Adria asks for 50 million Euros

Adria requests for government aid
Adria Airways has asked the Slovenian Government for 50 million Euros in order for the national carrier to continue its operations. Although the European Union Competition Commission outlines that financial support to established airlines is in breach of EU competition laws on state aid, emergency support is allowed under EU rules for the rescue and restructuring of firms in difficulty. Next week, the Slovenian Government will set out conditions the airline must fulfil in order to be eligible for state aid. It did not disclose the amount it is willing to give to the national carrier. On Friday the government met to discuss potential business restructuring models for Adria, although no decision was made.

Adria Airways has cumulated up to 100 million Euros in debt so far. It has already been issued a short term loan this year, while Ljubljana Airport wrote off debt owed by its main customer to the tune of 2.4 million Euros. In return, it received a stake in the airline’s technical division. Despite recent media reports that the government plans to sell Adria, the airline’s management recently announced that privatisation is not on the cards.


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