Adria requests another 40 million

Another bailout loan for Adria

Slovenia’s national carrier Adria Airways, which has requested 50 million Euros in state aid to help its fledgling finances, will also take out another 40 million Euro loan from the banks, the Slovenian “Dnevnik” reports. This is despite the fact that Adria already owes millions in unpaid loans to banks and has managed to accumulate debt of up to 100 million Euros. It is believed that the airline can only continue operations with the government aid and another loan from the banks. The airline is currently in talks with Nova Ljubljanska banka (NLB bank) to negotiate the terms for the large loan. NLB owns a 6% stake in the Slovenian national carrier.

Meanwhile, the Slovenian Government decided on Thursday it would consult MPs on the possibility of state aid to the indebted Slovenian flag carrier. It proposed the issue be discussed at the Economy, Transport and Finance committees within the Slovenian Parliament. The Minister for Transport, Patrick Vlačič, said the government is expected to make a decision whether to grant Adria the needed cash during next week.

Adria handled 409.265 passengers in the first 5 months of the year, which is a moderate increase compared to the same period last year. A total of 1.170.235 passengers flew with Adria in 2010.