Adria Crisis: Receivership Process Launched, Refund Details Announced

By , 02 Oct 2019, 17:54 PM Business
The airline as Pan Adria, 1971 The airline as Pan Adria, 1971 Wikimedia

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STA, 2 October 2019 - The Kranj District Court launched today receivership proceedings for Adria Ariways, after the German-owned air carrier filed for receivership on Monday.

The procedure, in which creditors will have three months to file their claims, will be managed by receiver Janez Pustatičnik.

Passengers who had bought tickets for Adria's flights which were subsequently cancelled have been urged to report their claims as well.

Those who bought the tickets with their bank card can ask their banks for a refund, the Market Inspectorate said today. If their motion is denied, they can turn to the Slovenian Bank Association.

The Slovenian flag carrier, which was sold to the German turnaround fund 4K Invest in 2016, said on Monday that the proposal had been filed due to insolvency and in line with legal provisions applying in such a situation.

Adria had been struggling with financial difficulties for some time, with the problems deepening further after the sale, even though the new owner announced growth, several capital increases and a new strategic partner.

Adria ended up selling all of its planes, while several of those rented were confiscated in recent years by leasing companies due to unpaid debts. The company, which employs 558 people, also owes part of the August wages and has reportedly failed to pay the social contributions for September.

After the management filed for receivership on Monday, the Civil Aviation Agency also automatically revoked the air carrier's operating license.

Other airlines are already moving to fill the void created by Adria's collapse. The German Lufthansa and its subsidiary Swiss International Airlines, both of which are members of the Star Alliance, will be offering flights connecting Ljubljana to Frankfurt, Munich and Zurich, in the winter season.

Next to the links with Brussels and Vienna, these connections are considered crucial for Slovenia's connectivity with the world.

The Belgian air carrier Brussels Airlines, also part of Lufthansa Group, is introducing six Brussels-Ljubljana flights a week. Tickets are available for sale as of today, while the first flights are scheduled for 4 November.

Several other companies already flying to Ljubljana are also increasing the number of flights to the Slovenian capital and using bigger planes for the route to adjust to the larger number of passengers.

Receivership proceedings were also launched today at the Kranj District Court for Adria's subsidiary Adria Airways Letalska Šola, which used to train Adria's pilots. Blaž Poljanšek was appointed receiver.

Adria's school for pilots was set up in 1980 in cooperation with the Ljubljana Faculty of Mechanical Engineering. Initially, it was to train only future Adria pilots, but later offered training for pilots of private sports planes as well as professional pilots of the highest ranks. It has trained more than 2,800 pilots.

Its last year's revenue topped EUR 300,000, while net lost almost reached EUR 340,000. The company also had more than EUR 840,000 in short-term liabilities.

All our stories about Adria are here

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