Adria assessment complete

Adria’s future to be decided in March

An independent auditor has completed its assessment of Adria Airways’ financial performance. Its findings will be presented to the Ministry of Transport which will then decide whether to extend Adria Airways’ operating license. If it decides against prolonging the license, the Slovenian carrier will be grounded. The ministry has until mid March to make their decision.

Meanwhile, changes are set to be made at the top of the embattled state carrier. The CEO, Tadej Tufek, is expected to resign. It is believed the management changes were discussed at yesterday’s management board meeting. Recently, the airline received 4 million Euros in bailout funds by Slovenian banks. However, recent information has come to light that Slovenia’s largest bank (and Adria share owner) NLB, has backed out of the credit arrangement. The bank gave Adria a 6 million Euro loan in early 2010 which is yet to be payed off.

In light of the airline’s worsening financial performance, Adria is now planning, besides cutting its workforce and salaries, on cutting destinations. In 2010, Adria handled 1.170.235 passengers, an increase of 2.3% compared to 2009. Adria recently launched a promotional ticket sale, symbolically slashing prices up to 50% for its 50th birthday anniversary, to be celebrated in March.