Adria fighting to keep aircraft from repossession
Adria Airways is negotiating with creditors after it was revealed an aircraft leasing company plans to repossess two of the carrier’s Bombardier CRJ900 jets over outstanding debt. The airline’s CEO, Holger Kowarch, said talks with lessors are still ongoing. Adria has twelve Bombardier aircraft in its fleet, although half of them are being wet-leased through ACMI contracts to other airlines. The Slovenian carrier itself does not own any planes. Among its CRJ900 fleet, four are under contract until 2022, another two until 2026 and 2027, while one of the jets is being leased through a pay-by-the-hour agreement, where Adria pays its dues to the lessor based on aircraft utilisation. The remaining two are under long-term leases.
Adria has been beset by delays, flight cancellations and last-minute merging of flights as it seeks to find a strategic partner which would provide much needed capital. The airline is expected to operate 22 flights out of Ljubljana this Friday, three of which are charters. The Slovenian Civil Aviation Agency has said it is reviewing Adria’s business and will conclude whether the carrier should be reissued an operating license by the end of October, which is standard procedure. Adria is believed to have registered a loss of over ten million euros during the first half of this year. Its passenger numbers have also declined, and the company has amassed debt of sixty million euros to creditors.
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 currently operated by Adria Airways, in case of the latter's demise. “It would be four or five destinations, not all of Adria’s flights”, the Slovenian Deputy Prime Minister and Minister for Infrastructure, Alenka Bratušek, said recently. The Slovenian government previously noted it had developed contingency plans in case Adria discontinued flying and could "no longer connect Ljubljana with European capitals”. It added, “This is all the government can do at the moment".
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