 2016. It was purchased by AA International Holding, a wholly-owned subsidiary of the Munich-based turnaround fund 4K Invest, which has since been accused of mismanaging the company. It purchased a 91.58% stake in Adria at a price of 100.000 euros and later bought the remaining shares in order to secure 100% ownership. The transaction marked its first investment in the aviation sector. Adria sold its brand name to a 4K-affiliated company for eight million euros in 2017, injecting much-needed capital into the airline at the time. In December 2018, Adria Airways absorbed the company STBE through a merger and acquisition. The move increased the airline's share capital and changed its ownership structure. Its majority ownership (54.3%) was passed onto Stefan Beulertz, a lawyer residing in Malta, who was a close partner of 4K Invest. The Slovenian Ministry for Infrastructure, noted, “Minister [for Infrastructure] Alenka Bratušek repeatedly warned that the airline’s sale to the German capital fund was a mistake and that the then government of Slovenia should have found a strategic partner within the aviation industry that would have ensured the long-term existence and development of the carrier”.
The Slovenian government previously said it was seeking to modify the country’s aviation legislation which would enable it to subsidise a select number of routes which were operated by Adria. "Our key concern at the moment is to ensure the maximum security and safety of air operations in the country. It is our responsibility to ensure Slovenia's connectivity with the outside world, so we have prepared a legislative proposal that will, if necessary, enable subsidies for some airlines", the Slovenian Ministry for Infrastructure said recently. However, it warned, “This is a complicated and time-consuming process, which must be approved by the European Commission”.
Adria’s employees issued an emotional public letter yesterday afternoon. They noted, “There are 558 of us, each with their own face, name and story. On a daily basis, we ensure that our planes bring passengers to their destination safely. We are not just pilots and flight attendants, we are also the operations centre, ground services, commercial department, call centres, support services. 558. Each of us is a key link in this chain of responsibility and trust, and no one is alone. However, for us, Adria Airways is far from just being our job. It is not just a company flashed on the newspaper covers and a blue and green brand. It is our lives as well. The lives of our families are forever intertwined with Adria Airways. For many, Adria Airways is a family member. It is a friend that encourages us not to give up. It is the parent that you want to make proud. It is the annoying kid that tugs you on your sleeve at the wrong time. It is a partner, with to whom you compromise... To work in existing circumstances and among the public, which seems it can hardly wait for a part of us to die, is difficult…Our message is only one: We want to continue flying. We are proud to be Adria Airways! The airline’s flight from #Ljubljana to Brussels yesterday morning had a special callsign, at the request of the pilots - Adria Forever (ADR4EVER).
This news item will be updated during the day.
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