Adria Airways files for Bankruptcy

The autumn of discontent continues, with Adria Airways of Slovenia filing for bankruptcy today, after running a skeleton service the past week.

Adria Airways CRJ-700, Image via their Facebook presence.

All future services have been cancelled, with the airline permanently grounded.

The airline filed for a motion for bankruptcy proceeding at Kranj District Court.

According to the airline

Bankruptcy proceedings were initiated by the management of the company because of the company’s insolvency and based on the Slovenian Financial Operations, Insolvency Proceedings, and Compulsory Dissolution Act (ZFPPIPP) which obligates the management of a company in the position of Adria Airways to file for bankruptcy proceedings of the company.

At the time of the grounding, the A319 fleet had been repossessed by a lessor already, with the airline operating its Bombardier fleet of CRJ-700 and CRJ-900 also now heading for other operators as lessors seek reclaim their equipment.

The airline was a 58 year old veteran at the time of grounding, as well as an active Star Alliance member.

Expect more ahead

With no plan forward to recapitalise the airline or state aid – the airline failed. And sadly, this won’t be the last airline to fall this year, with lessors and credit card companies wanting to ensure liquidity.

And as usual – there are those who worked for the airline. The airline had 508 staff as of December 2018 – all of which will now be looking for new work.

For Slovenia, there will be other airlines with strong cost structures – be they low-cost carriers or full carriers who will be weighing up to return capacity to the airport.

Let’s hope its sooner, rather than later for both the staff of the airline and the network capacity.

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